Currency and capacity pressures push Brazil’s Gol to R3.9bn loss in Q2
Brazil’s Gol made a Q2 loss of R3.9b ($700m) as an unfavourable exchange rate hit the company’s earnings, and passenger capacity fell, denting revenues. However, the Sao Paulo-based airline said on 15 August that on an adjusted basis, excluding the impact of exchange rate fluctuations, as well as other financial expenses, including R336m from the Chapter 11 bankruptcy protection process it is currently undertaking, its loss during the period was R1b. Nonetheless, even taking the financial adjustments into account, Gol’s performance was worse than the same period of 2023 when it posted a net profit of R556m, or R416m on an adjusted basis. Q2 revenue came in at R3.9b, down 5% from last year, while operating expenses remained flat at R3.6b. Capacity as measured in ASKs fell 7.2% during the quarter, the company says, leading to a fall in passenger revenues of 6.5% to R3.4b. Like its competitor Azul, Gol also struggled with the closure of Salgado Filho International airport – which serves the city of Porto Alegre – in the state of Rio Grande do Sul after floods in May, resulting in cancellations of scheduled flights. To mitigate the impact and continue meeting customer demand, Gol instead began flying to nearby Canoas air base, in addition to increasing the frequency of flights to the cities of Caxias do Sul and Pelotas, it says.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-08-16/unaligned/currency-and-capacity-pressures-push-brazil2019s-gol-to-r3-9bn-loss-in-q2
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Currency and capacity pressures push Brazil’s Gol to R3.9bn loss in Q2
Brazil’s Gol made a Q2 loss of R3.9b ($700m) as an unfavourable exchange rate hit the company’s earnings, and passenger capacity fell, denting revenues. However, the Sao Paulo-based airline said on 15 August that on an adjusted basis, excluding the impact of exchange rate fluctuations, as well as other financial expenses, including R336m from the Chapter 11 bankruptcy protection process it is currently undertaking, its loss during the period was R1b. Nonetheless, even taking the financial adjustments into account, Gol’s performance was worse than the same period of 2023 when it posted a net profit of R556m, or R416m on an adjusted basis. Q2 revenue came in at R3.9b, down 5% from last year, while operating expenses remained flat at R3.6b. Capacity as measured in ASKs fell 7.2% during the quarter, the company says, leading to a fall in passenger revenues of 6.5% to R3.4b. Like its competitor Azul, Gol also struggled with the closure of Salgado Filho International airport – which serves the city of Porto Alegre – in the state of Rio Grande do Sul after floods in May, resulting in cancellations of scheduled flights. To mitigate the impact and continue meeting customer demand, Gol instead began flying to nearby Canoas air base, in addition to increasing the frequency of flights to the cities of Caxias do Sul and Pelotas, it says.<br/>
