Brazil airline Gol aims to raise US$563 million as domestic air travel outlook improves

RIO DE JANEIRO, BRAZIL – (REUTERS) Brazilian airline Gol Linhas Aereas said there was an improvement in domestic ticket sales in May, driven by advances in Brazil’s Covid-19 vaccination program.

“The rise in ticket sales in May, combined with other initiatives, is paving the way for significant improvements in this recovery phase,” Gol said on Wednesday in a securities filing.

Gol warned that although immunizations are helping air travel in Brazil, there is still uncertainty related to the health crisis.

Gol forecasts an 81% occupancy rate in the second quarter, up from 79% previously. Recurring costs are also expected to be 40% below from the second quarter last year, an improvement from a fall of 27% forecast before.

By the end of this quarter, Gol said it will have raised almost R$3 billion (US$563 million) in new capital through various transactions.

Gol expects Brazil’s gross domestic product to grow by 8.8% in the second quarter and by 2.3% in the second half of 2021, according to the filing.

It also expects average domestic routes to grow from 114 in the current quarter to a preliminary estimate of 159 in the second half of 2021.