Brazilian Airline Gol Cuts Losses by 48% Amid Bankruptcy Restructuring

Gol Linhas Aéreas Inteligentes S.A., Brazil’s major airline, slashed its monthly losses by nearly half in November 2024. The company reported a net loss of R$176 million ($29 million), down from R$338 million ($55 million) in October.

This 48% reduction occurred while Gol navigated Chapter 11 bankruptcy protection. On January 6, 2025, Gol’s stock price surged 15.22% following the release of its November financial results.

The airline’s net revenue increased to R$1.7 billion ($0.27 billion), up from R$1.6 billion ($0.26 billion) in October. Gol’s EBITDA reached R$448 million ($0.07 billion) with a 26% margin, impressing industry analysts.

Despite these improvements, Gol faces ongoing challenges. The company’s net debt rose to R$31 billion ($5.0 billion) from R$29 billion ($4.68 billion) in October.

This increase partly resulted from a 5% depreciation of the Brazilian real, highlighting the currency risks in the airline industry. Gol recently struck a deal with Brazilian tax authorities to address R$5.5 billion ($0.89 billion) in liabilities.

Brazilian Airline Gol Cuts Losses by 48% Amid Bankruptcy Restructuring. (Photo Internet reproduction)

This agreement allows for installment payments and discounts on fines and interest. The move aligns with Gol’s broader restructuring efforts as it aims to exit bankruptcy protection by April 2025.

Analysts from Bradesco BBI noted improvements in Gol‘s operational performance but maintained a “sell” recommendation on the stock. They cited seasonal factors and increased occupancy rates as drivers of the better results.

As Gol works to emerge from bankruptcy, its performance in the coming months will be crucial. The airline’s ability to adapt to market conditions and capitalize on recovering travel demand will determine its long-term viability in Brazil’s competitive airline industry.