Hotel and airfare prices have wildly fluctuated in Brazil depending on the exchange rate and the economic cycle (remember the crazy hotel rates of the mid-2010s?).
Now, I have come across the craziest domestic airfare prices I have ever seen for flights within Brazil.
It was not uncommon for the flights to cost anywhere from $50 to $100 each way (sometimes even less), and the highs for the Rio de Janeiro (SDU) to Sao Paulo (CGH) shuttle flights have been around $200.
I never have, however, come across these prices for direct flights that three Brazilian airlines of LATAM, Azul, and GOL try to charge for this coming week.
Close to $500 to $650 for a 40-minute shuttle flight? You can fly cheaper to Europe and back from Brazil than taking this one-way to Sao Paulo.
GOL and LATAM have essentially blocked all award inventory on these flights to make things worse.
You can, however, still use United MileagePlus miles for Azul flights, and there is excellent availability.
Conclusion
I would instead take a bus between these two cities than pay $500 for a one-way flight. Unfortunately, Avianca Brasil unfolded, as there definitely is a need for competition for flights within the country.
It is good that you can still redeem your miles with at least one Brazilian airline (Azul) (+ there is a surprise what credits to your MileagePlus account). Let’s see how long this last.