Gol Linhas Aéreas Inteligentes S.A, Brazil’s largest domestic passenger airline, said cargo revenue increased 80% in the first quarter compared to 2022 on the strength of its new dedicated freighter service for e-commerce seller Mercado Livre.
Gol (NYSE: GOL) began flying a Boeing 737-800 converted freighter for the South American online marketplace in late August and now has three of the aircraft shuttling packages across the country every day, according to the airline’s earnings report on Wednesday. One aircraft was delivered during the first quarter after being retrofitted for cargo by Boeing in China.
Two additional 737-800 freighters are scheduled to enter service by next month. The fleet will grow to six aircraft by the end of the year. The airline last year entered into a 10-year transportation services agreement with Mercado Livre to take advantage of the growing e-commerce market in Brazil and diversify its revenue. Gol is leasing the aircraft from AerCap Holdings (NYSE: AER) and has an option to add six more of the standard-size cargo jets by 2025.
Gol sold $36 million worth of cargo services during the first quarter. Total airline revenue grew 52.8% to $939.4 million, driving earnings before interest, taxes and depreciation to $237.4 million.
Mercado Livre established in-house air cargo operation Meli Air two years ago to ensure fast delivery in the mushrooming Latin American e-commerce market, much like Amazon (NASDAQ: AMZN) in the United States. Other contract carriers include Brazilian cargo airline Sideral Linhas Aéreas and Mexico-based charter carrier Aeronaves TSM, both of which operate older 737 aircraft types. Azul, another Brazilian airline, operates one cargo jet for Mercado.
Click here for more FreightWaves and American Shipper articles by Eric Kulisch.
Contact Eric: ekulisch@www.freightwaves.com
RELATED STORIES:
Mercado Libre’s new S. American air cargo network mirror Amazon model
Nontraditional airlines in Brazil, Indonesia pursue 737-800 freighters
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post • Chicago, IL Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now