Restructuring Brazilian carrier Gol is hoping to exit Chapter 11 bankruptcy protection by the end of April as it today reported progress in restoring capacity during the third quarter.
The updated timeline on completion comes after Gol earlier this month reached a key debt-for-equity agreement with majority shareholder Abra group.
The agreement, secured 10 months after the Brazilian airline entered the formal financial restructuring process, will eliminate up to $2.55 billion in debt from the carrier’s books and see Abra receive around $950 million in new Gol equity.
“With this agreement we have the majority of the key terms of the restructuring plan defined and we project that our exit from this process will take place by the end of April 2025,” said Gol chief executive Celso Ferrer, speaking during a third-quarter results presentation today.
Gol expects to submit its reorganisation plan to the court handling its Chapter 11 process before year-end.
“Despite the challenges we have faced, this process is positive for Gol’s history, addressing all the necessary points to support our sustainable growth in the coming years,” he adds.
Ferrer also flags that the carrier has during the third quarter completed commercial negotiations with its aircraft and engine lessors.
He says 139 aircraft and 58 engine leases have been renegotiated and approved. “Since the end of the third quarter, we have continued to sign contract amendments with the lessors with changes to the payment flows to ensure the financial health of the company.
”We anticipate challenges in the months ahead but we are confident we have what it takes to exit the Chapter 11 process successfully,” he adds.
“Despite the challenges we have faced, this process is positive for Gol’s history, addressing all the necessary points to support our sustainable growth in the coming years. We are very excited about this next stage for growth.”
While Gol’s operating profits were wiped out in the third quarter, it did just remain out of the red. The carrier posted an operating profit of Rs3 Million ($500,000) for the three months ended 30 September, down from Rs825 million a year ago. Gol made a net loss of Rs830 million, though that was an improvement on the Rs1.3 billion loss in the third quarter of last year.
Gol revenues were 6% higher at Rs4.9 billion during the quarter, in part reflecting a restoration of capacity.
“In the third quarter we kick-started [our] growth capacity recovery strategy, focused on sustainable growth,” says Ferrer. “For the first time this year we increased capacity compared with the same period in 2023.”
Gol increased its capacity, as measured in available seat kilometres, by 6% against the same period in 2023, and by 21% compared with the second quarter of this year.
The carrier took delivery of two new Boeing 737 Max 8s during the third quarter. While it returned five 737-800s to lessors during the period, Gol was able overall to increase its operational fleet by five, to 107 aircraft, as a result of bringing back jets which had been taken out of service as part of its restructuring.