GOL Reports Third Quarter 2021 Results
All information is presented in Brazilian reais (R$), according to both International Financial Reporting Standards (IFRS) and adjusted metrics, and is made available to enable comparability of this quarter with the same period last year. Such adjusted metrics exclude expenses related to the portion of the non-operating fleet that the Company grounded this quarter and are detailed in the table showing "operating expenses". Comparisons are made to the third quarter of 2021 (3Q21), unless otherwise specified.
During 3Q21 GOL achieved a number of significant milestones that position the Company to meet the return of demand for air travel in
"We put a series of strategic initiatives in place this quarter that will strengthen our market position as the demand for travel continues to rise, the vaccination rate expands and international borders reopen," said
Continued recovery in demand
: GOL's departures in the third quarter grew by 87.3%, reaching 53% of the pre-pandemic levels in 2019. This was enabled by a rising vaccination rate. In 3Q21,
In response to the growth in demand, GOL is expanding its network, re-starting regional destinations and serving new markets with high domestic tourism potential, including the new route from Congonhas (SP) to Bonito (MS) as of December.
"Our disciplined approach in the management of capacity will enable us to maintain high load factors in both our domestic and international routes," added Kakinoff. "At the same time, GOL's flexible fleet management model and prudent cash flow management, combined with the dedication of our Team of Eagles, means we will nimbly adapt to market conditions as we need to."
Acceleration of the transition to a 737 MAX fleet : GOL accelerated its fleet transformation by signing agreements in 3Q21 for 28 additional Boeing 737 MAX 8 aircraft, replacing 23 B 737-800 NGs by the end of 2022. This will reduce the Company's unit costs by 8% in 2022. Under the agreements, the Company will end 2021 with 28 737 MAX-8 aircraft (20% of the total fleet). By the end of 2022, GOL expects to have 44 737 MAX-8 aircraft (32% of the total fleet). With current purchase commitments, the Company will meet its goal of a 75% 737 MAX fleet by 2030.
The 737 MAX is a key component of the Company's goal to reach carbon neutrality by 2050, as this model consumes 15% less fuel, produces 16% fewer carbon emissions, greater flight range and 40% less noise than the 737-800 NG aircraft.
Re-incorporation of Smiles : With the merger of Smiles into GLA concluded, several operational and financial synergies will be realized, as well as new revenue-generating opportunities that will become even more significant during the airline market's recovery for both business and leisure travelers.
"We are optimistic that the synergies from this corporate reorganization, and the subsequent benefits to our shareholders, will be realized in a relatively short period of time, as the Company has completed all the necessary integrations while preserving the agile and independent management of the loyalty program" said
The conclusion of the Smiles re-incorporatation in September/21 enabled the Company to access more than
In the third quarter, the Company's frequent flyer program had sales of
: The Company demonstrated continued discipline this quarter with the sucessful completion of a
In October, GOL refinanced its short-term bank debt in the amount of
The Company's liability management program has improved GOL's credit metrics and enabled management to focus on reducing costs and increase operational efficiencies. As a result of the balance sheet strengthening initiatives, Fitch recently increased GOL's credit rating to B-.
In addition, the Company amortized around
Summary of 3Q21 Results
- Revenue Passenger-Kilometers (RPK) increased 87.5% compared to the same period in 2020, totaling 5.9 billion (-46.6% vs. 3Q19);
- Available Seat Kilometers (ASK) increased 82.4% compared to 3Q20 (-45.7% vs. 3Q19);
- GOL transported 4.9 million Customers in the quarter, an increase of 91.7% versus 3Q20 (-48.5% vs. 3Q19);
- Net revenues totaled
R$1.9 billion, an increase of 96.4% versus 3Q20 (-49.5% vs. 3Q19). Other revenues (mainly cargo and loyalty) amounted to R$147 million, equivalent to 8% of total revenues;
- Net Revenue per Available Seat Kilometer (RASK) was
26.71 cents(R$), an increase of 7.75% versus 3Q20. Net Passenger Revenue per Available Seat Kilometer (PRASK) was 24.28 cents(R$), an increase of 10.3% over 3Q20;
- The Cost per Available Seat Kilometer (CASK) was
36.64 cents(R$), 15.9% down from 3Q20. Costs strictly related to the flights operated (adjusted CASK) corresponded to 21.66 cents(R$), an increase of 6.3%.
- Adjusted EBIT totaled
R$338.1 million, corresponding to a margin of 17.7, which shows the restoration of the operating margins necessary to support operational growth. Adjusted EBITDA reached R$464.7 million, with margin of 24.3%, reflecting GOL's successful sustainability efforts in balancing supply and demand;
- The net loss after minority interest was
R$ 0,9 billion, excluding exchange and monetary variations, non- recurring net expenses, gains related to Exchangeable Notes and capped calls unrealized results;
- Average yield per passenger of
29.8 cents(R$), an increase of 7.3% over 3Q20, mainly due to the optimization of seat offer and further continuous improvements with the resumption of business clients in 4Q21;
- Average load factor of 81.5%, up by 2.2 p.p. over 3Q20, mainly due to prudent supply management, adding capacity based on demand indicators and GOL's proprietary tools of data analytics;
- Aircraft utilization of 10.2 hours/day, up by 52.2% over 3Q20, in line with the Company's strategy of adding capacity according to demand recovery;
- On-time departures of 96%, down by 1.0 p.p. versus 3Q20, according to Infraero and data provided by the main airports; and
- Operating cash generation of
R$ 2mm / day, including operating inflows and outflows, lease payments and working capital debt service. At the end of the quarter, including the financeable amounts of deposits and unencumbered assets, the Company's potential sources of liquidity were approximately R$6.1 billionof accessible liquidity.
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