GOL Airlines Faces Steep Losses as Chapter 11 Restructuring Continues

Brazilian airline GOL reported severe financial losses in early 2025, with a R$10 million ($1.7 million) loss in January followed by a much steeper R$552 million ($93.6 million) loss in February.

The airline disclosed these figures in mandatory reports to U.S. courts as part of its ongoing Chapter 11 bankruptcy proceedings. Revenue declined sharply between the two months.

GOL generated R$2.24 billion ($379.7 million) in January, dropping to R$1.65 billion ($279.7 million) in February. This represents a concerning 26% decrease in just one month.

The company’s operational efficiency deteriorated rapidly. EBITDA margins fell from 33% in January to just 12% in February. More alarmingly, the EBIT margin plummeted from 22% to negative 1%, indicating the airline began operating at a loss.

GOL’s financial position remains precarious. The airline reported R$1.93 billion ($327.1 million) in cash reserves at February’s end, dwarfed by its massive R$31.4 billion ($5.3 billion) net debt.

GOL Pushes Ahead with Restructuring After Record Losses

The company also holds R$3.04 billion ($515.3 million) in accounts receivable. These monthly losses follow a devastating fourth quarter of 2024, when GOL shocked investors with a R$5.1 billion ($895 million) net loss.

This represented nearly five times the loss from the same period in 2023. The airline entered Chapter 11 bankruptcy protection in January 2024 after failing to address its engine maintenance backlog and reduce leverage.

GOL now aims to complete its restructuring by April 2025. Recent agreements with majority shareholder Abra Group will eliminate up to $2.55 billion in debt.

The restructuring plan converts up to $1.7 billion of debt into equity and extinguishes another $850 million in obligations. GOL also plans to raise up to $1.85 billion in new capital to support post-bankruptcy growth.

The airline has already renegotiated lease terms for 139 aircraft and 58 engines to improve cash flow. Despite financial troubles, GOL achieved operational successes.

The carrier became the world’s most punctual low-cost airline by January 2025, with an 85.1% on-time performance. Its cargo division exceeded R$1 billion in annual revenue for the first time.

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