25-Feb-2011 3:09 PM

Vueling and GOL announce 2010 results

Analysis

Shares in Brazilian LCC GOL dropped 4.4% yesterday, on another day of share price drops for most LCCs. The carrier reported a 67% decline in net profit for the three months ended 31-Dec-2010, as fuel and labour costs increased.

GOL financial highlights for the three months ended 31-Dec-2010:

Revenue: USD1117 million, +15.6% year-on-year;
- Ancillary: USD102.7 million, -19.1%;
Operating costs: USD960.2 million, +7.3%;
- Fuel: USD349.1 million, +29.4%;
- Labour: USD205.4 million, +14.7%;
Operating profit: USD156.4 million, +119.8%;
Net profit: USD78.9 million, -66.8%;
Passenger traffic (RPKs): +6.4%;
- Domestic: +6.9%;
- International: +8.4%;
Load factor: 71.1%, -2.3 ppts;
- Domestic: 71.1%, -3.1 ppts;
- International: 70.6%, +3.7 ppts;
Breakeven load factor: 61.1%, -6.8 ppts;
Average fare: USD113.11, +13.0%;
Yield: USD 12.19 cents, +12.9%;
Passenger revenue per ASK: USD 8.67 cents, +9.4%;
Operating revenue per ASK: USD 9.54 cents, +4.6%;
Cost per ASK: USD 8.21 cents, -2.9%;
Cost per ASK excl fuel: USD 5.24 cents, -11.5%;
Average sector length: 910 km, +1.8%;
Total assets: USD5413 million, +3.9%;
Total liabilities: USD3664 million, -2.3%;
2011 forecast:
- Passenger numbers: 33 million to 36 million;
- Yield: USD 11.64 cents to USD 12.54 cents;
- Cost per ASK excl fuel: USD 5.31 cents to USD 5.08 cents;
- Operating margin: 11.5% to 14.0%.

*Based on the conversion rate at USD1 = BRL1.67451

Vueling revenue up 4% - financial highlights:

Three months ended 31-Dec-2010:
- Revenue: EUR167.0 million, +4% year-on-year;
  - Ancillary: EUR22.6 million, +14%;
- Costs: EUR124.0 million, +9%;
  - Fuel: EUR45.2 million, +45%;
- EBIT* (loss): (EUR7.5 million), compared to a loss of EUR500,000 in p-c-p;
- Net profit (loss): (EUR4.4 million), compared to a loss of EUR13.0 million in p-c-p;
- Passenger numbers: 2.5 million, +3%;
- Load factor: 71.7%, +1.9 ppt;
- Average fare: EUR58.06, -1%;
- Revenue per ASK: EUR 5.38 cents, +5%;
- Cost per ASK: EUR 5.62 cents, +9%;
- Cost per ASK excl fuel: EUR 4.17 cents, stable;
- Sector length: 887 km, -2%;
12 months ended 31-Dec-2010:
- Revenue: EUR796.5 million, +32%;
  - Ancillary: EUR93.4 million, +32%;
- Costs: EUR538.3 million, +42%;
  - Fuel: EUR184.0 million, +76%;
- EBIT*: EUR60.1 million, -16%;
- Net profit: EUR46.0 million, +66%;
- Passenger numbers: 11.0 million, +35%;
- Load factor: 73.2%, -0.5 ppt;
- Average fare: EUR63.71, -1%;
- Revenue per ASK: EUR 5.87 cents, -1%;
- Cost per ASK: EUR 5.43 cents, +4%;
- Cost per ASK excl fuel: EUR 4.07 cents, -3%;
- Sector length: 893 km, -1%;
- Debt: EUR23.9 million, +85%;
- Total cash: EUR231.0 million, +61%.

*2009 EBIT are before restructuring costs

GOL financial highlights for the three months ended 31-Dec-2010:

Revenue: USD1117 million, +15.6% year-on-year;
- Ancillary: USD102.7 million, -19.1%;
Operating costs: USD960.2 million, +7.3%;
- Fuel: USD349.1 million, +29.4%;
- Labour: USD205.4 million, +14.7%;
Operating profit: USD156.4 million, +119.8%;
Net profit: USD78.9 million, -66.8%;
Passenger traffic (RPKs): +6.4%;
- Domestic: +6.9%;
- International: +8.4%;
Load factor: 71.1%, -2.3 ppts;
- Domestic: 71.1%, -3.1 ppts;
- International: 70.6%, +3.7 ppts;
Breakeven load factor: 61.1%, -6.8 ppts;
Average fare: USD113.11, +13.0%;
Yield: USD 12.19 cents, +12.9%;
Passenger revenue per ASK: USD 8.67 cents, +9.4%;
Operating revenue per ASK: USD 9.54 cents, +4.6%;
Cost per ASK: USD 8.21 cents, -2.9%;
Cost per ASK excl fuel: USD 5.24 cents, -11.5%;
Average sector length: 910 km, +1.8%;
Total assets: USD5413 million, +3.9%;
Total liabilities: USD3664 million, -2.3%;
2011 forecast:
- Passenger numbers: 33 million to 36 million;
- Yield: USD 11.64 cents to USD 12.54 cents;
- Cost per ASK excl fuel: USD 5.31 cents to USD 5.08 cents;
- Operating margin: 11.5% to 14.0%.

*Based on the conversion rate at USD1 = BRL1.67451

Selected PEA daily share price movements (% change): 23-Feb-2011

Vueling and GOL announce 2010 results

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