Brazil airline Gol upbeat on capacity as Boeing delivers new 737 MAXs

11:23 am Monday, December 23rd, 2024

By Gabriel Araujo

SAO PAULO (Reuters) – Brazilian airline Gol is ending 2024 with “good prospects” for adding capacity to its network, Chief Executive Celso Ferrer told Reuters, as planemaker Boeing delivered new 737 MAX aircraft this month after long delays.

Gol, which is under bankruptcy protection in the United States, received three MAXs in December and expects to get another one in January, finally reaching the mark of 53 aircraft it had hoped to hit a year ago.

The carrier filed for Chapter 11 in early 2024, hit by a fall in traffic due to COVID and delays in Boeing deliveries. Earlier this month, it said it would file an initial proposed reorganization plan with a U.S. court.

“The delivery of these new aircraft will strengthen our operation. Our focus now is to make the most of the potential of our current fleet,” Ferrer said.

The new aircraft, initially slated for delivery early in the second half of this year, represent an investment of around 1 billion reais ($163 million), the executive added.

Airlines have been keen to add capacity in order to meet robust travel demand and renew their fleets to cut costs, but planemakers have been grappling with supply chain bottlenecks and production disruptions.

Boeing was especially hit in 2024 with additional setbacks, including a seven-week strike, production safety concerns and increased regulatory scrutiny.

“The strike affected our plans, but we managed to overcome it with short-term solutions,” Ferrer said, adding that Gol increased capacity by 6.7% year-on-year in the third quarter.

“When the strike ended, Boeing managed to maintain the delivery of four aircraft in the short term, but there are still uncertainties about the medium and long terms.”

The new planes will reinforce Gol’s operations in the Brazilian high season and allow it to keep expanding its international network after adding destinations such as Bogota, San Jose, Aruba and Cancun in 2024.

“We hope to have more news to announce in 2025 in our international network,” Ferrer said, dubbing it a key focus for the coming years.

Gol, whose fleet is made up entirely of 737s, is the largest operator of Boeing aircraft in Latin America. The delivery delays severely constrained the carrier’s growth in 2023.

Embraer and the Brazilian government this year revealed the local planemaker had held talks to potentially sell its regional aircraft to Gol.

Asked about the discussions, Ferrer noted that Gol has always operated only 737 aircraft and that standardization has been an important part of the carrier’s business model, but is always “evaluating options” for other models.

($1 = 6.1428 reais)

(Reporting by Gabriel Araujo’ Editing by Alistair Bell)