Gol Q3 Net Swings To USD$293.3 Mln loss

November 12, 2011

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Brazilian airline Gol on Friday posted a third-quarter net loss as a currency plunge worsened a weak operating result due to the high cost of fuel.

Gol Linhas Aereas posted a net loss of about BRR517 million reais (USD$293 million) in the quarter, compared with a profit of BRR110 million reais a year earlier.

Earnings before interest, taxes, depreciation, amortisation and rent, EBITDAR, fell 67 percent to BRR124 million reais.

Gol's EBITDAR as a share of net revenue, an indicator of profitability known as the EBITDAR margin, dropped 14.6 percentage points from the year before to 6.7 percent.

In a statement accompanying the results, Gol pointed to promising indicators for the month of October, when the airline said stronger demand pushed up yield by 7 percent from a year earlier.

shares have lost nearly half their market value this year after management pared back growth prospects as fuel and labor costs surged and prices fell short of earlier forecasts.

(Reuters)