This article summarizes reporting by Reuters and Marcela Ayres.

Brazil Moves to Ease Airline Access to $765 Million Aviation Fund

The Brazilian government is taking steps to unlock billions in credit for the country’s major Airlines, responding to industry calls for more flexible financing terms. According to reporting by Reuters, Brazil’s Ports and Airports Minister Silvio Costa Filho has formally requested that the Finance Ministry relax the strict conditions currently attached to the National Civil Aviation Fund (FNAC).

The fund, which holds approximately 4 billion reais ($764.76 million) in available credit, is intended to support the aviation sector’s recovery and modernization. However, uptake has been slow due to restrictive requirements. The proposed changes aim to make these resources more accessible to carriers like Azul, Gol, and LATAM, which are navigating a complex post-pandemic financial landscape.

Proposed Regulatory Adjustments

In a letter sent to Finance Minister Fernando Haddad on February 13, 2026, Minister Costa Filho outlined three primary adjustments designed to make the credit lines viable for airlines. Reuters reports that these changes focus on expanding how funds can be used and adjusting the obligations airlines must meet in return.

Expanding Use of Funds

Currently, FNAC loans are largely restricted to the purchase of Commercial-Aircraft, engines, and parts. The new proposal seeks to broaden this scope significantly. Under the requested rules, airlines would be permitted to use the funds for working capital, MRO, pilot training, and education programs for aviation workers. This shift addresses the immediate liquidity needs of carriers, allowing them to fund daily operations rather than solely capital expenditures.

Increasing Financing Limits

The proposal also seeks to increase the government’s participation in Investments aircraft acquisitions.

“The proposal includes increasing the financing cap to 30% of an aircraft’s value, up from the current 10% limit.”

, Summarized from Reuters reporting

Revising Regional Obligations

To qualify for FNAC loans, airlines are currently required to increase flights to the Amazon and Northeast regions by 30%. The Ministry has proposed lowering this mandatory increase to 15% relative to pre-financing levels. Alternatively, airlines could meet the requirement if 17.5% of their total yearly departures serve these specific regions. This adjustment aims to balance the government’s goal of regional integration with the commercial realities faced by the airlines.

Industry Context and Financial Health

The push to loosen credit conditions comes as Brazil’s major carriers work to stabilize their balance sheets following years of financial turbulence. The National Bank for Economic and Social Development (BNDES), which acts as the financial agent for the fund, offers interest rates estimated between 6.5% and 7.5% annually, terms significantly more favorable than private market rates in Brazil.

According to industry data summarized in the report, the major carriers are at different stages of financial restructuring:

• Azul: Currently finalizing its Chapter 11 restructuring in the U.S., with plans to exit the process in the first quarter of 2026.
• Gol: Emerged from Chapter 11 bankruptcy in 2025 but continues to manage high debt levels and maintenance backlogs.
• LATAM: Remains the market leader with a stronger balance sheet but is seeking capital to expand its fleet and regional footprint.

AirPro News Analysis

The proposed changes to the FNAC represent a pragmatic pivot by the Brazilian government. While the initial framework prioritized aggressive regional expansion and strict capital expenditure, the low uptake suggested a mismatch between policy goals and airline capabilities. By allowing funds to be used for working capital and maintenance, often the most pressing cash drains for recovering airlines, the government is acknowledging that a healthy airline sector is a prerequisite for achieving broader connectivity goals.

Furthermore, increasing the financing cap to 30% is a clear strategic move to support Embraer. If airlines can finance nearly a third of a new E2 jet through low-interest government loans, the value proposition for buying Brazilian-made aircraft improves significantly against foreign competitors.

Sources

• Reuters

This article is based on an official press release from United Airlines.

United Airlines Overhauls MileagePlus: Major Boost for Cardholders, Cuts for Everyone Else

United Airlines has announced a comprehensive restructuring of its MileagePlus loyalty program, marking a significant shift in how the airline rewards travelers. Effective for tickets purchased on or after April 2, 2026, the changes create a distinct “two-tier” system that heavily favors co-branded credit cardholders while reducing benefits for those who do not hold a United Chase card.

According to the airline’s announcement, the new structure is designed to give travelers “three new reasons” to acquire and use a United MileagePlus credit or debit card. These incentives include increased mileage earning rates, exclusive discounts on award travel, and expanded access to premium cabin inventory.

However, these enhancements come at a cost for general members. Travelers without a co-branded card will see their mileage earning rates decrease significantly, and earning miles on Basic Economy fares will be eliminated entirely for non-cardholders without Premier status.

A New “Two-Tier” Earning Structure

The most immediate change is the bifurcation of mileage earning rates based on credit card ownership. United is moving away from a uniform earning chart to one that rewards cardholders with higher multipliers on flight spend.

Increased Rates for Cardholders

Under the new system, primary cardholders will earn miles at an accelerated rate compared to the previous standard. The new base earn rates for cardholders flying on United are:

• General Members: 6 miles per dollar (previously 5)
• Premier Silver: 8 miles per dollar (previously 7)
• Premier Gold: 9 miles per dollar (previously 8)
• Premier Platinum: 10 miles per dollar (previously 9)
• Premier 1K: 12 miles per dollar (previously 11)

In addition to these base rates, cardholders earn a “payment bonus” when using their specific card to book the ticket. For example, the United Club Card now earns an extra 5 miles per dollar on United purchases, meaning a Premier 1K member could earn up to 17 miles per dollar total.

Devaluation for Non-Cardholders

To balance the increased rewards for cardholders, United is reducing the earn rates for members who do not hold a qualifying card. The new rates represent a reduction of up to 40% for some tiers:

• General Members: 3 miles per dollar (down from 5)
• Premier Silver: 5 miles per dollar (down from 7)
• Premier Gold: 6 miles per dollar (down from 8)
• Premier Platinum: 7 miles per dollar (down from 9)
• Premier 1K: 9 miles per dollar (down from 11)

Exclusive Award Discounts and Inventory

Beyond earning mechanics, United is introducing new redemption benefits exclusive to cardholders. According to the press release, these changes are intended to make miles more valuable for those invested in the co-branded ecosystem.

Automatic Redemptions Discounts

Cardholders will now receive an automatic discount on United and United Express award tickets. This discount applies to the mileage portion of the fare:

• Standard Cardholders: 10% discount.
• Premier Status Cardholders: 15% discount.

Expanded Saver Award Access

Perhaps the most significant upgrade for frequent flyers is the expansion of Saver Award availability. United stated that cardholders will now have access to Saver Award inventory in United Polaris Business Class. Previously, this expanded availability was a perk reserved strictly for high-tier Premier Platinum and 1K elites. This change allows cardholders to combine better availability with the 10-15% discount, potentially lowering the cost of a business class seat from 80,000 miles to approximately 68,000 miles.

The Basic Economy Restriction

United is also tightening restrictions on its lowest fare class. For tickets purchased on or after April 2, 2026, non-cardholders who do not possess Premier status will earn zero miles on Basic Economy tickets. While cardholders will continue to earn miles on these fares, the rate will be reduced compared to standard economy tickets.

This move aligns United with competitors like Delta Air Lines and American Airlines, both of which have previously removed mileage earning from their most restrictive fare classes.

The “No-Fee” Card Caveat

While premium cards like the United Explorer, Quest, and Club cards receive these benefits automatically, the entry-level United Gateway Card has a specific stipulation. According to the terms detailed in the announcement, Gateway cardholders must spend $10,000 in a calendar year on the card to unlock the higher earn rates and the 10% award discount. Failing to meet this threshold results in the cardholder being treated as a non-cardholder for these specific benefits.

AirPro News Analysis

This overhaul represents a definitive pivot in United’s loyalty strategy, explicitly positioning the MileagePlus program as a credit card rewards ecosystem first and a frequent flyer program second. By slashing earn rates for non-cardholders, particularly international travelers who cannot easily access US-issued Chase cards, United is signaling that flying alone is no longer sufficient to earn meaningful rewards.

The strategy mirrors broader industry trends where airlines generate substantial profit from selling miles to banks rather than flying passengers. While the devaluation for the casual traveler is steep, the value proposition for the “United Loyalist”, someone who holds a premium card and flies regularly, has arguably improved. The ability to access Polaris Saver inventory without top-tier status is a powerful incentive that may drive significant card acquisitions.

Furthermore, United is technically “late” to the Basic Economy restriction. Delta removed earnings on these fares years ago, and American Airlines followed suit effective December 2025. United’s unique twist is using the credit card as a “key” to restore those earnings, creating a direct financial incentive to hold the card even for budget travelers.

Frequently Asked Questions

When do these changes take effect?
The new rules apply to tickets purchased on or after April 2, 2026.

Do I lose miles I have already earned?
No. Your existing mileage balance remains safe. The changes only affect how you earn miles on future flights and how many miles are required for future redemptions (via the new discounts).

What if I have a United card but don’t use it to pay for the flight?
You will still earn the “Cardholder Base Rate” (e.g., 6 miles/$ for a General Member) just for holding the card and linking it to your account. However, you will miss out on the additional “payment bonus” (3-5 miles/$) awarded for charging the ticket to the card.

Does this affect international members?
Yes. International members who cannot apply for US-based United credit cards will be subject to the lower non-cardholder earn rates (3-9 miles/$), effectively devaluing the program for them by roughly 40%.

Sources: United Airlines Press Release, Chase.com

This article is based on an official press release from the Lufthansa Group.

Lufthansa Group and Air India Sign MoU for Joint Business Agreement Following EU-India Free Trade Deal

On February 17, 2026, the Lufthansa Group and Air India formally signed a Memorandum of Understanding (MoU) to establish a comprehensive Joint Business Agreement (JBA). The agreement, signed by Lufthansa Group CEO Carsten Spohr and Air India CEO Campbell Wilson, signals a major shift in the India-Europe aviation market. This strategic deepening of ties between the two Star Alliance partners aims to integrate their commercial operations, moving beyond traditional codesharing to offer a unified travel experience.

According to the official announcement, the partnership is explicitly designed to capitalize on the economic momentum generated by the India-EU Free Trade Agreement (FTA), which was finalized in January 2026. By aligning their networks, the carriers intend to improve connectivity between India and the Lufthansa Group’s primary markets in Germany, Austria, Switzerland, Belgium, and Italy.

Scope of the Partnership

The proposed JBA covers a wide array of carriers under both parent companies. On the Indian side, the agreement includes Air India and its low-cost subsidiary, Air India Express. The European contingent comprises Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways.

Under the terms of the MoU, the airlines plan to coordinate flight schedules to minimize connection times and implement joint sales, marketing, and pricing strategies on key routes. The goal is to create a “metal-neutral” environment where passengers can book a single ticket across multiple carriers with consistent service standards.

“The partners aim to offer more connected and consistent experiences on a single ticket,” the Lufthansa Group stated in the press release regarding the operational goals of the agreement.

Strategic Context: The Free Trade Catalyst

The timing of this agreement is closely linked to the ratification of the India-EU Free Trade Agreement earlier this year. Industry data indicates that the FTA has established the world’s largest free trade area, covering a bilateral goods trade volume of approximately €180 billion annually. The elimination of tariffs on aerospace parts and the expected surge in business travel have created a favorable environment for expanding capacity.

According to market reports, India is currently the fastest-growing aviation market globally and has become the second most important long-haul market for the Lufthansa Group, trailing only the United States. The partnership builds on a history of cooperation dating back to 2004, which accelerated significantly after Air India joined the Star Alliance in 2014.

AirPro News Analysis: Countering Gulf Dominance

While the press release highlights economic cooperation, AirPro News analyzes this move as a direct strategic counterweight to the “Middle East 3” (ME3) carriers, Emirates, Qatar Airways, and Etihad. For decades, these Gulf carriers have captured a significant majority of traffic on the India-Europe corridor by routing passengers through hubs in Dubai, Doha, and Abu Dhabi.

By forming a Joint Business Agreement, Lufthansa and Air India can effectively operate as a single entity. This allows them to optimize departure times, scheduling one morning flight and one evening flight rather than competing for the same slot, thereby offering a compelling direct alternative to the stopover models of Gulf competitors. With the India-Europe corridor seeing over 10 million annual passengers, reclaiming market share from third-country hubs is a primary commercial imperative.

Fleet Modernization and Product Alignment

A critical component of the JBA’s success relies on aligning the passenger experience, an area where Air India has historically lagged behind its European partners. However, under Tata Group ownership, Air India has aggressively modernized its fleet.

Recent developments cited in industry reports include:

• Lufthansa: The rollout of the “Allegris” cabin product across long-haul routes to Delhi, Mumbai, and Bengaluru throughout 2024 and 2026.
• Air India: The deployment of new Airbus A350s on key western routes and the refurbishment of legacy Boeing 777 and 787 widebodies to include Premium Economy cabins, aligning service classes with Lufthansa.

Regulatory Outlook

While the MoU marks a significant milestone, the implementation of a Joint Business Agreement is subject to rigorous regulatory review. The airlines must secure anti-trust immunity and clearance from key bodies, including the Competition Commission of India (CCI) and the European Commission. Regulators typically scrutinize such agreements to ensure they do not create monopolies on specific non-stop routes, such as Frankfurt-Delhi.

Frequently Asked Questions

What is a Joint Business Agreement (JBA)?
A JBA is a commercial arrangement where airlines coordinate schedules, pricing, and revenue sharing, effectively operating as a single entity on specific routes.

When will the new joint operations begin?
While the MoU was signed on February 17, 2026, full implementation depends on regulatory approvals from Indian and European authorities.

Does this affect frequent flyer programs?
Both airlines are already members of the Star Alliance, allowing for reciprocal earning and redemption. The JBA is expected to further enhance loyalty benefits and availability.

Sources

• Lufthansa Group Press Release