Gol enters into an exclusive codeshare agreement with American Airlines and will receive R$1 billion from American Airlines

Gol enters into an exclusive codeshare agreement with American Airlines and will receive R$1 billion from American Airlines

Sao Paulo – Jules (all 4On Wednesday (15) it reported expanding its commercial cooperation with American Airlines through an exclusive codeshare agreement.

A codeshare is a cooperation agreement between airlines that carry passengers whose tickets have been issued by a different airline. In other words, you buy a ticket with American Airlines, but when you get on a plane, for example, you’re flying on an ogre.

As part of the agreement, which will be for three years, the American airline will invest $200 million (about 1.05 billion Brazilian reais) in 22.2 million preferred shares recently issued by Gol in the capital increase, to own a 5.2% stake in the Brazilian company.

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We believe this will strengthen Gol’s presence in international markets, accelerate our long-term growth and increase value for our shareholders. It also underscores confidence in the company’s growth as the economy reopens and travel demand increases.

Richard Lark, Chief Financial Officer of Gol, adds that the investment, when added to the R$2.7 billion of long-term capital raised in the second quarter of this year, brings the total long-term capital to more than R$3.7 billion in the six months past, including more than R$2 billion of new capital. “This additional cash improves Gol’s financial resilience, while reducing dilution for shareholders,” he wrote in a note.

The existing codeshare agreement between the two companies has been in effect since February 2020, allowing GOL passengers to easily connect to more than 30 destinations in the United States. Partnership flights currently operate in the Gol hubs of São Paulo (GRU) and Rio de Janeiro (GIG), incorporating 34 options of Brazilian and international routes, such as Montevideo, Uruguay.

Last Tuesday (15), GOLL4 shares closed the trading session down 1.2%, and were trading at R$19.28 on the Brazilian Stock Exchange.

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