GOL Announces Second Quarter 2022 Results

Rhea-AI Summary

GOL Linhas Aéreas reported strong performance in 2Q22, with net operating revenue reaching R$3.2 billion, up 215% from 2Q21. The airline transported 5.8 million passengers, more than double the amount from a year ago. Average yield per passenger soared to R$43 cents, a record high, reflecting disciplined capacity management. Recurring EBIT stood at R$50.8 million with a margin of 1.6%. However, the company faced a net loss of R$2.8 billion, primarily due to currency variations. GOL's net debt ratio improved sequentially, showing recovery signs in the EBITDA.

Positive

• Net operating revenue surged to R$3.2 billion, a 215% increase from 2Q21.
• Passenger transport doubled to 5.8 million, recovering to 71.4% of pre-pandemic levels.
• Record average yield per passenger at R$43 cents, up 66.2% year-over-year.
• Recurring EBIT positive at R$50.8 million with a margin of 1.6%.
• Recurring EBITDA at R$439 million with a margin of 13.5%, positive for three consecutive quarters.
• Improved net debt ratio, down to 9.5x over recurring EBITDA.

Negative

• Net loss of R$2.8 billion, with loss per share at R$6.81, mainly due to exchange variations.
• Average load factor decreased by 7.9 percentage points to 77.2%.
• CASK Fuel increased by 72.2% to R$16.06 cents due to rising jet fuel prices.

Highlights:

• The Company's net operating revenue reached R$3.2 billion in 2Q22, exceeding by 215% and 3% the amounts recorded in 2Q21 and 2Q19, respectively;
• GOL confirmed the growth in corporate demand and transported 5.8 million passengers in the quarter, more than double that of 2Q21 and still 30% below the volume of 2Q19;
• The disciplined capacity management associated with the consistent recovery in demand resulted in an average yield per passenger of R$43 cents, a record for the Company and a positive growth of 66% over 2Q21;
• Operating results improved, with recurring EBIT at R$50.8 million (margin of 1.6%) and recurring EBITDA at R$439.0 million (margin of 13.5%, positive for the third consecutive quarter); and
• GOL took delivery of three new Boeing 737 MAX-8 aircraft in the quarter and totaled 34 (24% of the current fleet), driving operating cost efficiencies and less carbon emissions.

SÃO PAULO, July 28, 2022 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL and B3: GOLL4), the largest domestic airline in Brazil, released its consolidated results for the second quarter of 2022 (2Q22). During this period, and while taking an assertive approach to capacity management and increasing productivity, the Company recorded the highest yield in its history as well as the highest net operating revenue in a second quarter.

Paulo Kakinoff, Board Member, said: "In June, I ended my 10-year term as an executive at GOL and I would like to express my deep gratitude to the entire Team of Eagles, who have been by my side, both in the most challenging moments and for the countless wins that we have achieved together. With the confidence that we have now overcome one of the most difficult periods in the history of the aviation industry, I am handing over the controls to a new generation of leadership who will lead GOL in the next cycle of sustainable growth."

Celso Ferrer, CEO, added: "I have had the privilege of working with Kakinoff for more than seven years and witnessed his unparalleled leadership skills. I took on the role of CEO with the commitment to focus on three main pillars: growth, consistency and proximity, and look forward to sharing more with you about my vision for these over the coming quarters. GOL's strength has always been our commitment to serving our Customers and being the best for all, and that will continue to be our guiding light as a Company. It is an exciting time for the airline industry as a whole, and with the help of our Team of Eagles, I am confident in leading GOL to even greater heights."

All information in this press release is presented in Brazilian Reais (R$), as per the international accounting standards (IFRS) and with adjusted metrics, made available to enable the comparison of this quarter with the same year-ago quarter (2Q21). Adjusted (recurring) indicators exclude non-recurring expenses linked to the quarter's results and are detailed in their respective tables.

Summary for the Second Quarter 2022 Results

• Revenue Passenger Kilometers (RPK) grew 103.0%, while the total Available Seat Kilometers (ASK) grew by 123.7%;
• Net Revenue more than tripled to R$3.2 billion. Ancillary Revenue, mainly from SMILES and GOLLOG, grew 75% to R$246.4 million;
• The average load factor fell by 7.9 p.p. to 77.2%. Domestic load factor fell by 8.5 p.p. compared to 2Q21, while the international load factor was 86.7%;
• Aircraft utilization was 10.2 hours a day, a gain of 27.5% in productivity;
• The number of passengers transported by GOL doubled to 5.8 million, equivalent to 71.4% of the pre- pandemic number recorded in 2Q19;
• Net Revenue per Available Seat-Kilometer (RASK) grew by 41% to R$35.94 cents;
• Average yield per passenger grew by 66.2% to R$43 cents, which is a record for the Company;
• Recurring Cost per Seat-Kilometer fell by 20.4% to R$35.38 cents. CASK Fuel grew by 72.2% to R$16.06 cents, due to the 80.5% increase in jet fuel (QAV) prices;
• Recurring EBIT was positive by R$50.8 million with 1.6% margin, while recurring EBITDA was positive by R$439 million with 13.5% margin;
• Net Loss reached R$2.8 billion, loss per share reached R$6.81 and loss per ADS reached US$2.77, mainly due to exchange and monetary variations; and
• The net debt ratio (including 7x annual lease payments and excluding the perpetual bonds) over recurring EBITDA LTM reached 9.5x on June 30, 2022, down by 1.6x compared to March 31, 2022 (11.1x), mainly due to the sequential recovery of recurring EBITDA.

EARNINGS RELEASE & PRESENTATION

Access the earnings release, presentation and full financial statements at: www.voegol.com.br/ri

2Q22 Conference Call: July 28, 2022, 10:00 a.m. (New York time; US EDT), Phone: +1 (412) 317-6382, Code: GOL, broadcast via webcast (https://webcastlite.mziq.com/cover.html?webcastId=bc6af7b7-cbdb-4c09-9bbd-29e85939673a).

Investor Relations: ri@voegol.com.br, +55(11) 2128-4700

About GOL Linhas Aéreas Inteligentes S.A. (www.voegol.com.br): The largest airline in Brazil, leader in the corporate and leisure segments. Since founded in 2001, the Company has the lowest unit cost in Latin America, thus democratizing air transportation.

 

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SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What were GOL's net operating revenues in 2Q22?

GOL's net operating revenue for 2Q22 was R$3.2 billion, a 215% increase compared to 2Q21.

How many passengers did GOL transport in 2Q22?

GOL transported 5.8 million passengers in 2Q22, more than double the amount transported in 2Q21.

What was GOL's average yield per passenger in 2Q22?

The average yield per passenger in 2Q22 was R$43 cents, marking a record high for the company.

What was GOL's net loss in 2Q22?

GOL reported a net loss of R$2.8 billion in 2Q22.

What improvements did GOL see in its net debt ratio?

GOL's net debt ratio improved to 9.5x over recurring EBITDA, down 1.6x compared to March 31, 2022.