GOL Reports Fourth Quarter 2021 and Full Year Results

Rhea-AI Summary

GOL Linhas Aéreas Inteligentes S.A. reported strong 4Q21 results with a 36% adjusted EBITDA margin, driven by cost management and increased demand for air travel in Brazil. Passenger metrics improved, with revenues reaching R$2.9 billion, up 54.5% year-over-year. The company transported 6.5 million customers, a 26.1% increase compared to 4Q20. However, net loss was R$682.1 million. The airline aims to modernize its fleet with 737-MAX aircraft, expected to reduce unit costs by 8% by year-end. GOL's financial strategies indicate robust recovery despite ongoing challenges.

Positive

• 36% adjusted EBITDA margin demonstrates strong operational performance.
• Net revenue of R$2.9 billion is the highest since the pandemic began, marking a 54.5% increase from 4Q20.
• Load factor reached 82.6%, improving operational efficiency.
• Transportation of 6.5 million customers represents a 26.1% increase compared to 4Q20.
• Transitioning to 737-MAX aircraft is expected to lower costs and improve equity value.

Negative

• Net loss of R$682.1 million indicates ongoing financial challenges.
• Cost per Available Seat Kilometer (CASK) increased by 16.8% year-over-year, largely due to rising fuel costs.

Highlights:

• Best quarterly operating results since the outbreak of the pandemic due to focus on costs, achieving 36% adjusted EBITDA margin
• Gross sales in 4Q21 exceeded 4Q19 as GOL reestablished flights between core markets in Brazil
• Disciplined capacity management has protected liquidity
• Load factor and aircraft utilization continued to improve, flight frequencies increased by 25% and market share grew in 4Q21
• Fourth consecutive quarter of higher yields, with significant synergies from Smiles
• Lowest short-term debt in four years; bolstered liquidity
• Transition to MAX to drive cost efficiencies, equity value and lower carbon emissions

SÃO PAULO, March 14, 2022 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL and B3: GOLL4), Brazil's largest domestic airline, announced today its consolidated results for the fourth quarter of 2021 (4Q21) and the 2021 fiscal year, and outlined its continued initiatives in response to the recovery of demand for air travel in Brazil.

All information is presented in Brazilian reais (R$), according to both International Financial Reporting Standards (IFRS) and adjusted metrics and is made available to enable comparability of this quarter with the same period last year (4Q20). Adjusted metrics exclude expenses related to the portion of the non-operating fleet grounded during the period and are detailed in the table showing operating expenses.

"In 2021, aiming at 'being the first for all', we made significant progress across multiple measures of success, derived from our winning business model, a highly flexible and efficient fleet, and by providing a Customer experience that continues to build preference for our brand," said Paulo Kakinoff, CEO. "What we achieved during the pandemic was made possible by the trust we received from our tireless and highly competent Team of Eagles, our Customers, our suppliers and our investors."

"For 2022, we'll maintain focus on the fleet transformation to the 737-MAX. We expect that by year's end we will have 44 aircraft of this model in service, which will represent around 30% of the total fleet. As a result of this modernization process, we expect a reduction of approximately 8% in unit cost (CASK)," added Kakinoff.

4Q21 Earnings Summary

• Revenue Passenger Kilometers (RPK) increased 16.6% over 4Q20, and reached 67.3% over 4Q19. RPK of Dec/21 was 74.3% of the Dec/19 figure;
• Total Seat Kilometer Offered (ASK) grew by 14.5% compared to 4Q20, equivalent to 66.5% of 4Q19. ASK of Dec/21 was 74.5% of the Dec/19 ASK;
• In the fourth quarter, GOL transported around 6.5 million Customers, up 26.1% compared to 4Q20, and equivalent to 67.9% of the same quarter of 2019. In December/21, 2.5 million Customers were transported, equivalent to 72.2% of the amount in December/19;
• Average load factor reached 82.6%, up 1.5 p.p. over 4Q20. This higher load factor results from GOL's efficient capacity management supported by proprietary data analytics tools;
• Aircraft utilization reached 11.5 hours per day in 4Q21, a significant gain in productivity of 29.2% YoY;
• Net Revenue was R$2.9 billion in 4Q21, 54.5% higher than in 4Q20 and the highest since the outbreak of the pandemic. Around 3.9% of that amount was generated by the cargo business (GOLLOG) and the frequent- flyer program (Smiles);
• Revenue per Available Seat-Kilometer (RASK) reached R$33.15 cents, up by 34.9% over 4Q20 and 15.5% lower compared to the 4Q19;
• Average yield per passenger reached R$38.58 in 4Q21, up by 40% YoY and 16.3% higher in relation to 4Q19, positively impacted by the Company's optimized management of seat inventory after fully integrating Smiles in addition to key investments in technology and other IT systems;
• Cost per Available Seat Kilometer (CASK) adjusted was R$23.43, an increase of 16.8% YoY, mainly driven by the CASK Fuel that increased 81.5%. The cost strictly linked to the operating fleet (CASK ex-fuel adjusted) reached R$11.92 in the period, a reduction of 13.1% over 4Q20;
• Adjusted EBIT was R$856.6 million with margin reaching 29.3%, 11.0 p.p. higher than 4Q20 and 4.2 p.p. lower than 4Q19, as demand continued on its recovery trend;
• Adjusted EBITDA reached R$1,052 million, equivalent to a 36.0% margin and 6.5p.p. above 4Q20, reflecting the Company's success balancing supply and demand;
• Net Loss was R$682.1 million, excluding currency and exchange rate variations, non-recurring net expenses, gains related to Exchangeable Notes and unrealized results from capped calls;
• The net debt ratio (including 7x annual lease payments and excluding perpetual bonds) to adjusted LTM EBITDA was 9,7x at December 31, 2021; and
• Cash generation was R$6.3 million/day in 4Q21, including operational inflows and outflows and lease payments. At the end of the quarter, including the financeable amounts of deposits and unencumbered assets, the Company's potential sources of liquidity were approximately R$5.7 billion.

MANAGEMENT VIDEOS WITH PRESENTATION & FULL EARNINGS RELEASE

Access earnings release, management videos, presentation and complete financial statements at: www.voegol.com.br/ir

4Q21 Conference Call: March 14, 2022, 11:00 a.m. (NY Time), Phone: +1 (412) 317-6382, Code: GOL, with webcast (https://webcastlite.mziq.com/cover.html?webcastId=2024b15e-c999-4fc6-bd37-da25e1bedaa1)

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

About GOL Linhas Aéreas Inteligentes S.A. (www.voegol.com.br): Brazil's largest airline group with three main businesses: passenger transportation, cargo transportation and coalition loyalty program.

 

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SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What were GOL's financial results for 4Q21?

GOL reported a net revenue of R$2.9 billion in 4Q21, up 54.5% year-over-year.

How many customers did GOL transport in 4Q21?

GOL transported approximately 6.5 million customers in 4Q21, a 26.1% increase over 4Q20.

What is GOL's adjusted EBITDA margin for 4Q21?

GOL achieved a 36% adjusted EBITDA margin in 4Q21.

What is GOL's plan for fleet modernization?

GOL plans to transition to 737-MAX aircraft, aiming for 44 by year's end, which is expected to reduce costs by approximately 8%.

What was GOL's net loss for 4Q21?

GOL reported a net loss of R$682.1 million for 4Q21.