Brazilian airline Gol Linhas Aereas (Gol) has lowered its outlook for 2011 operational margins as rising fuel and additional personnel costs impact earnings.
In a securities filing, Gol slashed its operational margin to between 1 and 4%, from 6.5-to-10% previously.
The airline grew its seat capacity by 14.4% in the first half of 2011 in response to high domestic demand. Fuel now account for 40% of Gol’s total costs. The company has also incurred additional costs for the hiring and training of 395 co-pilots to guarantee future expansion plans.
Gol has also announced it is ending charter flight operations it runs with six 767 aircraft and will incur additional charges for returning three of these before their leases are up.