The restructuring of cheap Brazilian airline Gol posted a loss of 1. 1 billion rand ($221 million) in the fourth quarter, the first effects it reported since it filed for bankruptcy in January.
The loss compares with a net profit of R231 million for the same period in 2022 and reflects the impact of R1. 1 billion on foreign exchange losses and other exceptional factors in the fourth quarter.
By contrast, Gol reported nearly doubling its profit at the operating level, posting earnings before interest and taxes (EBIT) for the last 3 months of 2023 of approximately R1. 2 billion.
Gol increased its profit by almost 7% to 5 billion rand ($1 billion) in the fourth quarter, with passenger numbers virtually flat at 7. 8 million. The load rose by almost four points to 84%.
Revenue functionality contrasted with a 6% relief in operating prices in the quarter to R3. 86 billion.
Full-year revenue rose 12% from 2022 to R17 billion, carrying 30 million passengers in 2023.
Gol will not call for effects to expand the effects. In January, the airline filed for bankruptcy in a U. S. court and is ultimately in the process of restructuring. In its quarterly effects report, it does not reveal new data related to the process. .
“The company has remained focused on optimising fleet operating power and performance management, as well as dedicating itself to the uninterrupted delivery of excellence in the products presented to customers,” says Gol.
At the end of the fourth quarter, Gol had 141 aircraft in its fleet exclusively Boeing 737s, of which 91 were legacy NGs, 44 were Max variants and six were NG Freighters. There are still 101 orders for the Max aircraft, adding up to 64 for the Max 8 and 37 for the Max 10 model, which has yet to be certified.
Since then, the U. S. court handling Gol’s bankruptcy case has granted the airline’s request for financing to the debtor for up to $1 billion. Gol says the cash will be used “for designated current capital expenditures, general corporate purposes, and restructuring costs, among other things. “
It plans for all of Gollog’s passenger services, shipping flights, its common flyer program and other operations to continue with the restructuring process.
Gol is the fourth Latin American airline to file for bankruptcy in the wake of the disturbing Covid-19 crisis. In 2020, Aeromexico, Avianca and LATAM Airlines used the Chapter procedure to restructure their finances.
Gol partnered with Colombian company Avianca in May 2022 to shape the Abra holding group, which is touted as an opportunity for airlines to compete more in foreign shipping and long-haul markets and launch new flights. Under the terms of the agreement, any of the airlines retain their individual brands, methods and groups — a move aimed at creating long-term stability in the post-coronavirus environment.
The design is controlled by Avianca’s major shareholders and Gol’s major shareholder, and led by veterans of Latin American airlines. Adrian Neuhauser, former CEO of Avianca, took over as CEO of Abra in early 2024.
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