By Brazil Stock Guide – GOL Linhas Aéreas Inteligentes SA (GOLL4.SA) and Azul SA (AZUL4.SA) submitted fresh arguments to Brazil’s antitrust authority Cade on Monday, defending their codeshare agreement signed in 2024. The case is scheduled for judgment on Wednesday, according to Valor Econômico.
The companies’ statements were filed in response to a report by the Institute for Research and Consumer Society Studies (IPS Consumo), which urged Cade to treat the deal as a merger-like transaction. The report claims the airlines cut capacity by 13% on 40 overlapping routes between the third quarter of 2024 and the same period in 2025.
Airlines’ arguments
GOL said the agreement “does not have the purpose or the capacity to alter the incentives for the companies to compete with each other.” Azul was sharper, calling the IPS study “untimely and opportunistic” and based on “incorrect and unfounded information.” The carrier also criticized the methodology, arguing that the analysis failed to separate seasonal from regular routes.
What Cade will decide
Cade’s tribunal will assess whether the agreement qualifies as an associative contract that should have been notified in advance. Possible outcomes range from fines to retroactive notification requirements, or even a full clearance.
The codeshare was announced in May 2024. In early 2025, the airlines disclosed plans to negotiate a merger, which remains in the pre-notification stage at Cade.
Market impact
According to IPS, Azul reduced its network by 142 routes in the second quarter of 2025 compared with the same period of 2024, operating 652 routes. GOL cut nine, ending with 330. The report said Azul’s unusually steep reduction resulted in “a significant loss of connectivity, which may reduce consumer welfare.”