GOL Announces Investor Update

Rhea-AI Summary

GOL Linhas Aéreas Inteligentes has announced an Investor Update outlining its plans to achieve significant growth in capacity and revenues for 4Q20. The airline anticipates operating around 376 daily flights, reaching up to 500 during peak times, and regaining 80% of its pre-pandemic capacity by December 2020. Expected revenue for 4Q20 is projected to increase by 130% compared to 3Q20, with total expenses anticipated to decrease by 16% year-over-year. GOL expects to maintain liquidity of approximately R$2.4 billion and adjusted net debt of R$13.1 billion.

Positive

• Projected 130% revenue increase in 4Q20 vs 3Q20.
• Total expenses expected to decrease by 16% compared to 4Q19.
• Capacity expected to reach 80% of pre-pandemic levels by December 2020.
• Consistent load factor of approximately 80% for the quarter.

Negative

• Adjusted net debt remains high at R$13.1 billion, indicating potential liquidity concerns.

SÃO PAULO, Nov. 4, 2020 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), ("GOL" or "Company"), Brazil's largest domestic airline, provides an Investor Update. All information is presented in Brazilian Reais (R$). The information below is preliminary and unaudited.

GOL's current capacity planning scenario assumes 100% growth in 4Q20 compared to 3Q20. In October 2020, the Company operated approximately 376 daily flights (53% from the same period in 2019), reaching peaks of 500 daily flights, serving 95% of the market. By the end of December 2020, GOL expects to re-establish the domestic market operated in the pre-pandemic period, which represents about 80% of the total capacity in 2019. The Company expects to end December with an average of 94 aircraft operating in the network, representing more than 75% of the operating fleet in the same period last year, maintaining a consistent load factor of approximately 80% in the quarter.

In 4Q20, the Company estimates an average operating fleet of 92 aircraft, which will represent 78% of the average fleet operated in the same quarter last year. Revenue for the quarter ended December 2020 is expected to increase approximately 130% compared to the quarter ended September 2020. Total expenses in 4Q20 are expected to decrease by approximately 16% compared to 4Q19, due to initiatives to reduce costs, lower capacity and fuel consumption.

GOL expects around R$2.4 billion in liquidity and R$13.1 billion in adjusted net debt at quarter end 4Q20. Several important initiatives are relevant to ensure that GOL maintains liquidity at the levels expected for the end of 4Q20.

With the objective of assisting investors and analysts in understanding how GOL is approaching its short-term planning, the Company is also sharing these metrics for the 1Q21:

Metrics	3Q20A	4Q20E	1Q21E
Brazil Quarterly GDP Growth1 (%) Domestic Routes Served (average)     % of 2019 Average Operating Fleet     % of 2019 ASK (in million)     % of 2019 Load Factor (%)	+5.4% 122 75% 63 55% 4,000 30% ~80%	+3.7% ~146 90% ~92 78% ~8,000 60% ~80%	+3.0% ~167 85% ~102 92% ~9,400 76% ~78%
Net Operating Revenues (R$ BN)     % of 2019 Capex (R$ MM) Net Cash Burn (R$/day)	1.0 26% 110 0	~2.3 60% ~180 ~3	~2.4 66% ~290 ~2
Total Liquidity2 (R$ BN) Net Debt3 (R$ BN) Net Debt / LTM EBITDA Ratio3,4 (x)	2.2 14.1 4x	~2.4 ~13.1 ~6x	~2.5 ~13.1 ~8x

(1)  Sequential; Source: Brazilian Central Bank.

(2)  Cash and cash equivalents, restricted cash, accounts receivable, securities and receivables.

(3)  Excluding perpetual bonds and exchangeable notes.

(4)  Pro-forma, excluding non-operating expenses and depreciation.

 

About GOL Linhas Aéreas Inteligentes S.A.

GOL serves more than 36 million passengers annually. With Brazil's largest network, GOL offers customers more than 750 daily flights to over 100 destinations in Brazil and in South America, the Caribbean and the United States. GOLLOG's cargo transportation and logistics business serves more than 3,400 Brazilian municipalities and more than 200 international destinations in 95 countries. SMILES allows over 16 million registered clients to accumulate miles and redeem tickets to more than 700 destinations worldwide on the GOL partner network. Headquartered in São Paulo, GOL has a team of approximately 15,000 highly skilled aviation professionals and operates a fleet of 129 Boeing 737 aircraft, delivering Brazil's top on-time performance and an industry leading 19-year safety record. GOL has invested billions of Reais in facilities, products and services and technology to enhance the customer experience in the air and on the ground. GOL's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, visit www.voegol.com.br/ir.

 

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SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What is GOL's expected revenue for 4Q20?

GOL expects a revenue increase of approximately 130% compared to 3Q20.

How many daily flights is GOL planning to operate in October 2020?

GOL operated approximately 376 daily flights in October 2020.

What is GOL's liquidity position at the end of 4Q20?

GOL expects to have around R$2.4 billion in liquidity.

What percentage of its pre-pandemic capacity does GOL aim to restore by December 2020?

GOL aims to restore approximately 80% of its pre-pandemic capacity by December 2020.

What are GOL's average operating fleet estimates for 4Q20?

GOL estimates an average operating fleet of 92 aircraft for 4Q20.