Brazil Airline Carrier GOL Unites with LATAM in Exiting US Bankruptcy Protection, Igniting New Era of Expansion, Fleet Growth, and Regional Travel Recovery

Published on June 7, 2025

By: Tuhin Sarkar

Brazil airline carrier GOL unites with LATAM in exiting U.S. bankruptcy protection, marking the beginning of a bold new chapter. GOL, a major Brazil airline carrier, follows LATAM’s earlier recovery path by closing the door on financial distress and stepping confidently into a future focused on fleet growth and regional travel recovery. Meanwhile, LATAM’s similar comeback now stands as a signal of what’s possible in Latin America’s aviation space. Together, GOL and LATAM exiting U.S. bankruptcy protection sends a powerful message—Brazil’s airline industry is rising again.

But this isn’t just about numbers. It’s about renewal, resilience, and the return of passenger trust. It’s about expansion plans, new routes, and fleet upgrades that are ready to transform regional travel. From grounded jets to skies filled with opportunity, GOL and LATAM’s journey is far from over. With bankruptcy protection behind them, the next phase promises growth, innovation, and a recovery story worth following.

In the turbulent skies of the aviation industry, few stories reflect resilience quite like those of LATAM Airlines, Gol Linhas Aéreas, and Azul Brazilian Airlines. These major Latin American carriers turned to U.S. Chapter 11 bankruptcy protection in recent years, seeking shelter from the economic storm triggered by the COVID-19 pandemic, supply chain disruptions, and debt accumulation.

Now, in 2025, two of these airlines—LATAM and Gol—have officially exited bankruptcy proceedings, while Azul is actively working through its restructuring. Together, they represent a critical chapter in the story of Latin America’s aviation recovery, impacting not just their home countries but global travel trends and tourism flows.

LATAM Airlines: The First to Fall and Rise

LATAM Airlines, South America’s largest carrier, filed for Chapter 11 bankruptcy protection in May 2020, just months after the pandemic grounded international aviation. With operations spanning Chile, Brazil, Peru, Colombia, and Ecuador, LATAM faced mounting debt and plummeting revenues.

The bankruptcy allowed LATAM to renegotiate leases, reduce liabilities, and streamline operations. By November 2022, LATAM had successfully exited bankruptcy with a revamped business model. The airline slashed underperforming routes, refocused on profitable international and regional connections, and secured nearly $8 billion in equity and debt financing.

Post-bankruptcy, LATAM’s strategy leaned heavily into sustainability, with investments in fuel-efficient aircraft, digital booking platforms, and loyalty partnerships. It also deepened code-share ties with Delta Air Lines, enhancing access to North American routes.

For travelers, LATAM’s emergence from bankruptcy marked a return of reliable, affordable options across South America. Tourism boards across Chile, Peru, and Brazil welcomed the return of consistent inbound flight traffic—crucial for local economies.

Gol Airlines: From Setback to Strategy in 2025

Brazil-based Gol Linhas Aéreas became the region’s next major airline to seek Chapter 11 protection, filing in January 2024. Like LATAM, Gol was saddled with pandemic-era debts and faced challenges from volatile fuel prices, fleet modernization delays, and shifting travel patterns.

By June 2025, Gol had officially exited Chapter 11 bankruptcy in the U.S. The announcement marked a turning point for Brazil’s second-largest carrier. With $900 million in cash reserves and a renewed focus on cost-efficiency, Gol began rolling out an aggressive expansion plan aimed at restoring pre-pandemic capacity by 2026.

Gol’s recovery is built on three pillars:

1. Fleet Expansion – Five Boeing 737 MAX aircraft are expected to be added in 2025, along with over 50 engine overhauls completed in 2024.
2. Domestic and Regional Growth – New routes connecting Brazil to South Florida, Argentina, and Colombia are part of the plan.
3. Strategic Partnerships – Talks of a merger or strategic alliance with Azul Airlines continue, backed by the Abra Group, which owns stakes in both Gol and Colombia’s Avianca.

Moreover, Gol is exploring fleet diversification opportunities, including the possible incorporation of Embraer jets, a significant shift that could offer flexibility for short-haul regional services.

From a travel and tourism perspective, Gol’s comeback is vital. Brazilian tourism authorities anticipate increased traffic to and from major hubs like Sao Paulo, Rio de Janeiro, and Recife, as Gol resumes full-service operations.

Azul Airlines: The Last to Enter, Still Restructuring

In May 2025, Azul Brazilian Airlines became the latest Latin American airline to file for U.S. Chapter 11 bankruptcy protection. Known for its extensive domestic network and modern fleet, Azul faced similar challenges—rising operational costs, reduced demand, and financial strain from pandemic-era liabilities.

Azul’s ongoing restructuring focuses on preserving liquidity, maintaining network integrity, and negotiating with aircraft lessors. As of now, Azul has not exited bankruptcy, but the process is progressing under judicial oversight in both Brazil and the United States.

Interestingly, Azul is at the center of partnership talks with Gol. The two airlines have explored synergies in route networks, fleet operations, and shared services. While a merger is not guaranteed, any consolidation could reshape the competitive landscape in Latin America’s aviation sector.

Why U.S. Chapter 11 Protection?

Many wonder why Latin American carriers turn to U.S. bankruptcy courts. The answer lies in the structure of Chapter 11—a debtor-in-possession model that allows airlines to continue operations while renegotiating financial obligations.

This model offers stability and global recognition, making it an ideal path for airlines operating international routes and leasing aircraft from global suppliers. It also reassures investors and customers that the company remains operational during restructuring.

Impacts on Tourism and Regional Economies

The bankruptcy filings and subsequent recoveries of these airlines have had profound effects on tourism across Brazil, Chile, Peru, Colombia, Argentina, and beyond. During the down years, travelers faced limited options, higher fares, and unpredictable service.

Now, as LATAM and Gol rebuild—and Azul continues to stabilize—travelers are seeing:

• More affordable fares due to fleet efficiency and route optimization
• Expanded international access, especially between Latin America and North America, Europe, and neighboring countries
• Stronger tourism marketing from countries eager to restore visitor numbers

Hotels, cruise ports, local tour operators, and destination marketing organizations across Latin America are directly benefiting from restored airline connectivity.

Global Lessons from Latin America’s Airline Recovery

The stories of LATAM, Gol, and Azul hold lessons for the global aviation and travel industry:

• Agility matters – Airlines that adapt quickly, simplify operations, and modernize fleets can rebound faster.
• Partnerships are vital – From code-shares to equity investments, collaboration strengthens networks.
• Tourism and aviation are inseparable – When airlines falter, tourism economies feel it fast.
• Sustainability sells – Airlines focusing on cleaner fleets and digital innovation are gaining loyalty.

What’s Next for Travelers?

Travelers can expect more routes, competitive pricing, and better onboard experiences from LATAM and Gol. Azul, while in transition, remains a vital player with strong brand recognition in Brazil.

International travelers from Miami, New York, Madrid, and Lisbon will find renewed access to Latin America, with tourism boards ready to welcome them back with open arms.

Final Thoughts

As LATAM and Gol ascend from bankruptcy and Azul navigates its path forward, the skies over Latin America are clearing. These recoveries are more than financial—they symbolize the revival of connection, culture, and commerce.

For the millions of passengers planning to explore Rio’s beaches, Cusco’s ruins, or Bogotá’s markets, these airlines are once again ready to deliver the journeys that connect continents and inspire memories.

Brazilian carrier Gol Airlines has officially exited its Chapter 11 bankruptcy process in the United States, marking a major turning point in the airline’s post-pandemic recovery strategy. The announcement, made on Friday, brings renewed energy to the airline’s growth plans across Brazil and neighboring countries, amid signs of a steady rebound in regional travel.

The exit from bankruptcy comes after a challenging financial period that mirrored the turbulence felt across the global aviation sector during COVID-19. In 2024, Gol joined fellow Brazilian carrier LATAM—which filed in 2020—by seeking U.S. bankruptcy protection to restructure its operations and stabilize mounting debts. Gol now joins a shortlist of airlines that have navigated these turbulent skies and emerged with a renewed sense of direction.

Gol’s revival is powered by a financial cushion of $900 million in cash reserves, placing the airline on firmer ground as it pivots to growth. According to Gol leadership, the airline plans to add several new routes domestically and expand regionally, focusing on high-demand corridors from South Florida down through southern Argentina.

Meanwhile, discussions of a potential merger or partnership with Azul, another Brazilian airline that also entered Chapter 11 in 2025, remain active. While no deal has been finalized, sources familiar with the talks indicate that any agreement must add strategic value to both carriers. This includes enhanced route networks, optimized fleet use, and shared customer bases.

The Abra Group, which holds a majority stake in both Gol and Colombia’s Avianca, is spearheading the discussions. The talks were formalized with a memorandum of understanding in January, giving structure to what could become a powerful alliance in Latin American aviation.

As part of its growth strategy, Gol has committed to maximizing seating capacity and maintaining low operational costs. This move aligns with its goal of reaching pre-pandemic operational levels by 2026. To achieve this, Gol will receive five new Boeing 737 MAX aircraft this year and has already completed overhauls on more than 50 engines in 2024.

However, the airline is not limiting itself to Boeing. Gol leadership has indicated openness to exploring opportunities that involve Embraer aircraft—a notable move considering Embraer’s manufacturing base in Brazil and its global reputation for efficient regional jets.

Beyond fleet expansion, Gol’s focus on profitability includes modernizing onboard services, improving punctuality, and enhancing digital customer experience tools. These changes are aimed at reinforcing traveler confidence and brand loyalty in a competitive post-pandemic market.

Moreover, the airline’s re-emergence is expected to benefit Brazil’s tourism industry, as more flights and competitive pricing could stimulate both domestic and international visitor traffic. This is particularly timely with Brazil’s hospitality sector seeing increased demand from U.S. and European travelers seeking South American destinations.

While Gol charts a new flight path forward, the aviation community watches closely. Will its strategy hold up in a market still sensitive to economic shifts, supply chain disruptions, and regulatory challenges? For now, the runway looks clear.

As Gol Airlines lifts off from its financial struggles, it carries with it the hopes of Brazilian travelers, tourism businesses, and international partners eager to see a full recovery in the skies.