Brazil airline Gol cuts back fleet after losses: Reuters

Posted: May 7, 2012 in Airlines, Latin America
Tags: , , , , , , , , ,

[Reuters]  Gol Linhas Aéreas committed to a smaller fleet for the next three years on Friday, as part of a plan by Brazil’s second-largest airline to control costs after posting its third loss in a year.

The São Paulo-based carrier lost a net 41 million reais in the first quarter.  Photo: Wikipedia

The São Paulo-based carrier lost a net 41 million reais in the first quarter. Photo: Wikipedia

The airline said it was cutting routes by as much as 2 percent this year after 8.2 percent growth in 2011. The combined fleet of Gol and recently acquired Webjet unit will also shrink from 150 planes last year to 138 at the end of 2012.

By cutting planes and dropping around 100 daily flights this year, the carrier is working to revert slipping seat occupancy and offset the higher fuel costs and airport fees that have hammered its bottom line. The airline’s fleet is expected to end 2013 at 135 planes, before growing to 140 in 2014.

The São Paulo-based carrier lost a net 41 million reais in the first quarter, down from a profit of 54 million reais a year earlier. But profit margins recovered as costs per kilometer declined from the prior quarter, reflecting a program of layoffs and expense controls.

“The return to a positive operating margin, even slightly positive, represents a change in trajectory. We are confident we can maintain the rationalization and reduction of costs,” Chief Executive Constantino de Oliveira Junior said on a conference call with reporters.

Gol shares rose 3.2 percent in Sao Paulo trade, leading gains on the….

Read the full story at Reuters…..


By Brad Haynes and Guillermo Parra-Bernal
SAO PAULO
Mon May 7th,  2012


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