GOL Plans Fleet Growth and Profitability in Five-Year Strategy

GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas) has unveiled an updated five-year restructuring plan as part of its Chapter 11 proceedings. The plan focuses on fleet expansion, enhanced financial performance, and a capital raise, building on a proposal introduced last month.

The carrier aims to increase its fleet from 138 to 167 aircraft by 2029. This growth will coincide with a rise in adjusted EBITDA to BRL11.6 billion (USD1.92 billion) and a USD330 million equity capital raise, alongside USD1.54 billion in new five-year debt financing.

CEO Celso Ferrer highlighted progress made since the restructuring process began, including lessor concessions, debt agreements, and a profit improvement plan. The airline intends to exit Chapter 11 by May 2025 with a streamlined balance sheet.

The plan includes converting a significant portion of financial debt into equity, reducing total debt and lease liabilities from USD6.5 billion to USD4.7 billion by 2027. The exit financing will be secured by GOL’s Smiles Frequent Flyer Program, key airport slots, intellectual property, and spare parts.

By 2029, GOL’s fleet will comprise 63% B737 MAX models, with the remainder split between B737-700s (5%), B737-800s (25%), and B737-800(BCF)s (7%). The airline also has 82 additional B737 MAX on order.

Meanwhile, GOL’s parent company, Abra Group, is exploring a potential merger with Azul Linhas Aéreas Brasileiras, following a recent non-binding MoU. GOL continues to evaluate competitive exit financing proposals to ensure a successful restructuring outcome.

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