Gol Linhas Aereas, Brazil's second-largest airline, saw fourth-quarter net income slump 58.9% from the same period last year impacted by high maintenance and fuel costs. São Paulo-based Gol posted net income of 54.3 million reais ($29.89 million), down from 132.2 million reais a year ago. Earnings before interest, taxes, depreciation, amortization and aircraft rent, (EBITDAR), fell to 238.9 million reais from 475 million reais a year earlier.
Total consolidated operating costs and expenses were up 41%, with fuel costs rising 56.6%, personnel costs were worryingly up by some 30.3%, and maintenance expenses increased 147.8%. There was also a hit from exchange rates
Gol booked an adjusted loss of 710 million reais in 2011, compared with a profit of 214.2 million reais in 2010. The loss stemmed from the impact of the real's depreciation against the dollar, rising fuel costs, and non-recurring expenses such as the return of aircraft and contract termination fees, the company said. It did not mention the price war that the airline is locked in which is at the heart of many problems for the airline.
Gol sees profits slump
