SAO PAULO (Reuters) -Brazilian airline Gol formally exited its bankruptcy proceedings in the United States on Friday, setting the stage for fleet expansion and new flights and routes within Brazil and other countries, Chief Executive Officer Celso Ferrer told Reuters.

In 2024, Gol became the second Brazilian airline, after Latam in 2020, to seek Chapter 11 bankruptcy protection in the United States as the sector grappled with debt burdens, a steep decline in passenger numbers during the COVID-19 pandemic, and aircraft delivery delays. Azul ( AZULQ ), a Gol competitor, filed for Chapter 11 last month.      

Despite Azul's ( AZULQ ) financial struggles, talks over a potential partnership between the carrier and Gol are ongoing, Ferrer said. But a final deal "will only happen if it adds value and results, whether through routes or growth. If it's better for everyone," he added.

Discussions regarding the business combination, which were formalized with a memorandum of understanding last January, are being managed by Abra Group, the majority investor in both Gol and Colombia's Avianca.