Brazils GOL reports third quarter results

São Paulo-based low-cost-carrier GOL reported third-quarter net losses of BRL245.1 million ($100.5 million), widened from a net loss of BRL197 million in the September 2013 quarter.

GOL’s third-quarter operating revenue improved 10.4% year-over-year to BRL2.46 billion as expenses increased 5.3% to BRL2.31 billion. The company’s resulting operating income for the quarter came to BRL152 million, more than tripling GOL’s BRL37 million reported operating profit for the third quarter of 2013. GOL’s operating margin for the quarter was 6.2%, up 4.5 points from the 2013 third-quarter.

Net exchange and monetary variations inflicted a BRL 270.5 million hit on GOL’s tallied expenses during the quarter, a loss widened considerably from GOL’s BRL 24.8 million currency variation loss in 3Q 2013—a vivid example of the 10% appreciation of the US dollar against the Brazilian real.

GOL’s systemwide traffic during the third-quarter was up 9.2% year-over-year to 9.5 billion RPKs on a 2% drop in capacity to 12.2 billion ASKs, producing a load factor of 77.5%, up 7.9 points year-over-year. The carrier’s domestic load factor was 78.3% during the quarter, up 8.1 points from 3Q 2013; GOL’s international load factor for the quarter was 72.5%, up 8.3 points.

GOL moved 9.98 million passengers in the third-quarter, up 10.5% year-over-year. Yield fell 1.9% year-over-year to 23.15 BRL cents. CASK, excluding fuel, increased 9.8% to 11.29 BRL cents.

The company cited “Brazil’s challenging economic activity scenario, which reduced demand from business travelers” for the yield decline during the July-September quarter.

As of Sept. 30, GOL’s operational fleet consisted of 35 Boeing 737-700NGs and 107 737-800NG aircraft (five of the 737-800NGs are sub-leased to European airlines and four are in the process of being returned to the lessors)—two less aircraft than a year-ago. The carrier also maintains four non-operational aircraft: three 737-300 Classics and one 767-300/200.

GOL did not book any new aircraft orders during the quarter, having 130 firm orders already in place with Boeing for fleet renewal until 2026. Year-to-date, the company has taken delivery of nine 737-800s, most recently on June 10.

(Mark Nensel - ATWOnline News)