GOL Linhas Aereas Inteligentes S.A. (
reported a net loss of R$309.4 million (US$152.7 million) in the
third quarter of 2012, much lower than the year-ago loss of
R$516.5 million (US$316.9 million).
Despite the narrower loss, the quarter's results were impacted
largely by a rise in fuel costs and landing fees at Brazilian
airports with currency depreciation adding to the woes.
Consolidated net revenue was up 7.8% year over year to
R$1,987.3 million (US$993.7 million) in the reported quarter.
This increase reflected a rise in consolidated demand as well as
in load factor.
During the quarter, the company's total load factor was
recorded at 73.8%, up 210 basis points from the year-ago quarter.
GOL's domestic supply decreased 8.4% while supply on GOL's
international route network increased 7.0% year over year.
Looking at the domestic demand side, GOL recorded a 5.7%
year-over-year decline whereas, international demand increased
8.8% year over year.
Exiting the quarter, GOL Linhas had a total fleet of 127
B737-700 and 800 NG aircraft with an average age of 7.4 years, in
addition to 20 B737-300s, with an average age of 21.0 years.
Besides, under an operational leasing contract, the company took
delivery of four aircraft and returned four, including three of
Operating costs and expenses increased 14% year over year to
R$2,188.0 million (US$1,094.0 million) in the reported quarter.
Operating income (EBIT) came in at a negative R$200.6 million
(US$100.3 million) compared to an operating loss of R$75.1
million (US$46.1 million) in the year-ago quarter. The operating
margin stood at negative 10.1% in comparison with a negative
operating margin of 4.1% in the prior-year period.
The company reported EBITDA of negative R$79.5 million
(US$39.8 million), down from EBITDA of R$15.6 million (US$9.6
million) reported in third quarter 2011. EBITDA margin came in at
(4.0%) compared with 0.8% in the third quarter of 2011.
Exiting the third quarter 2012, GOL Linhas' cash and cash
equivalents increased to R$1.05 billion (US$525.3 million) from
R$0.98 billion (US$0.47 billion) sequentially. Long-term debt
increased sequentially to R$4.64 billion (US$2.32 billion) from
R$4.62 billion (US$2.2 billion).
Further, GOL retains its target of fleet rationalization with
a future fleet plan of 138 in 2012, 136 in 2013 and 140 in
GOL Linhas, one of the most profitable low-cost airlines in
the world, gives tough competition to other industry players,
Copa Holdings SA
LAN Airlines S.A
GOL has a Zacks #5 Rank, which translates into a short-term
(1-3 months) Strong Sell rating.
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