GOL Updates Financial Outlook for 2023

Rhea-AI Summary

GOL Linhas Aéreas, Brazil's largest domestic airline, has updated its financial outlook for 2023. This preliminary and unaudited guidance reflects revisions in expected supply levels due to the recovery in corporate demand and impacts from global aircraft delivery schedules.

Key metrics include:

• Total operational fleet: 114-118 (revised from 118-122)
• Net revenues: Estimated at R$19.5 billion (down from R$20 billion)
• Average load factor: ~81% (up from ~80%)
• Fuel price: Estimated at ~R$5.4/liter (up from ~R$5.3)
• EBITDA margin: ~24% (unchanged)

This guidance may be adjusted based on operational performance and economic conditions.

Positive

• Average load factor improved to ~81%.
• EBITDA margin remains stable at ~24%.

Negative

• Net revenues lowered to R$19.5 billion from R$20 billion.
• Total operational fleet guidance reduced to 114-118 from 118-122.
• Fuel price increased to ~R$5.4/liter.

SÃO PAULO, March 8, 2023 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), ("GOL" or "Company"), Brazil's largest domestic airline, updates its financial outlook for 2023. The information below is preliminary and unaudited.

GOL provides forward-looking information that is focused on the main metrics the Company uses to measure its business performance. These indicators are useful for investors and analysts who project GOL's results.

The Company updates its financial forecasts to reflect revisions in the level of supply expected for the year 2023 in view of expectations of recovery in corporate demand and impacts on the global chain of aircraft deliveries and the supply chain.

Financial Outlook (Consolidated, IFRS)	2023E		1Q23E
	Previous	Updated	Preliminary
Total operational fleet (average)	118 - 122	114-118	108
ASKs, System (% change)	20 - 25%	15 - 20%	11 - 13%
Seats, System (% change)	25 - 30%	20 - 25%	14 – 16%
Departures, System (% change)	25 - 30%	20 - 25%	14 – 16%
Average load factor (%)	~80%	~81%	~82%
Net revenues (R$bn)	~20.0	~19,5	~4,8
Non-fuel CASK2 (US$ cents)	~3.6	~3,6	~3,8
Fuel price (R$/liter)	~5.3	~5,4	~5,7
EBITDA margin² (%)	~24%	~24%	~22%
EBIT margin² (%)	~14%	~14%	~12%
Net financial expense3 (R$bn)	~2.0	~2,1	~0,6
Pre-tax margin3 (%)	~4%	~3%	~1%
Effective income tax rate (%)	~24%	~24%	~24%
Capex, net4 (R$mm)	~700	~600	~150
Aircraft Acquisitions (R$mm)	~1,000	~800	0
Aircraft Debt (7x Annual Aircraft Rent) (US$bn)	~3.5	~3,5	~3,5
Financial Debt (US$bn)	~2.4	~2,7	~2,7
Net Debt5 / EBITDA2 (x)	~6x	~6x	9x
Fully-diluted shares out6 (mm)	~435	~435	~435
EPS, fully diluted (R$)3	~0.3	~0.3	~0
Fully-diluted ADS out.6 (mm)	~217.5	~217,5	~217,5
EPADS, fully diluted (US$)3	~0.2	~0,2	~0

(1) Cargo. loyalty. buy-on-board and other ancillary revenues; (2) Recurring operating results, excluding cargo aircraft; (3) Excluding currency gains and losses and Unrealized losses on Exchangeable Senior Notes; (4) Capex, net is calculated as gross capex (capitalized aircraft maintenance) less financed capex (credit facilities to finance assets and capitalized maintenance costs) ; (5) Including 7x annual aircraft lease payments and excluding perpetual bonds; and (6) Includes stock option exercises that may be issued from the stock option program and related to Exchangeable Senior Notes.

The current guidance may be adjusted in order to incorporate the evolution of GOL's operating and financial performance and any eventual changes to the Brazilian economy and the Company's broader economic environment, including variations in economic growth, interest rates, exchange rates, and international oil price trends.

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

About GOL Linhas Aéreas Inteligentes S.A.
GOL is 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. The Company has alliances with American Airlines and Air FranceKLM, besides several codeshare 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 14,000 highly qualified aviation professionals focused on Safety, GOL's #1 value, and operates a standardized fleet of 146 Boeing 737 aircraft. The Company'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 press release 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 press release 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.

Non-GAAP Measures
To be consistent with industry practice, GOL discloses so-called non-GAAP financial measures which are not recognized under IFRS or U.S. GAAP, including "Net Debt", "Adjusted Net Debt", "total liquidity" and "EBITDA". The Company's management believes that disclosure of non-GAAP measures provides useful information to investors, financial analysts and the public in their review of its operating performance and their comparison of its operating performance to the operating performance of other companies in the same industry and other industries. However, these non-GAAP items do not have standardized meanings and may not be directly comparable to similarly-titled items adopted by other companies. Potential investors should not rely on information not recognized under IFRS as a substitute for the GAAP measures of earnings or liquidity in making an investment decision.

View original content:https://www.prnewswire.com/news-releases/gol-updates-financial-outlook-for-2023-301765713.html

SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What is GOL's updated financial outlook for 2023?

GOL's updated financial outlook for 2023 includes revised net revenues at R$19.5 billion and a total operational fleet estimate of 114-118.

How has the average load factor changed for GOL in 2023?

The average load factor has improved to approximately 81% in GOL's updated outlook for 2023.

What are GOL's expectations for net revenues in 2023?

GOL expects net revenues to be around R$19.5 billion for 2023, down from the previous estimate of R$20 billion.

What was the previous total operational fleet estimate for GOL before the update?

The previous total operational fleet estimate was 118-122, now revised to 114-118.

What is the estimated fuel price in GOL's 2023 outlook?

GOL's 2023 outlook estimates the fuel price to be around R$5.4 per liter.