Fitch: Brazilian airlines pressured

Fitch Ratings said that it expects that the Brazilian airlines, dominated by TAM SA and Gol Linhas Aereas, will experience continued financial pressure through 2009.

Uncertainty in the global airline industry and restricted access to credit has slowed margin recovery for the sector, the agency noted.

"The airlines will continue to face a more challenging operating environment for the remainder of the year," said Debora Jalles, associate director.

"Leverage had substantially increased and the projected slowdown in air traffic in the face of increasing capacity will continue to pressure cash flow."

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