Brazilian airline Gol bounces back to Q2 profit as revenue jumps

Brazilian airline Gol on Thursday surprised analysts by bouncing back to a second quarter net profit, but trimmed its full-year revenue forecast as it sees capacity growing by less than previously expected. Gol said in a securities filing it made a second-quarter net profit of 556.3m reais ($117.4m), reversing a 2.8b real loss a year earlier on higher revenue and foreign exchange gains. Analysts had expected a net loss of 152.5m, according to Refinitiv Eikon data. The outperformance sent shares in the firm up as much as 5.6% in early Sao Paulo trading, making it one of the top gainers on Brazil’s benchmark stock index Bovespa, which was near flat. “The firm reported relatively strong margins and yields still at high levels,” Genial Investimentos analysts said. “We expect Gol to continue reporting good figures throughout 2023, driven by still strong demand and a favorable cost scenario.” Operating net revenue hit a record high for the second quarter of 4.14b reais, up 27.9% year on year, Gol said, also beating the 4.08b expected by analysts polled by Refinitiv. “We delivered solid operational performance,” CE Celso Ferrer said. “We continue to prioritize reliability, profitability, and strengthening of our balance sheet.” Despite the positive quarterly revenue figures, Gol trimmed its full-year net revenue outlook to about 19.3b reais from 19.5b, as available seat kilometers are poised to grow by less than previously thought. The carrier added it now forecasts its 2023 EBITDA margin to reach about 25%, up from 24% before. Ferrer said the company remains committed to maintaining low unit cost levels, adding that low-cost discipline would “further strengthen Gol’s competitive advantage” as capacity grows.<br/>