SAO PAULO - GOL Linhas Aereas Inteligentes S.A. ('GOL' or 'Company') (NYSE: GOL and B3: GOLL4), Brazil's largest domestic airline, today announced its consolidated results for the second quarter of 2021 (2Q21), also outlining its continued initiatives in response to the Covid-19 pandemic.
All information is presented in Brazilian reais (R$), according to both International Financial Reporting Standards (IFRS) and adjusted metrics, and is made available to enable comparability of this quarter with the same period last year. Comparisons are made to the second quarter of 2020 (2Q20), unless otherwise specified.
The 2Q21 was marked by three relevant themes
First, the resilience of the Brazilian air travel market. Demand for travel in Brazil is recovering rapidly as a result of the consistent decline in Covid-19 cases and fatalities since June 24, 2021, with a reduction of more than 2% per day in new transmissions registered in the country, and a decline in cases across all Brazilian states. This promising trend is driven by the higher availability of vaccines in the second quarter; as of June 30, 2021, over one third of the Brazilian population had received at least one dose of a vaccine, and over 12% fully vaccinated. Further, the Brazilian government has guaranteed that 173 million shots will be delivered in the third quarter, an increase over the 143 million doses made available in the first half of 2021. That will be sufficient to vaccinate approximately 90% of all Brazilians over 12 years old.
'Brazilians are not hesitant about getting vaccinated. 92% of over 60s have already taken the first shot, and 59% are fully vaccinated,' said Paulo Kakinoff, CEO. 'We are confident that approximately 85% of over 30s in Brazil will be immunized at the end of the third quarter this year, a demographic group that currently represents over 98% of the severe cases of Covid-19 in Brazil. This progress on vaccinations is promising for the continued recovery of Brazil's economy and a ramp-up in travel demand as Brazilians feel safe to return to their normal routines.'
Second, GOL's disciplined yield management led the Company, through a continuous and agile approach, to preserve the equilibrium between capacity and demand in the second quarter, keeping its load factors and yields high, as well as and minimizing cash burn. In conjunction with this prudent management of yields and cash flow, GOL was the only airline in South America to raise equity capital during the pandemic via a R$423 million capital increase, 63% anchored by its controlling shareholder, and a R$607 million equity issuance as part of the R$1.3 billion take-in of the minority interest of its loyalty program, Smiles. The commitment from the Company's controlling shareholder is a key differential to the business, driving a focus on sustained, long-term growth rather than unsustainable short-term movements.
Kakinoff continued: 'Throughout the pandemic, we have executed a robust strategy to ensure liquidity, maintain the relationships with all of our main business partners, protect our Employees, preserve the Company's cost advantage, and minimize dilution to our shareholders. Those well-implemented initiatives position GOL advantageously to create significant shareholder value in the post-pandemic environment. In 2Q21, GOL systematically presented a market efficiency superior to its competitors, which reinforces our commitment to balancing the size of the seat supply with the predictive demand forecast.'
Third, GOL's path to continuing its sustained growth. GOL has a unique set of advantages, comprising of the best network, a personalized product and Customer journey, a low-cost business model, the lowest financial leverage among its peers, and the commitment to create value for shareholders. These advantages will be essential for attracting business travelers, who usually account for 50% of demand for air travel in Brazil, when they return to the skies. While a small percentage of corporate Customers might prefer virtual meetings, the expansion of key sectors such as the oil & gas, infrastructure, agribusiness, services and real estate will make up a significant portion of Brazil's economic growth and business air travel post-pandemic. These industries require executives and employees to have a greater number of in-person interactions and site visits than other industries where it is easier to conduct business virtually. While overall market demand for air travel in July reached around almost 70% of the pre-pandemic levels, the business segment is only just now starting to recover.
'Based on our expectations for the vaccination roll-out in Brazil, we anticipate that business travel will show a sharp recovery as of 1Q22. When that happens, we will increase the GOL network to enable high frequencies in the Sao Paulo, Rio de Janeiro and Brasilia markets, restoring those routes to pre-pandemic levels. GOL will also resume international flights to South American and U.S. destinations with disciplined capacity management and following the restrictions and compliance rules of each country. By the end of this year, we will resume flights to the Caribbean, with tickets for that destination already available to purchase on the Company's website.
Contact:
Tel: +55 (11) 2128-4700
Email: ri@voegol.com.br
About GOL Linhas Aereas Inteligentes S.A. (www.voegol.com.br)
Brazil's largest airline group with three main businesses: passenger transportation, cargo transportation and coalition loyalty program.
GOL LINHAS AÉREAS INTELIGENTES S.A. 
