Gol outlook brightens as Brazilian yields start to show signs of improvement

Despite a slower growth for Brazil's economy, Gol is bullish on its outlook for 2012 as domestic yields, which dropped significantly earlier this year, are beginning to recover. Gol also expects to benefit in 2012 from a new cost reduction initiative, its recent acquisition of smaller low-cost carrier Webjet and its expanded partnership programme with other carriers. After incurring losses in 2Q2011 and 3Q2011, Gol will likely be back in the black in 4Q2011 and remain profitable throughout 2012.

Oct-2011 figures show Gol's domestic yields are again tracking higher than 2010 levels. Gol executives told analysts last month during the carriers' 3Q2011 conference call that yield improvements are expected to continue through 4Q2011 and into 2012 because the Brazilian airline industry overall have become more rational with fares and more disciplined with capacity.