GOL Linhas Aereas suspends quarterly dividend

Brazilian airline holding company GOL Linhas Aereas Inteligentes SA, citing the tough economic environment facing the industry due to high fuel prices, said Thursday it will suspend quarterly dividends for the rest of the year.

The airline previously said it would pay a quarterly dividend of 0.18 Brazilian real per share or 11 cents per American Depositary Receipt. Gol ADRs trade on the New York Stock Exchange.

The company said in a statement that its board made the decision Wednesday, which will allow the airline to retain cash to fund investments and improve credit ratios.

GOL said it is committed to distributing a minimum dividend of 25 percent of the year's net profit, and, if necessary, will issue a supplemental dividend payment at year-end to meet the minimum dividend as required by Brazilian corporate law.

GOL Linhas Aereas is the parent company of Brazilian airlines GOL Transportes Aereos SA and VRG Linhas Aereas SA. GTA has over 640 daily flights to 57 destinations. VRG offers over 120 daily flights to 14 destinations.

GOL ADRs fell $1.04, or 8.9 percent, to $10.63 in midday trading.