Transport Canada has cut maximum on-duty periods for pilots and tweaked pilot rest requirements in a move regulators describe as more-closely aligning Canadian rules with international standards.

Notably, the regulatory changes do away with Canada's previous 14h maximum on-duty period for pilots.

When the new rule takes effect in two years for large airlines, duty days will capped at between 9h and 13h depending on factors like flight duration, the number of daily flights flown and duty start times.

A pilot scheduled to fly seven daily flights starting at midnight, for instance, will be limited to a 9h duty day, while a pilot flying four daily flights starting at 08:00 can be on duty for 13h, the rules say.

"There is evidence that, after 12h of work, human performance begins to exponentially degrade," regulatory materials say. Pilots who fly all night and land early in the morning experience fatigue impairment "equivalent to having a blood alcohol level of 0.08%, the legal limit for drivers in Canada", materials say.

Transport Canada issued the new regulations on 12 December, more than four years after formally proposing changes.

Lower oil prices, steady economic growth and continued momentum in air travel demand are key drivers behind IATA’s increased profits outlook for the airline sector in 2019, despite ongoing economic and political concerns.

IATA today disclosed its expectations for industry net profits of $32.3 billion in 2018 – down around $5 billion on the previous year – but climbing next year to reach $35.5 billion. That will mark a decade of industry profits – the last half of which have seen the industry generate returns above their cost of capital.

Brazil has issued a presidential decree to remove foreign ownership limitations on local airlines, although the government denies any link between the move and Avianca Brazil filing for bankruptcy protection earlier this week.

Eliseu Padilha, a minister in the outgoing Temer administration, says the removal of the 20% cap on foreign ownership will grow competitivity in the Brazilian aviation market and facilitate the entrance of new operators, leading to growth in air service and employment.

The presidential decree must be approved by Brazil's Congress in up 180 days to become law, but takes effect temporarily.

While the decree will eliminate the limitation on foreign ownership in airlines, it does not necessarily open up the domestic air service market to foreign carriers, says a spokesman for Brazil's civil aviation authority ANAC.

He says that all domestic flights must be operated by locally-established airlines and operated by crew who are Brazilian nationals, despite being owned by foreigners.