Gol Swings To Second Quarter Profit

Brazil's Gol posted a second quarter net profit of BRR309.5 million reais (USD$96.6 million) as it swung from a loss in the previous year.

GOL Linhas Aereas Inteligentes' net profit followed a loss of BRR354.9 million reais in the same period of 2015.

Net revenue of BRR2.1 billion was a decrease of 2.0 percent from the second quarter 2015.

Fuel costs dropped 28 percent to BRR591.7 million on cheaper fuel and a drop in capacity as revenue passenger kilometres (RPK) fell by 11.2 percent overall.

Gol reduced capacity in the quarter by 8.9 percent in the domestic market and 12.2 percent on international flights.

Load factor fell by 1.6 percentage points, to 75.2 percent, with domestic load factor down 2.0 percentage points.

The airline is in the final stages of negotiations to return 15 aircraft under operating leases as it seeks to cut costs.

Gol announced revised guidance of an EBIT operating margin of between 4 and 6 percent.