Brazilian carriers Azul and GOL Linhas Aéreas have agreed to a commercial partnership to connect their domestic networks, amid ongoing speculation about a potential merger between the two airlines.
The codeshare deal will cover all routes within Brazil that are operated by one of the two airlines, but not the other. Analysis by Routes has found that this equates to almost 380 nonstop domestic sectors.
The agreement also encompasses frequent flyer programs, meaning Azul Fidelidade and Smiles members will soon be able to earn points or miles within their preferred program when taking one of the new codeshare flights.
Azul President Abhi Shah said the partnership would bring “enormous benefits” to passengers, creating more than 2,700 travel opportunities with just one connection.
“With Azul's highly connected network serving most cities in Brazil, and GOL's strong presence on the main Brazilian markets, our complementary service offerings will offer our customers the broadest range of travel options in the market,” he said.
GOL CEO Celso Ferrer added that the carrier already has more than 60 commercial agreements with various international airline partners—and GOL is “eager to extend these benefits within Brazil.”
The codeshare deal follows media reports that Azul is exploring a possible merger with GOL, which is currently in Chapter 11 bankruptcy protection. One scenario involves Abra Group, the owner of Colombian flag-carrier Avianca and GOL, contributing its GOL shares to Azul in exchange for a stake in the merged airline.
Although Azul, GOL and Abra Group have remained tight-lipped about any potential agreement, Azul CEO John Rodgerson acknowledged on a May 13 earnings call that the airline’s management remains “big fans of consolidation.”
“I think that that's also something that we've been pretty open about for the last five years or so,” he said. “And so, we'll see what happens going forward. There’s a process in place, and we're watching very closely. And that’s all we can really say.”
In May 2022, Avianca and GOL formed Abra Group, combining the principal shareholders of Avianca and the controlling shareholder of GOL. Initially, Colombian ULCC Viva was also set to join, but it ceased operations in early 2023 after Avianca’s failed acquisition attempt.
While Abra worked on gaining approvals for the new holding company, GOL continued to face financial challenges, resulting in the Chapter 11 bankruptcy protection filing in the U.S. in January 2024.
GOL’s restructuring means each of Brazil’s three largest airlines has undergone financial reconstruction since the onset of the pandemic. LATAM Airlines Brasil’s parent, LATAM Airlines Group, entered Chapter 11 in May 2020 and emerged in November 2022. Meanwhile, Azul completed a restructuring in 2023, reducing lease obligations across its fleet.
According to OAG Schedules Analyser data, Azul and GOL are the second- and third-largest providers of domestic capacity in Brazil, respectively. Azul accounts for about 32.7% of all domestic seats available in May 2024, while GOL has a market share of 29.3%. LATAM Airlines Brasil is the largest operator, with a 36.6% share.
Analysis of schedules data reveals that Azul currently offers about 696,000 weekly domestic seats in Brazil across 5,800 flights and GOL provides 629,000 seats across 3,500 flights.
Looking at schedules for May, Azul has a network of 337 nonstop domestic routes, while GOL offers 135 domestic routes. Their networks overlap on 47 routes, meaning 378 routes are exclusive to just one of the carriers.
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