GOL Exits Chapter 11 As Abra Becomes Its Largest Stakeholder

After more than a year restructuring under Chapter 11 bankruptcy protection, Brazilian operator GOL has exited the process with parent Abra Group now owning a majority of its shares.

The company secured $1.9 billion in exit financing, repaid its debtor-in-possession financing and has $900 million in liquidity.

In 2024, the airline overhauled more than 50 engines and is on track to have all those aircraft operating in the first quarter of 2026, GOL said.

One measure GOL adopted to preserve its liquidity prior to filing for Chapter 11 in early 2024 was deferring capital expenditures on engines, resulting in a significant engine maintenance backlog. At one point, the company had 15 fewer lines of flying than planned, which led to lower revenues without any reductions in costs.

GOL said in October 2023 it had roughly 79 engines that were either awaiting a shop visit or in a repair facility waiting for payment in order to be released.

A portion of the BRL5.9 billion ($1.06 billion) in concessions GOL received from lessors during its restructuring included BRL1.8 billion to address engine related issues, the carrier said, including new financing from lessors to address engine heavy maintenance, as well as engine exchanges and replacement and spare engines to return aircraft into revenue service.

In January, GOL said the level of unproductive and spare aircraft as a total of its fleet would fall from 12% in 2025 to 7% in 2026 and remain at those levels through 2029. At that time, the airline projected a year-end fleet of 140 in 2025, 146 for 2026, followed by 156 for 2027, 162 for 2028 and 167 for 2029.

As it exited Chapter 11, GOL stated it expects to take delivery of five Boeing 737 MAX narrowbody aircraft in 2025. GOL operates a mix of 737 next generation and MAX jets.

GOL’s parent Abra Group now owns roughly 80% of the airline’s common and preferred stock, and Abra Group CEO Adrian Neuhauser explained on social media the Chapter 11 restructuring leaves GOL “in a more competitive and sustainable position, with a solid liquidity base, even more competitive costs, substantially lower debt, and a strengthened structure to enhance its capacity in the coming years.”

The emergence of GOL from its restructuring process occurs as its domestic competitor Azul entered Chapter 11 in May.