Category Archives: Gol Linhas Aereas Inteligentes

Gol announces monthly investor update: Capacity, Cash Consumption and Liquidity

Gol Linhas Aéreas Inteligentes S.A. provides its Investor Update for the month of October of 2020. All information is presented in Brazilian Reais (R$). The information below is preliminary and unaudited.

Since the last monthly update on October 9, 2020, GOL increased its capacity to an average of 363 flights per day, a 34% increase from an average of 270 daily flights in September. On peak days, the Company operated 500 daily flights in October to service the 34% month-over-month uptick in demand for air travel. GOL’s consolidated gross sales for the month were R$827 million and the average load factor was 78%, in line with previous months.

“After the big bump in sales during Brazil’s winter season, we sustained that growth with a steady increase in October,” said Paulo Kakinoff, CEO. “We expect sales to grow again this month ahead of a busy Summer season and anticipate that we will end the year operating all destinations served pre-pandemic. However, any addition of capacity to our network must meet clear criteria of profitability to guarantee the sustainable resumption of operations.”

The Company ended October 2020 with a total fleet of 128 B737s. With 87 aircraft operating in its network, the planned re-opening of three bases and an increase in flights between São Paulo and Rio de Janeiro, daily flight operations increased 34% over September 2020 and were equivalent to 52% of the same period last year. During the month, GOL ramped up to a peak of 500 daily flights, increasing frequencies in its hubs in São Paulo, Rio de Janeiro, Fortaleza, Salvador and Brasília. The current network represents even higher levels of connectivity compared to the beginning of the year, with more destinations and faster connections. As a result, GOL is well-positioned in both major and regional markets.

The Company’s cash flow equilibrium has been a driving force of GOL’s efforts during the pandemic. Despite the structural and financial inefficiencies created by having its two operating subsidiaries as separate companies, GOL Management believes the key competitive advantages built over the years ensure GOL’s financial strength. The Company’s cost-efficient structure, support from stakeholders and partners, flexible fleet and network model, and the ongoing and significant return of Customer travel in the domestic market, firmly places GOL in a leadership role in the Brazilian airline industry.

“With no significant debt maturities until 2024, we can use our capacity discipline to expand profitability as operations continue to resume,” added Kakinoff.

Delivering Cash Equilibrium as Planned

October 2020 observed a 38% growth in the search for GOL airline tickets, compared to the average search numbers in 3Q20. On specific dates this metric was higher than the same day in 2019, an important sign of returning consumer confidence. Because of this greater interest, the Company recorded a 25% increase in sales across all channels when compared to the average sales reported in 3Q20. With the addition of flights during the month, the revenue from passengers transported increased 21% over September, with better yield efficiency than competitors through GOL’s rational capacity management.

During the month, GOL had a net cash consumption (“burn”) of R$1 million/day, excluding include amortizations of bank debt and interest paid on bonds, which is an improvement in the net cash consumption of R$3 million/day that GOL had forecast for this period.

For the remainder of 2020 (November-December), assuming expected revenues and same items described above, the Company maintains a conservative estimate for a net cash consumption (“burn”) of approximately R$3 million/day. Prior to payment of lease and financial expenses, net cash generation (“earn”) is estimated at approximately R$1 million/day.

Preserving the Company’s Balance Sheet Liquidity

The Company ended the month with approximately R$2.2 billion in total liquidity. Including the financeable amounts of deposits and unencumbered assets, GOL’s potential liquidity sources total approximately R$6 billion. The average maturity of the Company’s long-term debt, excluding aircraft leases and perpetual notes, is nearly three years.

“We have addressed all the relevant financial obligations provided for in our cash flow, and we have a solid partnership with the main providers of working capital. The financial management since the beginning of this pandemic reflects GOL’s commitment to its investors. Our focus continues to be on having a sound capital structure and strengthening the balance sheet through the recovery period,” stated Richard Lark, CFO.

Increasing GOL’s Flight Capacity to Meet Demand

Through the end of October 2020, GOL reduced its fleet by 11 Boeing 737 leased aircraft and plans to return other three aircraft by year-end. Aircraft returns were part of the last year’s fleet plan and did not require contractual alterations, as the Company’s plan had already incorporated the flexibility to adjust to the volatility of the air travel business.

GOL has also retained even more asset flexibility, as its existing contracts allow it to reduce its fleet by up to another 30 aircraft in 2021-2022 if needed, which can be further reduced if demand trends lower. Additionally, the Company reduced its 2020-2022 Boeing 737 MAX deliveries by 34 aircraft.

These cancellations represent a definitive reduction in capital expenditures for aircraft acquisition advances (PDPs) and address the Company’s capacity planning for the coming years, with plans to fully finance all aircraft expenditures and engine overhauls remaining in 2020.

The Company’s fleet operating model will continue to provide significant competitive advantages. GOL does not have widebody aircraft or aircraft financed in capital markets structures, EETCs or finance leases. Its fleet consists of 100% operating leases and narrow-body aircraft that can operate in all domestic, regional and international markets.

GOL’s aircraft contracts are adjusted to the expected recovery of demand through the remainder of 2020 and in 2021 and also will provide an effective reduction in the Company’s unit operating costs. Additionally, GOL has reduced its fixed costs by converting a portion of its monthly lease payments to variable power-by-the-hour.

Maintaining a Conservative Cash Forecast

Matching capacity to demand has always been a competitive advantage in the Company’s fleet management. October 2020 showed continued demand recovery over September 2020 and provided better visibility into the last quarter of the year. GOL maintains significant flexibility to respond to the prevailing demand trends.

In November, GOL increased its capacity to approximately 372 flights per day, and 450 daily flights on peak days, placing the Company’s operations at around 50% of the flight schedule in November 2019. During this current month, GOL will be operating 94 aircraft in its network.

Commented Kakinoff: “Our single-type fleet operating model and dominant position in Brazil’s high-density traffic hubs enables us to quickly add routes to meet demand, while maintaining discipline on capacity and profitability.”

For 4Q20, GOL expects to maintain personnel costs reduced at up to 40% of pre-pandemic levels.

On these conservative assumptions, and with the increase in operational volumes and sales, GOL has improved its operating cash flow equilibrium. The Company estimates that it has sufficient liquidity to finance its working capital, expenses and debt service during this growth phase. Based on GOL’s current liquidity levels and having converted a significant portion of fixed payroll and fleet costs into variable costs, the Company will maintain its market unit cost leadership.

The Boeing 737 MAX is nearing approval to begin operating, and its return to service will increase our cost savings, as the MAX-8s consume 15% less fuel than the 737-800 NG aircraft. Resuming high aircraft utilization and expanding its network predominantly concentrated in Brazil will enable GOL to continue to operate with the lowest and most variable cost structure among its peers. In the best-case scenario, the Company estimates that the MAX will return to operation in its fleet by the end of 2020.

This competitive advantage is further evidenced by the actions of GOL’s stakeholders who have supported the Company during this global crisis. GOL Management fully honored its commitments with the global capital markets and the Company is the only airline in Latin America to have returned capital to investors in 2020. GOL expects these actions will continue to define the Company, and it counts on the continued support and trust of GOL’s stakeholders and partners investing in the recovery of the Brazilian market.

Building Trust with the Resumption of Travel

During the months of January to October, the Company obtained the top rating on the Consumidor.gov.br portal, leading in the Solution Index, the Satisfaction Index and the Average Response Time.

Kakinoff commented: “Through our values of Service and Safety, our Customers are increasingly confident in flying. We are working on every front, including ticket sales, customer service, boarding, the in-flight experience and disembarkation services, to ensure that our travelers are comfortable with the entire flight experience. We believe Customers will want to fly with the airline they trust most on Service and Safety, both during and after the pandemic”.

In response to the pandemic, GOL reinforced all of its procedures to ensure the Health and Safety of its Customers and Employees, with increased attention to the cleaning of aircraft, including the use of a hospital-grade disinfectant for the service galleries and all areas of intense use in the cabin and the cockpit.

GOL’s aircraft have HEPA air filters, which eliminates 99.9% of particles such as bacteria, viruses and other impurities on board, allowing the circulation of purer air. In addition, each set of 3 to 7 seats rows has its own air circulation system, making minimal air circulation among passengers.

GOL also equipped its Employees with gloves and masks, in addition to making alcohol-based gel available to the crew and Customers on the aircraft. The use of masks on board, mandatory as of May 10, was well-accepted by Customers compared to the response in other countries.

Communication has been a priority in GOL’s operations. Airport Employees and Crew members are fully prepared advising Customers on social distancing measures and on-board health and safety practices. In addition, the Company has observed exemplary behavior of travelers in relation to their concern for their own safety and that of everyone around them.

As a result of these actions taken by the Company, its Employees and its Customers, on average, active GOL Employees have tested positively for COVID-19 only once in every 1,701 flights, an astonishingly low rate, of which the Company is proud.

Key Metrics – October 2020 (preliminary and unaudited)

Liquidity

October/2020

∆ September/2020

Total liquidity

Deposits

Unencumbered assets

R$2.2 billion

R$2.3 billion

R$1.3 billion

-1%

+1%

Net Operating Cash Consumption¹

October/2020

∆ September/2020

Cash outflows

Cash inflows

Net cash consumption (“burn”)

R$(25) MM/day

 R$24 MM/day 

R$(1) MM/day

+17%

+28%

NM

Fleet

October/2020

∆ September/2020

Total (average)

Grounded aircraft (average)

Operating aircraft (average)

Flights per day (average)

Network destinations

128

41

87

363 (52% of 2019)

63 (23% of 2019)

-1

-17

+16

+34%

+5%

Operating Results

October/2020

∆ September/2020

Seats (000)

ASK (million)

Load factor

Consolidated gross sales (R$MM)

Consolidated gross revenue (R$MM)

1,998

2,317

78.0%

827

603

+38%

+37%

-2.0 p.p.

+3%

+23%

1- Excluding debt service.

Gol aircraft photo gallery:

Gol cancels 34 Boeing 737 MAX orders

Gol Linhas Aéreas Inteligentes S.A. has announced it reached an agreement with the Boeing Company (“Boeing”) regarding the 737 MAX, which includes cash compensation and changes to future orders and associated payment schedules.

“Gol remains fully committed to the 737 MAX as the core of its fleet and this agreement further enhances our successful long-term partnership with Boeing,” said Paulo Kakinoff, Gol’s CEO.

Since its founding nearly twenty years ago, Gol has operated a single fleet of Boeing aircraft. The Company is one of Boeing’s largest customers for the 737 family globally and to date has received and operated over 250 Boeing 737 aircraft. Through this valuable partnership with Boeing, Gol has delivered the Brazilian market one of the most successful low-cost carriers in the world.

In the first quarter of 2019, the unexpected grounding of the 737 MAX by regulatory agencies worldwide, including the FAA, the EASA and the ANAC, resulted in seven (7) of Gol’s operational 737 MAX aircraft being grounded, and the non-delivery of 25 737 MAX aircraft scheduled for 2019. This grounding adversely impacted GOL’s operations, growth and fleet renewal plan.

After carefully considering these impacts, the Company and Boeing reached an agreement that provides Gol with compensation and flexibility to implement its dynamic fleet requirements to match supply with demand. While the details of the agreement are confidential, it includes cash compensation and the termination of 34 orders, reducing the Company’s remaining firm orders for 737 MAX aircraft from 129 to 95 and increasing flexibility to meet Gol’s future fleet needs.

Gol aircraft photo gallery:

Gol reduces network, maintains service to all Brazilian capital cities

Gol Linhas Aéreas Inteligentes S.A., Brazil’s largest domestic airline, announces a further readjustment of its domestic flight network, effective for the period from March 28 (Saturday) through to May 3 (Sunday), in response to the lower demand during coronavirus pandemic.

As Brazilians take responsible steps to socially distance and avoid travel, Gol will maintain an essential network of 50 daily flights between the São Paulo International airport in Guarulhos (GRU) and the other 26 capital cities of Brazil.

All of Gol’s regular regional and international operations will be suspended. This brings the total reduction in Gol’s total flight capacity to approximately 92% in domestic markets and 100% in international markets until early May.

Gol aircraft photo gallery:

Gol sells and leases back 11 Boeing 737 NGs

"The Canary" special livery

Gol Linhas Aéreas Inteligentes S.A., Brazil’s largest domestic airline, announced today the execution of sale and leaseback agreements of 11 Boeing 737 Next Generation (NG) aircraft with Carlyle Aviation. This will further accelerate GOL’s fleet renewal and balance sheet deleveraging. GOL intends to replace these NGs with Boeing 737 MAX-8 aircraft over the next few years.

Value creation

Since 2005, when Gol closed its first order for 80 Boeing 737s, the Company has realized over R$1.5 billion of gains on its aircraft portfolio. The 2005 order was comprised of 40 aircraft financed with a U.S. Ex-Im Bank guarantee, and 40 aircraft financed via sale and leaseback transactions. All of Gol’s aircraft have been sold to unrelated parties, with gains, and all cash proceeds have been used to pay for aircraft re-deliveries and reduce secured and unsecured debt.

As Gol transitions its fleet to approximately 50% Boeing MAX aircraft by 2025, it expects to create over R$4.0 billion of value for all Gol shareholders, comprised of over R$2.0 billion of equity value in aircraft assets and over R$2.0 billion of increased income from greater revenue productivity and lower fuel burn.

Balance sheet deleveraging

The sale of these 11 aircraft will reduce GOL’s net debt by approximately R$500 million, comprised of a R$130 millionreduction in finance lease debt and a R$370 million increase in cash liquidity.

Subsequently, the Company plans to use a portion of these proceeds to call the outstanding amount of its 8.875% Senior Notes due in 2022.  The asset management income and reduction in interest expense will contribute over R$420 million to the Company’s 2020 earnings and improve GOL’s credit ratios by reducing the net debt/EBITDA ratio by 0.2x and increasing the EBITDA/net interest expense ratio by 0.5x.

Capacity management

The accelerated fleet renewal will not alter Gol’s planned capacity, as these aircraft will be returned simultaneously with the receipt of 737 MAX-8 aircraft under its order with Boeing.

Gol is committed to upgauging its fleet to further drive operating efficiency. By 2025, approximately 50% of the fleet will be comprised of 737 MAXs. Over the next five years, the transition to the MAX is expected to increase productivity by over 20% and reduce fuel consumption by approximately 15%.

Top Copyright Photo: Gol Transportes Aereos Boeing 737-8EH WL PR-GUK (msn 35852) (#VoaCanarinho) MIA (Brian McDonough). Image: 949042.

Gol aircraft slide show:

American Airlines and Gol announce a new codeshare agreement

Gol Transportes Aereos Boeing 737-8EH SSWL PR-GUI (msn 35844) MIA (Brian McDonough). Image: 948952.

American Airlines and Gol, Brazil’s largest airline, today announced a new reciprocal codeshare agreement, giving customers access to 20 new destinations in South America. American will also increase service from Miami (MIA) to Rio de Janeiro (GIG), adding a second daily flight this winter. The airline also plans to provide more opportunities to bring customers to Latin America through MIA by adding 12 flights from six U.S. cities.

American’s expansion in Miami and Latin America includes:

  • Service to new destinations in South America not currently served by American. These flights — operated by Gol — include service to Asuncion, Paraguay, and other destinations in Brazil.
  • Gol codeshare established on American routes in the United States, paired with frequent flier earning and redemption on both airlines soon after approval.
  • Increased flying out of MIA, including an additional flight from MIA to GIG during the peak winter months on a Boeing 787-8 — one of American’s first 787-8s operating out of MIA.
  • 12 more year-round, daily domestic frequencies, including increased flying from Nashville (BNA), Boston (BOS), Houston (IAH), Orlando (MCO), Raleigh-Durham (RDU) and Tampa (TPA) to MIA.

Codeshare to deliver significant customer benefits

After it is approved by authorities in the United States and Brazil, American and Gol’s new codeshare will allow customers to connect seamlessly to 53 GOL flights beyond GIG, Sao Paulo (GRU), Brasilia (BSB), Manaus (MAO) and Fortaleza (FOR).

The new codeshare destinations in South America not currently served by American include Asuncion, Paraguay (ASU); Curitiba, Brazil (CWB) and Foz do Iguaçu, Brazil (IGU), pending government approvals. American anticipates GOL’s code to be placed on select flights. The relationship will allow for future frequent flyer redemption and accrual during the first half of 2020.

Largest airline in Miami adds even more flying, more connections to Latin America

American recently set a record at its MIA hub by carrying 30.3 million passengers last year. The airline plans to carry more passengers this summer, adding 12 new flights from six cities across the U.S.:

  • Nashville, Tennessee (BNA)
  • Boston (BOS)
  • Houston (IAH)
  • Orlando, Florida (MCO)
  • Raleigh-Durham, North Carolina (RDU)
  • Tampa, Florida (TPA)

All new flights will be operated daily on mainline aircraft, with optimal flight times for connections to Latin America and the Caribbean from MIA. American already increased flights from Austin, Texas (AUS), with one additional flight, and New York City (JFK), with three additional flights, to MIA starting summer 2020.

As American partners with Gol and increases service to MIA, the airline is also adding a second daily flight from MIA to GIG during the peak winter season from Jan. 7 through March 28. Flights will operate on the state-of-the-art Boeing 787-8, for a new total of 507 seats per day between MIA and GIG, including 57 seats in Flagship Business and 52 in Premium Economy.

Market Current Frequency Summer 2020 Frequency Increase Aircraft
Nashville, Tennessee (BNA) 3 4 1 Boeing 737-800
Boston (BOS) 7 8 1 737-800
Houston (IAH) 5 6 1 737-800
Orlando, Florida (MCO) 7 12 5 737-800
757
Airbus A319
Raleigh-Durham, North Carolina (RDU) 3 5 2 A319
737-800
Tampa, Florida (TPA) 6 8 2 737-800
A319
Total 31 43 12

The leader to Latin America

American has served Latin America since 1942 and currently employs more than 3,300 team members, with four flight attendant bases in the region: Bogota, Buenos Aires, Santiago and Lima. American flies up to 170 daily flights to 55 destinations in 18 countries in Latin America, from eight hub airports, as well as from Boston (BOS). The airline recently announced increased service on the heels of celebrating Miami’s 30th anniversary as its leading Latin America hub. The new service includes more daily flights to Lima, Peru (LIM), beginning April 7; increased service to Santiago, Chile (SCL); and an additional flight to GRU beginning winter 2020. Those new flights are available for purchase now.

Top Copyright Photo: Gol Transportes Aereos Boeing 737-8EH SSWL PR-GUI (msn 35844) MIA (Brian McDonough). Image: 948952.

Gol aircraft slide show:

Gol aircraft photo gallery:

 

Gol’s statement on the Delta-LATAM partnership

GOL Linhas Aéreas Inteligentes S.A. statement:

Delta has been terrific partner of GOL and we wish them well. We valued our partnership with Delta, and are gratified to see its continuing confidence in the Latin American aviation market.

The phase out of this codeshare and investment in our non-voting shares is not expected to have a significant financial impact to GOL as the current relationship provided approximately 0.3% of GOL’s total revenues.

During the transition period, GOL will work with Delta to ensure a seamless experience for customers. GOL Airlines is the largest Brazilian domestic carrier and we look forward to competing and growing in our markets. GOL has had a strong year with our passenger revenue up 37.9% year-over-year in 2Q19, and we are confident about our year-end results.

Gol aircraft photo gallery:

 

Gol announces new nonstop flights to Lima, Peru

Gol Transportes Aereos Boeing 737-8EH WL PR-GTA (msn 34474) SCL (Alvaro Romero). Image: 946390.

Gol Linhas Aéreas Inteligentes S.A. haannounced the expansion of its international network with regular flights to Lima, Peru.

This will be the 15th international destination that Gol will serve, beginning on December 12, 2019, with direct flights from the Guarulhos Airport in São Paulo to the Peruvian capital.

The route will be operated with Boeing 737 aircraft.

Top Copyright Photo (all others by the airline): Gol Transportes Aereos Boeing 737-8EH WL PR-GTA (msn 34474) SCL (Alvaro Romero). Image: 946390.

Gol aircraft slide show:

Gol accelerates its fleet renewal to the Boeing 737 MAX 8

Gol Linhas Aéreas Inteligentes S.A. has announced a further acceleration of its fleet renewal and modernization plan and the execution of sale and leaseback agreements, with Castlelake and Apollo Aviation, for 13 Boeing 737 Next Generation (NG) aircraft in the Gol fleet that will be replaced with Boeing 737 MAX 8 aircraft over the next few years.

Due to favorable market conditions for transactions with its Boeing 737 NGs, Gol has accelerated its fleet renewal and modernization plan with sale and leaseback transactions of 13 Boeing 737-800 NG aircraft that will be removed from the fleet during 2019-2021.

 

The accelerated fleet renewal will not alter Gol’s planned capacity, as these aircraft will be returned simultaneously with the receipt of new Boeing 737 MAX 8 aircraft under its order with Boeing and recent direct operating leases of 11 737 MAX8 aircraft.  The accelerated return of NGs will allow Gol to finish 2019 and 2018 with 24 and 34 737 MAX 8s in its operating fleet, respectively.

The 737 MAX will be the backbone of Gol’s fleet, increasing average seat per aircraft and bringing incremental cost per seat to very low levels. 

By 2023, over 40% of the fleet with be comprised of 737 MAXs and over the next five years the transition to the MAX is expected to increase productivity by over 20% and reduce fuel consumption.

Compared to Gol’s 737-800 NG aircraft, the 737 MAX 8 has decreased fuel consumption on GOL’s routes by approximately 15%.   

 

Gol announces the acceleration of the Boeing 737 MAX fleet renewal

Gol's first Boeing 737-8 MAX 8, delivered on June 27, 2018

GOL Linhas Aéreas Inteligentes S.A. has announced an acceleration of its fleet renewal and modernization plan and the execution of operating lease agreements for 11 Boeing 737 MAX 8 aircraft with Avolon. 

Result of operational gains and favorable market conditions, Gol has accelerated its fleet renewal and modernization plan with operating leases of 11 Boeing 737 MAX 8 aircraft to be received in the second half of 2019. Gol will maintain its capacity discipline, and the decision to accelerate its fleet renewal maintains the flexibility of Gol’s fleet plan. The accelerated fleet renewal will not alter Gol’s planned capacity, as the Company will simultaneously return and/or sell 737 Next Generation (NG) aircraft under operating and finance leases. 

“We acquired the 737 MAX to make Gol’s operations even more efficient and to offer our passengers additional flights aboard new and even more modern and safe aircraft. The 737 MAX exceeds the expected performance on every count,” said Paulo Kakinoff, CEO of Gol. “We’ve been very impressed with the MAX’s superior range, fuel efficiency and reliability. By accelerating our fleet renewal plan to this new technology, we will be able to further reduce our costs and open up more international destinations for our Customers.” 

 

Gol launched operations with the 737 MAX 8 in July 2018 with impressive results. Compared to Gol’s 737-800 NG aircraft, the MAX 8 has decreased fuel consumption on Gol’s routes by approximately 15%. Additionally, the increased range of the 737 MAX 8 has allowed Gol to further diversify its route network and to begin operating flights to North America. In fact, Gol’s new Brasilia-Orlando route is the longest commercial 737 flight in history. 

In addition to the four new international destinations already announced – Miami, Orlando, Quito and Cancun – the additional 737 MAX 8s will allow Gol to launch a new international destination every quarter over the next two years

 

Onboard, Gol’s passengers will also enjoy the greater comfort and convenience provided by the Boeing Sky Interior, which includes: a spacious and welcoming cabin, dynamic LED lighting, and the largest and most accessible overhead bins in the market. The aircraft will also be equipped with Wi-Fi antennas, making it possible for passengers to access Gol’s complete on-board entertainment platform during flights. 

Gol has an order for 135 Boeing 737 MAX aircraft to be delivered through 2028 and is currently the largest 737 operator in Latin America and one of the largest in the world. The 737 MAX offers exceptional performance, with lower per-seat costs and an extended range to open new destinations. The 737 MAX incorporates the latest CFM International LEAP-1B engines, Advanced Technology winglets, Boeing Sky Interior, large flight deck displays and other features to deliver the highest efficiency, reliability and passenger comfort in the market.

Top Copyright Photo: Gol Transportes Aereos Boeing 737-8 MAX 8 N6046P (PR-XMA) (msn 43986) BFI (Joe G. Walker). Image: 942460.

Gol aircraft slide show:

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Gol renewing fleet with 135 Boeing 737 MAXs, will launch flights to Miami and Orlando

First MAX 8, delivered on June 27, 2018

Gol Linhas Aéreas Inteligentes, Brazil’s largest airline, is renewing its fleet with an order of 135 Boeing 737 MAX aircraft, which are expected to be fully delivered by 2028.

Gol already operates Brazil’s newest and most modern fleet. The delivery of 105 Boeing 737 MAX 8 and 30 Boeing 737 MAX 10 aircraft will maintain this competitive advantage, while enabling the airline to expand its operations with more long-haul flights.

The first three MAX 8 aircraft were delivered to Gol between June and October 2018 and are already operating on commercial flights. The company will add four MAX 8 aircraft to its fleet by the end of 2018, replacing its Next Generation (NG) models.

Gol currently operates 91 Boeing 737-800s and 24 737-700s.

The Boeing 737 MAX 8 was developed by Boeing with the help of Gol’s pilots, engineers and technicians. The new aircraft are equipped with state-of-the-art technology, offering the best operational performance and a range of over 4,000 miles, enabling Gol to fly to new destinations. Among other improvements and innovations, the Boeing 737 MAX 8 also has reduced fuel consumption and lower emissions.

The 737 MAX 10 aircraft will comfortably accommodate 30 additional passengers when compared to the MAX 8 seating configuration, which accommodates up to 186 clients. This increase in passenger numbers will give GOL greater network flexibility and a competitive advantage over long-term costs, as the MAX 10 will have the lowest cost-per-seat of any single-aisle aircraft on the market. It expects to fly the first MAX 10 aircraft in its fleet in 2022.

In other news, the company announced it is launching direct flights from Brazil to U.S. destinations, including Miami and Orlando on November 4, 2018. The routes will be operated by Gol’s new Boeing 737 MAX 8 aircraft, which can fly further.

The new routes to Florida will have four daily flight departures from Brasília and Fortaleza in Brazil. GOL’s route network ensures that Customers can make fast and efficient connections to and from a further 30 Latin American destinations.

Gol’s existing partnership with Delta Airlines (NYSE: DAL) will also allow the new flights to Florida to be connected to eight cities served by the North American airline: Atlanta, Salt Lake City, Cincinnati, New York LaGuardia, Detroit, Los Angeles, Indianapolis and Minneapolis.

Top Copyright Photo (all others by Gol): Gol Transportes Aereos Boeing 737-8 MAX 8 PR-XMA (msn 43986) GRU (Rodrigo Cozzato). Image: 942795.

Gol aircraft slide show: