Brazilian carrier Azul SA and the principal shareholder for rival Gol Linhas Aereas Inteligentes SA reached an agreement to work toward a merger, potentially creating one of the largest airlines in Latin America.

In the face of Latin American airline losses due to the current high cost of living, the government's financial intervention may boost the sector.

The Brazilian government has expressed its support for the potential merger between Brazil’s two low-cost carriers (LCC), GOL Linhas Aéreas Inteligentes (G3) and Azul Linhas Aéreas Brasileiras (AD). The government cites the merger's importance in stabilizing the aviation sector and safeguarding employment.