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GOL: Investor Update

Direct News Source

30-Jan-2017 GOL Linhas Aereas Inteligentes S.A., (NYSE: GOL and BM&FBOVESPA: GOLL4), provides its Investor Update. The information below for the December quarter 2016 is preliminary and unaudited.

Overall Commentary

  • GOL expects a December quarter operating margin of 6.5-7.0%, consistent with the updated guidance provided on the earnings call last November. Such margin for the quarter includes non-recurring expenses related to fleet restructuring.
  • Consolidated passenger unit revenue (PRASK) for the December quarter was up 6.5-6.8% year over year, driven by demand trends and improving domestic yields as GOL's capacity actions and revenue management strategies continue to benefit results. For the December quarter, GOL expects unit revenue (RASK) to increase 6.9-7.2%.
  • Non-fuel unit costs (CASK ex-fuel), excluding non-recurring expenses related to fleet restructuring, are expected to be down approximately 5% for the December quarter versus same quarter of the prior year.
  • GOL reduced total debt including finance leases by R$1.3 billion in the quarter for a total of more than R$3.2 billion debt reduction in 2016.

Guidance

Operating (EBIT) margin

Ancillary (Cargo and other) revenue

Average fuel price per liter

Average exchange rate

Non-recurring expenses

Passenger unit revenue (PRASK)

CASK Ex-fuel (excluding non-recurring expenses)

System Capacity - ASK

System Capacity - Seats

December Quarter 2016

6.5-7.0%

12.2-12.5% of total net revenues

R$1.94-R$1.97

R$3.30

R$142-R$149 million

December Quarter 2016

Vs December Quarter 2015

Up 6.5-6.8%

Down ~5%

Down 5.7%

Down 19.0%