GOL Linhas Aereas Inteligentes has seen losses wide for the second quarter of 2011, with Brazil’s second largest airline losing BRL358.7 million over the period.

This is up from BRL51.9 million a year earlier, Sao Paulo-based Gol said in a statement.

Sales fell to BRL1.57 billion from BRL1.59 billion.

GOL – the largest low-cost carrier in Latin America - is suffering from increased competition for passengers in Latin America’s biggest economy, which has lowered prices, and a surge in fuel costs.

As a result chief executive, Constantino de Oliveira Junior, announced an additional cost reduction plan, focusing on ex-fuel costs.

These measures have already begun and will be fully effective throughout 2012, with GOL hoping to save BRL650 million during the rest of the year.

“The Company values its franchise and strategic position in the Brazilian market and believes its business model to be the most appropriate for economic and social inclusion, breaking the cultural barriers that still exist in Brazilian air transport and exploring a market which, given its low penetration, has enormous growth potential in the coming years,” added Oliveira Junior.

“GOL remains committed to its low-cost, low-fare strategy, and will continue to work in order to maintain its position as the best airline company to fly with, work for and invest in.”