Bloomberg News

Gol Gains in June on Restructuring After Three Monthly Drops

June 29, 2012

Gol Linhas Aereas Inteligentes SA (GOLL4), the second-biggest Brazilian airline, rebounded in June after three months of declines as it cut jobs and changed management as part of a restructuring plan.

Shares fell 0.8 percent to 8.92 reais at the close of trading in Sao Paulo, paring a monthly gain to 11 percent. The benchmark Bovespa index rose 3.2 percent today and is down 0.2 percent this month.

Gol’s founder Constantino de Oliveira Jr. stepped down as chief executive officer on June 18. Paulo Kakinoff, Audi AG (NSU)’s Brazil head, will take over as CEO on July 2, the low-cost carrier said in a statement on its website on June 19. Oliveira will become chairman.

“This change is a mark in the restructuring plan the airline has adopted this year to return to profitability,” Pedro Galdi, an analyst at brokerage SLW, said by phone from Sao Paulo. “It might still take some quarters, but investors think the strategy will work.”

Gol plans to cut about 2,500 employees to restore profitability this year, Chief Financial Officer Leonardo Pereira said in an interview at Bloomberg’s headquarters in New York on June 25.

The airline posted a 41.4 million reais ($20.6 million) loss in the first quarter, compared with net income of 69.4 million reais a year earlier, the Sao Paulo-based airline said May 3 in a regulatory filing. The average estimate among six analysts surveyed by Bloomberg was for profit of 9.03 million reais.

Gol fell 28 percent this year, while the Bovespa slid 4.2 percent.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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