Gol enjoys price stabilisation in Brazil, but tough conditions will linger well into the future

As it settles into the typically slow second quarter, Brazilian airline Gol is seeing faint signs that a slide in pricing driven by the country's weak economic climate could be stopping, and sagging corporate demand is also sprouting a few green shoots after starting to markedly fall during 2H2014.

But Gol is far from declaring a recovery as Brazil's economy is expected to contract in 2015, inflation estimates have been revised slightly upwards and the country's currency devaluation remains high. At best Gol is hoping that demand is starting a long and slow path to recovery.

For now Gol is sticking to its margin targets and flat domestic capacity projections as economic conditions remain weak in Brazil. It continues to diversify its network with more international flights, with more expansion into Argentina and the Caribbean. Perhaps Gol is also pleased that its exposure to the competitive Brazil-US market is small compared to some of its rivals.