05/27/2024 – 10:50
Gol announced this Monday the launch of a five-year financial plan designed to allow the company to exit judicial recovery in the United States and improve results, a process that could culminate in a drop in margins in 2024 and a reduction in the value of the company’s shares. company.
The airline estimated that the profit margin before interest, taxes, depreciation and amortization (Ebitda) should fall to around 23% this year, but amid efforts to “improve results” this level should increase to around 29%. % in 2025, 30% in 2026 and 34% by 2029. In 2023, the recurring margin was 32%.
+ Azul and Gol close a partnership agreement for flights in Brazil
“Ebitda margins will be boosted, in part, by the implementation of an annual results improvement program of around 1 billion reais, which will allow Gol to maintain a competitive advantage over its peers in unit cost,” stated the company without giving details. .
Part of the plan is based on a $1.5 billion capital increase and $2 billion in debt refinancings that are expected to reduce the company’s leverage from about 3.7x at the end of 2023 to 3.6x in 2025, 2.9 times in 2026 and 1.7 times in 2029.
Last Friday, Gol announced a codeshare program with rival Azul. Gol and Azul are, respectively, the second and third largest airlines in Brazil in terms of revenue per passenger per kilometer. Each has around a 30% share of the domestic market, behind Chile’s Latam’s 40%, according to data from the National Civil Aviation Agency (Anac).
The airline did not explain this Monday the role of the codeshare agreement in the process of recovering its operations. Gol has been in judicial recovery in the United States since the beginning of this year, expanding a long group of airlines in Brazil that ended up needing court protection against creditors.
“The Reorganization Plan will establish the terms of Gol’s reorganization and its successful exit from Chapter 11,” according to the company.
Gol also stated this Monday that the plan foresees that the company will have 169 aircraft in its fleet by 2029, compared to 141 at the end of 2023.
#Gol #launches #reorganization #plan #forecast #capital #increase #billion