SÃO PAULO, Jan. 8, 2021
/PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE:
GOL and B3: GOLL4), ("GOL" or "Company"), Brazil's largest airline, today provides its
Investor Update for the month of December of 2020. All
information is presented in Brazilian Reais (R$). The information
below is preliminary and unaudited.
Since the last monthly update on December
7, 2020, GOL increased its capacity to an average of 476
flights per day, a 29% increase from an average of 369 daily
flights in November. On peak days, the Company operated
approximately 610 daily flights in December to meet the increase in
demand for air travel. This month, GOL reached a new record of
passengers transported since the beginning of the pandemic with
more than 89,000 Customers served in a single day. GOL's
consolidated gross revenues for the month were R$852 million and the average load factor was
81.0%, very consistent in relation to previous months.
Continuing its trend for preserving liquidity, the Company
generated net cash ("earn") for the second consecutive month,
totaling R$6 million/day in December.
This is a notable improvement compared to GOL's forecasted net cash
consumption of R$3 million/day for
this period.
"In this extremely challenging year for airlines, we are proud
that GOL has excelled in managing its balance sheet, network,
pricing and capacity," said Paulo Kakinoff, CEO. "Thanks to our
loyal Team of Eagles, Management and stakeholders, the Company has
continuously affirmed its leadership in the airline sector
evidenced by our ability to quickly adapt and innovate in the face
of adversity. As we look to the future, we believe this fearless
and flexible approach is what will drive GOL to achieve even
greater growth and success in 2021."
During 4Q20, there was a 46% increase in the search for GOL
airline tickets, compared to 3Q20. On specific dates this metric
was higher than the same day in 2019, an important sign of the
return of consumer confidence. Because of this greater interest,
the Company recorded a 24% increase in sales across all channels in
the quarter when compared to 3Q20 with a continuous focus on
improving fare quality.
The high season network, in operation between December 18, 2020 and January 31, 2021, will offer an average of 558
daily flights, to serve the demand of Customers who wish to fly for
the holidays and summer vacation. During this period, GOL continues
to implement one of its biggest drivers of growth: connectivity.
The new routes in São Paulo (GRU and CGH), Brasília (BSB),
Rio de Janeiro (GIG and SDU),
Fortaleza (FOR) and Salvador (SSA) are important components of
network growth and bring the ability to capture demand throughout
the country via our distributed nationwide hubs. In December, GOL
added Jericoacoara (Ceará state), Caldas
Novas (Goiás state) and Cabo
Frio (Rio de Janeiro state)
to its flight destinations, meaning that it is now operating 100%
of the bases in its domestic network.
Added Kakinoff: "We have reached an important milestone by
returning all of our domestic bases to operation. This will enable
us to focus on our purpose to be 'First for Everyone' by providing
our passengers with the most comprehensive network in Brazil as demand for air travel returns."
First to Fly the MAX Again
In December, GOL was the first airline in the world to
commercially fly the Boeing 737 MAX again. The historic flight took
place on December 9, 2020, departing
from Guarulhos (GRU) bound for Porto
Alegre (POA), with maximum load factor. Since then, the
Company has continued to reintegrate all of its seven MAX aircraft
into its operating fleet, transporting 100,000 Customers in
December.
Concluded Kakinoff: "We have trained our pilots and undertaken
technical flights for the return of the MAX aircraft, and we are
confident that it is one of the safest and most efficient aircraft
in the world. The MAX is an important reinforcement to our fleet
for the high season, enabling us to more effectively manage our
network while also gaining the benefits of its 15% fuel efficiency
over the NG and longer flight distances."
The return of the MAX will enable GOL to resume high aircraft
utilization and expand its network, predominantly concentrated in
Brazil. Additionally, it will be a
main catalyst of unit cost reductions in future years as GOL
continues to take measures to strengthen its balance sheet and
increase profitability.
Liquidity On Hand For The Recovery
GOL ended the month with approximately R$2.5 billion in total liquidity. Including the
financeable amounts of deposits and unencumbered assets, the
Company's potential liquidity sources total over R$5 billion. During December 2020, GOL reduced its short-term debt by
a total of R$790 million. The average
maturity of the Company's long-term debt, excluding aircraft leases
and perpetual notes, is approximately three years.
Based on conservative assumptions, and with the increase in
operational volumes and sales, GOL has improved its operating cash
flow equilibrium. The Company estimates that it has sufficient
liquidity to finance its working capital, expenses and debt
service during this growth phase. For the first quarter of
2021, the Company is estimating net cash consumption to be
R$2 million/day.
"We have addressed all the relevant financial obligations
provided for in our cash flow, and we have a solid partnership with
the main providers of working capital. The financial management
since the beginning of this pandemic reflects GOL's commitment and
focus on having a sound capital structure, minimizing our cost of
capital and strengthening the balance sheet through the continued
recovery," added Richard Lark,
CFO.
In December, the Company issued Senior Secured Notes due 2026,
through its subsidiary GOL Finance, in the principal amount of
US$200 million (~R$1.0 billion), with an 8.00% p.a. interest
rate, secured by certain assets of the Company appraised at
~R$4.5 billion and guaranteed by GOL
and GOL Linhas Aéreas S.A. (GLA). This placement is the first
issuance under a new secured debt program, designed to provide
flexibility for the Company to opportunistically raise additional
pari passu debt against the same collateral pool, and further
diversifies the Company's capital structure. The Senior Secured
Notes were rated B2/Stable by Moody's which is one notch above
Moody's B3/ Stable family corporate rating.
"This new secured debt program demonstrates GOL's access to
capital, highlights the availability of attractive secured
financing options for the Company, complements our unsecured
financing program and enhances GOL's financial flexibility,"
concluded Richard.
Adjusting Fleet Structure to Efficiently Increase Capacity to
Meet Demand
The Company's fleet plan has always included flexibility to
adjust the size of the fleet to either return aircraft or extend
aircraft leases to match the volatility of the air travel business.
This flexibility has been critical as GOL has managed the size of
its fleet through the pandemic. Since the start of the pandemic and
through January of 2021, GOL will have decreased its fleet by 14
Boeing 737 leased aircraft and reduced its 2020-2022 Boeing 737 MAX
deliveries by 34 aircraft.
The Company ended December 2020
with a total fleet of 127 B737s, seven of which are model
B737-MAX. With 95 aircraft operating in its network, daily flight
operations increased 29% over November
2020 and were equivalent to 60% of the same period last
year. During the month, GOL increased frequencies in its hubs in
São Paulo, Rio de Janeiro,
Fortaleza, Salvador and Brasília. The current
network represents even higher levels of connectivity compared to
the beginning of the year, with more destinations and faster
connections. As a result, the Company is positioned for growth in
both major and regional markets.
Enhancing GOL's Cost Advantage
Matching capacity to demand has always been a competitive
advantage in the Company's fleet management and allows GOL to
maintain significant flexibility to respond to the prevailing
demand trends. December 2020 showed continued demand recovery
over November 2020 and provided
better visibility into the first quarter of 2021. GOL expects to
end 1Q21 at approximately 70% of the level of capacity and demand
as it had at the end of 1Q20, with a consistent and profitable
average load factor, above 80%.
In January 2021, GOL is increasing
its capacity to approximately 550 flights per day, and nearly 620
daily flights on peak days, placing the Company's operations at
over 65% of the domestic flight schedule in January 2020. During this current month, GOL will
be operating 92 aircraft in its network.
The Company's aircraft contracts are adjusted to meet the
expected recovery of demand in 2021 and also will provide an
effective reduction in GOL's unit operating costs. Additionally,
The Company has reduced its fixed costs by converting a portion of
its monthly lease payments to variable power-by-the-hour.
For 4Q20, GOL expects to maintain personnel costs reduced at up
to 40% of pre-pandemic levels. Having converted a significant
portion of fixed payroll and fleet costs into variable costs, the
Company is well-positioned to expand its unit cost leadership.
"Our single-type fleet operating model, variable cost structure
and dominant position in Brazil's
high-density traffic hubs enables us to quickly add routes to meet
demand, while maintaining discipline on capacity and
profitability," said Celso Ferrer,
Vice president of Operations.
These competitive advantages are further evidenced by the
actions of GOL's stakeholders who have supported the Company during
this global crisis. GOL Management fully honored its commitments
with the global capital markets and the Company is the only airline
in Latin America to have returned
capital to investors in 2020. GOL expects these actions will
continue to define the Company, and it counts on the continued
support and trust of its stakeholders and partners investing in the
recovery of the Brazilian market.
Proposal to Combine GLA and Smiles
With greater visibility on what is required to more efficiently
manage GOL's businesses and to position the GOL Group to be
successful in responding to an increasingly competitive operating
environment, GOL and GLA submitted to Smiles' Board of Directors a
new proposal to combine GOL's two operating subsidiaries, GLA, the
largest domestic airline in Brazil, and Smiles, the loyalty and mileage
program. The Company believes the proposed transaction is an
important milestone to maximize future value for both GOL and
Smiles shareholders. The proposed corporate reorganization will be
submitted to GOL and Smiles' shareholders for approval, as
applicable.
Paulo Kakinoff commented: "We believe that this reorganization
will ensure the continued competitiveness of the airline and the
loyalty program, simplify governance, strengthen the combined
capital structure, and decrease operating, administrative and
financial costs, which also reduces tax inefficiencies, maximizing
value for all shareholders of the GOL Group."
Trust with the Resumption of Travel
Throughout 2020, the Company obtained the top rating on the
Consumidor.gov.br portal, leading in the Solution Index, the
Satisfaction Index and the Average Response Time.
"Through our values of Service and Safety, our Customers are
confident in flying. We are working on every front, including
ticket sales, customer service, boarding, the in-flight experience
and disembarkation services, to ensure that our travelers are
comfortable with the entire flight experience. We believe Customers
will want to fly with the airline they trust most on Service and
Safety, both during and after the pandemic," said Eduardo Bernardes, Vice president of Sales and
Marketing.
Key Metrics – December 2020
(preliminary and unaudited)
Liquidity
|
December/2020
|
∆
November/2020
|
Total
liquidity
Deposits
Unencumbered
assets
|
R$2.5
billion
R$2.1
billion
R$1.3
billion
|
+3%
-3%
0%
|
Net Cash
generated
|
December/2020
|
∆
November/2020
|
Cash
inflows
Cash
outflows¹
Net cash generated
("earn")
|
R$59
MM/day
R$(53)
MM/day
R$6 MM/day
|
+96%
+95%
+101%
|
Fleet
|
December/2020
|
∆
November/2020
|
Total
(average)
Operating aircraft
(average)
Flights per day
(average)
Network destinations
– Total²
|
127
95
476 (60% of
2019)
63 (84% of
2019)
|
0
0
+29%
0%
|
Operating
Results
|
December/2020
|
∆
November/2020
|
Seats – Domestic
& Total (000)
ASK – Domestic &
Total (million)
Load factor –
Domestic & Total
Consolidated gross
revenue (R$MM)
|
2,591
3,123
81.0%
852
|
+33%
+38%
-3.5 p.p.
+52%
|
- Including full payment of financial expenses;
- Excludes codeshare and interline destinations.
4Q20
Commentary
|
- GOL expects a Loss
Per Share (EPS) and a Loss Per American Depositary Share (EPADS)
for 4Q20 of approximately R$1.751 and
US$0.651, respectively.
- EBITDA2
margin for the fourth quarter excluding non-operating and
non-recurring expenses is expected to be 30% to 32%, a decrease in
relation to the quarter ended in December 2019
(39%2).
- Passenger unit
revenue (PRASK) for the 4Q20 is expected to be approximately 15%
lower year-over-year. GOL expects unit revenue (RASK) to be 13%
lower when compared to 4Q19.
- Non-fuel unit costs
(CASK ex-fuel) for 4Q20 excluding non-operating and non-recurring
expenses are expected to increase approximately 7%4
compared to 4Q19 reported CASK ex-fuel, primarily due to a
42% reduction in ASKs and the 32% depreciation of the
Brazilian Real versus the US dollar. Fuel unit costs (CASK fuel)
are expected to reduce by approximately 12% year-over-year,
impacted by a 17% decrease in the average fuel price and partially
offset by the BRL depreciation versus USD.
- GOL's financial
leverage, as measured by the Net Debt3/LTM EBITDA ratio,
was approximately 5x at the end of the December 2020 quarter. The
Company amortized approximately R$1.1 billion of total debt in the
quarter, and total liquidity was R$2.5 billion, comprised of R$1.8
billion in cash and investments and R$0.7 billion in receivables.
Including the financeable amounts of deposits and unencumbered
assets, GOL's liquidity sources total over R$5 billion.
|
Preliminary and
Unaudited Projections
|
EBITDA
Margin2
EBIT
Margin4
Other Revenue (cargo,
loyalty, other)
Average fuel price
per liter
Average exchange
rate
Passenger unit
revenue (PRASK)
Operating CASK
Ex-fuel4
Domestic Demand –
RPK
Domestic Capacity –
ASK
Domestic Capacity –
Seats
Total Demand –
RPK
Total Capacity –
ASK
Total Capacity –
Seats
|
4Q20
30% - 32%
18% -
20%
8% of
revenues
R$2.31
- R$2.37
R$5.44
4Q20 vs.
4Q19
Down ~15%
Up ~ 7%
Down ~35%
Down ~34%
Down
~43%
Down ~42%
Down ~42%
Down
~46%
|
- Excluding gains and losses on currency and Exchangeable
Senior Notes.
- Excluding non-operating expenses and depreciation related to
fleet idleness of approximately R$530
million in 4Q20 and non-recurring expenses of approximately
R$310 million in 4Q19.
- Excluding Perpetual Notes and Exchangeable Senior
Notes.
- Excluding depreciation and non-operating expenses of
approximately R$530 million in 4Q20
and non-recurring expenses of approximately R$310 million in 4Q19.
Investor Relations
ri@voegol.com.br
www.voegol.com.br/ir
+55(11) 2128-4700
Media Relations
Becky
Nye, Montieth & Company
bnye@montiethco.com
About GOL Linhas Aéreas Inteligentes S.A.
GOL serves more than 36 million passengers annually.
With Brazil's largest network,
GOL offers customers more than 750 daily flights to
over 100 destinations in Brazil
and in South America, the
Caribbean and the United States. GOLLOG's cargo
transportation and logistics business serves more than 3,400
Brazilian municipalities and more than 200 international
destinations in 95 countries. SMILES allows over 16
million registered clients to accumulate miles and redeem tickets
to more than 700 destinations worldwide on the GOL partner network.
Headquartered in São Paulo, GOL has a team of approximately 15,000
highly skilled aviation professionals and operates a fleet of 127
Boeing 737 aircraft, delivering Brazil's top on-time performance and an
industry leading 19-year safety record. GOL has invested billions
of Reais in facilities, products and services and technology to
enhance the customer experience in the air and on the ground. GOL's
shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further
information, visit www.voegol.com.br/ir.
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.
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SOURCE GOL Linhas Aéreas Inteligentes S.A.