Gol Rallies on Bets Airlines Face Reduced Taxes: Sao Paulo Mover
Gol Linhas Aereas Inteligentes SA (GOLL4), Brazil’s second-biggest air carrier by market share, rallied on speculation the government will cut taxes for airlines.
The shares climbed 6.5 percent to 11.23 reais at the close in Sao Paulo, the biggest gain since Sept. 13. The advance was the best performance after OGX Petroleo e Gas Participacoes SA (OGXP3) on the benchmark Ibovespa (IBOV) gauge, which added 1.3 percent.
Traders are betting the government will reduce levies on jet fuel and cut trim taxes that fund the Brazilian social security system, according to Sandro Fernandes, a trader at the brokerage firm Geraldo Correa. Sao Paulo-based Gol posted losses in seven of the past eight quarters.
“Rumors have been spreading for some days, but today’s rally may mean that an effective measure is about to be released,” Fernandes said in a telephone interview from Belo Horizonte, Brazil.
Gol has fallen 13 percent this year as the real tumbled in August to a 4 1/2-year low, driving up the cost of dollar-denominated expenses such as fuel, plane leases and debt payments. The currency has climbed 12 percent since Aug. 22, when the government announced a $60 billion intervention program to boost the real and curb import price increases.
To contact the reporter on this story: Denyse Godoy in Sao Paulo at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com