GOL Q2 profits

Juliette O'Neill
By Juliette O'Neill August 17, 2016 16:57

GOL Q2 profits

GOL has posted BRL309.5 million ($94.2 million) net profit for the 2016 second quarter, reversing a net loss of BRL354.9 million in the prior-year period. Revenue fell by 2% to BRL2.09 billion, while operating expenses fell 5% to BRL2.26 billion. GOL reported a BRL17.4 million operating loss for the second quarter, narrowed from a BRL251.1 million operating loss the prior-year period. On an adjusted basis, which takes into account the return of leased aircraft, GOL’s operating loss for the second quarter was BRL149.6 million, narrowing from BRL261.3 million in the year-ago quarter. In the 2016 second quarter, GOL reported non-recurring losses of BRL21.8 million related to the early return of leased aircraft.

For the first half of 2016, GOL net profit reached BRL1.07 billion compared to a net loss of BRL1.03 billion in 1H 2015.

“GOL’s second-quarter results reflect the company’s right-sizing to current Brazilian economic and airline industry conditions and to improve liquidity,” GOL CEO Paulo Kakinoff said,

GOL has renegotiated debt amortization with its lenders and on leased aircraft returns, as well as a streamlined flight network. The airline has returned seven aircraft to lessors already with a further 15 earmarked for early return pending final negotiation terms.

GOL’s passenger traffic fell by 11.2% to 8.1 billion RPKs in the second quarter on the back of a 9.3% reduction in total capacity to 10.77 billion ASKs. The airline’s total load factor dropped by 1.6 percentage points to 75.2%.

Juliette O'Neill
By Juliette O'Neill August 17, 2016 16:57