GOL Linhas Aereas Inteligentes S.A. (
GOL
)
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.
Revenue
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
Webjet's 737-300s.
Margins
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.
Balance Sheet
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
2014.
GOL Linhas, one of the most profitable low-cost airlines in
the world, gives tough competition to other industry players,
such as
Copa Holdings SA
(
CPA
),
LAN Airlines S.A
(
LFL
), and
TAM S.A
(
TAM
).
GOL has a Zacks #5 Rank, which translates into a short-term
(1-3 months) Strong Sell rating.
COPA HLDGS SA-A (CPA): Free Stock Analysis
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GOL LINHAS-ADR (GOL): Free Stock Analysis
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LAN CHILE-ADR (LFL): Free Stock Analysis
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(TAM): ETF Research Reports
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