Strong capacity management discipline led to 78% load
factor
Daily flights increase from 50 to 120 in the 2Q20
Company maintains strong cash position
SÃO PAULO, July 31, 2020
/PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL"
or "Company") (NYSE: GOL and B3: GOLL4), Brazil's largest domestic airline, today
announced consolidated results for the second quarter of 2020
(2Q20) and outlined its continued initiatives in response to the
COVID-19 global pandemic.
All information is presented in Brazilian Reals (R$), according
to both International Financial Reporting Standards (IFRS) and
adjusted metrics and are made available to enable comparability in
this quarter of the abrupt drop in demand. Such adjusted metrics
exclude expenses related to the portion of the operating fleet that
GOL grounded this quarter and are detailed in the table of the
"operating expenses" section below. Comparisons are made to the
second quarter of 2019 (2Q19), unless otherwise specified.
"Our second quarter results are a reflection of the severe
impact that COVID-19 is having on Brazil's economy, the air transportation
industry and our Company. To offset the steep decline in revenues,
we took several measures to decrease costs and preserve liquidity
as we manage through this crisis. We reduced our average daily cash
expenditures to R$3 million in 2Q20,
while taking all the necessary measures to offer a safe and
comfortable flight experience. Customer demand is returning, and we
are gradually increasing our capacity as a result," said Paulo
Kakinoff, GOL's CEO.
GOL maintained a strong liquidity position, enabled in part
by the broad support from many of its stakeholders, ending the
quarter with R$3.3 billion in cash
and receivables. The Company also amortized R$304 million of principal and R$47 million in interest on debt and leases in
the quarter.
Added Kakinoff: "GOL's financial resiliency in this market
affirms the value of the work we have been doing to strengthen
our balance sheet over the last four years, not just the past four
months. The continued dedication of the Company's Employees and the
support of our many stakeholders will be critical as we navigate
through these unprecedented times and position GOL for continued
future growth."
Summary of 2Q20 Results
- The number of Revenue Passenger-Kilometers (RPK) decreased by
92% compared to the same period in 2019, totaling 773 million RPK.
However, we saw an increase of 103% in RPK from April to June;
- Available Seat Kilometers (ASK) grew 104% within the quarter, a
decrease of 91% compared to 2Q19. GOL transported 0.6 million
Customers across the quarter, a decrease of 92% compared to
2Q19;
- Net revenues were R$358 million,
a decrease of 89% compared to 2Q19. Monthly revenues began with
R$104.3 million in April and by the
end of June reached R$164.1 million,
representing an increase of 57% within 2Q20. Other revenues
(primarily cargo and loyalty) totaled R$115
million, a reduction of 37% in relation to 2Q19;
- The Revenue per Available Seat Kilometer (RASK) was
36.15 cents (R$), an increase of 31%.
The Passenger Revenue per Available Seat Kilometer (PRASK) was
24.58 cents (R$), a decrease of 6%
compared to 2Q19; and
- Adjusted EBITDA and adjusted EBIT were R$99 million and R$20
million, respectively, and represent a positive contribution
as a result of the Company's rational and responsible management of
supply relative to demand.
The second quarter of 2020 reflects the direct impacts of the
pandemic on the volume of operations. GOL ended the month of June
with a total fleet of 130 B737s, with 27 aircraft operating in its
network. Flight operations were 13% of the schedule in June 2019, ramping up to 17% at the end of the
month to 120 daily flights with the planned re-opening of seven
bases (Juazeiro do Norte, Foz do Iguaçu, Navegantes, Petrolina,
Porto Seguro, Ilhéus and Chapecó) and an increase in flights
between São Paulo and Rio de
Janeiro.
With an increase to approximately 250 daily flights in July,
operations are expected to be around 25% of the July 2019 schedule with 36 aircraft operating in
the network. GOL plans to re-open a further 14 bases from August to
December 2020.
MANAGEMENT VIDEOS WITH PRESENTATION & FULL EARNINGS
RELEASE
Access earnings release, management videos,
presentation and complete financial statements at:
www.voegol.com.br/ri
2Q20 Conference Call: July 31,
2020, 11:00 a.m. (US EDT),
Phone: +1 (412) 317-6382, Code: GOL, with webcast
(https://webcastlite.mziq.com/cover.html?webcastId=81cc7077-9dd0-4439-b192-e85cb8de7804)
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.