November 04, 20 - 11:36 am - Reuters

Gol records losses in Q3; increases capacity in Q4

Gol had a net loss of BRL 872 million in the third quarter, reversing a positive result of BRL 263.5 million a year earlier, according to its earnings report released on Wednesday.

The airline also announced a 100% increase in the capacity offer for the fourth quarter compared to the third quarter and it expects to have an average operating fleet of 94 aircraft by the end of this year, which represents more than 75% of the company’s operating fleet that was in operation in the same period of 2019.

In the third quarter, the company’s operating fleet was 122 aircraft and Gol said it expects to have 126 operational aircraft by the end of the year, reducing this number to 122 by the end of 2021, according to the quarterly report.

The company ended the third quarter with a net debt to adjusted EBITDA ratio of 4 times compared to 2.8 times in the second quarter. For the last three months of this year, the company’s expectation is that leverage will rise to 6 times, advancing to 8 times in the first quarter of 2021.

The company’s shares were up 1.28% at 10:42 am, while the Ibovespa was up 1.26%.

Gol also estimated that its total liquidity in the fourth quarter will be about BRL 2.4 billion compared to BRL 2.2 billion in the third quarter, and that in the first quarter of next year it will be about BRL 2.5 billion reais.

Translated by LABS