GOL announces 4Q23 EARNINGS RESULTS

Rhea-AI Summary

GOL Linhas Aéreas Inteligentes S.A. announced its consolidated results for the fourth quarter of 2023, showcasing growth in net operating revenue, passenger numbers, and EBITDA margin. The company focused on operational efficiency and excellence in customer offerings, with a positive financial performance compared to the previous year.

Positive

• GOL recorded R$5.0 billion net operating revenue in 4Q23, up by 6.7% from 4Q22.
• 7.8 million passengers were transported in 4Q23, a 0.6% increase from 4Q22.
• Recurring EBITDA margin reached 32.0% in 4Q23, up by 7.3 percentage points from 2022.
• CASK reduced by 0.1% in 4Q23 compared to 4Q22.
• Net leverage reached 3.7x, 0.3x lower than the previous quarter.
• RASK increased by 13.1% to 47.0 cents in 4Q23.
• CASK Fuel decreased by 18.5% due to a reduction in jet fuel prices.
• EBITDA was R$1.62 billion with a 32.0% margin in 4Q23.
• Adjusted net debt to LTM recurring EBITDA ratio was 3.7x on 12/31/2023, a reduction from the previous quarter.

Negative

• None.

Insights

Financial Analyst

The financial results of GOL Linhas Aéreas Inteligentes S.A. for the fourth quarter of 2023 show a positive trajectory in terms of revenue growth and operational efficiency. A key highlight is the 6.7% increase in net operating revenue, which indicates the company's ability to enhance earnings despite a competitive market environment. The recurring EBITDA margin expansion to 32.0% is particularly noteworthy, as it reflects a strong operational performance and cost management, especially considering the 18.5% decrease in CASK Fuel due to lower jet fuel prices.

However, investors should be cautious about the slight increase in CASK ex-fuel by 15.1%, suggesting that there may be underlying cost pressures affecting the company's profitability. Moreover, the net leverage of 3.7x, although improved from the previous quarter, still indicates a relatively high degree of indebtedness, which could impact financial flexibility. The load factor improvements are a positive sign, but the decrease in ASK by 5.6% may raise questions about the company's growth strategy and capacity management.

Market Research Analyst

From a market perspective, GOL's performance in 4Q23 provides insights into consumer behavior and industry trends. The 0.6% increase in passenger numbers and the improvement in load factors, both domestically and internationally, suggest a stable demand for air travel within and from Brazil. The introduction of five new Boeing 737 MAX-8 aircraft reflects a strategic investment in fleet modernization, which can lead to improved fuel efficiency and customer experience.

However, the reduction in total Seat-Kilometer Offered (ASK) could imply a strategic pullback or realignment of routes, which may affect market share and competitive positioning. The company's ability to navigate these operational decisions while maintaining profitability will be critical. Additionally, the record average yield per passenger for a fourth quarter indicates a successful pricing strategy, which could be leveraged to gain a competitive advantage.

Aviation Industry Analyst

Examining GOL's 4Q23 results within the aviation industry context, several elements stand out. The increased utilization of operational aircraft to 11.7 hours per day signals efficient use of assets, which is important in an industry with high fixed costs. The decrease in jet fuel prices by 22.0% has provided a reprieve for the airline, reflected in the reduced CASK Fuel, but it's important to monitor fuel price volatility as it can significantly impact future costs.

The expansion of the international load factor by 10.1 percentage points surpasses industry norms and indicates successful international market penetration. However, the slight decrease in Paid Passenger-Kilometers Transported (RPK) may suggest challenges in maintaining passenger volume. The airline's strategy to balance capacity (ASK) with demand (RPK) will be key in sustaining profitability in the long run.

SÃO PAULO, March 28, 2024 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL and B3: GOLL4), one of the leading airlines in Brazil and part of the Abra Group, today announced its consolidated results for the fourth quarter of 2023 (4Q23). The Company remained focused on operational efficiency through an optimized fleet and yield management, in addition to being dedicated to the continuous delivery of excellence in the products offered to customers.

All information in this release 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 (4Q23). Adjusted (recurring) indicators exclude non-recurring expenses related to the quarter's results and are detailed in the respective tables.

4Q23 Highlights

• The Company recorded of R$5.0 billion net operating revenue in the fourth quarter of 2023 (4Q23), representing a growth of 6.7% compared to the fourth quarter of 2022 (4Q22);
• Approximately were transported 7.8 million passengers in the quarter, an increase of 0.6% compared to 4Q22;
• In 4Q23, the recurring EBITDA margin reached 32.0% of revenue, an increase of 7.3 percentage points compared to the same period in 2022;
• CASK reduced 0.1% compared to 4Q22, and five new Boeing 737 MAX-8 aircraft were received in the quarter;
• Net leverage³ reached 3.7x, 0.3x lower than 3Q23;
• CASK ex-fuel increase by 15,1% as an impact of the ASK reduction.

SUMMARY OF the FOURTH Quarter 2023 Results (VS. 4Q22)

• The number of Paid Passenger-Kilometers Transported (RPK) decreased by 1.0%, while the total Seat-Kilometer Offered (ASK) decreased by 5.6%;
• Net Operational Revenue expanded 6.7% to R$5.0 billion;
• Load factor was 84.0%, an increase of 3.9 p.p. Domestic load factor was 83.8%, 3.2 p.p. increase, and International load factor was 85.7%, increase of 10.1 p.p;
• Operational aircraft utilization increased by 0.9% to 11.7 hours per day;
• The number of passengers transported increased by 0.6%, to 7.8 million;
• Net Revenue per Seat Kilometer Offered (RASK) increased 13.1% to 47.0 cents (R$);
• Average yield per passenger increased by 9.2%, a record of 52.6 cents (R$) for a fourth quarter;
• Cost Per Seat Kilometer (CASK) for passenger operations decreased by 1.9% to 35.31 cents (R$), while CASK Fuel decreased by 18.5% to 13.25 cents (R$), due to the 22.0% reduction in jet fuel prices.
• EBITDA was R$1.62 billion with a 32.0% margin, while EBIT was R$1.2 billion with a 23.4% margin;
• Net loss, excluding effects of exchange rate variation and mark-to-market of the derivative component of EESN, totaling R$1.1 billion, was R$22 million;
• Ajusted net debt to LTM recurring EBITDA ratio was 3.7x on 12/31/2023, a reduction of 0.3x compared to leverage on 9/30/2023.
  1)  Recurrent EBITDA - there were no non-recurring events for 4Q23; (2) cash, cash equivalents, financial investments, deposits and accounts receivable; (3) Adjusted Net Debt/UTM EBITDA.

FULL EARNINGS RELEASE & PRESENTATION
Access the earnings release, presentation 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 makes available several codeshares and interline agreements available to 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 NYSE (GOL) and the B3 (GOLL4). For further information, go to www.voegol.com.br/ir.

 

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SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What was GOL's net operating revenue in the fourth quarter of 2023?

GOL's net operating revenue in 4Q23 was R$5.0 billion.

How many passengers were transported by GOL in 4Q23?

GOL transported approximately 7.8 million passengers in the fourth quarter of 2023.

What was GOL's recurring EBITDA margin in 4Q23?

GOL's recurring EBITDA margin reached 32.0% in the fourth quarter of 2023.

What was the change in CASK in 4Q23 compared to 4Q22?

CASK reduced by 0.1% in 4Q23 compared to the fourth quarter of 2022.

How did RASK change in 4Q23 for GOL?

RASK increased by 13.1% to 47.0 cents in the fourth quarter of 2023 for GOL.