By Brazil Stock Guide – Abra Group, the parent company of Gol and Avianca, posted a $766 million loss in the second quarter of 2026, more than four times the $178 million deficit recorded a year earlier, as a surge in fuel expenses overwhelmed revenue growth.
Revenue rose 17.7% to $2.59 billion in the April-to-June period, supported by gains across passenger operations, cargo services and loyalty programs. Still, aviation fuel costs jumped 80.2% from a year earlier, compressing operating margins and weakening the group’s bottom line.
“We delivered significant revenue growth in the second quarter, supported by our passenger and cargo operations,” Chief Executive Officer Adrian Neuhauser said in a statement.
Abra Group and its airline subsidiaries aren’t publicly traded, so no current stock ticker applies.
Fuel Costs Pressure Margins
Abra passed about 49% of the increase in fuel costs on to passengers, indicating that the company absorbed more than half of the additional expense.
The group also settled $88 million in foreign-exchange and oil derivatives and implemented cost reductions to mitigate the impact of volatile energy prices and currencies.
The measures weren’t enough to prevent the loss from widening as fuel expenses rose faster than revenue. The results highlight the challenge for Latin American carriers seeking to protect margins without weakening demand through steeper fare increases.
Passenger Traffic and Capacity Rise
Operating indicators remained positive despite the adverse cost environment. Abra transported 17.6 million passengers during the quarter, a 4.3% increase from the same period in 2025.
Flight capacity expanded 6.5% year over year, reflecting continued demand for air travel across the group’s main markets.
The combination of higher traffic and capacity helped drive revenue growth, though it also increased the company’s exposure to elevated fuel prices.
Cargo and Loyalty Units Expand
Cargo operations and other revenue generated $448 million, up 14.8% from a year earlier. The group transported about 214,000 metric tons of freight during the quarter.
GOLLOG, Gol’s logistics unit, held a 46% share of Brazil’s air cargo market, strengthening its position as a key contributor to the group’s non-passenger revenue.
Smiles and LifeMiles, the loyalty programs associated with Gol and Avianca, recorded combined gross billings of $339 million. That represented a 30.9% increase from the second quarter of 2025 and marked the fastest growth among the business segments disclosed.
Leverage Climbs to 3.7 Times
Abra ended June with $2.1 billion in total liquidity, including $1.4 billion in unrestricted cash and equivalents. The unrestricted balance corresponded to 19.6% of revenue generated over the previous 12 months.
Consolidated net debt reached $9.4 billion. Financial leverage, measured as net debt divided by adjusted Ebitdar for the trailing 12 months, increased to 3.7 times from 3.1 times at the end of the first quarter.
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