Brazil-based domestic airline GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL) (B3: GOLL4) has reported net revenue in the first quarter 2020 was BRL 3.1 billion, a decrease of 2.0% compared to same quarter last year, the company said.
Highlights of GOL´s first quarter include:
-Revenue Passenger Kilometer (RPK) decreased 6.4% totaling BRL 9.9 billion
-Available Seat Kilometer (ASK) reduced 4.4% quarter-over-quarter. GOL transported 8.3 million Customers, a decrease of 6.7% against the first quarter 2019
-Cargo and other revenues increased 16.4% to BRL 206.4 million;
-As a percentage of net revenue, GOL´s operating costs and expenses decreased approximately 17 p.p. to 67.4%, from 84.2% against first quarter 2019;
-Recurring EBITDA and operating income (EBIT) reached BRL 1.4 billion and BRL 938 million, respectively.
-Recurring EBITDA margin and operating (EBIT) margin were 45.7% and 29.8%, an increase of 16.1 p.p. and 12.8 p.p. quarter-over-quarter, respectively;
-Net income after minority interest was BRL 173 million. Earnings per diluted share were BRL 0.44 and Earnings per diluted ADS were USD 0.20.
-GOL recorded solid operating cash flow generation (BRL 1.1 billion), with a 35.6% operating cash flow margin, an improvement of 27.7 p.p. quarter-over-quarter; and
-The Company amortized BRL 1.2 billion of principal and interest of debt and lease obligations in the quarter, including the early amortization of BRL 426.6 million of Senior Notes. The total liquidity was BRL 4.2 billion, of which BRL 3.0 billion cash and short-term investments and BRL 1.2 billion of receivables.
As a result of the COVID-19 pandemic, the quarter, which was on target for record results until mid-March, deteriorated rapidly due to the unprecedented situation in the industry. On March 16, GOL began reducing its capacity by 50 to 60% in the domestic market, and by 90 to 95% in the international market. This was a prudent decision that reflected the change in Customer demand, and followed the actions taken by many other airlines in several countries.
On March 24, in support of actions taken by the Brazilian Government to prevent the spread of COVID-19, which since mid-March has included restrictions on much of Brazilian air traffic, the Company readjusted its network from 800 flights per day to 50 daily essential flights between the São Paulo International Airport, in Guarulhos, and all 26 state capitals and Brasília. The Company continues to work in close coordination with the Brazilian government to provide an essential network for emergency travel, the transport of medical personnel, organs for transplant, medical equipment and passenger repatriations, when requested.
GOL Linhas Aéreas Inteligentes S.A. has three main businesses: passenger transportation, cargo transportation and coalition loyalty program.