A plane of Brazilian airlines GOL Linhas Aereas prepares to land at Salgado Filho airport in Porto Alegre, Brazil

Brazilian airline Gol reports third quarter loss, expects better Q4

By Gabriel Araujo

SAO PAULO (Reuters) – Brazilian airline Gol Linhas Aereas Inteligentes reported on Tuesday a net loss of 884.6 million reais ($160.54 million) for the third quarter as traffic remained below pre-pandemic levels.

That compared with a loss of 872 million reais a year earlier and the company said that while demand for air travel continued to pick up in Brazil, it has still only reached 53% of pre-pandemic levels.

Gol said that including losses from the steep depreciation of the Brazilian real and non-recurring items, its quarterly net loss totalled 2.53 billion reais, widening from a loss of 1.72 billion reais a year earlier.

The group’s net revenue totaled 1.9 billion reais in the third quarter, up 96.4% year-on-year, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at 464.7 million reais, a 63.6% rise.

The airline said it expects capacity to grow 29% in the fourth quarter year-on-year on the back of higher vaccination rates, Brazil’s summer traveling season and the resumption of international flights.

“We expect a growth in sales through the end of the year and are confident that the trend will continue into 2022,” Chief Executive Paulo Kakinoff said in a securities filing.

The airline’s liquidity is expected to reach 3.8 billion reais by the end of the year, from a total liquidity of 2.08 billion reais in the third quarter. Net debt is seen at 15.8 billion reais, versus 15.5 billion reais for the quarter ended in September.

($1 = 5.5103 reais)

(Reporting by Gabriel Araujo; Editing by Kirsten Donovan and Susan Fenton)