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Brazilian airline Gol reduces net losses despite fuel cost increase

Between July and September, Brazil’s largest domestic airline Gol managed to record its highest net operating revenue and yield (the price paid by passengers to fly one kilometer) in a quarter and to reduce its net loss by 38.7 percent compared to the same period in 2021 , down to BRL 1.548 billion (USD 290 million).

The rise in revenues was driven by higher airfare prices and a gradual recovery in demand. Gol transported 6.9 million passengers in the third quarter: 39.2 percent more than the same period last year, but still with a volume 29 percent below pre-pandemic levels.

Although the gross sales doubled to BRL 5.2 billion compared to the same quarter last year, high jet fuel costs and a strong US Dollar company prevented Gol from ramping up its post-pandemic recovery. As a result, operating expenses totaled BRL 3.968 billion, up 48.8 percent.

Nevertheless, the company managed to bring its ex-fuel unit cost down 24 percent compared to last year and, therefore, to pre-pandemic levels. It did that by increasing productivity and its operational fleet, optimizing the use of larger aircraft.

It’s the best ex-fuel unit cost among big airlines so far, indicating that Gol consumes less fuel than its Latin American counterparts.

The market expects similar performances from LATAM and Azul, Brazil’s other two major airlines. Their results will be released on November 9 and 10, respectively.

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