Brazil Says Gol Profited US$ 81 Million, US Says It Lost US$ 18 Million

Brazilian Airline Gol 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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  • Show Comments (7)

  • aes

    It is said with tongue in cheek. It is a logical absurdity. It is oxymoronic. It is self evidently so.

  • baba

    AES … you have to
    Think of it as if you are dealing with a dumb kid…CH.C is not capable of recognizing concept thinking, much less understanding idiomatic expressions. He is content with just the appearance of intelligenceÀ¢€¦
    He coasts on the achievements of others and his countryman in order to divert attention to his own personal misery and unsuccessful existence.
    From my perspective you AES are everything he ever wanted to beÀ¢€¦ a successful academic business and investor man enjoying life to the fullestÀ¢€¦ a man that lived all over the world and yet enjoys his life in Brazil with his family and grand-kids, fit for life and surrounded by all the loved onesÀ¢€¦ cheer to you!!!

  • ch.c.

    To AES !!!!!
    Are you a typical Brazilian legislator with your statement : “they lose money on every ticket, but they make it up in volume.”

    Sorry but in developed countries if you loose money on every ticket….you will loose more and more the higher the volume is !

    Your statement is typically brazilian : with not even the start of a common sense !
    One can make little money per ticklet and compensate with volume/quantity !

  • ch.c.

    To Ric !
    Of course it is possible. Everything is possible in Brazil.

    But please re-read with more attention :”………. something the firm was able to do using for that the Brazilian accounting legislation.”

    Knowing that the Brazilian legislators are all corrupted and crooks, legislation can thus be only a mirror of the legislators !
    Did not you know that yet ?

  • Ric

    On the face of it, thatÀ‚´s impossible

  • aes

    GOL has increased its business to record levels. . .they lose money on every ticket, but they make it up in volume.

  • bo

    [quote]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.[/quote]

    [quote]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.[/quote]

    That’s a riot!!! We can only imagine what Brazil’s PIB really is after they “invented” this new accounting system last year in an attempt to show “growth”! 😉

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