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May 21, 2024
A Look At GOL’s 2Q Performance

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The Brazilian carrier GOL Linhas Aéreas delivered its highest second quarter revenue this year, earning 4.1 billion reais (about $836 million). The airline reached approximately 91% of pre-pandemic capacity while maintaining a disciplined approach to cost controls that continued to drive productivity and achieve higher unit revenue (PRASK), said Celso Ferrer, GOL’s Chief Executive Officer (CEO).

Good results for GOL

During 2023’s second quarter, GOL Linhas Aéreas carried 7 million passengers, a 19.9% increase year-over-year. For the period, the Brazilian airline increased its capacity by 14.% and closed the quarter, recovering 91% of the seats offered prior to the COVID-19 pandemic.

Combined with the additional capacity with increased productivity and higher ancillary revenues, GOL recorded an EBITDA margin of 22.8%, despite going through the seasonally weakest quarter of the year. Celso Ferrer explained,

“We remain committed to maintaining the lowest level of unit costs in the industry. Deployment of our operating fleet remained high, reaching approximately 11 hours per day, an increase of 5.9% compared to 2022’s second quarter.”

What about GOL’s fleet plans?

During the quarter, GOL Linhas Aéreas returned two Boeing 737 NG aircraft, reducing the idleness of the fleet. These reductions were part of the airline’s fleet transformation plan. The airline still plans to return 13 NGs by the end of the year. Additionally, GOL received one Boeing 737BCF cargo aircraft as it increased its cargo-only operations.

As of June 30, 2023, GOL had a fleet of 143 Boeing 737 aircraft, of which 38 were MAX 8s, 101 were NGs, and four were 800BCF freighters. Of this total, 97% is financed via operating leases, and 3% is financed via finance leases.

GOL has 107 firm orders for the acquisition of Boeing 737 MAX aircraft, of which 70 were MAX 8 aircraft model and 37 for the 737 MAX 10 aircraft model.

Restructuring the fleet debt

GOL also recently completed a major debt restructuring led by the Abra Group, which is a holding composed of GOL and Avianca, and possibly Sky Airline in the future. According to the Brazilian company, US$1.1 billion face value of debt was repurchased.

Mario Liao, GOL’s Chief Financial Officer, said, “the ongoing restructuring of our aircraft leases is expected to enable a long-term increase in free cash flow while also continuing to honor our commitments and partnerships.”

GOL closed the quarter with total liquidity of 4.1 billion reais (about $836 million), an increase of 1.9% compared to the same period a year earlier.

author avatar
Daniel Martínez Garbuno
Daniel Martínez Garbuno is a Mexican journalist. He has specialized in the air industry working mainly for A21, a Mexican media outlet focused entirely on the aviation world. He has also published on other sites like Simple Flying, Roads & Kingdoms, Proceso, El Economista, Buzos de la Noticia, Contenido, and Notimex.

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