Brazil's Azul rebounds with economy, Olympics

A Brazilian airline executive said economic troubles have hurt the carrier more than fears of Zika, the mosquito-borne virus that causes birth defects after infecting pregnant women.

But David Neeleman, the CEO of Azul Airlines who previously helped found JetBlue, told Bloomberg television Tuesday that the economy is rebounding and visitors are enjoying the Olympics hosted in Rio de Janeiro.

“You know, Azul fares were very low from Brazil to United States, and now, there's no visa requirement through September, and so, you know, our business is planes are full, fares are up,” Neeleman said. “So we're — we're very happy.”

While hosting the Olympics, Brazil waived its visa program for tourists from June 1 to Sept. 18, according to the U.S. State Department. But travelers should check with the Brazilian consulate to confirm their travel status, the department said.

Neeleman said he and his wife got to Rio on Thursday for the Olympics and went to the opening ceremonies Friday and then seven events – without seeing a mosquito.

“We're seeing a lot of traffic into Rio right now,” Neeleman told Bloomberg. “People are saying, ‘I want to be a part of this Olympics, it'll be probably the only time in our lifetime we see the Olympics in Brazil.’”

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Zika was a concern more for U.S. or European travelers visiting Brazil, Neeleman said. But about two-thirds of Azul’s business caters to corporate customers, and to Brazilians flying to Europe rather than the other way around.

A bigger concern had been a 30% devaluation in the real, Brazil's currency. While U.S. airlines enjoyed a windfall in lower fuel prices, Neeleman said the real fell along with oil prices so the airline didn’t benefit.

Meanwhile, the airline pays two-thirds of expenses for debt and aircraft costs in dollars, so the currency disadvantage hurt again.

But the real is strengthening against the dollar, so business is improving, Neeleman said.

“It's doing much, much better,” he said.