Brazil’s helicopter market seen picking up in H2 after early 2023 slowdown

By Gabriel Araujo

SAO PAULO (Reuters) – Major helicopter manufacturers operating in Brazil expect a demand recovery in the second half of 2023 after a relatively slow first six months, but are unlikely to match the strong orders they registered last year.

Air transportation markets had a positive 2022 with travel rebounding post-pandemic, and that scenario ended up setting high bars for 2023.

The start of the year was not as strong as some hoped, though prospects are positive for the final six months, executives from Helibras and Leonardo told Reuters this week at the LABACE airshow in Sao Paulo.

Brazil is a major market for the sector, ranked number four in the world in 2019 by number of helicopters, according to Statista.

Helibras, the Brazilian helicopter maker owned by Airbus, reported an all-time high 50 orders in 2022, but it will be hard to beat that level this year, its President Alberto Duek said.

“In the first half of the year we experienced a natural slowdown,” Duek noted. “But now, in the second half, we have started to feel a recovery.”

“We believe that was a cyclical thing, as sometimes the market pauses to see what’s happening and redirects. I think we had a break for some accommodation after that record year, and now the pace is getting back to normal.”

That view is shared by Italy’s Leonardo, a major player in segments such as executive VIP and offshore transportation in the country.

“Last year was very good,” said Leonardo’s Sales Manager in Brazil, Giuseppe Mignoli, who sees 2023 as “more complex”.

He noted the political backdrop, with the country swapping governments after leftist President Luiz Inacio Lula da Silva’s election, brought some uncertainty to the market in early 2023.

But that has been gradually fading as the economy improves, especially with the Brazilian real now trading at more stable levels, he added.

“We believe the market will heat up in the second half, and have already signed some contracts,” Mignoli said. “But it’s still hard to say if results will match those from last year.”