Brazil airlines stay cautious even as demand seen bottoming out

Brazilian airlines remain cautious over the outlook for year-end air travel in the country, as fallout from a recession, the weak job market and still-high inflation are offsetting signs that demand might have bottomed out, industry leaders said Thursday. According to Abear, the group that represents airlines in Brazil, domestic flight demand dropped 6.6% while the number of seats available dropped 6.2% in the year through July. While those falls are a fraction of the declines since earlier in the year, it might be too early to talk about a recovery, Abear president Eduardo Sanovicz said. Tourism agencies say eroding household income is taking a toll on demand. Clients at CVC Brasil SA, Brazil's No. 1 tourism operator, are inquiring about prices but have been slow to buy tickets - a sign they are waiting until the last minute to purchase them. <br/>