GOL Linhas Aéreas Inteligentes S.A (NYSE:GOL) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 11:00 am ET


GOL Linhas Aéreas Inteligentes S.A (NYSE:GOL) Q2 2020 Earnings Conference Call - Final Transcript


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Welcome to the GOL Airlines Second Quarter 2020 Results Conference Call. This call is being recorded. [Operator Instructions] This event is also being broadcast live via webcast and may be accessed through the GOL website at www.voegol.com.br/ir and the MZiQ platform at www.mziq.com. [Operator Instructions] Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of GOL's management and on information currently available to the company. They involve risks and uncertainties because they relate to future events and therefore, depend on circumstances that may or may not occur. Investors and analysts should understand that events related to macroeconomic conditions, industry and other factors could also cause results to differ materially from those expressed in such forward-looking statements.

At this time, I will hand you over to Mr. Paulo Kakinoff. Please begin.

Paulo Sergio Kakinoff

Good morning, ladies and gentlemen, and welcome to Global Lines Earnings Call. Paul Kakinoff, Chief Executive Officer; and I'm joined by Richard Lark, our Chief Financial Officer. Today, we released our second quarter figures. Also we made available on GOL's Investor Relations website three videos with the results presentation, financial review and preliminary Q&A. We hope everyone has watched them as we will now only make a few brief comments and then move to your questions. Our second quarter results are reflection of the severe impact that COVID-19 is having on Brazil's economy, the air transportation industry and our company. Since the beginning of the crisis, we have focused management on the following priorities: number one, protecting the health and safety of our employees and customers; number 2, preserving the GOL's financial liquidity as we overcome this crisis; and three, advancing to the resumption of capacity in a benefit manner to the level of demand and remaining well positioned to increase the company's share of the domestic market. We would like to thank our team of who have provided their unwavering support for GOL and our customers in working on these three priorities even in the face of so much adversity. For the details of the several initiatives we have taken can be found on Pages two and three of our earnings release. To offset steep decline in revenues, we took several measures to decrease costs and preserve We reduced our average daily cash expenditures to BRL three million in second quarter 2020, while taking all the necessary measures to provide our customers a safe and comfortable flight experience. The company maintained a strong liquidity position, enabled in part by the broad support from many of our stakeholders, ending the quarter with BRL3.3 billion in cash and receivables. Those financial resilience in this market affirms that the value of the work we have been doing to strengthen our balance sheet over the last four years.

With that, I'm going to hand you over to Richard, who is going to take us to some additional highlights.

Richard F. Lark Jr

Thanks, Kaki. The number of revenue passenger kilometers, RPK, decreased by 92% compared to the second quarter of 2019, totaling