Brazilian Airline Gol Sinks After 2Q Net Loss

Published 15 August 2024, 09:37:28 [BFW]

By Leda Alvim

(Bloomberg) -- Shares in Gol Linhas Aereas Inteligentes SA drop as much as 3.5% in Sao Paulo on Thursday after the Brazilian airline reported worse-than-expected results, with a net loss of 3.91 billion reais. 

• The stock trades for 1.11 reais as of 10:33 a.m. in Sao Paulo
  • NOTE: Gol 2Q Net Loss R$3.91B Vs. Profit R$556.3M Y/y
• “Weak” results due to a decline in passenger demand and capacity, writes Lucror Analytics’ Josseline Jenssen
  • Notes that free cash flow was negative due to higher working-capital needs and capex
  • Says that the BRL depreciation also weighed on the company’s USD-denominated debt
    • The analyst calculates that its net debt (ex-perpetual bond) rose 26% QoQ, while adjusted net leverage (ex-perpetual bond) increased 1.1x QoQ to 5.1x in Q2