Gol exits Chapter 11 with plans to add new routes and expand fleet

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By Luciana Magalhaes

SAO PAULO (Reuters) -Brazilian airline Gol formally exited its bankruptcy proceedings in the United States on Friday, setting the stage for fleet expansion and new flights and routes within Brazil and other countries, Chief Executive Officer Celso Ferrer said.

In 2024, Gol became the second Brazilian airline, after Latam in 2020, to seek Chapter 11 bankruptcy protection in the United States as the sector grappled with debt burdens, a steep decline in passenger numbers during the COVID-19 pandemic, and aircraft delivery delays. Azul, a Gol competitor, filed for Chapter 11 last month.      

Despite Azul’s financial struggles, talks over a potential partnership between the carrier and Gol are ongoing, Ferrer said. But a final deal “will only happen if it adds value and results, whether through routes or growth. If it’s better for everyone,” he added.

Discussions regarding the business combination, which were formalized with a memorandum of understanding last January, are being managed by Abra Group, the majority investor in both Gol and Colombia’s Avianca.

Gol plans to maximize seating capacity while keeping costs low to regain its pre-pandemic scale by 2026, Ferrer said. Expansion efforts will include additional flights within Brazil and international routes, particularly in the region that stretches from South Florida to southern Argentina.

The airline now holds approximately $900 million in cash reserves and is continuing its fleet modernization. Gol plans to receive five Boeing 737 MAX aircraft this year and, in 2024, completed overhauls on more than 50 engines. However, Ferrer said, the company is open to “opportunities that might involve Embraer aircraft.”

(Reporting by Luciana Magalhaes; Edited by Manuela Andreoni and Lisa Shumaker)