403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Gol's Quiet Comeback: What Brazil's Leaner Airline Means For Travelers And Investors
(MENAFN- The Rio Times) Gol has turned the corner. In the third quarter, the Brazilian carrier posted net profit of R$248 million ($46 million), reversing a year-earlier loss of R$1.42 billion ($263 million).
Revenue rose 11.6% to R$5.54 billion ($1.03 billion). The engine of the recovery wasn't aggressive pricing or special favors; it was basic execution-capacity up about 9%, fuller planes, average fares up just 1%, and jet-fuel costs down roughly 11.5%.
Recurring EBITDA jumped to R$1.63 billion ($302 million), signaling that cash generation is back at the center of the business. The story behind the story starts in June, when Gol exited U.S. Chapter 11 and reset parts of its balance sheet and lease obligations.
By September, net leverage fell to 3.2 times recurring EBITDA from 5.3 times a year earlier, giving management room to plan beyond the next quarter.
Liquidity ended the period at R$5.4 billion ($1.00 billion), split between R$2.7 billion ($500 million) in cash and R$2.7 billion ($500 million) in credit-card receivables-practical buffers in an industry exposed to fuel prices, exchange rates, and demand swings.
Gol's disciplined outlook boosts cash flow and flight reliability
Guidance is moving the right way. Gol now expects full-year recurring EBITDA of R$5.8–R$6.1 billion ($1.07–$1.13 billion) and year-end leverage of 3.4–3.6 times, better than the earlier 4.7 times view.
In plain terms: financing risk is easing, and the company believes it can fund operations and growth from healthier cash flow rather than financial engineering.
Why this matters if you live outside Brazil-or fly there. A steadier Gol lowers the odds of sudden cuts to domestic and regional routes, supports more reliable schedules, and keeps aircraft renewal on track-key for on-time performance.
For international investors, the signal is that disciplined, market -minded management can rebuild a carrier without leaning on political theatrics.
The caution is familiar: Brazil's aviation math still depends on fuel and currency, and competition for profitable routes is intense.
But Gol's quarter suggests prudence over bravado can stick-an approach that usually serves passengers, creditors, and the network better over time.
Revenue rose 11.6% to R$5.54 billion ($1.03 billion). The engine of the recovery wasn't aggressive pricing or special favors; it was basic execution-capacity up about 9%, fuller planes, average fares up just 1%, and jet-fuel costs down roughly 11.5%.
Recurring EBITDA jumped to R$1.63 billion ($302 million), signaling that cash generation is back at the center of the business. The story behind the story starts in June, when Gol exited U.S. Chapter 11 and reset parts of its balance sheet and lease obligations.
By September, net leverage fell to 3.2 times recurring EBITDA from 5.3 times a year earlier, giving management room to plan beyond the next quarter.
Liquidity ended the period at R$5.4 billion ($1.00 billion), split between R$2.7 billion ($500 million) in cash and R$2.7 billion ($500 million) in credit-card receivables-practical buffers in an industry exposed to fuel prices, exchange rates, and demand swings.
Gol's disciplined outlook boosts cash flow and flight reliability
Guidance is moving the right way. Gol now expects full-year recurring EBITDA of R$5.8–R$6.1 billion ($1.07–$1.13 billion) and year-end leverage of 3.4–3.6 times, better than the earlier 4.7 times view.
In plain terms: financing risk is easing, and the company believes it can fund operations and growth from healthier cash flow rather than financial engineering.
Why this matters if you live outside Brazil-or fly there. A steadier Gol lowers the odds of sudden cuts to domestic and regional routes, supports more reliable schedules, and keeps aircraft renewal on track-key for on-time performance.
For international investors, the signal is that disciplined, market -minded management can rebuild a carrier without leaning on political theatrics.
The caution is familiar: Brazil's aviation math still depends on fuel and currency, and competition for profitable routes is intense.
But Gol's quarter suggests prudence over bravado can stick-an approach that usually serves passengers, creditors, and the network better over time.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment