Gol airline’s CEO tries to rebound from losses by cutting 4,000 jobs

Gol Linhas Aereas Inteligentes SA’s borrowing costs are plunging by the most in emerging markets after its decision to eliminate 4,000 jobs helped Brazil’s largest airline rebound from unprecedented losses. Yields on Gol’s $221 million of bonds due 2017 plunged 4.45 percentage points to 8.70 percent in the past month as the carrier had its first quarterly operating profit in a year, according to data compiled by Bloomberg. The decline in yields, which doubled in a month to a high of 14.72 percent in April, is the biggest among 1,422 securities tracked by Bank of America Corp.’s Emerging Markets Corporate Plus Index over that span. Gol is regaining investors’ confidence after new Chief Executive Officer Paulo Kakinoff helped cut its workforce by 20 percent in the past year and reduce domestic flights to stem operating losses that swelled to a record 906 million reais ($443 million) in 2012 amid a slowdown in Latin America’s biggest economy. Gol trimmed operating expens