* Brazilian airline rises 6 pct on Veja magazine report
* Gol losing money, cutting ops to deal with costly fuel
(Recasts, adds context on company performance, analyst comment)
SAO PAULO, Sept 10 (Reuters) - Brazil's Gol Linhas Aereas
denied on Monday a report of takeover talks with
Qatar Airways, after hopes of a deep-pocketed investor in the
Brazilian airline sent shares soaring.
Brazilian news magazine Veja reported over the weekend that
Gol's management met last week with executives from fast-growing
Qatar Airways. Veja did not say how it obtained the information.
A spokeswoman for Gol denied the contents of the Veja
report, which said discussions of an investment in the
struggling Brazilian airline were still in early phases.
The magazine said Qatar Airways is looking to take over Gol
with the same kind of merger that allowed Chile's LAN Airlines
to gain control of Brazil's No. 1 carrier TAM, forming giant
regional giant LATAM Airlines.
Gol shares jumped near 11 percent in opening trading before
paring gains to 6 percent, the biggest daily increase in six
The stock has lost nearly 60 percent in two years as higher
fuel prices and a poorly-timed growth plan have led to steep
Gol lost 710 million reais ($350 million) in 2011 and has
forecast an operating loss in 2012 as executives expect fuel
costs and a weaker local currency to continued dragging on
"If there isn't a change in control I don't see an
improvement in the type of results that (Gol) has been
presenting in recent quarters," said Fabio Gonçalves, an analyst
at Banrisul brokerage in Porto Alegre.
The airline is cutting back its fleet and aims to slash
2,500 jobs this year. But its model of a low-cost airline faces
challenges in a country with expensive labor, cumbersome taxes
and crowded airports.
In December, Delta Air Lines Inc bought a 3 percent
stake in Gol and appointed a representative to the Brazilian
carrier's board of directors. Delta has said throughout the year
that it is not considering an increased stake in the airline.
($1 = 2.028 Brazilian reais)
(Reporting by Brad Haynes and Asher Levine; Additional
reporting by Cesar Bianconi; Editing by Gerald E. McCormick)