Brazilian airlines are set to receive R$ 4 billion($ 730 Million) in financing from the National Civil Aviation Fund (FNAC). The agreement was officially signed this Monday (Dec 30) by the Ministry of Ports and Airports and the National Bank for Economic and Social Development (BNDES).
The initiative aims to revitalize the sector following the economic impact of the pandemic, boost the domestic aerospace industry, and accelerate the transition to sustainable fuel.
Financing and Timeline
The BNDES will act as the official financial agent for the fund. According to the Ministry of Ports and Airports, the first loan applications are expected to be released in the first quarter of 2026.
- Interest Rates: The financing will carry annual interest rates ranging from 6.5% to 7.5%, depending on the specific credit line.
- Scope: There are six distinct financing lines available, covering the purchase of aircraft, maintenance of planes and engines, and the acquisition of Sustainable Aviation Fuel (SAF).
“With the signing of the contract, we have all the conditions to start next year with financing for airlines, which went through a serious period during the pandemic and now will be able to use these resources,”
– Silvio Costa Filho, Minister of Ports and Airports.
Boost for Embraer
A central strategy of the financing package is to incentivize the use of Brazilian-manufactured aircraft. The funds are designed to facilitate the acquisition of Embraer jets by the country’s three major carriers: Azul, Latam, and Gol.
- Azul: Currently the only major Brazilian carrier operating Embraer jets in its fleet.
- Latam: The carrier is scheduled to receive 24 Embraer 195-E2 aircraft next year. These planes, capable of carrying 136 passengers, are eligible for purchase using the new BNDES funds.
- Gol: The airline is expected to announce the purchase of Embraer aircraft in the near future.
Sustainability and Regional Requirements
Access to the R$ 4 billion fund comes with strict environmental and operational conditions attached:
- Green Fuel Targets: Airlines are required to purchase locally produced SAF. They must achieve a reduction in CO2 emissions that exceeds the current legal target (which mandates a 1 percentage point increase in efficiency per year until reaching 10%).
- Regional Connectivity: Carriers must increase the number of flights in the Legal Amazon and the Northeast regions compared to their 2024 flight volumes.
- Dividend Restrictions: Companies that take out these loans are prohibited from increasing profit distributions to shareholders during the loan’s grace period.
Source: IG
