Gol to start Sao Paulo-Santiago flights on July 3, reports a $65.1 million operating profit in the first quarter

Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aereos) (Sao Paulo) will start a new international twice-daily route on July 3, 2014 between São Paulo (Guarulhos) and Santiago.

The flights will be operated by Boeing 737-800 aircraft in the GOL+ configuration, ensuring more space between seats. The flight will have on-board service with the option of hot meals, sandwiches, and hot and cold drinks.

On the financial side, the company announced its results for the first quarter of 2014 (all figures in Brazilian Real):

Operating income (EBIT) totaled R$144 million ($65.1 million US) in 1Q14, 43% increase versus 1Q13, with an operating margin of 5.8%. In the last 12 months (LTM), GOL achieved an EBIT of R$309 million and a margin of 3.3%.

Net revenues reached R$2.5 billion, 20% or R$411 million, up year over year and the Company’s highest ever first-quarter figure. LTM net revenue stood at R$9.4 billion.

Total load factor of 76.1% on the 1Q14 represented an 8.9 percentage point improvement over 1Q13 and also a first-quarter record, while yield maintained its upward trajectory, increasing by 4% in the period. These factors helped push RASK and PRASK by 18% to R$19.90 cents and R$18.23 cents, respectively.

Given the average 18% devaluation of the Real against the Dollar and fuel prices reaching record levels for a quarter, R$2.62/liter, total CASK moved up 17% over 1Q13, while CASK ex-fuel increased by 22%. LTM total CASK increased 3%.

EBITDAR totaled R$493 million, 34% more than in 1Q13. LTM EBITDAR of R$1,652 million, a Company record, reducing leverage (adjusted gross debt/LTM EBITDAR) from 27.9x, in 1Q13, to 6.5x in 1Q14.

GOL closed the first quarter with a total cash position of R$2.8 billion, equivalent to 30% of LTM net revenue. The Company remains committed to maintaining ample liquidity, which is essential at times of high volatility in the economic scenario.

Given the devaluation of the Venezuelan Bolivar against the Dollar, the Company recognized an exchange variation adjustment of R$75.9 million in its 1Q14 financial result. As a result, the realizable value of its cash in Venezuela was R$274.6 million on March 31, 2014.

Smiles S.A. reported first-quarter net income of R$78.3 million in 1Q14, 162% up on 1Q13, with a net margin of 41.6%, driven by the 61% period increase in net revenue to R$188 million.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Boeing 737-8EH PR-GXH (msn 39621) advertising the GOL+ seating configuration arrives at São Paulo (Guarulhos).

Gol: AG Slide Show