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SAO PAULO–Brazilian airline GOL Linhas Aereas Inteligentes SA (GOLL4.BR) swung to a net profit in the third quarter on reduced costs, offsetting a decline in revenue.
The company Monday said it posted a net profit of 65.9 million Brazilian reais ($20.40 million) in the period, compared with a loss of BRL2.13 billion in the same period a year ago.
GOL’s total costs and operation expenses dropped 12.6% in the period from a year ago, to BRL2.17 billion. Revenue fell 3.5% from a year ago, to BRL2.4 billion.
The company recorded an accounting loss of BRL35.6 million related to the foreign-exchange variation owing to a depreciation of the Brazilian real against the dollar. This marked a drop from the BRL1.44 billion accounting loss posted a year ago.
Despite the latest period’s profit, the company is facing a challenging business climate as Brazil’s deep economic recession hurts demand for air travel. After contracting 3.8% last year, Brazil’s economy is expected to shrink 3.2% this year, economists have said.
The volume of departures dropped 20.5% in the latest period from a year ago.
The company’s net debt totaled BRL5.2 billion in the period, down from BRL6.4 billion at the end of year-ago quarter.
Sourse: marketwatch.com
 swung to a net profit in the third quarter on reduced costs, offsetting a decline in revenue. The company Monday said it posted a net profit of 65.9 million Brazilian reais… "Pin It")