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Missing the GOL: Yet another difficult and disappointing quarter


South America’s LCC champion continues to struggle to capture its former glory. GOL Linhas Aéreas Inteligentes, the parent company of Brazilian airlines GOL Transportes Aéreos (GOL) and VRG Linhas Aéreas (VRG), reported a USD106.0 million consolidated net loss in the three months ended 30-Jun-08, a significant increase from the USD21.9 million net loss reported in the previous corresponding period. The result was the third straight quarterly loss by the airline, whose results were dragged down by the prolonged and problematic VRG integration processes. [2576 words]

Unlock the following content in this report:


  • Significant worsening of operating profit, net profit and EBITDAR levels; dragged down by VRG losses
  • Gap between load factor and breakeven load factor widens considerably
  • Yields increase, but so do costs
  • Slashes growth and fleet plans
  • Reducing fleet by two aircraft in 2008; five aircraft in 2009
  • To suspend quarterly dividents for remainder of 2008 to maintain cash reserves
  • Downgraded by Moody's and Calyon Security
  • Brazilian market continues to grow
  • Outlook: Tough road ahead

Graphs and data:

  • GOL financial highlights for three months ended 30-Jun-08
  • GOL operating margin: 1Q07 to 2Q08
  • GOL financial highlights for three months ended 30-Jun-08
  • GOL cost per ASK break down and year-on-year change: 2Q08 vs 2Q07
  • GOL fuel cost as a proportion of total operating expenses: 1Q07 to 2Q08
  • GOL's revised consolidated fleet from 2007 to 2012 (year-end) (previous guidance in brackets): Aug-08
  • GOL Consolidated Guidance
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