GOL and Azul Call Off Merger Talks and End Codeshare Deal

Brazilian carriers Azul Linhas Aéreas Brasileiras and GOL Linhas Aéreas Inteligentes, owned by Abra Group, have officially ended discussions about a potential merger and terminated their domestic codeshare agreement. Both companies filed notices to the market on September 25 confirming the decisions.

GOL explained that the parties “have not meaningfully discussed or progressed a possible business combination transaction for several months” due to Azul’s focus on its ongoing Chapter 11 restructuring. Abra Group, which also owns Avianca Airlines and Wamos Air, said it still believes in the merits of combining Azul and GOL and remains “ready, willing, and available to engage with the relevant stakeholders” in the future.

A merger between the two airlines would have created a dominant force in Brazil’s domestic aviation market, controlling more than 60% of available seat capacity. Alongside LATAM Airlines Brasil, Azul and GOL are the country’s three largest carriers by passengers and market share.

The carriers also ended their domestic codeshare agreement established in May 2024, though both pledged to honor all tickets sold under the arrangement. The codeshare had been controversial in Brazil, with competition authority CADE freezing the deal earlier this year pending a review.

GOL told ch-aviation that the codeshare represented less than 1% of its revenue, underscoring its limited financial impact. The end of merger talks and the codeshare marks a reset for both airlines as they navigate Brazil’s competitive aviation landscape separately.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com