Brazil’s GOL has reported a 2012 full-year net loss of BRL1.58 billion ($787 million), widened 58.4% from a BRL1 billion net loss in 2011. Fourth-quarter net loss was BRL$447.1 million, reversed from a net profit of BRL54.3 million in the year-ago period.

Full-year net revenue was BRL8.1 billion, up 7.5% from BRL7.5 billion, producing an operating loss of BRL905.6 million, widened from a BRL244.5 million loss year-over-year. Fourth-quarter net revenue was BRL2.1 billion, down 5.1%, while operating loss was BRL357.6 million, deepened from a BRL33.9 million loss year-over-year.

GOL said its 2012 financial results “reflect the challenging scenario of the national aviation industry over the last two years due to the 18% annual increase in fuel prices, the 17% depreciation of the real against the dollar, the more than 30% increase in airport fees and exceptionally modest GDP growth.”

For the full year, ASKs decreased 14.1% and RPKs went down 8.3%, resulting in a load factor of 69.7%, up 4.4 points. RASKs grew 10.5% to 17.1 BRL cents, while CASKs increased 27.2% to 20 BRL cents.

Systemwide, net operating revenues increased 7.5%, but operating costs and expenses grew 15.7%.  

Last year, GOL reduced its workforce 15%, reduced capacity by 5.4% against an initial estimate of 2% and turned its frequent flyer program, Smiles, into an independent company, which is awaiting approval from the antitrust agency CVM to proceed an IPO. 

In November 2012, GOL announced it was closing down its Webjet subsidiary, returning all 20 of the carrier’s Boeing 737-300s and laying off 850 employees. The company will also reduce domestic capacity 7% this year and downsize its fleet from 147 to 137 aircraft, comprising 136 737-700s and -800s, and one 767.