Gol Q2 revenue drops as demand stays weak in Brazil

Gol posted a decline in Q2 sales as Brazil’s weak economy continued to weigh on air travel. Revenue dropped 2% from a year earlier to 2.1b reais ($659m), compared with the average estimate of 2.06b reais compiled by Bloomberg. The Sao Paulo-based airline posted net income of 309.5m reais, helped by an accounting gain of 778.8m reais with the Brazilian currency’s gain against the dollar, according to a regulatory filing. Air travel in Brazil fell 6.3% in June, the 11th consecutive monthly drop, as business and tourist demand declined amid the country’s two-year recession. Gol’s load factor decreased 1.6 percentage points in Q2 to 75.2%, as the company failed to cut capacity as fast as the market shrank.<br/>