Brazilian carrier GOL Linhas Aéreas reported an unexpected fourth-quarter net profit on Wednesday. This reversed course from a multi-billion-real loss in 2021, as the company saw higher yields and increasing tourism demand.
Record revenues and sales
In the last quarter of 2022, GOL achieved a net operating revenue of 4.7 billion reais ($912 million), the highest net revenue in the company's history. This took place after the company reached the highest level of sales in any quarter, accomplished through a strong SMILES program (GOL’s loyalty program) and November’s Black Friday, in which the airline surpassed its daily sales levels versus pre-pandemic trends, even with overall retail sales trending lower in Brazil.
Eduardo Bernades, GOL’s Chief Revenue Officer, said,
“The growth in yields over the last few quarters demonstrates the strength of our highly attractive network with leisure travelers. We expect the recovery of the corporate market in the fourth quarter to continue to intensify during 2023 and contribute to the expansion of the aviation market in general. Despite the higher cost of living, Brazilians are keen to travel.”
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GOL posted a net income of 230.9 million reais ($44.5 million) in the fourth quarter, up from a 2.8 billion reais ($548mn) loss in the previous year. According to a Reuters report, analysts had forecast a net loss of about 484.75 million reais ($93.8mn).
Network and fleet developments
During last year’s final quarter, GOL registered strong demand for leisure flights as Brazil’s high season started. The carrier expanded the connectivity of its international network too, offering additional flights between Brasília (BSB) and Orlando (MCO). Additionally, it inaugurated flights between Rio de Janeiro’s Galeao International (GIG) and Montevideo (MVD), Uruguay.
GOL also reactivated routes during this quarter to the cities of Córdoba and Rosario in Argentina, thus serving 100% of its pre-pandemic destinations in that country. Finally, GOL made its inaugural flights between Manaus (MAO) and Miami (MIA). It employed its Boeing 737 MAX 8 fleet and connected the north of Brazil to the United States.
Celso Ferrer, the airline’s Chief Executive Officer, said they are taking a careful and planned approach to increasing capacity and resuming routes across their markets. “We want to make sure the demand is really there and seek to optimize aircraft utilization and reduce unit cost excluding fuel.”
In the final quarter, GOL received one new Boeing 737 MAX 8, totaling 38 aircraft of the type at the end of 2022. GOL also returned two Boeing 737 NGs in the quarter and closed the year with a fleet of 146 aircraft, of which 106 were 737NGs, 38 were MAXs, and two were Cargo NGs.
GOL closed the year with 92 firm orders to acquire 737 MAX aircraft, of which 67 were for the MAX 8 model and 25 for the MAX 10 model. The company expects to return about 17 operational aircraft by the end of 2023, with the flexibility to accelerate or reduce the volume of returns if necessary. Moreover, it expects to receive about 15 new planes this year.
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Source: Reuters.