GOL consolidates recovery in 3Q22 with EBITDA margin of 17.3% and record net revenue and yield

Brazil - Português

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Oct 27, 2022, 07:40 ET

SÃO PAULO, Oct. 27, 2022 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL and B3: GOLL4), Brazil's largest domestic airline, today announced its consolidated results for the third quarter of 2022 (3Q22). During this period, through its Executive Team acting assertively in managing capacity and increasing productivity, the Company recorded the highest yield in its history, the highest net operating revenue in a quarter and returned its ex-fuel unit costs to pre-pandemic levels.

All information in this release is presented in Reais (R$), in accordance with international accounting standards (IFRS) and with adjusted metrics, made available to enable comparability of this quarter with the same period of the previous year (3Q21). Adjusted indicators (recurring) exclude non-recurring expenses related to the quarter's result and are detailed in the respective tables.

Highlights

The highest net revenue in the Company's history, reaching R$4,0 billion in 3Q22, 109% and 8% above 3Q21 and 3Q19 figures, respectively;
GOL continues to recover corporate demand and transported 6.9 million passengers in the quarter, 39% above 3Q21 but still 29% below the volume of 3Q19;
Another record for yields, registering 45 cents (R$), 36% higher than in 4Q19 and a 4.5% increase compared to the previous quarter;
The lowest unit cost ex-fuel in Dollars since the beginning of the pandemic, reaching 3.6 cents (US$) or 4.5% lower than 3Q19, even with the supply 23% lower;
Third quarter with EBIT margin of 6.5% and EBITDA margin of 17.3%, totaling R$1.7 billion of EBITDA in the first nine months of the year;
Total liquidity (cash and cash equivalents, financial investments, deposits and accounts receivable) was R$3.7 billion; and
GOL took delivery of three new Boeing 737 MAX-8 aircraft during the quarter, totaling 37 (26% of the current fleet), contributing to a greater cost efficiency and lower carbon emissions.

Comment from the CEO

Celso Ferrer, CEO, said: "My primary focus is to provide value to our Customers in the current economic climate. I believe we can achieve that by further harnessing GOL's inherent strengths in its flexible and cost-efficient business model. As such, in the last three months, we have strengthened initiatives to increase productivity, consistency in our operations and service to our Customers. I thank our Team of Eagles, our Customers, Suppliers and Partners for their support in achieving this goal."

SUMMARY OF the Third Quarter 2022 Results

Revenue Passenger-Kilometers (RPK) increased 41%, while Available Seat Kilometer (ASK) increased 41.3%;
Net income grew 109.4%, reaching R$4,0 billion. Ancillary Revenues, mainly originated by SMILES and GOLLOG, increased by 69.3% to R$250 million;
The average and domestic load factor remained stable at 81%. The international load factor was 84.3%;
Aircraft utilization was 11.1 hours/day, a gain of 9% in productivity;
The number of passengers transported by Company was 6.9 million, an increase of 39.2%;
Net Revenue per Available Seat Kilometer (RASK) increased 48.2% to 39 cents (R$);
Average yield per passenger increased 50.9% to 45 cents (R$), the highest level in GOL's history;
Recurring Cost per Available Seat Kilometer (CASK) increased by 6.5% to 36.45 cents (R$). CASK Fuel increased 87.9% to 17.36 cents (R$), due to the increase of 91.3% in the jet fuel price. Recurring CASK Ex-Fuel decreased by 23.6% to 19.09 cents (R$) or 3.60 cents in US$, a lower level compared to the same quarter of 2019;
Recurring EBIT was R$261.7 million with a margin of 6.5%, while recurring EBITDA was R$695.2 million with a margin of 17.3%;
Operating activities generated approximately R$0.5 billion in 3Q22, leveraged by the increase in billing volume and working capital initiatives, partially offset by higher jet fuel prices;
Recurring net loss was R$596.2 million (-R$1.94/share and -US$0.75/ADS); and
The net debt ratio (including 7x annual lease payments and excluding the perpetual bond) to recurring EBITDA LTM reached 9.1x as of September 30, 2022, a decrease of 2.0x due to the growth of recurring EBITDA (+70%) in the last 12 months, which more than offset the 52% increase in adjusted net debt.

FULL EARNINGS RELEASE & PRESENTATION
Access the earnings release, presentation and full financial statements at: www.voegol.com.br/ir

3Q22 Conference Call: October 27, 2022, 10h00 (New York time; US EDT), Phone: +1 (412) 317-6382, Code: GOL, broadcast via webcast (http://webcastlite.mziq.com/cover.html?webcastId=dc99b98a-4fe2-4743-b186-4c2906292cce).

Investor Relations: [email protected], +55(11) 2128-4700

About GOL Linhas Aéreas Inteligentes S.A. (www.voegol.com.br): The largest airline in Brazil, leader in the corporate and leisure segments. Since it was founded in 2001, the Company has the lowest unit cost in Latin America, thus democratizing air transportation of passengers.

SOURCE GOL Linhas Aéreas Inteligentes S.A.