Despite heavy losses, Brazilian airline company Gol reported a 60% increase in its net profit the second quarter of 2007 when compared to the same period last year, something the firm was able to do using for that the Brazilian accounting legislation.
The company, which bought Varig during this period for 558.7 million reais (US$ 288.6 million) listed as fiscal credits 200 million reais (US$ 103 million) it used to buy that airline company, ending the second quarter with 157 million reais (US$ 81 million) in net profits compared to 98.17 million reais (US$ 50.71 million) a year before.
When the American legislation in used however, Brazilian discount airline firm presents a second-quarter loss, which is credited by Gol to Brazil's air transportation chaos including flight delays and cancellations, which cut the airline's occupancy.
The company controls companies Gol Air Transport, which operates with the Gol brand, and the VRG Airline, which operates with the Varig brand.
From April to June, the company recorded a loss of 35.4 million reais (US$ 18.4 million), or US$ 0.9 per share, against a net profit of 106.7 million (US$ 55.5 million) or US$ 0.25 per share, in the same months of 2006.
Nevertheless, Gol continued with its expansion plan. The company included 32 new daily frequencies, and inaugurated two new domestic destinations: Marabá, in the northern Brazilian state of Pará, and Cruzeiro do Sul, in the state of Acre (North).
With the inclusion of those two cities, Gol now caters to a total of 58 destinations. Varig, on the other hand, has included 16 new daily frequencies, including a daily flight from Rio de Janeiro to Frankfurt, and it flies to 16 different destinations.
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