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

Jul 31, 2020 • 11:00 am ET

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

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Presentation
Executive
Richard F. Lark Jr

773 million RPK. And we saw an increase of 103% in RPK from April to June, intra-quarter. Available T kilometers, grew 104% within the quarter, a decrease of 91% compared to 2019 second quarter. Both transported a little over 600,000 customers in the quarter, which is a decrease of 92% compared to the second quarter of 2019. Net revenues were BRL358 million, a decrease of 89% compared to the second quarter of 2019. Monthly revenues began the quarter with BRL104 million in the month of April and reached BRL164 million in the month of June, representing a 57% increase intra-quarter within the second quarter of 2020. Other revenues, which are primarily cargo and loyalty, totaled BRL115 million, which was a reduction of 37% in relation to the second quarter of 2019. The revenue per available kilometer, RASK, was an increase of 31%. The passenger revenue per available C kilometer PRASK is BRL24.58, a decrease of 6% compared to the second quarter of 2019. Adjusted EBITDA and adjusted EBIT were $99 million and BRL20 million, respectively, and represent a positive contribution as a result of the company's rational and responsible management of capacity relative to market demand. Gol carried out a balanced management of its working capital, matching operating inflows and outflows in order to maintain cash at relatively constant levels since the beginning of this crisis. We adjusted fixed cost outflows, such as personnel expenses and aircraft leases to the new level of sales. Since March, the company has negotiated with primary leasing companies to defer payments and chain contracts to par by hour. We're reducing payments to from current values and incorporating a variable component. With support from our banks, working capital debt and short-term capex financing maturities were rescheduled. Such initiatives have allowed GOL to maintain liquidity at a level of BRL3.3 billion with 2-point billion BRL in cash.

We are taking every reasonable precaution to preserve our liquidity. Now I'd like to return back to Kakinoff.

Executive
Paulo Sergio Kakinoff

Thanks, Rich. Since demand bottomed in mid-April at less than 5% of our normal traffic, we have seen a consistent and outcome uptick sorry, uptick in passenger volume. In the quarter, those sales grew at an average rate of at 18% per week. We are committed to cautiously resuming our capacity to meet the demand and serve our customers. In the second quarter, our load flatter was 78%. GOL will continue to be recognized for having the most adaptable and flexible business model, prioritizing the sake of our customers and employees with the best team and the lowest cost in Brazilian aviation. We are also proud of our resilience throughout the crisis and are confident that we have optimally positioned the company for the future growth and profitability.

Now I would like to initiate the Q&A session.