Gol Linhas Aereas have tumbled to a two-month low fter the Brazilian airline posted its seventh straight quarterly loss and forecast no rebound in the domestic market next year.
Gol reported a net loss of 197 million reais ($85 million) in the third quarter, compared to a loss of 309 million reais a year earlier, according to a filing.
After slashing flights within Brazil by about 5 percent in 2012 and 9 percent this year due to weak demand and soaring fuel costs, Gol said in a separate filing it plans to keep the size of its domestic network unchanged next year.
“The adjustments made in the domestic market this year have led the company’s supply to a size compatible with the economic scenario expected for 2014,” Gol said in the filing.
Gol shares fell more than 5 percent in Sao Paulo trading to their lowest since early September.
The rocky earnings and glum outlook reinforced concerns about the ability of Brazil’s airlines to handle an onslaught of foreign fans during the 2014 World Cup. Shrinking domestic operations have led tourism officials to suggest allowing foreign carriers to run routes within Brazil during the tournament - a proposal opposed by the aviation minister.
Gol plans to continue its push into more profitable international routes, expanding foreign flights by 5 percent to 8 percent next year, chief executive Paulo Kakinoff told analysts on a conference call to discuss earnings.
By flying more internationally and keeping a lid on domestic capacity, Kakinoff said there was room for Gol to continue increasing its average ticket prices next year. (Reuters)