UPDATE 2-Airline Gol posts 7th quarterly loss, Brazil outlook flat

Reuters

(Corrects to reflect seven consecutive losses, not six)

SAO PAULO, Nov 13 (Reuters) - Shares of Gol Linhas Aereas tumbled to a two-month low on Wednesday after theBrazilian airline posted its seventh straight quarterly loss andforecast no rebound in the domestic market next year.

Gol reported a net loss of 197 million reais ($85 million)in the third quarter, compared to a loss of 309 million reais ayear earlier, according to a late Tuesday filing.

After slashing flights within Brazil by about 5 percent in2012 and 9 percent this year due to weak demand and soaring fuelcosts, Gol said in a separate filing it plans to keep the sizeof its domestic network unchanged next year.

"The adjustments made in the domestic market this year haveled the company's supply to a size compatible with the economicscenario expected for 2014," Gol said in the filing.

Gol shares fell more than 5 percent in Sao Paulo trading totheir lowest since early September.

The rocky earnings and glum outlook reinforced concernsabout the ability of Brazil's airlines to handle an onslaught offoreign fans during the 2014 World Cup. Shrinking domesticoperations have led tourism officials to suggest allowingforeign carriers to run routes within Brazil during thetournament - a proposal opposed by the aviation minister.

Gol plans to continue its push into more profitableinternational routes, expanding foreign flights by 5 percent to8 percent next year, chief executive Paulo Kakinoff toldanalysts on a conference call to discuss earnings.

By flying more internationally and keeping a lid on domesticcapacity, Kakinoff said there was room for Gol to continueincreasing its average ticket prices next year.

($1 = 2.33 reais) (Reporting by Roberta Vilas Boas; Writing and additionalreporting by Brad Haynes; Editing by Chris Reese and ChizuNomiyama)

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