Gol announced consolidated results for the third quarter of 2020
The Company maintains a strong liquidity position, with no significant debt maturities until 2024; Strong capacity management discipline led to 79% load factor and daily flights triple to 360
GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL and B3: GOLL4), Brazil's largest domestic airline, today announced consolidated results for the third quarter of 2020 (3Q20) and outlined its continued initiatives in response to the COVID-19 global pandemic.
All information is presented in Brazilian Reals (R$), according to both International Financial Reporting Standards (IFRS) and adjusted metrics and are made available to enable comparability of this quarter of the abrupt drop in demand with the same period last year. Such adjusted metrics exclude expenses related to the portion of the non-operating fleet that GOL grounded this quarter and are detailed in the table showing "operating expenses" in the section below. Comparisons are made to the third quarter of 2019 (3Q19), unless otherwise specified.
"These promising third quarter results reflect the return of passengers to the skies in Brazil and our confidence in GOL's competitive advantages," said Paulo Kakinoff, CEO. "The number of Customers flying with us tripled in Q3 compared to the previous quarter, which is a remarkable rebound given the challenging market environment. GOL swiftly met the renewed demand through its highly flexible fleet management model, while retaining a nearly 80% load factor. That is testament to the sustainability of GOL's low-cost single-fleet carrier model and the efforts of our Management team since the beginning of this crisis to preserve cash and protect our balance sheet. We believe the Company is now in an advantageous market position as demand for travel continues to accelerate this year and as we enter 2021."
GOL maintained a solid liquidity position and ended the quarter with R$2.2 billion in liquidity. Between March and September, the Company made the necessary adjustments to the reduction in demand, prioritizing a balance between inflows and outflows of its operating cash flow.
GOL has also worked tirelessly with all of its stakeholders since the beginning of this pandemic to ensure that the Company maintains adequate liquidity. The Company rebalanced its debt amortization schedule, focused on preserving jobs and strengthened commercial relationships with its main business partners. The credit markets recognized the strength and quality of this execution, increasing the prices of GOL's long-term unsecured debt in the secondary market by over 35% since the beginning of 3Q20.
Added Kakinoff: "We have been diligent with managing operations and maintaining our financial health during this crisis and thank our stakeholders for their shared commitment and continued support."
As demand continued to return in 3Q20, GOL expanded the number of flights in the Brazilian Northeast region and inaugurated the Salvador hub, ensuring the Company has the most complete and comprehensive network to meet the resumption of demand in leisure travel. Early indicators from ticket searches and the increased sales level in large national markets will contribute to the continued expansion of domestic market share. GOL's current domestic market share is approximately 40%, representing an increase of two percentage points since the outbreak of this pandemic. GOL's leadership in the domestic market will further contribute to its differential deleveraging and competitiveness.
Together, these initiatives position GOL as optimally prepared to capture the ongoing growth in passenger demand resulting from the continued recovery of the Brazilian economy expected next year.