GOL announces operating profit of R$388 million in 4Q17, up 96% over 4Q16 and a quarterly record since 2011. Operating cash flow was R$630 million in the quarter
SAO PAULO, March 7, 2018 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), Brazil's #1 airline, announces its consolidated results for the fourth quarter (4Q17). All information is presented in accordance with IFRS.
Financial and Operational Highlights:
- Significantly improved operating indicators: for the quarter, RPKs increased by 8.0% (from 9.2 billion in 4Q16 to 9.9 billion in 4Q17), mainly due to a 6.2% increase in the number of passengers. GOL achieved this strong growth in demand despite its continued focus on pricing; average yield per passenger increased by 3.1% in the quarter compared to 4Q16, reaching 26.36 cents (R$).
- Strong revenue growth: the combination of higher demand and improved pricing resulted in net revenue for the quarter of R$3.0 billion, an increase of 11.8% compared to 4Q16. For full-year 2017 the figure was R$10.6 billion, 7.2% higher than the prior year. GOL's current 2018 guidance is for net revenue of approximately R$11 billion.
- Controlled cost environment: total CASK in 4Q17 was 21.21 cents (R$), just 1.4% higher than in 4Q16, in spite of a less benign jet fuel environment. GOL remains the cost leader in South America for the 17th consecutive year.
- Continued margin expansion: GOL's EBIT margin continued to expand, reaching 13.0% in 4Q17, the highest fourth-quarter indicator since 2011 and a 5.6 pp improvement over 4Q16. Operating income (EBIT) in 4Q17 was R$388.0 million, an increase of 95.7% compared to 4Q16.
- Balance sheet strengthening: net debt (excluding perpetual bonds) to LTM EBITDA was 3.0x in 4Q17, improving both versus the 3Q17 (3.4x) and the 4Q16 (4.2x). Total liquidity, including cash, financial investments, restricted cash and accounts receivable, totaled R$3.2 billion, an increase of 51% versus 9/30/17 and up 66% versus 12/31/16.
"We expect to continue to drive our efficiency and technology advantage this year, as well as incorporating the new Boeing 737 MAX 8s in the second half of 2018. With a range of up to 6,500 km, the new 737 MAX 8 aircraft will allow GOL to offer non-stop flights from Brazil to any destination in Latin America, as well as to our recently announced destinations in Florida," commented Paulo Kakinoff, CEO.
Access to 4Q17 earnings release, management videos, presentation and full financials already available on: www.voegol.com.br/ir
4Q17 Earnings Call: March 7, 2018, 9:00 a.m. (US EDT), Phone: +1 (412) 317-5453, Code: GOL
About GOL Linhas Aéreas Inteligentes S.A. (www.voegol.com.br): Brazil's largest airline group with three main businesses: passenger transportation, cargo transportation and coalition loyalty program.
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