Brazil’s Gol airline plans to increase capacity by 80% in the third quarter

RIO DE JANEIRO, BRAZIL – Gol informed that its total liquidity at the end of June was R$1.7 billion (US$320 million), composed of R$1 billion in cash and R$700 million in receivables. The airline released on Monday (12) an update of its estimates for the result of the second half of 2021, scheduled for release July 29.

The financial leverage, measured by the ratio of net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) was approximately 11 times. Gol says it amortized about R$800 million in debt, in addition to R$744 million paid to minority shareholders of Smiles in the merger process.

In the second quarter, the airline estimates a loss per share of approximately R$3.25 and Ebitda margin between 16% and 18%, the latter a reduction compared to the margin seen in the same period of 2020 (28%).

Passenger unit revenue (Prask) tends to be 17% in Q2, compared to the same period in 2020, with unit revenue (Rask) 33% lower. “Daily sales ended the quarter around R$21 million, representing a 200% increase compared to the first quarter.”

This increase in daily sales took Gol’s occupancy rate to 85% in the second quarter, and it expects to increase its capacity by approximately 80% in the third quarter, “in anticipation of stronger seasonal demand.”

Finally, the airline talks about its unit costs ex-fuel falling 55% compared to the same period in 2020, with the appreciation of the Brazilian real and greater capacity. Fuel costs, on the other hand, are expected to increase approximately 54% in the quarterly comparison, due to the average 82% increase in the price of aviation fuel.

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