Benzinga | Oct 11, 2021 07:37AM EDT

Gol Intelligent Airlines Sees Q3 Earnings Per ADS $(0.99); Expects Passenger Unit Revenue To Increase 5% YoY

* GOL expects a Loss Per Share (EPS) and a Loss Per American Depositary Share (EPADS) for 3Q21 of approximately R$2.581 and US$0.991, respectively. * EBITDA2 margin for the third quarter, excluding non-operating and non-recurring expenses, is expected to be 22% to 24%, a decrease in relation to the margin for the quarter ended in September 2020 (29%2). * Passenger unit revenue (PRASK) for the 3Q21 is expected to be approximately 5% higher year-over-year. GOL anticipates unit revenue (RASK) to be 5% higher when compared to 3Q20. Daily sales ended the quarter at around R$28 million, representing a 48% increase over the end of 2Q21. With an 82% load factor in the quarter, GOL continues to effectively match supply with demand. * Non-fuel unit costs (CASK ex-fuel) for 3Q21, excluding non-operating and non-recurring expenses, are expected to decrease approximately 11%2 compared to 3Q20 reported CASK ex-fuel, primarily due to 82% higher ASKs. Fuel unit costs (CASK fuel) are expected to increase by approximately 45% year-over-year, mainly due to an 49% increase in the average fuel price, which is partially offset by the higher fuel efficiency consumption of MAX aircraft. * GOL's financial leverage, as measured by the Net Debt4/LTM EBITDA ratio, was approximately 10x at the end of September 2021. The Company amortized around R$518 million of total debt in the quarter, including R$100 million of financial debt and R$418 million of aircraft lease debt. In October 2021, GOL finalized the terms for the refinancing of R$1.2 billion of short-term debt, with a final maturity in 2024, bringing the Company to its lowest levels of short-term debt since 2014. The average tenor of GOL's liabilities has been raised to 3.3 years. * Liquidity at the end of the September 2021 was approximately R$1.8 billion, comprised of R$1.1 billion in cash and investments, and R$0.7 billion in receivables. Including the financeable amounts of deposits, GOL's liquidity sources total approximately R$3.8 billion. This is consistent with the Company's liquidity levels throughout the pandemic. * GOL plans to increase its 4Q21 capacity by approximately 30% over 3Q21, in anticipation of stronger seasonal demand. * In 3Q21, Gross Global Scope 1 emissions were approximately 508.2 thousand metric tons of CO2, an 80% increase versus 2Q21, while Total Fuel Consumed was 33.9 thousand liters per RPK, 5% higher compared to 2Q21. The Greenhouse Gas Emissions per Flight Hour were around 8.4 tons of CO2, stable versus the 2Q21.