The Brazilian airline Gol has declared bankruptcy, joining other Latin American airlines like Latam Airlines, Avianca, and Aeroméxico in seeking protection under the United States Bankruptcy Law. Gol, founded in 2001 in Rio de Janeiro and owning 33% of the Brazilian passenger air market, is restructuring its debt which reached 20.1 billion reais (about 4 billion dollars) at the end of 2023.
The airline turned to the United States justice system, utilizing Chapter 11 of the bankruptcy law to protect itself from legal actions by creditors while negotiating debts and obtaining supervised financing. Gol’s shares plummeted 65% in the market, leading to its exclusion from the main index of the São Paulo stock market.
The impact of Covid-19 on the airline industry exacerbated Gol’s financial troubles, with increased costs in dollars and a weakened Brazilian currency affecting its bottom line. Despite these challenges, Gol recently inaugurated a new route between Buenos Aires and Bogotá, expanding its international network in Colombia.
Other airlines like Avianca have also resorted to seeking protection under the United States Bankruptcy Law. The move by Gol reflects the ongoing struggles of the aviation industry in the wake of the global health crisis.