Gol Linhas Aéreas Inteligentes (GOLL54) Q2 2024 earnings summary

Executive summary

• Financials for the quarter ended June 30, 2024, were prepared under Brazilian GAAP and IFRS, reviewed by independent auditors without qualification, but with emphasis on going concern uncertainty due to negative working capital and ongoing Chapter 11 proceedings.

• Achieved recognition as the most on-time airline in Brazil and Latin America in 2Q24, with a 90.5% on-time performance index in June.

• Announced new codeshare agreements, new international routes, and resumed key routes interrupted during the pandemic.

• Faced operational challenges due to the closure of Salgado Filho International Airport, impacting ASK and revenue.

Financial highlights

• Consolidated net revenue for Q2 2024 was R$3.94 billion, down 5% year-over-year; six-month revenue was R$8.65 billion, down 4.6% year-over-year.

• Net loss for Q2 2024 was R$3.91 billion, compared to net income of R$556 million in Q2 2023; adjusted net loss was R$1.045 billion, excluding non-recurring and exchange effects.

• Gross profit for Q2 2024 was R$1.06 billion, down from R$1.14 billion in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were R$2.6 billion, up from R$324 million at year-end 2023, mainly due to DIP financing.

• Recurring EBITDA margin was 18.9% in Q2 2024, down from 22.8% in Q2 2023.

Outlook and guidance

• Operations continue under Chapter 11 protection, with ongoing negotiations for a reorganization plan; exclusive periods for filing and soliciting votes on the plan extended to October and December 2024.

• Plans to launch new international routes (Guarulhos–San Jose, Guarulhos–Aruba, Brasília–Bogotá) and resume others by end of 2024.