CEO of Latam Brasil says he is optimistic that the Senate can block PL das Bagagens

The CEO of Latam Brasil, Jerome Cadier, said he was optimistic about the possibility of the Senate blocking Bill 5,041/2025, approved by the Chamber, which reinstates free checked baggage and imposes new commercial obligations on airlines.

In an exclusive interview with Broadcast (Grupo Estado’s real-time news system), the executive highlighted possible impacts on prices and non-compliance with international standards.

“The Senate will have time to understand and read the statements from bodies such as the Ministry of Finance, Anac and the Ministry of Ports and Airports, which have very solid arguments for this PL not to move forward”, stated Cadier. “This is a misalignment of everything that is being done around the world.”

According to the CEO, the obligation to include baggage in fares eliminates the mechanism that allows companies to offer lower prices. “The most basic fare will disappear and only the most expensive ones will remain. It’s very simple,” he told Broadcast in Blue Zone of COP30.

In addition to baggage, the bill, approved by the Chamber of Deputies at the end of October, prohibits charging for choosing standard seats.

It also prevents the automatic cancellation of the return leg when the outbound leg is not used without the express authorization of the passenger and determines that people in need of special assistance can have up to two additional seats free of charge.

For Cadier, the set of measures was constructed without analyzing the economic impacts and without adequate consultation with the sector. “If the intention is to defend the passenger, the effect is exactly the opposite,” he stated.

International reviews

Criticism is not limited to Brazilian airlines. “If you don’t want to listen to Brazilian companies, listen to international companies. All of them, including foreign companies operating in the country, said that this will increase ticket prices and that it is a setback. We will grow less”, said the CEO.

After the approval of the PL, the International Air Transport Association (Iata) and the Latin American and Caribbean Air Transport Association (Alta) classified the text as a “historical setback”, with the potential to make travel more expensive, reduce connectivity and make operations unfeasible.

For the entities, the Senate must reconsider the project and promote structured dialogue with the airline sector.

The associations also warned that the imposition of rules such as mandatory free baggage, commercial restrictions and specific standards for international operations creates an additional level of complexity that moves Brazil away from best practices and reduces its attractiveness as a regional hub.

“Measures like this only add costs, reduce efficiency and discourage new connectivity,” said Peter Cerdá, IATA regional vice president for the Americas and CEO of Alta.