Brazilian carrier Gol has amended its full-year financial expectations based on its Chapter 11 bankruptcy progress and released upbeat preliminary first-quarter financial figures.
The Rio de Janiero-based carrier says it is on the upswing as it emerges from financial restructuring with more liquid assets and a lessened debt burden.
The Rio De Janeiro-headquartered carrier disclosed on 5 May that is emerging from the restructuring process with $900 million in liquidity and “strong exit support”, providing more details on its financial situation as it tracks to complete the process next month.
“Gol is emerging with a proven business model, low costs and strong market position in key markets,” it says.
Last month, the carrier disclosed that it extended a deadline for investors to participate in the company’s $1.9 billion exit financing plan, citing the USA’s trade war with most of the world.
That deadline now approaches on 15 May. Gol says it has secured nearly $1.4 billion in exit financing to date, despite needing only $525 million to satisfy US bankruptcy court.
Additionally, the carrier says it has completed overhauls more than 50 engines powering its all-Boeing 737 fleet, and that it is tracking to “have all aircraft in the air by the end of 2026”. Engine maintenance has been a limiting factor for the carrier’ capacity in recent months.
Gol says it has “significantly reduced indebtedness” by converting into equity or “extinguishing” some $1.7 billion in pre-Chapter 11 debt and about $850 million of “other obligations”.
The plan has included securing key agreements with aircraft lessors – totalling about $1.1 billion of concessions, including for engine-overhaul financing – and Boeing, its most critical supplier.
Gol has reworked a series of agreements with Boeing, providing “significant benefits to the company”, it disclosed last month. It holds orders for more than 90 Boeing 737 Max jets.
“The conclusion of the negotiations with Boeing represents another milestone in Gol’s overall restructuring objectives,” the airline says.
Gol says that the revised Boeing agreements provide $262 million of “concessions and incremental liquidity through 2029 and more than $700 million of total relief”.
Further, the carrier has worked with the Brazilian government to reduce unpaid government “taxes, contingencies and other liabilities” by about $750 million, generating an estimated $184 million in liquidity by 2029.
During the first quarter, Gol reports that revenue increased year-on-year by nearly 20% to R$5.6 billion ($985 million), while quarterly passenger capacity as measured in available seat kilometres increased 12% compared with the first three months of 2023.
Gol flew nearly 10% more departures in the first quarter over the prior-year period.
However, the company has yet to release profit figures for the first three months of 2024. It will release full results and hold a conference call with analysts and investors on 15 May.
