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Gol Linhas (GOL) Q2 Earnings Beat on Y/Y Surge in Revenues
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Gol Linhas Aereas Inteligentes incurred a loss (excluding $1.76 from non-recurring items) of $1.15 per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.22.
Net operating revenues of $194.1 million surpassed the Zacks Consensus Estimate of $188.2 million. The top line surged more than 100% year over year with passenger revenues (accounting for 86.3% of total revenues) rising more than 200%, thanks to improvement in air-travel demand due to easing coronavirus-led restrictions. Cargo and other revenues improved 23%.
Gol Linhas Aereas Inteligentes S.A. Price and EPS Surprise
Consolidated revenue passenger kilometers (RPK), the measure for revenues generated per kilometer per passenger, jumped more than 300% from the second quarter of 2020 when passenger traffic hit rock-bottom due to travel restrictions amid rising coronavirus cases. RPK increased more than 300% on the domestic front. The carrier did not operate international flights in the quarter. RPK was down 63% in the reported quarter compared with the same period in 2019, reflecting softness in travel demand compared with the pre-coronavirus level.
Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, also climbed more than 300% year over year (down 65% from the second quarter of 2019) with increase in domestic capacity.
The company’s total load factor (percentage of seats filled with passengers) was 85.1%, an improvement of 7 percentage points year over year since traffic increased more than the amount of capacity expansion. Net yield dropped 17.9% year over year.
Net passenger revenues per ASK declined 10.5%, while net revenues per ASK fell 29.5%. Average fuel price per liter increased 53%. However, cost per ASK dropped 46.3% year over year. Excluding fuel, the metric decreased 49.4%. Meanwhile, total operating expenses skyrocketed more than 100% year over year, primarily due to significant increase in salaries, wages and benefits, as well as costs associated with rise in passenger numbers.
Gol Linhas, carrying a Zacks Rank #5 (Strong Sell), exited the second quarter with total liquidity (cash and cash equivalents, cash investments, restricted cash, accounts receivable, and securities and receivables) of R$1.8 billion, slightly higher than the figure at the end of the first quarter.
During the second quarter, operating activities consumed R$56.4 million compared with R$915.9 million in the year-ago period. Long-term debt totaled R$14.35 billion at the end of the reported quarter, up 11.6% year over year.
Gol Linhas’ fleet, at the end of the reported quarter, comprised of 127 Boeing 737 aircraft (117 NGs and 10 operational MAXs). The average age of the fleet was 11.3 years.
Outlook
Gol Linhas anticipates its recovery to accelerate in the second half of 2021 as more Brazilians get vaccinated and travel demand continues to rebound with the approaching summer season. With this, the airline anticipates capacity to increase 46% in the second half of 2021 from the year-ago period. Revenues during the period are expected to increase approximately 85% year over year.
For the third quarter, the carrier predicts cost per ASK, excluding fuel to decrease 6% year over year. Net operating revenues are estimated to be R$1.8 billion in the third quarter.
Performance of Other Airline Stocks
Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank #3 (Hold), incurred a loss (excluding 92 cents from non-recurring items) of 35 cents per share in the second quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 21 cents. Operating revenues of $4,008 million outperformed the Zacks Consensus Estimate of $3,942.5 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding $2.09 from non-recurring items) of $1.07 per share, narrower than the Zacks Consensus Estimate of a loss of $1.41. Total revenues of $7,126 million also topped the Zacks Consensus Estimate of $6,340.9 million.
American Airlines Group (AAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding $1.72 from non-recurring items) of $1.69 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.71. Operating revenues of $7,478 million also surpassed the Zacks Consensus Estimate of $7,425.6 million.
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Gol Linhas (GOL) Q2 Earnings Beat on Y/Y Surge in Revenues
Gol Linhas Aereas Inteligentes incurred a loss (excluding $1.76 from non-recurring items) of $1.15 per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.22.
Net operating revenues of $194.1 million surpassed the Zacks Consensus Estimate of $188.2 million. The top line surged more than 100% year over year with passenger revenues (accounting for 86.3% of total revenues) rising more than 200%, thanks to improvement in air-travel demand due to easing coronavirus-led restrictions. Cargo and other revenues improved 23%.
Gol Linhas Aereas Inteligentes S.A. Price and EPS Surprise
Gol Linhas Aereas Inteligentes S.A. price-eps-surprise | Gol Linhas Aereas Inteligentes S.A. Quote
Operational Statistics
Consolidated revenue passenger kilometers (RPK), the measure for revenues generated per kilometer per passenger, jumped more than 300% from the second quarter of 2020 when passenger traffic hit rock-bottom due to travel restrictions amid rising coronavirus cases. RPK increased more than 300% on the domestic front. The carrier did not operate international flights in the quarter. RPK was down 63% in the reported quarter compared with the same period in 2019, reflecting softness in travel demand compared with the pre-coronavirus level.
Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, also climbed more than 300% year over year (down 65% from the second quarter of 2019) with increase in domestic capacity.
The company’s total load factor (percentage of seats filled with passengers) was 85.1%, an improvement of 7 percentage points year over year since traffic increased more than the amount of capacity expansion. Net yield dropped 17.9% year over year.
Net passenger revenues per ASK declined 10.5%, while net revenues per ASK fell 29.5%. Average fuel price per liter increased 53%. However, cost per ASK dropped 46.3% year over year. Excluding fuel, the metric decreased 49.4%. Meanwhile, total operating expenses skyrocketed more than 100% year over year, primarily due to significant increase in salaries, wages and benefits, as well as costs associated with rise in passenger numbers.
Gol Linhas, carrying a Zacks Rank #5 (Strong Sell), exited the second quarter with total liquidity (cash and cash equivalents, cash investments, restricted cash, accounts receivable, and securities and receivables) of R$1.8 billion, slightly higher than the figure at the end of the first quarter.
During the second quarter, operating activities consumed R$56.4 million compared with R$915.9 million in the year-ago period. Long-term debt totaled R$14.35 billion at the end of the reported quarter, up 11.6% year over year.
Gol Linhas’ fleet, at the end of the reported quarter, comprised of 127 Boeing 737 aircraft (117 NGs and 10 operational MAXs). The average age of the fleet was 11.3 years.
Outlook
Gol Linhas anticipates its recovery to accelerate in the second half of 2021 as more Brazilians get vaccinated and travel demand continues to rebound with the approaching summer season. With this, the airline anticipates capacity to increase 46% in the second half of 2021 from the year-ago period. Revenues during the period are expected to increase approximately 85% year over year.
For the third quarter, the carrier predicts cost per ASK, excluding fuel to decrease 6% year over year. Net operating revenues are estimated to be R$1.8 billion in the third quarter.
Performance of Other Airline Stocks
Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank #3 (Hold), incurred a loss (excluding 92 cents from non-recurring items) of 35 cents per share in the second quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 21 cents. Operating revenues of $4,008 million outperformed the Zacks Consensus Estimate of $3,942.5 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding $2.09 from non-recurring items) of $1.07 per share, narrower than the Zacks Consensus Estimate of a loss of $1.41. Total revenues of $7,126 million also topped the Zacks Consensus Estimate of $6,340.9 million.
American Airlines Group (AAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding $1.72 from non-recurring items) of $1.69 per share, comparing favorably with the Zacks Consensus Estimate of a loss of $1.71. Operating revenues of $7,478 million also surpassed the Zacks Consensus Estimate of $7,425.6 million.