Category Archives: Gol Transportes Aereos

MIA scores GOL, regains Brasilia service

Miami International Airport (MIA) made this announcement:

Brazilian low-cost carrier makes first U.S. return since the pandemic.

On May 17, Brazilian low-cost carrier GOL resumed service at Miami International Airport for the first time since the pandemic with the first of four weekly flights to Brasilia. GOL is using 176-seat Boeing 737 MAX aircraft for the new service, which will increase to daily service starting on July 4.

GOL is currently the only airline at MIA with service to Brazil’s capital city, and Miami and Orlando are GOL’s only U.S. destinations.

GOL last operated at MIA in early 2020 with service to Brasilia and Fortaleza.

Founded in 2001, GOL operates approximately 700 flights per day with a fleet of 142 Boeing 737 aircraft. The Trip Advisor Travelers’ Choice Awards named GOL’s Premium Economy class the best premium economy in Latin America in 2020.

Before the pandemic, Brazil was MIA’s second-busiest international market, with 1.5 million passengers in 2019. American Airlines and LATAM Airlines provide Miami-Sao Paulo service, while American alone serves the Miami-Rio de Janeiro route. GOL is also scheduled to resume Miami-Manaus service on June 4, which will give MIA a total of four Brazilian routes.

Gol aircraft photo gallery:

Shareholders of Avianca and controlling shareholder of GOL to create Abra Group

Avianca has issued this statement:

The principal shareholders of Colombia’s Avianca and the controlling shareholder of Brazil’s GOL have signed a landmark agreement to create a leading air transportation group across Latin America under a holding company structure named Abra Group Limited. Subject to customary regulatory approvals and closing conditions, the Abra Group will control Avianca and GOL and bring together their iconic brands under a single holding.

Through recent investments made by Avianca’s and Viva’s shareholders, the Group will also own a non-controlling 100% economic interest in Viva’s operations in Colombia and Peru as well as convertible debt representing a minority interest investment in Chile’s Sky Airline.

Together, Avianca and GOL will anchor a pan-Latin American network of airlines that will have the lowest unit cost in their respective markets, the leading loyalty programs across the region, and other synergistic businesses. Avianca and GOL will continue to maintain independent brands, talent, teams, and culture while benefiting from greater efficiencies and investments under common aligned ownership.

Abra will provide a platform for the operating airlines to further reduce costs, achieve greater economies of scale, continue to operate a state-of-the-art fleet of aircraft, and expand their routes, services, product offerings, and loyalty programs.

In the aggregate, the airlines under the Abra Group ownership will offer customers the largest network of complementary routes, with minimal overlap, across their markets.

Abra’s financial strength will provide long-term stability and agility to the participating airlines that will allow consistent and sustained investment in innovations and synergies.

Abra Group will be co-controlled by the principal shareholders of Avianca and the majority shareholder of GOL and be led by management with significant airline experience across the region, a long history of entrepreneurship, and a proven track record of growth and successful airline transformations.

  • Roberto Kriete, who will serve as the group’s Chairman, grew TACA in the 1980s into the leading Central American airline before merging it with Colombia’s Avianca Airlines in 2009. He also founded the leading Mexican carrier Volaris in 2006.
  • Constantino de Oliveira Junior, who will serve as the group’s CEO, pioneered Latin America’s low-cost carrier revolution when he founded GOL Airlines in 2001. Together with the acquisition of VRG in 2007 and Webjet in 2011, he led the company’s growth to a market-leading position.
  • Adrian Neuhauser, current President and CEO of Avianca, and Richard Lark, current CFO of GOL, will serve as the group’s Co-Presidents, in addition to maintaining their current roles at the airlines; further details on the Abra management team will be provided at closing.

Abra Group’s management will focus on achieving synergies to ensure the lowest cost structure in each carrier’s relevant market; expanding routes, services, product offerings, and loyalty programs; and developing innovative new products and services that will meet the evolving needs of passengers and air cargo customers in the highly competitive Latin American air transportation market and beyond.

Abra will also ensure that its operating airlines are ESG market leaders by providing enhanced governance as well as the financial strength to continue to invest in a lower carbon footprint fleet, which will significantly accelerate the airline industry’s path towards meeting carbon neutrality targets.

Roberto Kriete, Abra Group’s Chairman, said: “Our vision is to create an airline group that tackles 21st century issues and improves air travel for our customers, employees, and partners as well as the communities in which we operate. Our customers will benefit from access to even better fares, more destinations, more frequent flights and seamless connections, and the ability to earn and use points across the brands’ loyalty programs. They will also be able to enjoy enhanced travel benefits and access to superior products and services.”

Constantino de Oliveira Junior, Abra Group’s CEO, said: “This agreement places Abra’s airlines in a position to lead air travel within the region – serving a population of over one billion and GDP of nearly three trillion US dollars – providing significant opportunities for capacity and revenue growth. Our unique enterprise structure will allow each airline to drive results by maintaining their independent brands, talent, teams, and culture and will provide employees more opportunities for personal and professional growth at every stage of their careers.”

In related news, the majority shareholders of Viva and Avianca jointly announced that Viva will become part of the same holding company as Avianca Group International Limited (Avianca Group) and that Declan Ryan, founding partner of Viva, will join the board of directors of Avianca Group, bringing his decades of aviation experience.

Any transfer of control rights over Viva’s operations in Colombia and Peru by the new holding company will be subject to requesting and obtaining all necessary regulatory authorizations.

Until the receipt of necessary authorizations, control and administration of Viva in Colombia and Peru will be independent of Avianca; Viva will continue to compete with the other airlines within the Avianca Group. Until the authorizations are obtained, customers, suppliers, employees, and relationships for the companies will remain the same; with separate internal and external operations, as well as independent sales channels and customer service teams.

Avianca aircraft photo gallery:

American Airlines and Gol complete agreement to form exclusive partnership

American Airlines has announced it has signed a definitive investment agreement with Gol, Brazil’s largest airline, deepening the relationship between the two carriers to create the broadest and most rewarding network in the Americas. The combined networks will provide customers with more than 30 destinations in the U.S. served by American and more than 34 new destinations in South America served by Gol.

American has served Latin America since 1942 and offers service to 17 destinations in South America, including Sao Paulo (GRU) and Rio de Janeiro (GIG) in Brazil, from its U.S. hubs in Dallas-Fort Worth (DFW), Miami (MIA) and New York (JFK). American has flown more than 14 million customers between the U.S. and Brazil in the last 10 years — more than twice as many as any other U.S. carrier. Gol serves 63 destinations in Brazil and is the country’s largest airline.

As part of the investment agreement previously announced last year, American will invest $200 million in 22.2 million newly issued preferred shares of Gol in a capital increase, for a 5.2% participation in the company’s economic interest. The execution of the other agreements described in this press release, and the closing of the equity investment, are subject to certain conditions, including government and regulatory approvals and other customary closing conditions.

Enhanced Joint Loyalty Offering

The largest network in the Americas will also be the most rewarding for travelers. In 2022, GOL’s SMILES and American’s AAdvantage® loyalty members will gain access to their status benefits on both airlines, such as priority check-in, priority security, priority boarding, a larger checked baggage allowance, lounge access and preferred seats. The two airlines also expect to offer an enhanced joint loyalty offering to give customers more ways to earn and redeem miles.

Gol secures US $600 million in financing for fleet transformation

Gol Linhas Aéreas Inteligentes S.A. , Brazil’s largest domestic airline, has closed a financing of up to US $600 million with Castlelake LP to finance the acquisition of new 737 MAX 8 aircraft.

The transaction will comprise 10 finance leases and two sale-leasebacks. The interest rate for the finance leases is approximately 6% p.a., which represents a reduction when compared to operating lease costs of existing aircraft in the fleet. The funds originated by the transaction will cover 100% of the acquisition cost of the new aircraft and provide resources that will be directed to obligations and return costs on GOL’s 737 NG aircraft. The Company expects to return up to 18 737 NG aircraft in 2022 and a total of 34 NG aircraft by year-end 2025, which is expected to further reduce unit costs.

Delivery of these additional 12 Boeing 737 MAX aircraft begins in January 2022, in line with GOL’s plan to accelerate the transformation of its fleet and have half of its aircraft under finance leases by 2026. In 3Q21, the Company signed agreements for 26 additional MAX 8 aircraft, and currently has a total of 102 Boeing 737 MAX aircraft to be delivered.

“Accelerating our fleet transformation to the 737 MAX positions us more competitively for growth through greater flexibility in our capacity management and enables the expansion of routes and destinations, which will ensure we are highly efficient at meeting fluctuations in travel demand,” said Celso Ferrer, COO. “Furthermore, adding these new aircraft will reduce the average age of GOL’s fleet from 11 to seven years.”

The Boeing MAX is also a key component in the Company’s goal to reach carbon neutrality by 2050, as this aircraft consumes 15% less fuel, produces 16% fewer carbon emissions and 40% less noise, and has a greater flight range than the NG aircraft.

 

GOL to launch a network of 250 eVTOL aircraft in Brazil

GOL Linhas Aéreas Inteligentes S.A., Brazil’s largest airline, in conjunction with Grupo Comporte, an entity of its controlling shareholder, announce that they have signed a non-binding letter of intent with Avolon for the acquisition and/or lease of 250 electric vertical takeoff and landing (eVTOL) aircraft. Following aircraft certification and successful delivery of the aircraft, the Company expects to start operating a flight network in Brazil using eVTOL planes by mid-2025.

Grupo Comporte is providing the investment capital required for the project, and will engage GOL’s aviation expertise to develop the flight network using VA-X4 eVTOL aircraft. Created by the British enterprise Vertical Aerospace (“Vertical”), the VA-X4 eVTOL model is considered one of the most technologically advanced and reliable air taxis in development today.

The agreement with Avolon and Grupo Comporte is also part of GOL’s commercial strategy to invest strategically in the regional air transportation market, opening up new routes to underserved domestic markets. It follows an announcement in June 2021 that GOL acquired MAP Transportes Aéreos, Brazil’s fifth largest domestic airline, with a fleet of 70-seat ATRs that operate on routes in the Amazon region from the Manaus Airport and Brazil’s South and Southeast regions from Congonhas, the country’s largest domestic airport.

A new fleet for a new era of air travel and more connectivity.

GOL currently operates a fleet of 127 Boeing 737 aircraft and pre-pandemic transported over 37 million passengers per year. The Company plans to transition 75% of its fleet to the more efficient 737-MAX aircraft by 2030, which reduce carbon emissions by 16%. Together, the adoption of the Boeing MAX, eVTOL aircraft, and other innovations including the use of biofuels, will form key components in GOL’s strategy to reach carbon neutrality by 2050.

The VA-X4 can carry up to four passengers and one pilot, with a range of 160 km (100 miles) and a maximum speed of 320 km/h (200 mph). The eVTOL aircraft also produces 100 times less noise than a cruising helicopter, and 30 times less on takeoff and landing. Vertical used the know-how of renowned and experienced partners and suppliers in aerospace manufacturing, including Honeywell, Microsoft, Rolls-Royce and Solvay, to develop advanced flight controls, information technology, electric engines, and state-of-the-art industrial technology in its VA-X4 aircraft.

The first step of the new partnership is to carry out a feasibility study, including aircraft certification and analysis of the infrastructure needed to operate this aircraft with ANAC (National Civil Aviation Agency), DECEA (Department of Airspace Control), and other national and international aeronautical authorities. Avolon expects to complete the certification process for the VA-X4 in Brazil by 2024, with the Company beginning commercial flights with the eVTOL as part of its route network in mid-2025.

 

Gol orders 28 additional Boeing 737 MAX 8 aircraft as it upgrades its fleet

Gol Linhas Aéreas Inteligentes S.A. has announced the acceleration of its fleet transformation by signing agreements for 28 additional Boeing 737 MAX 8 aircraft, which is expected to reduce the Company’s unit costs by 8% in 2022.

The total of 28 Boeing 737 MAX 8 aircraft will replace 23 Boeing 737-800 NGs by the end of 2022.

The Company currently operates 12 737 MAX aircraft, having returned 18 Boeing 737 NGs in the past 18 months. As a result of the new agreements, Gol will now end 2021 with 28 737 MAX aircraft (22% of the total fleet), and by the year-end 2022 will have received delivery of 44 737 MAX aircraft (32% of the total fleet). With its current 737 MAX commitments, Gol will meet its objective of having a 75% MAX fleet by 2030.

The aircraft will be financed via 15 direct operating leases, nine sale-leasebacks (“SLBs”) and four finance leases. The Company’s plan is to own around half of its fleet via finance leases, with the remainder in operating leases to give it high flexibility to upsize or downsize capacity based on demand. Additionally, bringing in the 737 MAXs enables Gol to accelerate returns of -700 and -800 NGs aircraft on short-term leases, while it maintains substantial flexibility to manage its fleet in close alignment with fluctuations in demand for air travel during the pandemic.

The Company operates 127 Boeing 737 aircraft. The 12 MAX in the fleet currently are financed via direct operating leases. The revised fleet plan is presented in the table below:

GOL’s Fleet Plan 2020 2Q21 2021 2022 2023 2024 2025
737 NG 700 24 23 18 18 16 14 12
737 NG 800 96 94 84 74 67 68 63
737 MAX 8 7 10 28 44 51 58 65
737 MAX 10 0 0 0 0 5 7 10
TOTAL (end of period) 127 127 130 136 139 147 150

Gol celebrates 20 years in the air

Gol Linhas Aéreas has made this announcement:

Twenty years ago, on January 15, 2001, GOL Linhas Aéreas’ inaugural Flight 1741 on a Boeing 737-700 aircraft took off from Brasília and landed in Congonhas, São Paulo. The flight crew included Captain Grabler and Flight Attendant Giselle, who are also celebrating their 20 years at the Company, together with another 127 employees.

This group is representative of our Team of Eagles, which is composed of thousands of people who dedicate themselves unconditionally to GOL every day, strengthening the bases of our contribution to transforming the history or air travel and Brazilian society itself journey that has made GOL the leader in the Brazilian airline industry.

Millions of Brazilians took their first ever flight with GOL, and that democratization of air travel is the best possible outcome. Through our constant efforts, the countless lessons learned throughout our journey, and the choice to always take courageous and disruptive action on several fronts – ranging from the organizational culture to the products and services offered – GOL has irreversibly widened access to quality air travel in Brazil. GOL’s aim is to Be First for Everyone. However, GOL would not be celebrating these achievements today if innovation had not been imprinted in the Company’s DNA from the beginning.

 

GOL becomes the first airline to resume commercial flights with the Boeing 737 MAX

GOL, Brazil’s largest domestic airline, has announced that it will resume flying the Boeing 737 MAX on commercial routes in its domestic network, starting December 9, 2020. The first flights will be on routes to and from the Company’s hub in São Paulo. By the end of December, all seven Boeing 737 MAX aircraft in GOL’s current fleet should be cleared to return fully to operation and will be gradually reincorporated into the Company’s flight schedules in alignment with its operational needs. 

“Our first priority is always the Safety of our Customers,” says Celso Ferrer, VP of Operations at GOL and a commercial pilot who regularly flies Boeing planes and is already trained to fly the 737 MAX. “Over the past 20 months, we have watched the most comprehensive safety review in the history of commercial aviation unfold, bringing together regulatory agencies and airlines from around the world to monitor and contribute to the upgrades in aircraft systems and pilot training. Consequently, following the new certification of the Boeing 737 MAX by the FAA (Federal Aviation Administration, United States) and ANAC (National Agency Civil Aviation Administration, Brazil), we are fully confident in the MAX’s return to service,” Added Celso. 

Before reintegrating the MAX-8 into its fleet, GOL conducted training for 140 of its pilots in conjunction with Boeing, meeting all the technical and operational requirements outlined in the plan approved by FAA and ANAC. The trainings took place in the United States using a MAX simulator. The Company also completed a rigorous series of technical flights, which exceeded the requirements set out by aviation regulatory agencies. 

These Safety actions reinforced the meticulous work of removing the MAX-8 aircraft from storage by the aviation engineers at GOL Aerotech, the Company’s business unit specialized in maintenance, repairs, aircraft servicing and components, based in Confins near the city of Belo Horizonte in southeast Brazil and where the aircraft were located for the past 20 months. The work performed by the Company professionals at every stage is a testament to GOL’s culture of excellence in Safety.

The Company’s experience and resources for maintaining Boeing aircraft also contributed to the ability to quickly and safely return the MAX to its network. GOL Aerotech is qualified to perform maintenance on Boeing 737 Next Generation, 737 Classic, 737 MAX and Boeing 767 family aircraft. With over 760 employees, including engineers and technicians, the business unit is able to service 80 aircraft per year on average and provide over 600,000 hours of maintenance. It is certified by national and international regulators such as ANAC, the FAA (Federal Aviation Administration, United States) and the EASA (European Union Aviation Safety Agency).

Gol aircraft photo gallery:

Gol aircraft slide show:

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: