Brazil Weighs Bailout for Troubled Airlines as Fares Skyrocket

Brazil’s development bank is considering granting loans to the country’s airlines as part of a government plan aimed at alleviating financial pressures at Gol Linhas Aereas Inteligentes SA, Azul SA and other carriers that have caused sharp increases in fares.

BNDES, as the bank is known, is looking for options to help the airlines come up with sufficient collateral, according to three people with knowledge of the matter. One idea is to turn a public aviation fund into a guarantee fund for those loans, which still needs congressional approval, the people said, asking not to be named because the discussions are private.