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Brazil’s Gol says domestic air travel outlook improving, aims to raise $563 million – Metro US

Brazil’s Gol says domestic air travel outlook improving, aims to raise $563 million

The logo of Brazilian airline Gol Linhas Aereas Inteligentes SA
The logo of Brazilian airline Gol Linhas Aereas Inteligentes SA is seen inside an airplane at Augusto Severo International Airport in Natal

SAO PAULO (Reuters) – Brazilian airline Gol Linhas Aereas said there was an improvement in domestic ticket sales in May, driven by advances in Brazil’s COVID-19 vaccination program.

“The rise in ticket sales in May, combined with other initiatives, are paving the way for significant improvements in this recovery phase,” Gol said on Wednesday in a securities filing.

Gol warned that although immunizations are helping air travel in Brazil, there is still uncertainty related to the health crisis.

Gol forecasts an 81% occupancy rate in the second quarter, up from 79% previously. Recurring costs are also expected to be 40% below from the second quarter last year, an improvement from a fall of 27% forecast before.

By the end of this quarter, Gol said it will have raised almost 3 billion reais ($563 million) in new capital through various transactions.

Gol expects Brazil’s gross domestic product to grow by 8.8% in the second quarter and by a preliminary 2.3% in the second half of 2021, according to the filing.

It also expects average domestic routes to grow from 114 in the current quarter to a preliminary 159 in the second half of 2021.

($1 = 5.3281 reais)

(Reporting by Ana Mano, editing by Louise Heavens)

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