An improvement in Gol’s domestic flight sales in May has led the Brazilian carrier to revise its outlook for the second quarter, for which it expects to report net operating revenues of R$1 billion ($188 million).
“The successful completion of the vaccination roll-out expected in Brazil this year, combined with our already improved cost base and stronger balance sheet, gives us confidence in our performance for the second half of 2021,” states chief executive Paulo Kakinoff.
“We will also benefit from a reduced fleet cost for the next decade as we take more deliveries of the 737 Max aircraft that will compose a significant part of the Gol fleet.”
For the second half of this year, the carrier is expecting net operating revenues of R$6 billion, it said in its preliminary guidance on 26 May.
EBITDA excluding non-operating expenses and depreciation related to fleet idleness and personnel-related costs is expected to be R$100 million in the quarter and R$2 billion in the second half-yearly period. Total liquidity is anticipated to stand at R$4.2 billion in the quarter and R$4.5 billion in the second half.
The carrier also anticipates average domestic routes served to reach 114 in the quarter and 159 in the second half.
For the second quarter, the airline expects a load factor of 81% versus the 79% it previously issued as guidance, and recurring unit costs to be down 40% when compared to the second quarter of 2020, versus down 27% it previously expected.
Moreover, the acquisition of a minority interest in the Smiles loyalty programme is expected to close on 23 June. The re-integration of Smiles “enables synergies in the group, improves its creditworthiness and increases its cash flow and earnings”, Gol says.
By the end of the second quarter, Gol expects to have issued almost R$3 billion in new capital, which includes an equity capital increase of up to R$512 million initiated and led by the controlling shareholder, a R$1.5 billion re-tap of its secured programme, and the Gol equity to be issued for the acquisition of the minority interest in Smiles.
In addition, the airline says it has fully repaid the $250 million short term loan it received in August 2020 which, together with the conclusion of the acquisition of the Smiles minority interest, frees up “valuable” unencumbered assets.
Chief executive Kakinoff adds: “These strengths will enable GOL to capitalise on the many growth and expansion opportunities that are now available in our markets, enabling us to benefit from a strong rebound in demand for travel as we move into the southern hemisphere’s summer season.”