With billionaire losses, Gol will cut flights; ticket prices must go up

After announcing a loss of R$ 2.85 billion in the second quarter, the Goal plans to cut the offer of flights by around 10% for August and September, amid the escalation of costs resulting from the increase in kerosene from aviation and the devaluation of the real. “We anticipate that rates will continue (high) in the second half of the year, but we are able to offer more attractive prices as long as the customer plans to travel in advance”, said yesterday, in a teleconference, the company’s president, Celso Ferrer.

With this scenario, Gol projects more expensive air tickets for the second half of the year. “The inventory for the second semester already has a healthier fare level, capable of dealing with the increase in fuel, and the fare curve is more distributed to democratize air transport even in a scenario of high costs.”

The loss of R$ 2.85 billion in the second quarter reverses the profit of R$ 642.9 million recorded in the same period last year. Net revenue tripled from April to June, to R$ 3.2 billion.

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Gol postponed to 2023 full resumption of its operations
Gol postponed to 2023 full resumption of its operations Photograph: Daniel Teixeira/Estadão

THE aerial also announced the revision of the outlook for 2022, with a reduction in the projection of the average load factor from 82% to 80% in the year, in addition to the decrease in the consolidated offer measured by the available seat kilometer (ASK) for the year. According to executives, one of the measures adopted by the company was to reorganize the offer on certain routes, such as the air shuttle.

Ferrer said that to face higher fuel prices, both Gol and its competitors are reducing flights. “It is very clear that the cost level will be much higher in the second half of the year, with Petroleum at US$ 100 a barrel or more and the dollar above R$ 5 with the volatility of the elections. We expect greater rationalization from the market as a whole.”

On the other hand, Ferrer stressed that the scenario for tariffs is still positive: “About 50% of our transport to be carried out will come with higher tariffs in the second half of the year.”

For the year, the airline revised its projection of total net revenue from R$13.7 billion to R$15.4 billion.

Gol’s adjusted net debt reached R$23.8 billion in the second quarter, up 50.9% over the same period in 2021. Gross debt, on the other hand, totaled R$24.6 billion in the period, with lease liabilities jumping 12% . “Lease liabilities should continue to increase, as Gol plans to add 10 more 737 MAX aircraft to its fleet by the end of the year,” said analysts Victor Mizusaki, André Ferreira and Pedro Fontana, in a report by Bradesco BBI.

Against this backdrop and the rise in kerosene of aviation, Gol postponed the full resumption of its operations to 2023. “We started the year estimating this resumption for the fourth quarter of 2022, but due to the escalation of fuel in the second quarter, we reviewed our capacity”, said in a teleconference the vice director -company chief financial officer, Richard Lark.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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