While Avianca Brasil is in Deep Trouble, GOL Keeps Thriving and Prospering

By Contributing Reporter

RIO DE JANEIRO, BRAZIL – GOL Linhas Aéreas Inteligentes, Brazil’s premier airline, announces its consolidated results for the first quarter of 2019 (1Q19).

The combination of higher demand and optimized pricing resulted in net revenue for the quarter of R$3.2 (US$0.8) billion, the highest ever recorded by the Company, an increase of 8.3 percent compared to 1Q18.

Due to increased cost control and management of capacity and yields, the Company achieved a positive operating result for the 11th consecutive quarter, despite a 16.2 percent average depreciation of the Real against the US dollar and a 9.3 percent increase in the price of jet fuel.

Revenue passenger kilometers (RPKs) increased by 6.4 percent, totaling 10.6 billion in 1Q19, driven by 7 percent growth in the number of transported passengers.

Available seat kilometers (ASK) growth remained constrained at 5 percent. As a result of strong passenger demand, the Company was able to achieve an average yield per passenger of 28.55 cents (R$), an increase of 1.9 percent compared to 1Q18.

GOL remains the unit cost leader in South America for the 18th consecutive year.

The combination of stronger pricing and higher demand permitted GOL to achieve an EBIT margin of 17 percent. Operating income (EBIT) in 1Q19 was R$546.2 million, an increase of 1.3 percent compared to 1Q18. The EBITDA margin was 29.6 percent in 1Q19.

The combination of GOL’s operational cash flow generation of R$253.6 million in the quarter and higher cash liquidity increased the Company’s financial flexibility.