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Brazil’s Gol generated record profits in the third quarter of 2023 as demand for recreational and commercial activities continued to strengthen.
The Sao Paulo-based airline announced on Nov. 6 that its third-quarter profit reached 4. 7 billion rand ($960 million), up from 4 billion rand in the same quarter last year. pandemic 3rd quarter of 2019.
The accumulation was driven by “a balanced combination of capacity expansion and higher yields, as well as stronger demand for recreational air in Brazil and a slow recovery in the corporate market, which increased 17. 4% compared to the last quarter. “”, says the company.
Gol’s operating prices remained stable year-on-year at R3. 8 billion in the last quarter.
Its profit before tax, depreciation and amortization (EBITDA) was R1. 3 billion, up from R695 million last year, or a margin of 26. 8%.
The airline posted a net loss of R1. 3 billion, down 16 percent from last year’s loss of R1. 5 billion, mainly due to currency losses and exchange rate fluctuations.
“Our net sales in the third quarter increased 16. 4% year-over-year as Gol continued strong and robust domestic environmental demand,” the company said. “Consistent usage of our fleet has remained high, averaging a consistent 11. 3 hours. “with the day and we have noticed a sharp increase in our advance bookings. “
“We continue to make disciplined progress towards a profitable capacity recovery,” adds CEO Celso Ferrer.
The airline carried 16. 4% more passengers year-over-year in the quarter ended Sept. 30, and capacity (measured in available seat-kilometers) increased 5. 2%. Gol’s load was 83. 7%, an increase of 2. 4 percentage points from the third quarter. last year’s quarter.
At the end of the quarter, the company’s fleet consisted of 141 Boeing 737s, 97 legacy NG models, 39 Max models and five freighters. The company has orders from Boeing for another 106 737 Max jets.
Like many of its peers, Gol has suffered from Boeing’s delays in delivering the planes. The airline had hoped to receive 15,737 this year, but took one and expects to receive four more before the end of 2023, he said.
“The main discussion [with Boeing] is: How do we make sure we catch up on deliveries next year as soon as possible,” Ferrer said. The best situation is to take five out of 15, and we want the extra 10 as soon as possible. “
“There’s no word yet” from Boeing on how that will be done, he added.
The company has now lowered its full-year forecast, and profits are now expected to reach R19 billion from the previous estimate of R19. 3 billion. Gol also adjusted its expected EBITDA margin for 2023 from 25% to 24%.
Last month, the airline renewed and deepened its partnership with Air France-KLM for another 10 years. This partnership, which included sales and codeshare cooperation, was concluded in 2014 and renewed in 2019.
The fresh agreement expands codeshare flying, enhances joint sales activities and adds frequent flyer benefits, Gol says. It also includes what the partners describe as ”an ambitious expansion” of the existing maintenance support by Air France Industries KLM Engineering & Maintenance to cover the CFM International CFM56 and Leap-1B engines powering Gol’s fleet.
In addition, Gol’s collaboration with American Airlines has been “very strong,” says Ferrer.
In 2021, the American invested $200 million in Gol in exchange for 5. 2% of the company and a seat on its board of directors. American saw the deal as strengthening its competitive position in Latin America, which has been eroded in the wake of a failed joint venture with Chile’s LATAM Airlines in 2019 and competitive forays through Delta Air Lines.
“We’re constantly looking at how we can partner with AA,” Ferrer says. “We are pleased that American has increased its capacity to Brazil” and Gol has helped channel those travelers to various topics in the country. “We expect flows to increase next year. “
U. S. ultra-discount carrier Frontier Airlines plans to open a team base that will employ many more people at Cleveland Hopkins International Airport starting in March.
Consolidation is up in the air for the three major European airline groups, all of which are in the process of making acquisitions and with the prospect of a deal with TAP Air Portugal still in sight.
Sun Country Airlines reports it earned $7. 6 million in the third quarter, with frontman Jude Bricker citing the lack of pilots rising to the rank of captain as a persistent problem.
Oneworld Alaska Airlines and German recreational specialist Condor have expanded their codeshare agreement, allowing Condor to market and sell more than 70 routes in the United States.
FedEx Express encourages pilots to sign up with regional passenger carrier PSA Airlines as direct-entry captains, with the option to pass through the former American Airlines. The regional airline softens the deal with a $250,000 signing bonus.
Thanks to the advancement in the functionality of all its airlines, Lufthansa expects that for the first time this year all its airlines will succeed.
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