Brazil handles more than 95% of all judicial claims against airlines worldwide, despite representing only 3% of global air traffic, according to Jerome Cadier, CEO of LATAM Airlines Brazil.
Cadier made the statement at the Brazilian Aviation Forum in Brasilia, organized by the National Civil Aviation Agency (ANAC) and the International Air Transport Association (IATA). He highlighted the judicialization of air transport as a major concern for the sector.
Other reports indicate Brazil accounts for around 90% of such lawsuits globally. The Brazilian Association of Airlines (ABEAR) projects 250,000 cases in 2024, following a resolution rate of 81.53% in 2023.
Brazil’s litigation rate dwarfs that of the United States, with one lawsuit per 227 passengers in Brazil compared to one per 1,254,561 in the US—a difference of 5,000 times. The COVID-19 pandemic exacerbated the trend by introducing new disputes.
Recently, Brazil’s Supreme Federal Court (STF), through Minister Dias Toffoli, limited a prior nationwide suspension of lawsuits against airlines. The ruling in Recurso Extraordinario com Agravo 1.560.244 clarifies that not all consumer claims should be frozen, particularly those unrelated to operational safety or weather, reactivating cases involving overbooking and service failures.
This high volume of litigation significantly impacts airline costs, requiring substantial provisions for legal contingencies.