GOL posts Q2 net loss despite growth

Written by: Felicity Stredder |
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Brazilian airline Gol Linhas Aéreas has reported a R$474.6m net loss during the second quarter of 2017, despite increasing revenues and lower costs.

Gol's net operating revenue reached R$2.234bn in the second quarter of the year, 7% higher than in the same period last year, and operating costs and expenses dropped 2.3% to R$2.208bn. Reduced operating costs were attributed mainly to lower expenses surrounding passengers, maintenance, personnel and aircraft rental.

However, economic instability in Brazil saw foreign exchange variations of over R$1bn between 2Q 2017 and 2Q 2016. A stronger US dollar increased the company's financial expenses to such an extent that it detrimentally affected results: Gol’s monetary expenses totalled R$425.4m in the second quarter, of which R$225.7m was directly attributable to fluctuation in foreign exchange rates. In the same quarter of 2016, the airline’s financial gain of R$543.1m not only offset its operating loss for the period but also enabled a R$252.5m net profit.

The low cost carrier’s performance was nonetheless positive. Gol's EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft leasing costs) in the second quarter of this year were up 71.5% year-on-year, to R$386.3m, and net yield rose 4.8%, to R$0.2319.

GOL’s total passenger traffic was up just 0.5% during the quarter to 8.1bn RPKs as the airline decreased capacity 3% Y-O-Y to 10.4bn ASKs, generating a load factor of 77.9%, up 2.7 points from a year ago. The carrier also increased its aircraft utilisation by 4.8% ear-on-year to 11.3 block hours per day.

GOL CEO Paul Kakinoff commented on the results. “We remain committed to respond to the macroeconomic environment with strong discipline in seat supply, growth in load factor, continuous improvement in customer experience and cost reduction to generate better operating results.”


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