GOL Airlines achieves record net revenue of R$3.8 billion and 38.5% EBITDA recurring margin in 4Q19
4Q19 adjusted(1) earnings per diluted share of R$0.88 in 4Q19
SÃO PAULO, Feb. 20, 2020 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL and B3: GOLL4), Brazil's largest domestic airline by market share, today announces its consolidated results for the fourth quarter of 2019 (4Q19).
All information is presented in Brazilian Reais (R$), in accordance with international accounting standards (IFRS), and comparisons are with the fourth quarter 2018, unless stated otherwise.
Summary
- Net revenue was R$3.8 billion, the highest ever recorded by the Company, an increase of 18.8% compared to 4Q18.
- EBITDA margin was 38.5% in 4Q19, an increase of 22.2 p.p. quarter-over-quarter. GOL's 2020 EBIT margin and EBITDA margin guidance is approximately 19% and 30%, respectively.
- Revenue Passenger Kilometer (RPK) increased 5.5% totaling 10.8 billion in 4Q19, driven by 8.0% growth in the number of transported passengers.
- GOL transported approximately 9.7 million customers during the quarter, a growth of 8.0% over the same period last year, and achieved a 38% market share in the Brazilian domestic market, according to ANAC. According to Abracorp, 38% of passengers in the corporate segment travelled on GOL, what makes the Company the leader in corporate sales and tickets issued.
- The Company returned R$800.0 million of cash to capital partners in the fourth quarter, mainly comprised of R$617.1 million of debt repayments, R$50.2 million of interest on own capital and R$102.4 million of share repurchases.
Strong operating indicators:
Revenue Passenger Kilometer (RPK) increased 5.5% totaling 10.8 billion in 4Q19. driven by 8.0% growth in the number of transported passengers. Strong passenger demand and dynamic revenue management enabled GOL to offset the increase in operating unit costs. The Company achieved:
(i) |
Average yield per passenger of 33.17 cents (R$), an increase of 13.8% compared to 4Q18; |
(ii) |
Average load factor of 81.5%, a reduction 0.4 p.p. quarter-over-quarter; |
(iii) |
Average aircraft utilization of 12.2 hours/day, an increase of 6.1% quarter-over-quarter; |
(iv) |
Flight completion of 99.2% in 4Q19, an increase of 0.6 p.p., according to Infraero and data from major airports. |
Record revenues:
Net revenue was R$3.8 billion, the highest for a quarter ever recorded by the Company, and an increase of 18.8% over 4Q18. GOL carried 9.7 million customers in the quarter, with 9.2 million in the domestic market (+9.5% over 4Q18) and 0.5 million in the international market. Net Revenue per Available Seat Kilometer (RASK) was 28.69 cents (R$) in 4Q19, an increase of 12.1% over 4Q18. Net Passenger Revenue per Available Seat Kilometer (PRASK) was 27.04 cents (R$) in 4Q19, an increase of 13.3% over 4Q18. The net revenue guidance for 2020 is approximately R$15.4 billion.
Controlled costs:
Unit costs based on Cost per Available Seat Kilometer (CASK), excluding non-recurring expenses, decreased by 12.8%, from 24.19 cents (R$) in 4Q18 to 21.10 cents (R$), partially impacted by 17% decrease in the average fuel price and a 2% reduction in fuel consumption per flight hour. Fuel costs per ASK decreased 15.6%, mainly due to a reduction of fuel taxes. CASK ex-fuel, excluding non-recurring expenses, increased by 11.1% primarily due to increased productivity (operating efficiency, aircraft utilization and increase in ASKs), and a reduction in aircraft maintenance expenses due to a decrease in aircraft returns in the 4Q19, partially compensated by:
(i) |
A 32.6% increase in depreciation due to the addition of 16 aircraft in the fleet and a reduction in the depreciable life of capitalized engine maintenance and large components; and |
(ii) |
A 23.8% growth in personnel expenses, mainly due to an increase in the federal payroll tax rate to 20%, and the hiring and training of 819 new employees due to the expansion of operations, new routes and new bases. |
GOL has the lowest unit costs in its markets. The Company estimates first quarter 2020 recurring CASK ex-fuel to increase by approximately 4% to 6%, year-over-year.
Healthy margins:
Due to strong cost control and yield management, the Company achieved operating profits for the 14th consecutive quarter. Recurring operating income (EBIT) was R$1,006.3 million in the quarter and R$2,645.0 million in 2019; R$830.0 million and R$1,601.1 million higher than in 4Q18 and 2018, respectively. Recurring EBITDA margin was 38.5% in the period, an increase of 22.2 p.p. quarter-over-quarter.
Balance sheet strengthening:
GOL reported operating cash flow generation of approximately R$1.0 billion in the quarter. Total liquidity was R$4.3 billion, R$238.4 million higher in comparison to September 30, 2019 and R$1.3 billion higher than December 31, 2018. In 4Q19, the Company repaid R$617.1 million in principal debt and leasing payments, R$50.2 million of interest on own capital and repurchased R$102.4 million of shares. The net exchange and monetary variation gains in the quarter totaled R$372.4 million. Net debt (excluding Perpetual Notes and Exchangeable Notes) to LTM EBITDA was 2.4x as of December 31, 2019.
(1) |
Earnings per diluted share excludes results from (i) exchange variation, net; (ii) Exchangeable Senior Notes and capped calls; and (iii) non-recurring expenses, net. |
MANAGEMENT VIDEOS & FULL EARNINGS RELEASE
Access earnings release, management videos, presentation and complete financial statements at: www.voegol.com.br/ri
4Q19 Conference Call: February 20, 2020, 10:00 a.m. (US EDT), Phone: +1 (412) 317-6382, Code: GOL
Investor Relations: [email protected], +55 (11) 2128-4700
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.
SOURCE GOL Linhas Aéreas Inteligentes S.A.
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