Gol Linhas Aereas Inteligentes SA (GOLL4), Brazil’s second-largest airline by market value, rose for the first time in a week after reporting fourth-quarter profit that beat analysts’ estimates.
The shares climbed 2 percent to 13.07 reais at 12:27 p.m. in Sao Paulo, leaving the stock poised for its first daily advance since March 19. The benchmark Bovespa index fell 0.1 percent.
Gol’s net income dropped 59 percent to 54.3 million reais ($30 million), according to a regulatory filing. That beat the average estimate for a net loss of 45 million reais among 10 analysts surveyed by Bloomberg.
“While Gol’s results were weak, management pointed to additional cost cutting initiatives and plans to boost cargo and other ancillary revenues, such as the sale of snacks in certain flights and increased focus on Smiles, Gol’s frequent flyer program,” analysts at Barclays Plc including Daniel Spilberg wrote in a note today.
Gol’s consolidated net sales increased 19.5 percent in the fourth quarter to 2.2 billion reais.
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