GOL Signs Landmark Cargo and Logistics Services Agreement with Mercado Livre

Rhea-AI Summary

GOL Linhas Aéreas Inteligentes has signed a significant 10-year agreement with Mercado Livre, enhancing its cargo services through its logistics division, GOLLOG. The deal includes a dedicated fleet of six Boeing 737-800 freighters, set to begin operations in H2 2022. This partnership aims to tap into Brazil's booming e-commerce sector, projected to generate R$180 billion annually. GOL expects savings of R$25 million in 2022 and R$75 million in 2023, with an anticipated R$100 million additional revenue in the first year. GOL’s fleet will consist of 136 aircraft by year-end, with plans to optimize efficiency.

Positive

• 10-year agreement with Mercado Livre to enhance cargo operations.
• Dedicated freighter fleet of six Boeing 737-800 BCF to improve logistics.
• Expected savings of R$25 million in 2022 and R$75 million in 2023.
• Anticipated additional revenue of R$100 million in 2022 and over R$1 billion in five years.
• Fleet expansion strategy aligned with the rapid growth of Brazilian e-commerce.

Negative

• None.

SÃO PAULO, April 19, 2022 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4) ("GOL" or "Company"), Brazil's largest domestic airline, announced today the signing of a landmark agreement between its logistics business, GOLLOG, which operates cargo services to 52 airports and over 3,900 destinations in Brazil, and Mercado Livre, which operates marketplaces for e-commerce and online auctions.

The agreement, with a term of ten years, includes a dedicated freighter fleet of six Boeing 737-800 BCF and is expected to begin operations during 2H22.  There is also the option of adding other six cargo aircraft by 2025.

GOL plans to end this year with 136 aircraft in its fleet, comprised of 44 Boeing 737-MAXs and 92 Boeing 737-NGs. The introduction of the six-cargo aircraft is expected to generate fleet optimization savings of approximately R$25 million in 2022 and another R$75 million in 2023. The Company's ongoing transformation to the 737 MAX will also enable greater dilution of fixed costs and generate new opportunities for ancillary revenues.

GOL's agreement with Mercado Livre is part of the Company's investment to serve the needs of the growing Brazilian e-commerce market, which today generates over R$180 billion in annual revenues and a yearly spend of over R$12 billion on logistics services. As such, GOLLOG plans to increase its range of services and tonnage capacity by 80% during 2023 to generate additional incremental revenue of approximately R$100 million in 2022, and more than R$1.0 billion over the next five years.

"Our cargo operation begins an exciting new chapter for GOL and GOLLOG, by integrating our synergies as the lowest cost operator in the region with the needs of Mercado Livre, the largest e-commerce platform in Latin America. This partnership brings high added value and will help to democratize logistics services for all Brazilians. GOL thanks Mercado Livre for choosing GOLLOG as its partner and for its confidence in the efficiency, standard of quality and agility of our logistics services in Brazil," said Paulo Kakinoff, GOL's CEO.

"The expansion of the fleet is vital to advance Mercado Livre's mission to democratize e-commerce services in Brazil and becomes even more important in this country of continental dimensions. With this partnership, we will increase the number of direct flights from São Paulo to the North and Northeast regions, reducing the delivery time by up to 80%. Delivery time to Manaus will be only one day, instead of the current nine days, while to Northeast destinations the lead time will decrease from four days to one. Other capitals, such as Goiânia and Cuiabá, will receive their packages the next day," said Fernando Yunes, Senior Vice President of Mercado Livre in Brazil. "We are very optimistic about our agreement with GOL, and we see it as a fundamental in strengthening our growth path in e-commerce and our strategy to expand in the region."

Investor Relations
ri@voegol.com.br
www.voegol.com.br/ir
+55(11) 2128-4700

About GOL Linhas Aéreas Inteligentes S.A.

GOL is Brazil's largest airline, leader in the corporate and leisure segments. Since its founding in 2001, it has been the airline with the lowest unit cost in Latin America, which has enabled the democratization of air transportation. The Company has partnerships with American Airlines and Air France-KLM, in addition to making available to Customers many codeshare and interline agreements, bringing more convenience and ease of connections to any place served by these partnerships. With the purpose of "Being First for Everyone", GOL offers the best travel experience to its passengers, including: the largest inventory of seats and the most legroom; the most complete platform with internet, movies and live TV; and the best loyalty program, SMILES. In cargo transportation, GOLLOG delivers parcels to various regions in Brazil and abroad. The Company has a team of 15,000 highly qualified airline professionals focused on Safety, GOL's number one value, and operates a standardized fleet of 135 Boeing 737 aircraft. GOL's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, visit www.voegol.com.br/ri.

Disclaimer

The information contained in this material fact has not been subject to any independent audit or review and contains "forward-looking" statements, estimates and projections that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements other than statements of historical fact contained in this material fact including, without limitation, those regarding GOL's future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets in which GOL operates or is seeking to operate, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "will", "may", "project", "estimate", "anticipate", "predict", "seek", "should" or similar words or expressions, are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties, contingencies and other factors, many of which are beyond GOL's control, that may cause actual results, performance or events to differ materially from those expressed or implied in these statements. These forward-looking statements are based on numerous assumptions regarding GOL's present and future business strategies and the environment in which GOL will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as at the date on which they are made. None of GOL or any of its affiliates, officers, directors, employees and agents undertakes any duty or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. None of GOL or any of its affiliates, officers, directors, employees, professional advisors and agents make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Although GOL believes that the estimates and projections in these forward-looking statements are reasonable, they may prove materially incorrect and actual results may materially differ. As a result, you should not rely on these forward-looking statements.

 

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SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What is GOL's new agreement with Mercado Livre about?

GOL signed a 10-year agreement with Mercado Livre to enhance cargo services through its logistics division, GOLLOG.

What type of aircraft is GOL introducing in its cargo operation?

GOL plans to introduce a dedicated fleet of six Boeing 737-800 freighters.

When will GOL's cargo operations with Mercado Livre begin?

The cargo operations are expected to begin in the second half of 2022.

What are the expected savings from GOL's new cargo deal in 2022?

GOL expects to save approximately R$25 million in 2022 from this cargo deal.

How much additional revenue is GOL expecting in the first year of the new cargo contract?

GOL anticipates an additional revenue of R$100 million in 2022 from the cargo operations.