Gol Posts Profit On Currency, Aircraft Deals

May 12, 2016

Brazilian airline Gol posted its first quarterly profit in over four years as aircraft financing deals and a rebounding currency gave earnings a one-time lift.

Gol Linhas Aereas reported first-quarter net income of BRR757 million reais (USD$219 million), up from a net loss of BRR673 million a year earlier.

The struggling airline's last quarterly profit came in the final three months of 2011, before stiff competition, a sliding currency and Brazil's worst economic downturn in decades battered profitability.

By returning some aircraft to lessors early and signing sale-leaseback deals on other planes, Gol boosted first-quarter earnings by BRR213 million reais, the company said.

The Brazilian real also recovered nearly 10 percent in the first quarter after depreciating by a third in 2015. The shifting exchange rate reduced the cost in local terms of Gol's dollar-denominated debts, boosting its bottom line by BRR654 million reais.

Excluding the effect of the currency swing and the aircraft deals, Gol said it would have booked a net loss before taxes of BRR43 million reais.

EBITDA earnings more than doubled from a year earlier to BRR552 million reais.

(Reuters)