Tuesday, February 21, 2017

Brazil’s GOL reverses losses, posts 2016 $339 million net profit

São Paulo-based low-cost carrier GOL reported a full-year 2016 net profit of BRL1.1 billion ($338.5 million), reversing the airline’s BRL4.3 billion net loss in 2015.

GOL reported full-year revenue of BRL 9.9 billion, up 0.9% from 2015 as operating expenses decreased 7.9% to BRL9.2 billion. The company reported BRL696.5 million in operating income for the year, reversing a BRL183.8 million operating loss in 2015. The airline’s operating margin (EBIT) for the year was 7.1%, up 9 points from 2015.

In May 2016, responding to the Brazilian economic downturn, GOL embarked on extensive flight network restructuring, reducing the number of seats available for sale by 17% over the year.

GOL’s full-year 2016 yield increased 8% to BRL 24.14 cents as RASK grew 8.3% to BRL 21.30 cents and CASK fell 1.1% to BRL 19.79 cents. GOL’s CASK ex- fuel rose 4.4% to BRL 13.97 cents. GOL’s fuel expenses in 2016 fell 18.4% to BRL2.7 billion; GOL’s fleet consumed 1.4 billion liters in fuel in 2016, down 10.3% from 2015.

GOL’s passenger traffic in 2016 declined 6.5% to 35.9 billion RPKs as full-year capacity was cut 6.9% to 46.3 billion ASKs. GOL’s full year load factor was 77.5%, up 0.3 point from 2015. The total number of passengers in 2016 was 32.6 million, down 16.1%.

As of Dec. 31, 2016, out of a total of 130 Boeing 737 NG aircraft (102 737-800s and 28 737-700s), GOL was operating 121 aircraft. Seven of the remaining aircraft will be returned to lessors in 2017 while the other two have been sub-leased to a separate airline.

(Mark Nensel - ATWOnline News)

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