GOL Linhas Aereas sees capacity decline

Airline holding company GOL Linhas Aereas Inteligentes SA said Tuesday it expects available seat capacity in the fourth quarter to drop roughly 2 percent compared to the third quarter.

The company gave some general guidance for certain future financial periods.

For the fourth quarter, reflecting recent network integration, GOL Linhas Aereas said it expects consolidated load factors, or occupancy rates, in the range of 63 percent, with consolidated passenger yields in the range of R$27 cents (13 cents). For the fourth quarter, it expects consolidated non-fuel cost per available seat kilometer to be in the range of R$9.7 cents (4.5 cents), flat versus the third quarter, as the company expects it will continue to incur costs related to aircraft returns.

The company said that it expects that the incorporation of larger, more fuel-efficient aircraft and GOL's hedging program will partially offset eventual increases in fuel prices.

The company is in the final phase of its plan to replace its Boeing 737-300 and 767-300 aircraft with 737-700s and 737-800s for operations on short- and medium-haul routes.

GOL Linhas Aereas is the parent company of Brazilian airlines GOL Transportes Aereos SA and VRG Linhas Aereas SA.