Brazil's GOL hit by financial expenses in first quarter 2024, swings to net loss

Brazilian airline GOL reported a recurring net loss of 130.2 million reais ($25.3 million), swinging to a loss after its net profit of 136.4 million reais ($26.6 million) in the first quarter last year. The low-cost airline was largely knocked down by financial expenses throughout the quarter after it filed for chapter 11 bankruptcy in January 2024. The airline had secured a debtor-in-possession (DIP) financing in the first quarter, with a senior secured DIP facility worth $1bn. GOL CEO Celso Ferrer said: ""We have made progress in GOL’s US court-supervised restructuring process, including securing $1bn DIP loan commitments (of which $550 million was drawn by the end of the 1Q24); renegotiating agreements with the majority of the aircraft under leases with lessors to ensure GOL has the right capacity to continue to serve our current destinations; and making progress on the financing plan that will underpin our standalone plan of reorganisation."" It said in a statement that as of May 13, 2024, the company had agreements approved by court for 109 aircraft that include ""meaningful lease concessions, selected early aircraft redeliveries, and significant lessor financing for engine maintenance."" The airline added: ""[GOL] is continuing its negotiations with aircraft lessors to ensure GOL has the right capacity to continue to serve current destinations and planned route expansion."" It has also initiated discussions regarding its financing plan that will be the foundation to its reorganisation plans. Ferrer added: ""This process is being carried out with no impact on operations, as evidenced by our load factors, which have remained stable at 83%, and our continued improvement on flight completion and on-time performance."" Its net revenues were down 4.2% year-on-year (YoY) to 4.7bn reais ($915 million), with EBITDA up 15.2% YoY to 1.4bn reais ($273.6 million) in the first quarter. It had also received two new 737 MAX 8 and returned one 737 NG as part of its fleet renewal process. Ferrer said GOL ""remains committed to modernising its fleet and adopting more sustainable technologies"". Its total lease liability was 9.5bn reais ($1.8bn) and its adjusted net debt was 21bn reais ($4.1bn) at the end of the first quarter. Its adjusted net debt to EBITDA last twelve months (LTM) was 4,7x.