From Investing.com: 2024-05-27 10:45:32

Brazilian airline Gol plans to exit Chapter 11 bankruptcy with a $1.5 billion capital injection and $2 billion debt refinancing. Share prices dropped 3.5% after the announcement and Gol cautioned shares may have minimal value. The carrier will hold a process to evaluate financing proposals until at least the third quarter.

Gol announced a strategic plan to increase its fleet to 169 jets by 2029, targeting pre-pandemic domestic capacity by 2026. EBITDA margins are expected to drop to 23% in 2024 but rebound to 34% by 2029 with a $193.80 million annual profit improvement program. Gol is Brazil’s second-largest airline by revenue passenger kilometer, with a 30% domestic market share.

Gol’s strategic plan includes a codeshare agreement with rival Azul, connecting networks and frequent flyer programs. The company will evaluate financing proposals and consider potential equity and debt sources for its bankruptcy exit. The carrier anticipates increased fleet growth and improved EBITDA margins over the next few years.



Read more at Investing.com: Brazil’s Gol airline says bankruptcy exit to involve $1.5 billion capital injection By Reuters