Gol swings $504 million 2009 profit with reoriented network

News about this airline - please include a link to the source as well as the article text itself.
User avatar
Forum Administrator
Forum Administrator
Posts: 34184
Joined: Fri May 12, 2006

Gol swings $504 million 2009 profit with reoriented network

Unread post by bimjim »


Gol swings to $504 million 2009 profit with reoriented network
by Aaron Karp
Monday March 15, 2010

Gol reported net income of BRL890.8 million ($504.2 million) for 2009, reversed from a BRL1.2 billion deficit in 2008, attributing its profitability to "synergies" created by the merger of Gol's and Varig's operations at the end of 2008 and its transformation into an efficient 737NG operator organized around a short-haul South American network that it believes appeals to Brazil's growing middle class.

Its international capacity lowered by 17.7% in the 2009 fourth quarter compared to the pior-year period even as overall capacity rose 12% "due to the repositioning of the network in 2009" to concentrate on short-haul flying in Brazil and within South America. It noted that fourth-quarter load factor jumped 13.9 points to 73.4%.

It ended the year with an operating fleet of 108 aircraft comprising 105 737NGs and just three Classics that will be retired this year. It has reoriented its long-haul international services to codeshare flights on partner carriers.

Gol said this "strategic positioning" will allow it to attract "Brazil's new middle-class. . .The [nation's] middle class increased from around 70 million people in 2003 to more than 100 million people in 2008. . .However, only 16 million actually [fly], making it one of the highest potential growth markets in the world for the airline industry."

Revenue in 2009 decreased 5.9% to BRL6.03 billion while costs fell 13.6% to BRL5.61 billion including a 31.1% drop in fuel costs, producing operating income of BRL413.3 million, reversed from an operating loss of BRL88.65 million in 2008.

Fourth-quarter net income was BRL397.8 million, reversed from a BRL541.6 million loss in the prior-year period. Fourth-quarter traffic increased 15.9% to 7.77 billion RPKs on a 12% lift in capacity to 10.59 billon ASKs, producing the 73.4% load factor. Yield fell 29.3% to BRL0.181 as RASK dipped 6.7% to BRL0.152 and CASK lowered 10.5% to BRL0.141. CASK ex-fuel decreased 7.5% to BRL0.988.

Separately, Gol said its board of directors approved the payment of dividends to shareholders in the amount of BRL185.8 million, or BRL0.70 per share, "based on net profits for fiscal year 2009."
Post Reply

Return to “GOL - Brazil”