Brazil airline Gol posts deeper net loss on currency hedge

Tue May 14, 2013 7:26am EDT

* Recovering EBIT signals gradual turnaround from 2012 loss

* Payroll down 30 pct; flight network contracting

SAO PAULO May 14 (Reuters) - Brazilian airline Gol Linhas Aereas posted a bigger net loss in the first quarter than a year earlier, as losses from currency hedges offset profitability gains from a year of cutting its payroll and flight network.

The airline reported a net loss of 75 million reais ($37 million), according to a late Monday filing, after a loss of 41 million reais a year earlier.

Still, a 30 percent cut in employee costs from a year before allowed Gol to substantially boost operating profits, adding to signs of a gradual turnaround after years of poorly controlled growth led to a loss of 1.5 billion reais for 2012.

Earnings before interest and taxes, a gauge of operating profit known as EBIT, rose to 101 million reais in the first quarter from 7 million reais a year earlier.

Discounting the impact of depreciation, amortization and aircraft rentals, the industry measure of profitability known as EBITDAR rose 37 percent to 367 million reais.

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