Brazil Authorizes R$8 Billion Credit to Support Airlines

Overview

• The federal government published Medida Provisória 1.368/2026 on Friday, June 19, authorizing an R$ 8 billion extraordinary credit to help airlines cope with a sudden rise in fuel costs.
• The money will be transferred to the Ministry of Ports and Airports and given to the Fundo Nacional de Aviação Civil (Fnac) to run a line of repayable working-capital loans for carriers rather than direct grants.
• Officials say the measure responds to a jump of more than 70% in jet‑fuel (QAV) prices driven by tensions in the Middle East and instability around the Strait of Hormuz, which sharply raised airlines’ operating costs.
• The stated goal is to preserve the national flight network, avoid route cancellations and limit immediate fare shocks for passengers, with the economy team monitoring oil markets to decide when to end support.
• The loan structure aims to protect cash flow without permanent fiscal transfers but creates contingent fiscal exposure, so markets will watch carrier take-up, repayment terms and the timing of any phase‑out as prices normalize.