SÃO PAULO, March 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 February/21. All information is
presented in Brazilian Reais (R$). The information below is
preliminary and unaudited.
In this period, GOL adjusted its capacity to an average of 355
flights per day, a 28% decrease from an average of 493 flights in
January/21. The Company operated approximately 469 daily flights on
peak days, capturing part of the passenger demand on the Carnival
holiday, which was suspended this year. GOL's consolidated gross
revenues for the month were R$503
million and the average load factor was 80.8%, highlighting
Management's on-going focus on maintaining sustainable
operations.
In February/21, there was a 15% decrease in the search for the
Company's airline tickets, compared to January/21, with a 28%
reduction in the level of sales during this month as the "second
wave" of Covid-19 cases in Brazil
accelerated, Customers awaiting vaccination grew and the beginning
of low season continued to dampen demand for travel. In response to
the significant reduction in sales, increase in cancellations and
no-shows, GOL's network was reduced by 4% between the first and
fourth weeks of February to adjust its costs to the level of
inflows. PRASK was R$20.54 cents, a
sequential variation of -12.7% over January/21 and a year-over-year
variation of -15.0%.
"We continue to be extremely diligent in managing our cash to
finance the growth of operations, which will accompany the
non-linear recovery in demand," said Paulo Kakinoff, CEO. "From our
experiences drawn during the first wave last year, we are in a
position to confidently manage through this next phase of Covid-19.
We reiterate our belief that the Company will emerge stronger and
even more resilient as markets start to normalize."
Excluding financial debt service, GOL net cash consumption was
R$3 million/day in February. For the
first quarter of 2021, the Company is estimating net cash
consumption to be R$3 million/day, a
conservative outlook based on the recent increase of Covid-19 cases
in Brazil.
GOL estimates that it has sufficient liquidity to finance its
working capital, expenses and debt service through the coming
months, a period of higher impact on its cash flow. The Company
ended February with approximately R$2.0
billion in total liquidity, primarily due to the decrease in
the volume of receivables by approximately R$90 million and the amortization of R$70 million in bank loans. Including the
financeable amounts of deposits and unencumbered assets, GOL's
potential liquidity sources total over R$5
billion.
Beyond effectively managing its capacity and cash consumption
during on-going fluctuations in travel demand during the recovery,
the Company's Management is assessing and adapting to the evolving
market landscape, as new consumer and business trends emerge in the
wake of the Covid-19 pandemic. In February/21, GOLLOG entered into
a partnership with the Comporte group, formed by the companies Tex,
União, Itamarati, Cruz and Elux, to strengthen the "last mile" in
multimodal delivery services, combining the efficiency of road
transportation with the capillarity of the Company's air
network.
Added Kakinoff: "GOL's leadership in the domestic market for the
5th consecutive year and the proven sustainability of our low-cost
business model position us for growth during the recovery. Our long
history of innovation, strategic partnerships and Team of Eagles
are the pillars of the Company's future in the aviation industry.
While we are managing through an unprecedented period of
uncertainty for airlines globally, we won't lose track of what is
coming next by way of new routes, new technology and new
markets."
Maintaining Cash Flow Equilibrium
Based on conservative assumptions and to provide the necessary
matching of assets and liabilities in this lower demand
environment, GOL has been implementing measures to minimize net
cash consumption and to maintain equilibrium in its operating cash
flow. The Company works daily with its stakeholders to manage
through the "second wave" of Covid-19 in Brazil and is conservatively managing its
operations and liquidity until the Country's rate of infection
begins to decline and the percentage of the immunized population
increases. GOL has undertaken a number of necessary initiatives to
minimize fixed costs as it reduces its operations to meet the
current demand for air travel. These measures include, among
others, the temporary postponement of payments to important
partners of the Company.
"We have addressed the relevant financial obligations provided
for in our cash flow, and we have a solid partnership with the main
providers of working capital," said Richard
Lark, CFO. "Our financial management since the beginning of
this pandemic reflects GOL's commitment to and focus on having a
sound capital structure, on minimizing our costs and strengthening
the balance sheet as we reach a greater velocity during the
recovery."
The average maturity of the Company's long-term debt, excluding
aircraft leases and perpetual notes, is approximately three
years.
Adjusting the Fleet Structure to efficiently match Capacity
to Lower Demand
The Company's fleet plan has always included flexibility to
adjust the size of the fleet, by either returning aircraft or
extending aircraft leases to match the volatility of the demand for
air travel. This flexibility in matching capacity to demand has
been critical to GOL's successful management of its fleet size
throughout the pandemic and is one of the Company's main
competitive advantages.
Kakinoff commented: "We sustained our high average load factor
by reducing the operating fleet and planned network restructuring
for February, March and April. GOL is prepared to react swiftly in
adapting its seat offer, with flexibility to address demand
fluctuations in the coming months."
Since the start of this crisis and until the end of March/21,
the Company will have decreased its fleet by 17 Boeing 737 leased
aircraft and reduced its 2020-2022 Boeing 737 MAX deliveries by 34
aircraft. The Company ended February/21 with a total fleet of 128
B737s, eight of which are model B737-MAX. With 74 aircraft
operating in its network, daily flight operations decreased 28%
over January/21 and were equivalent to 48% in takeoffs and 50% in
ASKs of February/20.
During the month, GOL adjusted frequencies to match lower demand
in its hubs in São Paulo, Rio de
Janeiro, Brasília, Fortaleza and Salvador. The Company is currently operating
98% of routes in its domestic network, which represents even higher
levels of connectivity compared to the beginning of 2020, with more
destinations and faster connections. As a result, the Company is
well positioned for growth in both major and regional markets when
demand for air travel resumes.
In March/21, GOL will implement an even greater reduction and
operate approximately 250 flights/day, placing its operations at
approximately 40% of March/20. This reduction in the Company's
domestic flight schedule reflects the reduced demand for travel in
Brazil, as a consequence of this
next phase of Covid-19, Customers awaiting vaccination and the
beginning of low season. During this current month, GOL is adapting
its fleet and will operate 65 aircraft in its network to control
capacity and costs during this period of lower demand.
In addition, to help speed up Brazil's national immunization program --
which is of paramount importance to confront this pandemic -- GOL
is making space on its aircraft available free of charge to the
Brazilian authorities for the transportation of Covid-19
vaccines.
Enhancing GOL's Cost Advantage
In addition to fleet management, the Company's aircraft
contracts are adjusted to meet the volatility of demand in 2021 and
result in an effective reduction in GOL's unit operating costs. The
Company has also reduced its fixed costs by converting a portion of
its monthly lease payments to variable power-by-the-hour.
For 1Q21, GOL expects to maintain personnel costs at their
reduced position, at 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 preserve the equilibrium
of its nominal costs equivalent to the level of its offered
capacity and to expand its unit cost leadership.
All eight B737-MAX aircraft are operating long-haul domestic
routes as we expect a slower recovery in the international market.
GOL expects to end the year with approximately 15% of its NG fleet
replaced with MAXs, which will accelerate the return of its CASK to
levels comparable to the pre-pandemic period.
"Our single-type fleet operating model, low-cost structure with
more variable components and dominant position in Brazil's high-density traffic hubs enables us
to rapidly expand and contract routes to meet variations in 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 it, and the Company counts on the continued
support and confidence of its stakeholders and partners to invest
in the recovery of the Brazilian market.
Commitment to Combine GLA and Smiles
In December, GOL and GLA (GOL Linhas Aéreas) submitted to
Smiles' Board of Directors a new proposal to combine the Company's
two operating subsidiaries: GLA, the largest domestic airline in
Brazil, and Smiles, the loyalty
and mileage program. With greater visibility on what is required to
more efficiently manage its businesses, GOL believes the proposed
transaction is an important milestone to maximize future value for
both the Company and Smiles' shareholders by increasing their
respective market competitiveness and reducing the GOL Group's
risk.
Today's challenging operating environment in Brazil makes the successful conclusion of this
transaction even more critical for both companies and will
substantially reduce the risks each one faces during the pandemic.
Further, the Company believes the combination of these two entities
is important for aligning the respective operating and financial
incentives and addresses the issues that exist today due to the
inefficiencies of the current contract that governs the
relationship between them. The proposed corporate merger was
submitted to GOL and Smiles' shareholders for approval at the
respective shareholders' meetings to be held on March 15th.
Executing Environment, Social and Governance ("ESG") Best
Practices
As the Company manages through the Covid-19 pandemic, GOL has
sought to maintain its commitment to the highest standards of ESG.
The Company is a world leader in striving to make the aviation
industry more sustainable in areas related to carbon neutralization
and the development of biodiesel fuel alternatives. The Company
encourages the airline industry as a whole to tackle climate
change, social inequality and governance issues by becoming more
sustainable, inclusive and transparent.
GOL proactively reports relevant ESG information to investors in
accordance with the Sustainability Accounting Standards Board
("SASB") standard for the airline industry (TR0201). In this
challenging operating environment globally for airlines, this
industry's commitment to ESG initiatives is critical.
Aligned to Safety, GOL is Prepared for a Slower
Recovery
Kakinoff concluded: "We are facing a severe phase of Covid-19 in
Brazil, and both airlines and
tourism are the most highly affected industries. We have confidence
in the ability of our Team of Eagles to overcome these challenges,
prioritizing our Customers and employees' safety, preserving jobs
and providing an efficient air network for necessary travel and
distribution of the vaccine."
The Company anticipates that the successful roll-out of
vaccinations through Brazil's
National Immunization Program will reactivate demand in the leisure
and corporate segments, however, given that the number of cases of
Covid-19 in Brazil are at record
levels, GOL's Management continues to consider more conservative
recovery scenarios, maintaining initiatives to reduce costs, cash
flow equilibrium and the match of supply to reduced levels of
demand.
The Company prioritizes its Customers and Crew to have a safe
and enjoyable experience while on board. In addition to adhering to
the already strict standards of civil aviation sanitation
established by authorities, in line with the recommendations of the
International Civil Aviation Organization (ICAO), World Health
Organization (WHO), International Air Transport Association (IATA
Agência Nacional de Aviação Civil (ANAC) e Agência Nacional de
Vigilância Sanitária (Anvisa), GOL seeks to enhance its operations
on every front, including ticket sales, customer service, boarding,
the in-flight experience and disembarkation services. Since
December 2020, the Company initiated
an important partnership with the Albert Einstein Hospital
certifying all of its Covid-19 prevention procedures and measures,
as the only airline in Brazil with
this partnership.
"Through our values and track records of Service and Safety, our
Customers have confidence in the Company. We believe that people
will want to fly with the airline they trust most in Service and
Safety, both during and after the pandemic," said Eduardo Bernardes, Vice president of Sales and
Marketing.
Key Metrics – February
2021 (preliminary and unaudited)
Liquidity
|
February/2021
|
∆
January/2021
|
Total
liquidity
Deposits
Unencumbered
assets
|
R$2.0
billion
R$2.2
billion
R$1.3
billion
|
-10%
-1%
-1%
|
Net Cash
Consumption
|
February/2021
|
∆
January/2021
|
Cash
inflows
Cash
outflows¹
Net cash consumption
("burn")
|
R$22
MM/day
R$(25)
MM/day
R$(3)
MM/day
|
+9%
+19%
NM
|
Fleet
|
February/2021
|
∆
January/2021
|
Total
(average)
Operating aircraft
(average)
Flights per day
(average)
Network destinations
– Total²
|
128
74
355 (48% of
2020)
62 (83% of
2020)
|
-
-17
-28%
-2%
|
Operating
Results
|
February/2021
|
∆
January/2021
|
Seats – Domestic
& Total (000)
ASK – Domestic &
Total (million)
Load factor –
Domestic & Total
Consolidated gross
revenue (R$MM)
|
1,735
2,089
80.8%
503
|
-35%
-37%
-2.4 p.p.
-42%
|
1- Excluding financial
debt service;
|
2- Excludes codeshare and
interline destinations.
|
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 14,000 highly skilled aviation
professionals and operates a fleet of 128 Boeing 737 aircraft,
delivering Brazil's top on-time
performance and an industry leading 20-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.