GOL suffers double-digit income fall

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GOL Airlines

Brazil’s GOL Linhas Aereas Inteligentes has announced a net revenue for the second quarter of 2.1 billion reals ($603 million) with 284.3 million being generated by ancillary and cargo incomes.

While the ancillary and cargo revenues show an increase of 13.8 per cent compared to last year’s second quarter, according to GOL, the net revenue result for that period was a 10.5 per cent decline. GOL’s cargo services, operated through the brand name Gollog, are express, a “standard” domestic service and international deliveries, for both exports and imports. The express service allows for cargo to be picked up from airport two hours after arrival.

The airline reported that its costs and expenses, “remained [at] practically stable levels,” in the second quarter, but they did see an increase of 1.6 per cent against last year’s Q2. This outcome benefited from what GOL says was a 11.4 per cent fall in the price of jet fuel.

However, the outcome for GOL was a negative operating result for its earnings before interest and tax with a figure of $251.1 million real for the quarter.

The airline suffered a negative operating margin of 11.8 per cent, compared to an operating income of 37.8 million real and a margin of 1.6 per cent in the second quarter of 2014.
For these reasons, the earnings before interest and taxation, depreciation, amortization and restructuring, were 90.7 million real with a margin of 15.3 per cent.