GOL reports a disappointing second quarter

Brazilian low-cost carrier Gol has reported a total net loss of R$3.9 billion ($713.3 million) during the second financial quarter of year. This is compared to a net profit of R$556 ($101.6 million) that was incurred during the same period of 2023. Gol reported a net revenue of R$3.93 billion ($718.7 million) during the second financial quarter of the year – a decrease of 5% when compared to the same period of 2023. The airline reported operating costs and expenses of R$3.6 billion ($658.4 million) during the quarter which equates to a decrease of 0.2% when compared to quarter two of 2023. Gol’s capacity - measured in available seat kilometres (ASKs) - fell 7.2% during the quarter, leading to a fall in passenger revenues of 6.5% to R$3.4 billion ($621 million). Despite the overall fall international ASKs rose by 14.4% in the quarter compared with the same period of the previous year. ""The quarter was challenging due to the closure of Salgado Filho International Airport in the state of Rio Grande do Sul, which resulted in cancellations of scheduled flights departing/arriving in Porto Alegre,"" said the airline. This was due to the state of Rio Grande do Sul experiencing flooding in May. Added to the effects of reduced supply in Porto Alegre, the total available seat kilometre (ASK) supply was lower by 7.2% compared to the second quarter of 2023 (2Q23). Despite these effects, GOL increased its international ASK by 14.4% in the quarter (21.1% in the semester) compared to the same period of the previous year. The airline reached a load factor of 80.6% in the quarter, 3.8 percentage points higher compared to the second quarter of 2023, with an 8.7 percentage point increase in the international occupancy rate in comparison to 2023. EBITDA for the quarter was R$410 million ($74.9 million), this is a decrease of 56.8% when compared to the same quarter last year. Gol added one Boeing 737 Max 8 aircraft to its fleet during the quarter and returned two older generation 737NGs. As of the end of June, Gol had a total fleet of 141 all-leased Boeing aircraft, of which 47 were Max versions, 88 737NGs and six 737-800BCF freighters. During the quarter in May, GOL and Azul announced a commercial cooperation agreement that will connect their exclusive domestic routes through a codeshare. Sales related to this agreement began on July 3, 2024. “The demand for markets that connect large centres to regional markets is significant and the agreement will create more than 2,700 travel opportunities with just one connection for GOL customers,” said a spokesperson for the airline.