GOL announces 2Q24 Earnings Result

Rhea-AI Summary

GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4) announced its 2Q24 earnings results, highlighting significant achievements across its passenger, loyalty, and cargo businesses. The airline was recognized as the most on-time in Brazil and Latin America, with a 90.5% on-time performance index. GOL expanded its network with new international routes and codeshare agreements, including a partnership with Azul for exclusive domestic routes. The company saw a 21.1% increase in international ASK in 1H24 compared to 1H23. Smiles, GOL's loyalty program, achieved its second-best quarterly revenue, growing 8.4% year-over-year, while GOLLOG, the cargo business, reported a 41% revenue increase in 1H24 compared to 1H23.

Positive

• Recognized as the most on-time airline in Brazil and Latin America with 90.5% OTP
• 21.1% increase in international ASK in 1H24 vs 1H23
• Smiles loyalty program revenue grew 8.4% year-over-year in 2Q24
• GOLLOG cargo revenue increased 41% in 1H24 vs 1H23
• 39.5% increase in total tons transported by GOLLOG in 1H24 vs 1H23

Negative

• None.

Financial Analyst

GOL's Q2 2024 results show mixed signals. Positive indicators include an 8.4% YoY revenue growth for Smiles loyalty program and a 41% increase in GOLLOG cargo revenue for 1H24. The airline's operational efficiency is noteworthy, with a 90.5% on-time performance.

However, the lack of specific financial figures for the core airline business is concerning. The 21.1% increase in international ASK suggests expansion, but without corresponding revenue or profitability data, it's difficult to assess the impact on the bottom line. The expansion of routes and codeshare agreements could potentially drive future growth, but also increase operational costs in the short term.

Investors should be cautious and await more comprehensive financial data to make informed decisions. The focus on loyalty and cargo segments indicates diversification efforts, which could provide some resilience in a volatile airline market.

Market Research Analyst

GOL's strategic moves in Q2 2024 reflect a focus on market expansion and customer retention. The new international routes and codeshare agreements, particularly with Azul, could strengthen GOL's competitive position in the Latin American market. The 6.5% growth in Smiles customers, with a notable 54.6% increase in premium tiers, suggests effective customer segmentation and retention strategies.

The 11.5% growth in Clube Smiles membership indicates rising brand loyalty, which could translate to stable revenue streams. GOLLOG's 39.5% increase in tons transported, especially the 84.3% growth in Mercado Livre operations, points to GOL capitalizing on the e-commerce boom.

However, the absence of overall passenger revenue and load factor data makes it challenging to fully assess GOL's market performance. Investors should monitor how these strategic initiatives translate into financial performance in upcoming quarters.

SÃO PAULO, Aug. 14, 2024 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4), one of the leading airlines in Brazil and part of the ABRA Group, announced today its consolidated results for the second quarter of 2024 (2Q24). All information herein is presented in Reais (R$), in accordance with international accounting standards (IFRS) and with adjusted metrics, made available to enable comparison of this quarter with the same period of the previous year (2Q23 & 2H23).

HIGHLIGHTS

GOL – Passenger Business

• GOL was the most on-time airline in Brazil in the 2Q24, and was also recognized in June 2024 as the most on-time airline in Latin America and the number one "Low-Cost Carrier" in the world on punctuality, with an on-time performance index (OTP) of 90.5%.
• Announcement of GOL's 16th codeshare agreement, a partnership for exclusive domestic routes with Azul. GOL also reinstated the codeshare agreement with South African Airways.
• Announcement of two new international routes (Guarulhos-San Jose and Guarulhos-Aruba) and resumption of two other routes interrupted during the pandemic (Fortaleza-Orlando and Brasília-Cancun), with operations scheduled to begin by the end of 2024. GOL also announced its intention to establish the new Brasília-Bogotá route which, if approved, is scheduled to begin in the 4Q24.
• 21.1% increase in the seat kilometers flown (ASK) on the international market in the first half of 2024, compared to the same period in 2023.

Smiles – Loyalty Program

• Smiles achieved the second-best quarterly revenue in its history in the 2Q24, with 8.4% growth when compared to the same period of the previous year.
• Number of Smiles customers increased by 6.5% in the 1H24, with a 54.6% increase in the customer base in the Diamond, Gold and Silver categories, reinforcing Smiles as the largest loyalty program among Brazilian airlines.
• 11.5% increase in the Clube Smiles' customer base in the 1H24 compared to the same period in 2023.

GOLLOG – Cargo Business

• 41.0% increase in GOLLOG revenue in the 1H24, compared to the same period in 2023.
• 39.5% increase in total tons transported in the 1H24, compared to the same period in 2023.
• In the 1H24, GOLLOG transported 84.3% more tons related to its cargo operation dedicated to Mercado Livre, compared to the same period in 2023.

FULL EARNINGS RELEASE
Access the earnings release and full financial statements at: www.voegol.com.br/ir

Investor Relations: ir@voegol.com.br 

About GOL Linhas Aéreas Inteligentes S.A. 
GOL is a leading domestic airline in Brazil and part of Abra Group. Since it was founded in 2001, the Company has the lowest unit cost in Latin America, democratizing air transportation. The Company has alliances with American Airlines and Air France-KLM and provides eighteen codeshares and interline agreements to its Customers, bringing more convenience and simple connections to any place served by these partnerships. With the purpose of "Being the First for All," GOL offers the best travel experience to its passengers, including: the largest number of seats and more space between seats; the greatest platform with internet, movies, and live TV; and the best frequent-flyer program, Smiles. In cargo transportation, Gollog delivers orders to different regions in Brazil and abroad. The Company has a team of 13,700 highly qualified aviation professionals focused on Safety. GOL's #1 value and operates a standardized fleet of 141 Boeing 737 aircraft. The Company's shares are traded on the B3 (GOLL4). For further information, go to www.voegol.com.br/ir.

View original content:https://www.prnewswire.com/news-releases/gol-announces-2q24-earnings-result-302222907.html

SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What was GOL's on-time performance index (OTP) in 2Q24?

GOL's on-time performance index (OTP) in 2Q24 was 90.5%, making it the most on-time airline in Brazil and Latin America.

How much did GOL's international ASK increase in the first half of 2024?

GOL's seat kilometers flown (ASK) on the international market increased by 21.1% in the first half of 2024 compared to the same period in 2023.

What was the growth rate of Smiles' revenue in 2Q24 compared to 2Q23?

Smiles, GOL's loyalty program, achieved 8.4% revenue growth in 2Q24 compared to the same period in the previous year.

How much did GOLLOG's revenue increase in the first half of 2024?

GOLLOG, GOL's cargo business, reported a 41.0% increase in revenue in the first half of 2024 compared to the same period in 2023.

What new international routes did GOL announce for 2024?

GOL announced new international routes from Guarulhos to San Jose and Aruba, and resumed routes from Fortaleza to Orlando and Brasília to Cancun, with operations scheduled to begin by the end of 2024.