Recovery on the horizon: GOL exits bankruptcy proceedings and eyes expansion
June 10, 2025
Brazilian low-cost carrier (LCC), GOL formally exited Chapter 11 bankruptcy proceedings on 6 June, having secured $1.9 billion in exit financing.
Having filed for Chapter 11 bankruptcy protection in the US in early 2024, GOL received approval for its restructuring plan on 20 May. The troubled carrier secured $1.25 billion of its exit financing from anchor investors Castlelake and Elliott Investment Management.
The airline now holds around $900 million in cash reserves.
Abra Group remains GOL’s majority shareholder. Having previously controlled 54% of capital, sources indicate that after restructuring, Abra’s stake in the LCC could increase to over 75%.
Gol’s recovery: Fleet and network expansion
Additional flights within Brazil will be complemented by international routes, particularly in the region that stretches from South Florida to southern Argentina.
GOL’s “strategic global partnerships will allow for adding service profitability to new or underserved domestic and international routes,” according to the airline.
Meanwhile, the airline continues its fleet modernisation with plans to take delivery of five Boeing 737 MAX aircraft this year.
GOL currently operates a fleet of over 138 aircraft, comprised exclusively of Boeing 737 aircraft, although GOL’s CEO, Celso Ferrer has previously said he is open to “opportunities that might involve Embraer aircraft.”
In 2024 the LCC completed overhauls on more than 50 of its existing engines and is on track to have all aircraft in the air by Q1 2026.
“With our financial restructuring process now complete, we are ready to continue driving forward on our purpose of “Being First for All,” said Ferrer.
“We have rationalised our fleet, optimised our costs, redesigned our network, enhanced our operational focus and driven management efficiencies which – supported by solid customer preference, robust demand and a five-year plan that will bring more investment in customer experience as well as new routes – will allow us to continue to drive success.”
In 2024, GOL was the most on-time airline in Brazil, serving 30 million passengers across 65 domestic destinations and 16 international destinations.
Why did GOL seek bankruptcy protection?
Debt burdens, a decline in passenger traffic following the Covid-19 pandemic and supply chain issues were all contributing factors to GOL’s financial struggles when it sought Chapter 11 bankruptcy protection in the US last year.
Similarly, LATAM, another Brazilian airline, filed for Chapter 11 in 2020 before exiting in 2022, and GOL’s rival LCC, Azul, entered Chapter 11 proceedings last month.
Discussions between Azul and GOL regarding a potential merger are ongoing, according to a Reuters report.
Following Azul’s Chapter 11 filing, which sources say the LCC hopes to complete by the end of this year, the carrier has already raised $1.6 billion in debtor-in-possession funding.
It plans to eliminate around $2 billion from its balance sheet by the end of the process. Its restructuring plan also includes a 35% fleet reduction.
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