GOL reports increased capacity of 120 flights/day in June 2020

Brazilian airline GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL) (B3: GOLL4) has announced it increased its capacity to 120 flights a day in June 2020 to service a gradual recovery in demand for air travel, the company said.

In the quarter, GOL´s consolidated gross sales were BRL 658 million and average load factor was 77%.

Since the last monthly update on June 9, 2020, GOL maintained its liquidity position at over 12 months of cash reserves, as a minimum.

In July, management will continue to assess levels of passenger demand generated in Brazil´s principal business and leisure markets, and the company will maintain a sensible, measured and flexible approach to increasing capacity. Due to the support GOL expects to continue to receive from its stakeholders, it projects to maintain its cash flow equilibrium during the ramp-up period.

In addition to initiatives to secure jobs for its 16,000 Employees, GOL structured an agreement involving 8,600 ground Employees (in addition to the 5,000 flight crew Employees who have already adhered to a similar agreement). These measures will allow the Company to match personnel costs to the ramp-up of its network. For 3Q20, GOL expects to maintain personnel costs at 40% to 50% of pre-pandemic levels.

GOL ended the month of June with a total fleet of 130 B737s. With 27 aircraft operating in its network in June, flight operations were 13% or last year´s month, ramping up to 17% at the end of the month with the planned re-opening of five bases and an increase in flights between São Paulo and Rio de Janeiro. During the month, GOL ramped up to 120 daily flights, increasing frequencies in its hubs in Guarulhos, Galeão and Brasília.

With an increase to approximately 250 flights per day, July operations are expected to be around 25% of July 2019 schedule. GOL will be operating 36 aircraft in the network and plans to re-open 14 bases, including six regional destinations served by its partner Voepass.

GOL Linhas Aéreas Inteligentes S.A. serves more than 36 million passengers annually. GOL offers customers more than 750 daily flights to over 100 destinations in Brazil and in South America, the Caribbean and the United States.