Gol increases domestic competition with Azul as it navigates Brazil's ailing economy

Brazilian airline Gol is attempting to respond to deteriorating and fast changing conditions in the country with network adjustments to minimise the effects of a sharp drop off in corporate demand. All airlines operating within the country are doing so against the backdrop of a contracting economy, ballooning inflation and a plummeting currency.

Gol is adjusting its US service to Miami and Orlando via Punta Cana to seasonal as those routes are becoming more challenging due to exchange rate pressure dampening demand. The airline has also faced stiffened competition on US routes from rival Azul. In turn, Gol now plans to challenge Azul on new domestic routes from Campinas as part of its network overhaul.

As economic weakness remains an overhang in Brazil, Gol is also adjusting its aircraft delivery schedule for 2016-2017, and increasing the number of aircraft it plans to sublease year-on-year during the 2016 slow season. Its network and fleet modifications are responses to challenging conditions that show no sign of improving in the short to medium term.