Brazilian GOL Airline reports 6th consecutive quarterly EBIT evolution

GOL Linhas Aereas Inteligentes S.A., the largest low-cost and low-fare airline in Latin America, announced today its results for the second quarter of 2014.

Highlights

GOL registered a positive operating margin of 1.6% in 2Q14, 3.4 percentage points up year over year. As a result, operating income (EBIT) recorded its sixth consecutive quarterly improvement, reaching R$38 million, R$73 million more than in 2Q13. In the last twelve months (LTM), EBIT totaled R$382 million with an operating margin of 3.9%.

Net revenue reached R$2.4 billion, the Company’s highest ever second-quarter figure, 24% up over 2Q13. LTM net revenue stood at R$9.8 billion, R$1.7 billion higher than in the 2Q13 LTM.

EBITDAR totaled R$375 million, 60% more than in 2Q13. LTM EBITDAR came to R$1.8 billion. As this indicator has a direct impact on financial leverage, the adjusted net debt/LTM EBITDAR ratio fell to 4.6x from 11.3x in 2Q13.

Total load factor came to 75.2% in the second quarter and 75.7% year to date, respective increases of 7.5 and 8.2 percentage points. Demand for seats increased by 10.5% year to date, while capacity fell by 1.5% in the same period. Since 2012, GOL has reduced its domestic market supply by 15%, reinforcing its flexible capacity management strategy.