Gol posts $191 million second-quarter profit
Posted 13/08/2009
Gol reported second-quarter net income of BRL353.7 million ($191 million), reversed from a BRL166.5 million loss in the year-ago period, citing its revamped route structure focused on shorter-haul flying and the "successful consolidation" of Gol and Varig assets at the end of 2008.
It said the strong quarter reflected its "strategic focus on generating consistent operating results. . .based on high frequencies between the main domestic airports, underpinned by punctuality and regularity, and a modern standardized fleet" composed of 737NGs.
Gol, which last year ceased operating flights to North America and Europe, now is relying on codesharing for its long-haul reach (ATWOnline, July 9). Its fleet comprises 110 aircraft including nine 737-300s that will be retired by year end. The fleet will number 111 by the end of 2010, all 737NGs. It said it currently is negotiating the return of six 767s, formerly operated by Varig and now parked, to lessors. It said it will "raise the aircraft utilization rate as much as possible" in coming quarters to lower costs and maximize profitability.
Second-quarter revenue lowered 4.8% to BRL1.39 billion while costs decreased 25.9% to BRL1.3 billion including a 41.4% drop in fuel expense to BRL429.8 million. Operating profit was BRL89.9 million, reversed from an operating loss of BRL295.3 million last year. Traffic declined 16% to 5.8 billion RPKs on a 9.8% dip in capacity to 9.64 billion ASKs, producing a load factor of 60.1%, down 4.5 points. Yield rose 10.7% to BRL21.51 cents as RASK lifted 5.5% to BRL12.84 cents and CASK fell 17.9% to BRL13.53 cents. CASK excluding fuel decreased 5.6% to 9.07 cents.
by Aaron Karp
Originally published 13 Aug 2009 at: http://feeds.atwonline.com/~r/AtwDailyNews/~3/0v44gEo9Ht4/story.html
