GOL Linhas Aereas Inteligentes SA (GOL) Reports Q3 Revenues of R$975M

GOL Linhas Aereas Inteligentes SA (NYSE: GOL) reported Q3 revenue for the quarter came in at R$975 million.

Summary of 3Q20 Results

• The number of Revenue Passenger-Kilometers (RPK) decreased by 72% compared to the same period in 2019, totaling 3.2 billion RPK. However, we saw an increase of 63% in RPK from July to September;
• Available Seat Kilometers (ASK) decreased 70% compared to 3Q19, but grew by 59% across the quarter;
• GOL transported 2.6 million Customers across the quarter, a decrease of 73% compared to 3Q19, but more than a 300% increase versus 2Q20. During Brazil's Independence holiday, GOL transported 55,000 Customers in a single day, equivalent to 55% of the total recorded in the same period last year;
• Net revenues were R$975 million, a decrease of 74% compared to 3Q19, but an increase of 172% versus 2Q20. Monthly revenues began with R$240 million in July and by the end of September reached R$465 million, representing an increase of 94% within 3Q20. Other revenues (primarily cargo and loyalty) totaled R$95.9 million, equivalent to 9.8% of total revenues;
• The Revenue per Available Seat Kilometer (RASK) was 24.42 cents (R$), a decrease of 12% over 3Q19. The Passenger Revenue per Available Seat Kilometer (PRASK) was 22.02 cents (R$), a decrease of 16% compared to 3Q19;
• Adjusted EBITDA and adjusted EBIT were R$284 million and R$114 million, respectively, reflecting the Company's rational and responsible management of supply relative to demand; and
• Net losses after minority interest were R$872 million (excluding exchange and monetary variations, non-recurring net losses, losses related to Exchangeable Notes and capped calls unrealized results).

"These promising third quarter results reflect the return of passengers to the skies in Brazil and our confidence in GOL's competitive advantages," said Paulo Kakinoff, CEO. "The number of Customers flying with us tripled in Q3 compared to the previous quarter, which is a remarkable rebound given the challenging market environment. GOL swiftly met the renewed demand through its highly flexible fleet management model, while retaining a nearly 80% load factor. That is testament to the sustainability of GOL's low-cost single-fleet carrier model and the efforts of our Management team since the beginning of this crisis to preserve cash and protect our balance sheet. We believe the Company is now in an advantageous market position as demand for travel continues to accelerate this year and as we enter 2021."

GOL maintained a solid liquidity position and ended the quarter with R$2.2 billion in liquidity. Between March and September, the Company made the necessary adjustments to the reduction in demand, prioritizing a balance between inflows and outflows of its operating cash flow.

GOL has also worked tirelessly with all of its stakeholders since the beginning of this pandemic to ensure that the Company maintains adequate liquidity. The Company rebalanced its debt amortization schedule, focused on preserving jobs and strengthened commercial relationships with its main business partners. The credit markets recognized the strength and quality of this execution, increasing the prices of GOL's long-term unsecured debt in the secondary market by over 35% since the beginning of 3Q20.

Added Kakinoff: "We have been diligent with managing operations and maintaining our financial health during this crisis and thank our stakeholders for their shared commitment and continued support."

For earnings history and earnings-related data on GOL Linhas Aereas Inteligentes SA (GOL) click here.

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