Gol increased its offer of seats in October, after a strong expansion of ticket sales in September, but it estimated that should end the third quarter at a loss and that it will continue to burn cash throughout the fourth quarter.
The company said in a statement on Friday that it expanded its offer earlier this month to around 400 daily flights, hoping to end October with 500 daily flights, something equivalent to 60% of what it had a year earlier.
The company predicted that it will have a net cash consumption of BRL 2 million per day between October and the end of December, after ending September with liquidity of about BRL 2.2 billion. Including other sources of funds, the company says it has about BRL 6 billion in liquidity.
The expectation for the third quarter result is a loss per share of BRL 3.2 compared to a loss of BRL 1.23 per share a year earlier. The company has scheduled the release of Q3 earnings results to October 30.
In September, Gol stated that consolidated gross revenue grew 65% over August, BRL 474 million. In August, the value was BRL 293 million. The company did not release the July or third-quarter data as a whole.
“Again, in September, Gol saw healthy growth in demand for travel among Brazilians,” Gol president Paulo Kakinoff said in a statement to investors. “This trend is likely to continue going forward, as searches and sales for Gol tickets continue to grow,” he added.
Gol also estimated that the profit margin before interest, taxes, depreciation and amortization (Ebitda) for the third quarter should be between 21% and 23%, against 31% a year earlier.
The company ended the quarter with a leverage of about 5 times, compared to 2.9 times in the third quarter of 2019, after amortizing about BRL 1 billion in debt in the period.
Translated by LABS