Bloomberg News

Gol Rises on Bets Delta Will Help Boost Results: Sao Paulo Mover

January 26, 2012

Jan. 26 (Bloomberg) -- Gol Linhas Aereas Inteligentes SA, Brazil’s second-biggest airline by market value, rose the most in a month on speculation its deal with Delta Air Lines Inc. will help boost revenue.

Gol gained 2.3 percent to 12.52 reais at 4:45 p.m in Sao Paulo. Earlier, it climbed as much as 4.2 percent, the most since Dec. 29.

Delta on Dec. 7 agreed to buy a $100 million stake in Gol, allowing the Brazilian carrier to book reservations on Delta and giving the airline access to a global network. Delta, based in Atlanta, said yesterday that fourth-quarter profit topped analysts’ estimates as higher fares outpaced rising jet-fuel costs. Southwest Airlines Co. and US Airways Group Inc. have also reported earnings that exceeded expectations.

“Delta’s good results in the fourth quarter could favor Gol in the future because of the agreement the companies have,” Leonardo Nitta, a Banco do Brasil SA analyst, said in a telephone interview from Sao Paulo today. The code-sharing accord between the two may bolster revenue for Gol, he said.

Brazil’s civil aviation regulator, known as Anac, said yesterday that demand for Gol and Webjet Linhas Aereas SA’s domestic flights rose 9.1 and 9.6 percent in 2011. The companies have a combined market share of 42.9 percent, down from 45.5 percent a year earlier, the agency said. Gol agreed to buy Webjet in July.

--Editors: Jessica Brice, Richard Richtmyer

To contact the reporters on this story: Katerina Petroff in Sao Paulo at kpetroff@bloomberg.net Jose Sergio Osse in Sao Paulo at josse1@bloomberg.net

To contact the editors responsible for this story: Helder Marinho at hmarinho@bloomberg.net; David Papadopoulos at papadopoulos@bloomberg.net


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