Gol Intelligent Airlines (GOLLQ) 4 Nov 202020 Q3 Earnings call transcript

Welcome to the GOL Airlines Third Quarter 2020 Results Conference Call. [Operator Instructions]. After GOL's remarks, there will be a question-and-answer session. [Operator Instructions]. This event is also being broadcast live via webcast and may be accessed through the GOL website at www.voegol.com.br/ir and the MZiQ platform at www.mziq.com. Instructions]. [Operator call presentation, and may either the your the during the on their answered conference the GOL management platform the the questions this is via finished. following team post webcast questions by Investor Those Relations by after or will be

future that not Before me other involve related they available to currently to Mr. forward-looking occur. will Company. They mention Investors results those and and analysts Please also statements statements. the because based Kakinoff. could Paulo on events information proceeding, such and and assumptions macroeconomic on to should may to on and and I depend understand At let industry risks relate in you materially time, uncertainties may from beliefs events expressed hand conditions, or over of that circumstances cause are GOL's begin. differ therefore to factors forward-looking management the this that

your Earnings to Officer. Today Investor preliminary them Good now morning, results with three website joined Also, financial review questions. a Financial few made has presentation, make only Lark, Chief ladies released Airlines then and our Officer; Chief and GOL's by and am welcome we Richard I'm videos morning, gentlemen, to as GOL and Kakinoff, on Q&A. available move Executive Paul everyone third Relations hope will We the watched Call. we figures. quarter considerations our and brief we I

continues for continue conditions remainder in Added at initiated share that to challenging. Company Company, a containment record network April. operating close of environment position the only the during its capture demand a the managed of to a is network volume remains measures XX% to across of level essential optimistic number the is Brazil market during to The the and load But of pandemic in as maintain an in will GOL that by the to date. reflects GOL in operations, since increase. XXXX period year. cost travel factor to The preservation improve consistently implemented of GOL cash third recovery a strong the now the airline quarter advantageous to passengers is the with its

in We air for are of a by network a holiday XXX% XX% seeing increase Company's month domestic in consistent year. for and demand end operations. search growth The tickets. for today at accounts search leisure in market, is of marked concentrated GOL growth the the airline specifically the This tickets the was planning which the the of September for

has to over highlights. to demand prevailing XXX% been key fourth some Richard? third, in second As quarter a With the channels result going third an pre-pandemic in quarter, to consolidated level. exceeded of compared its to compared the visibility take Company's GOL's interest, sales flights to in the quarter all gross XXX% passenger of GOL's you growth management. planning XXXX to September, across approximately better XX% through With significant daily maintaining flexibility Company this in revenue fleet ticket a With I'm who capacity July. XX% to additional to BRLX.X a recovery, increase assumes us of Richard the million, respond BRLXX hand over XXXX. XXXX In that, of XXX% relation current during the sales capacity market scenario a quarter advantage the August sales month of reached increased going XXXX. trends. greater of the which additional to billion, third represent sales Matching is registered the increase regarding

and its in XXXX. the commitments management senior million notes, debt the amortization the of third B, including of loan in main its of global to GOL's the paying term honored XXXX Kaki. quarter its markets million $XX Thanks, fully paying XXXX its first short-term capital $XXX quarter

XXXX. reflection capital a with years. maturities its of cash over consumption management We significant been of GOL markets no sheet which matching until past maintaining driver of achieved This metrics and strengthening to GOL's have liquidity. better the through four is outflows, has its working the effective key commitment balance capital inflows to

Such Seat to its With of capital Such two, corresponded consumes savings, management flights readjusting mainly cost costs. per and was of levels hubs since to load third XX% of but rescheduled. distributing begin on yield on-time enabled its a achieve: of Boeing on the reflects XXX-XXX third reestablishment margin cost XX.X%, and compared to the plan and consequently, Company's liquidity drop costs as Kilometer, an fuel the payroll compared to of of an supply which of In into short-term XX.X%, average Company's balancing main factor. level of the XX.X%, a load variable for The million immediate continuous focus of network, with than the of X.X reduction previous demonstrates XX% capacity combined of only an GOL to NG liquidity stage-length; BRLX.XXXX. the the the operations main period One, and demand the costs demonstrates return data X.X will BRLX.X in pandemic. strictly relation adjusted action to according increase efficient sustainability. MAX this service pricing. increase with capacity fixed operations the reduction customer the focus percentage to to and BRLX.XXXX, Infraero management maintaining and is support This its average Compared following converted per structure has the main for responsible to percentage reconfiguration demonstrate to in working of pre-pandemic leasing last billion. CASK, increase management points by Company; margins airline of GOL in a the is a differentiator BRLX.XXXX was The increasing major and demand of to and nearing the to year, to discipline departures the of last financing search three, year. main of this operations, the compared provided to XX.X% points the operating, a the to The Company's of growth continued maintained metrics Company's approval MAX-X aircraft. operated, level passenger of XXX allied were the the XXXX, the maturities factor XX% partner on EBIT quarter, of to due banks, initiatives this corresponding less quarter and Adjusted the Cost the permanent beginning of debt quarter, support levels CapEx with airports. allow yields related and was Available to concentrating same and operating incurred consistent quarter a a necessary that BRLXXX maintain CASK,

June to of the of was the record quarter total its those September our an essential a number strong the XXXX third of and performed transported year. BXXXs XX of launch network by third in of volume operating XX partners. quarter the increase passengers The reflects the XXX in recovery of the XX XXX are XXX of end of XXXX we tripled achieved since Company daily our a markets on of quarter fleet last which third serve compared in Daily markets in aircraft with April. XX% of to ended XXXX. of to aircraft network period strategic operated of flights our a and operations, where representing XXX flights by GOL

Now, like I would to to Kakinoff. return

in Thanks, and flying. Rich. values confident Safety, Service increasingly Through our Customers are of our

and on We working every that believe flight the ticket sales, Safety, with are customers they fly in-flight service, after the disembarkation both pandemic. experience boarding, travelers with the comfortable most customer to and will want ensure experience. airline and Service trust are including We on the in front, entire services, to our during

first to offering moment only professionalism competitive programs. of proud recognized are commitment and in and continue arrived leave, Brazilian with addition and announce agreements dismissal in voluntary to will dedication, America been flexible airline lowest this has We safety in most South cost GOL and the us adaptable immensely to the solidity for jobs and to have and be challenging The differential extremely employees, will the in and the crucial guarantee retirement the best here in to our be the employees aviation. prioritizing sure, a with of customers great having for model, XXXX. for for the business to recovery it be team

Now, to initiate session. the Q&A would I like

open now questions. for Instructions]. [Operator Thank floor you. is The

comes from Mike ahead. Deutsche first question Linenberg go Bank. Please Our with

good Hey, morning Yes. everyone.

questions guess is two One, quick here. a on Just just one sort of this yield. I

that Rich down were but You increased. yields your indicated stage-length XX%,

XX%. down number that Presumably, if better I'm basis. on than be a curious have it stage-adjusted So would you actually

Mike, on Sorry, I you had mute.

you're you're the asking QX, stage-length about the that in what So change saying?

you mean Kaki. [indiscernible] highlighted... go Yes. Oh, ahead, I Because

[indiscernible].

Sorry.

[indiscernible].

stage-length the versus actual kilometers. Our in was X,XXX kilometers QX X,XXX in was

it was a So variation X% -- X% variation versus a last about oh, year.

is have here Kakinoff Mike hubs. connecting This more speaking. is because we because much This it's -- through the people

operating. point pre-COVID in the comparison less flights So are we point that to to there network were

basically the as connecting destination and hub So, Galeao. perform we Guarulhos trip, to to such or passengers major a -- origin via have same more much

think was the fact stage-length. headline trying was because I establish of and better yes, your arguably to the no to that, yield than Yes. in the good I performance what that's And is that number know, increase

be say, about would Yes. Correct, may it Mike, better. a third be,

exactly is I thing to the would this like Yes, definitely highlight.

If of power considering side. was much I the the pay are any than any wallet, destination now kind I trip, they of amount trip you mean, basically paying intact. to longer which the is paying of and actually even deterioration at notice purchasing perform willingness fares money customer to higher slightly least we that is didn't same origin before. from mean, it share the before consider customer the were They specific

that's... And Yes.

that was of have about a XX% [indiscernible] would the XX% quarter-over-quarter, whereas the Mike, the Yes, corporate XX% or also the this your public [Technical been would on saying VFR X% up adjustment, you us which helping if revenue about the understand in in -- that customer, apples-to-apples been last here volume, as it stage-length of I a logic We of not reported large sorry, X%. Kaki XX% take but year of about down is customer, was to Wednesday morning if have that XX% down you're I'm Difficulty] just pandemic. of revenue, question, number there. were But warm you number the of the

-- wallet the VFR on I we all current as that for share point under of and apples-to-apples terms product is In now GOL got of or the GOL is large results base that, that other an -- share just product customer yield other experience GOL of was the frequencies you're between in that massive component just like and seeing words, corporates here GOL wallet corporate. and the of two the words set into So right product of the you yields saying, get has is this kind now. the were on sounded share us America, to increasing of almost to we in with about did of think what simply way of base, Volaris, add now, in the increase in to the be the would force Kaki our it because Kakinoff would which cities if also shrunken, a if of where think valuable much with number if massive of our that that while you kind in actually biggest less could you other passengers. that were the network, has It Rio the wallet, that has products, of in pie larger, increased of because ULCC, investment the the the is to of our with just passenger, that in the for And that in another same of GOL the attract customer it of customer the are Sao flexibility airline. share as is we've in what's pie Paulo so or has network, large the know, been driving expansion, our not substantially. And and that tutelage side goes our Latin been just network, our VFR overall

-- in question at to that, significant GOL you airlines would we in world. I increase of were if had expanding to to this other probably very if we your So profitability. In words, -- Difficulty] and of type the on just yield were even one Company, apples-to-apples profitable the a you if were most would it [Technical of Company be actually, perpetuate

that glad are actually had in Mike, -- is This figures. deep you the time we to go

that conclusion the would some a that we we on information already report had. the VFR that because I progress. had more yourself pretty may, recovered little found analyze market and the dynamics, believe actually be XXX% of consider I would If You segment a pre-COVID time if demands might bit we say we produced I commenting to only, had an expenses that interesting missing outright. is the What's the your -- is we everyone to three that had business

As Richard of to mentioned, the and of the they passengers XX% number could a certain also XX% total revenues. represent in up of up flight to

this real we comparison the XX% side, is So of since beginning the is the XX% exchange only yields, case. and because the portion devaluation, dollar missing mean somehow have year. to the portion the back the this what other those pressuring other to I and of in debt almost that in rates are missing, down deevaluated And down -- in sellers is is the

affecting two revenue. those moment. at are So the major VFR are total pretty The the yields the forces healthy

is missing due high considerable a to the pressure across progress the -- from VFR But there from at are cost we the time So exchange the same and rate. is side corporate the the demand.

terms Yes, average X%. at average too way was the at look of our another tickets around ticket the be in down to to and Mike, you --if wallet, it look would say share

which ticket ticket to large be so, large no average half times, corporate adjust is two average times the stage-length, three financial And the But ticket. decrease of ticket. revenues for if in would the you're of the the to three had we average that corporate, average of

that corporate pie that basis and increased has to -- fees don't spend. share of it's Because We'd so we'll also share, of spend probably gets to share traveling your as -- it But to things that. the a of But We Kaki -- of share of probably is define questions. saying, corporate -- a that. and We it. your piece, come I know we're back anticipating ASKs. a so we of like substantially. the of XX% maximizing to that XX% think about that which of that's the share we is the share in share customer think only has bit levels about market And share that traveling, seat how here a was think spend with are the and as which pre-pandemic expansion get And But, about substantial like well, of terms of things other about that like and dealing we about wallet. how share. RPKs, share significantly close and we the how Brazilians our shrunken think our what in probably of spend, we on that relates volume that it's pandemic don't think think is and non-large that's COVID to of wallet the and also corporate are other the we market on I have

think which is, of then very Europe this big that, is -- of with Latin countries most say, other exception U.S. number what's and I different Mexico. and in than going states, part America so, in on is let's America, And the of a

So Volaris. over in you Brazil close what seeing second, there with to Mexico are second a and a guys going is what's probably

our because large of the that but the come infrastructure serve and Brazil's investment talk half Latin is to did is you real that -- that we're of large it's to that running to America done for the point. it's piece business carrying on our excess, about large contextualize to try of will the is corporates. been [Ph] the Just Also ground, because mean, us we the only that serve chunk kind the aircraft on and corporates been on the just want the us is ground, cut way. that large that were backs I cost, at comes of excess compare I And has into leverage, Problem corporates, some when I'm have there all at to we put The there kind the operating missing see, back you network, this with the into to That's separately, a costs. be all can huge. half and are we're super. large that all our corporate operating made, some huge already variable going of other and leverage out that of and back, extract we've is and saying look costs corporates as essential fixed have costs those people box if exclusion the to transformed transformed our mean,

period operating there, other but So we back come corporates for leverage. points I massive thought when be Apologize of -- that time a some just large might sliding in for those useful.

key of And about then just rate just net and per way, here. up giving for change the at debt But on here BRLX billion. given look But cash the as us some the day. XQ burn one but thanks things million just Yes, at BRLX of when all March well, good. of XQ, about the over a like Q then, down I'm by second guidance, quick I metrics, liquidity looking

external sort you're I back envelope, restricted mean capital, realize I of up going frees cash tap either unwound is maybe of that position presume that's so, I too. financing there number the a some a And that that's or to hedge

can you like and we slightly there, burn XQ. [Technical similar improvement what what's Is in -- for liquidity looks external and there that debt thanks is driving Difficulty] actually something say or whatever in saw than net So higher what when cash it

I'm a a to of chance that us asked Thank you bit. you gives glad kind question. unpack It that Mike,

this obviously, to sources how with triangulate can a to. is work keep objectives quantify to general, work of But to Company, get pretty generally to with financing today biggest of of the as want with airlines also. our that us, confidence all commitment you Brazil, a we our the obviously, more. numbers lot there what provide, sources liquidity the a And the provide bit and into that normal over behind can and we of when that But given you there's lot we much we try mind to of for of we, we're thinking, in our numbers do in One one is that lack little a that And that. in customers. the GOL go investors

Our main is source our receivable, we so and And gap have monthly you you sales guys of liquidity accounts which and clients, updates is on sales, the been can see sales. revenues. between providing

are twice in the and that at sales bookings, you've seen running of rate a of terms in there. Our revenues,

the is a our million XXX that unrestricted receivables, receivables. accounts the there year million depending number about XQ per pre-COVID be the balance overall in is that in so, because -- XX% we plus XQ numbers is levels. of expect restricted the us remember scenario, quarter. And of which QX receivable cash about $XXX and liquidity next There's -- on of XXX And a receivables increase cash is $XXX the and there balance there by there, accounts for liquidity in includes to sheet and accounts end will a

those. to all liabilities current the of this until say that the the there, got evaporated. that sales We of were rebuild current of What March about BRLX we enough that year, got So December, operation. effect of have full the it lost the why you Because destroyed, end if need. our side take the we liabilities end -- we -- of of from asset are important? was pandemic billion because current The we of is we

look. with these it billion So normally which roughly and to that year initiatives. that be course per receivable is that's will what replace next we've we probably get month, average we the had BRLX.X of middle how But is within balance back of rebuilding all where to balance receivables the

as on the lot of of of of in and see that It's receive all there does I'll talking it we slide deposits. don't people BRLXXX the in of is okay. ask, Boeing, now we year, along the continue, a and capital receivables, also lot do which -- -- into and going August, Between to amount we since current current into in -- lot the Now, non-current continue. of it a below non-receivables, That an current come our cash. there, terms assets. of to will non-cash, assets okay, end we QX, also current we -- lines we've working I'm assets described say, agreement of have that down cash, rarely those will about. and also that per in the is the what's And fourth Rarely is been have a with receivable between questions still million quarter year, go compensation unlocking current part gradually some a let's about we what in get assets. that well, starting we September is there which mentioned amount of And BRLXXX end the you there in the those will numbers assets, quarter questions the of have people line top a of by assets million as the in -- and the on this significant

too come So that there. will in

[indiscernible] vendor... The Yes.

And and then other... sorry? then I'm -- the

Santa's a has to it into XX. now. We impact on to because arriving helpful but had it going at we and not December going it's on December. now, as Reals April a comes Well, received much significant, it's in agreement don't to is in in we in as -- It's -- now we're it wish there we when that no, was a as our disclosed we here. going dollars, it April, Yes. have also in it's -- chunk that be we very right big be received And there and it's Xst, sleigh back so chunk it's when was the and QX, receive around

is then -- are addition there a But linking effects is as currency going there there, are in are we to Now, of little bit that well effects. to with related with the cash that, how in and the this with currency debt be coming we to a what just in where net which liquidity. -- the does also that question, is relates link going it in out,

a to of our the know, current with you to that, like that. the do assets, [Ph], planned need will, have credit Boeing, of produces pay side and secured then to unencumbered unlock either letter all if which of it's using or have current other compensation planned receivables, liquidity an So insurance expensive, And it, -- agreement yes, we we our kind restructuring policy, because you reorganizing effects, balancing the we assets. have addition a in we as as things currency financing a asset

We assets, $XXX assets, million, in BRLXXX future do give if million, which so can it's have unencumbered million needed us that here. around aeronautical near of that call about it the we $XXX we possible could

because our numbers. those in around also related then And what million with lease to here. quarter finally, -- you aircraft there reduction a leasing of asking it's our is effective indirectly about, BRLXXX there million reduction per BRLXXX is a that's to so negotiations and are in And debt at companies,

that goes into on And the also so that reduction the also -- debt.

the you're -- -- net we've in to of when related showed is the been a one reduction BRLX And so you billion asking what we debt roughly there. getting questions

have remeasure in accounting IFRS accounting. renegotiate you described, the So XX in you that the I when contract, the addition to to components just a liquidity

longer is markets our Company, in had overall achieved lease is had particular and a The that. an -- each we this then with reason like the on-balance because our aircraft in sheet both sheet into lease the kind in That's that wrong that reduction lease case kind very so, term balance term. the of an of offset mark different reduction so contract actually And reductions direction. put of present presented and And terms. in on were then you're in extension of we double And I'm the increase net we of than competitors whammy effectively reduction absolute debt, other. those a that highlighting because our reduction only a some the to aircraft is valuing

when sheet because a our aircraft, billion we on-balance related It So There to out reduction and here. a over by terms pushed expect portion of Brazilian the of QX. At little leverage is year. probably power by is that aircraft a that we XX we've comes, appreciation the same see Real another and all by of we're a time, impact discounts when the the settles for to get including about a XX accounted would converted that aircraft. the in the some rate dust when got actually the in when for on little do slight will we remeasure, in be bit a you real time BRLX be but up statements the discount if QX that all the on hour. And the you effects There the you QX, which look only the into is financial going into an principal guys unpack currency debt.

liquidity of the QX, be [indiscernible] three it's year, then get net there. just describing next times the of that ratio, pandemic. will calculation And how we multiple in that's debt quarter LTM to so when the goes The the pandemic, there, of first those four we're I because the And be of into you first initiatives EBITDA the get add outlined the it'll up pieces, to when quarter. to six numbers quarters we LTM that three-quarters to that and the then

leverage policy our that collapses get there's get of be we're year. the of leverage But run to EBITDA we to because once next that rapid At basis point once times. a half on three with and a very back deceleration in, second going kicks of kind there. the leverage to back in of comfortable the which target, is rate some So in corporates level operating the large

packing asking leverage other some balance there, question on liquidity the is the parcel you're component sheet on things also. Sorry get but to and the we for in part how those cash numbers to

we because announced asking. kind So I you're already put the emails morning to we two together were couple wanted of on exactly question components of getting this after a those

helpful, Rich, Thanks, Rich. Thanks Now, that's very Kaki.

is from Please next question James. The ahead. Savi with go Raymond Syth

Hey, guess they good color appreciate is that point think reverse then XQ. about income could XX aircraft can it and the beyond savings, Savi. for you morning. if do the you I I on what in the impact statement actually were just, going all [indiscernible] XQ? could, I This on at or there. Matt think terms we some XX Rich, to are of right And in there

do that turns? cash and beyond how is point? the going at think it there So, to flow we Is going, those some about can reverse impact

the Just would your understand so question, savings reverse? I why

that's I it because doing change way asking, you're over mean, was would Well, all. what at the does they I time, this,

guess too Micheal are fast spoke are are -- those -- the No, I renegotiated. No, contracts renegotiation question. on I Linenberg maybe

the was trying cost was revenues, if flow So costs objective those life post really objective the our will That's to second you of our adjustments, to then our it's methodically are through through I as is make reductions our permanent matching point cash that pandemic, to we okay. leases. to competitivity, preserve fixed went the main and was our

to fixed to other back costs, to XX of term XXXX, total is XX% we a needed what of as the point, of cost, which our fixed our end the months cost be next labor with XX% words, end roughly our And aircraft, we would revenues. normally up so time rematch which the to structure two to on main year, get set second in and

transformed the we that? And half that we for some how into works first, labor we and labor, also hour agreements, power setups that, do of effectively that the do by achieved as operations. XX% know America fixed airline of I variable to those With costs type through our about so of labor get type all next of the in way think I Latin and on were as only far the And year. agreement, reductions end the

of life market and marking, is we for up. deal, in adjusting leases cost in the addition the side that to had for so to rate which of And aircraft the on fixed months. just that And not fixed then so any leases, we above down revenue couple ramp to the to the same those matching a addition new COVID

so above that because we lower, power fixed it, portion our Not ramp we by -- many that, relationships, the lease within the different, obviously post-COVID rate have the time, within transformed match a can up. for rate is also above unpacking so But then aircraft also market. the were that, renegotiated, situation into monthly different we XX new lower, not market. also portion of leasing that of payments that period overall was so the lease cost lease then of have that each a was and We was we that of hour a

replace was that to or MAX. to used also year that than more so so And would recontract next we we with have then have return didn't aircraft

difference average, fleet. get was that way difference would aircraft be. year leasing also normal So it why was And of we it a costs of say half But and a to for total for normalized XX companies more between a the our average without costing more XX%, is larger aircraft next way XX% -- what fixed much in difference, go roughly of be to that's the as will all And cost those operations. much of sheltering not aircraft back between than us is also to needed fleet the having to second which the shelter see our operating us redeliveries. GOL through you the

remainder when the about contract these adjustments And the is -- you saying of an the But thing I was the in basically. that get things everybody, basis, accounting signed the you tenure customized effects. other of was kind Q negotiations, about QX from all actual rolled about, then I And come were of expansion into into and the which we those a October signed years. saying was So of that the in an those third actually signed signed as very X.X had in and by did. accounting we were do average

value other present the the in so, the accounting mark-to-markets into translate any -- a other -- opposite IFRS-XX The actually tenor, And your tenure described. is some increases they where of reduction, components competitors debt. extension I the of our or that reduce which in without of the debt case the the any your

when you I was But have that do can guys comes on analysis, you lot which that. and as comparative guys of your time a all impact spent done, You all and it know normal get that to to the more to over same of we that back is XX% unit what expect to should XX% designed or you operations, normalized advantage you see competitor cost once next our pre-pandemic. saw said

back hopefully is forward. a is we XX% that our and achieved we've GOL you to our pre-pandemic, on key to been XX% competitive you've costs what are relative directives believe go cost of probably our essential one basis, That's looking it. preserving advantage, going which strategy. when it We So at to improved unit what

on there. look we'll be unpack next example what aircraft sword. The I the balance sheet, third accounting accounting But have on quarter the the on in on a a it know guys lot only you of dust of offline you factoring year going but think terms debt the starting that IFRS quarter help everything. guys lease obviously second all to understanding on the at nuances. obviously settles that. to of the you spend when for time to puts two-edged probably we It and might is with XX understand in But to have our can terms

at I billion the and going I the dollar said reconcile No, end $X.X more through quarter to U.S. over was if And appreciate denominated updated that you Certainly. this the Delta XXXX, be of the one was to now what paid that. specifically financing looking schedule in said is to debt payments. your that, basically quarter schedule to last that monthly and may amortization trying would a U.S. That in denominated quarter last [indiscernible] because just presented debt on then I'm Delta. fully I debt your

in -- included that's And Yes. [indiscernible]

Spread out.

based to what of have look contractual amortization September import it Brazilian debentures not which years, due in what meaning financing of $XX That million that includes were the assuming debt capital to you also, it's that, table go concluded BRLXXX our was debt Xth, Having historically, the that was back saw our financing. on over rollovers there see and in September we were have that of that is at that you already and the between of cost never rolled, amortization between capital. And was is included said schedule, included -- then in you to amortization money apply. was of there that that and if then of relying back about cost Amortization been -- want the to if the in schedule, And schedule in in schedule over, you a last to on over dollar rolled to was debt provided which favor the financings go you during the would -- that, GOL shows was partner the on at also four payment -- it's is and in working to the down And the the our we there dollars for the release, banks rollover and back the on the garnering the broke payments are next And amortization million you on the Delta don't per banks Pre-pandemic, the we've October financial GOL quarter. rollover on update semi-annual the monthly so been that March. we loan end reals. in year. payment also -- what end we import credit It from is addition schedule. amortization quarterly what pandemic support that working analysis. return the on have asking you're where want that's in receive keep rolling specifically and and also this

is pandemic not that, off match cash with What's schedule so normal always between cash And numbers, now be the those that see inflows, of not that with about category been I'm million end some sorry, from of and that's we've our in year. of banking you be also. the But next roughly relief the something kind Normal that's in to scenario. for starting now number meaning take there that it operations. quarter. amortization in would that us. that if It's that fourth BRLXXX is those that's normal you in financial rolling numbers would what over debt

kind not negotiable, category negotiable. should use That's release, because capital million And and so, definitely to been probably be our there our or of other in one financing all some have like our with we're airlines used. the the of with it's think, I finance. investors has one working say few would the honoring of is competitors it in this year. It's also, all of commercial in investors Latin right, been capital import be mean you unless on partnership It's that the like And with not commercial our financing capital it's clear to we've had we've the -- were tools returned capital. this that commitments commercial America markets a I returning year. capital only not finance, support, and it Delta that to way I'd just -- that where We've $XXX markets,

we of that also side, banks lost -- the credit, of commercial support activities, true finance and CapEx with on commercial our take international during way with that the banks of the And but received any the but pandemic credit. to way Now, that devaluation by affected Brazilian were the about that financing some the on you markets has the actually overhauls, was created additional worked credit that this liquidity as from balance haven't commercial was this. sheet where haven't say, been BRLXXX the done system why also engine But partnership dime a coming roll prepared and amount a if additional There and the March we thing airlines. real available us situation One this that and of extended we to our not that our exchange that partnership, and the have think of closely. other Brazilian now. the well how made of rate to system of for was And the in -- pre-pandemic. side Brazilian locally, we banking monitoring push into us capital has credit might kind GOL obviously banks bank's credit investors, over Brazilian created let's kind of as it the situation of this if because we will has variation, for that's banking roughly cover been that's until a out until where lot we pre-pandemic I BRLXXX continued since that was million million normal BRLXXX from generated million continue to what that's get the believe drastically assumes access into helped sheet that that treated capital markets was the been have functioning has a I preparation Obviously our the coming that liquidity this, different for pandemic. markets. had said, -- assumes But preserved a ministry that perspective, it economic balance and that from we've markets as we not of the

with raising, QX schizophrenic avoiding over purposely short-term some done so then are how capital maybe in fear of got but something other might amortizations. August, We back in massacred or kind we by you saw dealing like with on. have we We were a of airlines bunch many

as back were a said the we to did, to start our wants and I level you they what cash, bragged when airlines of in we now, in think a ways market have how the need you access almost raise bond market We very Airlines rules to. recovered are Market about more managing level, -- almost, they're almost additional about. clear to creative cash you're coupled that XXs and we can raise did -- the need to to capital that market sheet always that the that. Using you when doing back prices have our almost balance

Hopefully I do the you pack look a to you also to of also tried but and know other interesting that. a for because next lot all we types was getting kind lot of that liability management opportunities a we're MAX, can some for into items and to related comeback also having acquisition just cushion, and it's at that our -- conditions, if our those give are those -- you fine. again, plans. which guys -- the aircraft budget for so get lot obligated are of have year, that Not are guys And include in cash of we for questions, to that just

We right? this obviously and things purpose companies leasing investors, banks and to of other agents thought call have is think for Celso, bondholders because clients GOL a thinking but strategy other GOL Edu the and work me, can, and understanding it formats has evaluate, it's like that. we to and talk how our at with we shareholders and to our are analysts much they and This as lot are this our you really information as Kaki, that understand about more and Our is important call is then not and generates talk here give obviously management senior helping people investors companies to questions our for our banks clarifications, talk leasing and really to but we here of clients, been and have a to to thinking good what that guys are us travel as our this. they're investors

so aired we And the we've on provide. of think much information can we as as side

has [indiscernible] balance finance value markets, of not that to the -- as do kind massive people working program, want airline that. an we finances we aircraft spending people capital aircraft those also And just has the to Because with grow. capital a are just that and sheet need us. our and not to acquire but Some

that much so our that's we've and right it's lot important same energy reasons give, the the it's business. is by why basis, on we it's do And what spending and equal this to but So important very giving basis and of focus thought. that's, -- is giving I relationship everybody a an it's main and a on think that, information of to that way we're work, the mean the an one access equal one investors been we on the

comprehensive Well, sense a Certainly. answer appreciate morning. normalcy this as as little of well the Thanks.

we'll questions can of operator. shoot to couple a got and can maybe here, to we question, we the question, another as you usual, have email next us We an through move respond offline get

ahead. go Matthew Breckenridge question And next Please from is with DSC Meridian. our

Slide I focus to Hi, gentlemen. second. a Thanks. wanted XX for on

last financial this I saw the it the denominated I liquidity, debt all Reals. should on in well, say, On amortization chart, time was schedule, the

have is, format and in read this, question owe my the proper of $XXX QX, million, chart do the is instance, so to And so that you this for million way BRLXXX now? you changed

So we rate, our get reason obligation. the the you that Matt, is gray use gray Real, you those can what's is rate so then a light were use your your rate? for using for that when to we and whole exchange we bunch dollar, exchange of dollar what's on And assumptions and whatever exchange rate questions want that did dark exchange the why is

to -- So the be that saying I the those are are are there, I'm our dollar, just not denominated the the debts. previous renegotiated, are question, obligations what's commercial in gray I'm as the they of -- saying dollars in are markets. going dark U.S. majority those saying capital was those they those not dark are

The first maturity markets which have the have convert that that XXXX, maturity. we $XXX on the XXXX and and is is capital XXXX our that's -- we then yellowish and that's million then

is our put ability we Brazilian you to that a the couple to a that. didn't half now and deal the are was back partners wanted we opposite years are the BRLXXX to of working continue Normally that done about the can other see of describing, roughly rolling keep our the us we see with which maturities ago it commercial a rematch the that. on out over match kind Real to in that also case, credit they we -- with just the those and perpetuity, we the that with that most schedule we'll renegotiated Reals, that banking category, and which semi-annual QX like semi-annual on to was schedule, and QX, work when provides. We of is amortization and we because banks to Brazilian capital They with is put and billion this. you debenture want amortization to the obligation, it have are said, components amortization when pandemic BRLX.X not our in hit a the and So and financing, import million, I was have in what meaning,

a which maturity -- the example we've that's we then took of the it's that's Brazilian the And a took March activity. maturity, XXXX we we a -- type in I bank because we 'XX do originally maturity took more of simple and the 'XX it's good March put maturity is loan. just a it security, September this. -- loan, it and a March so March complex and the the That's mean, than how 'XX. a created And March March maturity, not is debenture

of And questions that so on a that only is that, just reason we in it the the think why dollars. changed put because so exchange we on we rate, we then get schedule just lot

debt is contract. schedule the the that So in currency the on actual of

Okay.

same. And everything the is else

because off about That financing the larger are the to something option you thought on a question table to competitors a in being take recurring raise and said, near-term. heard you markets liquidity of the seems I you theme. way, Have where to planning that secured capital your have be some in the let's the tapping it doing similar a done

well use the a if have mentioned. not We have copy in some guess we, different [ph] so wanted Reals true one, there, us, -- to technique, convert to technology we out very I Number I have we Brazilian referring a a which we're other think an you components. we to would trying convertible be situation but issuance hope

have use do which is a ability we that it, we want if to positive. yes, So

provided the who have this of stock business, the ability XX% convert our make [Ph] The force also does other He the is and one the difference also we economics viable. have by we to he a provide borrow has shareholder, the controlling borrowers of support to was have issuance who other things. right, stock

have us, tap we to so would a because how I -- have things kind it way different describe we infinite is doing into then it, our and well those of of moments And just an on for things. don't a have we pick to

say, that so mean, was yesterday, U.S. there our obviously. today elections us is sure And We're today a yesterday I let's announcing third look at we we -- for. I'm waiting was that are for sorry market not big options -- yet. something results. all quarter the

Friday as do to pre-pandemic the redemption issues the because been XXth the have we on a as going an in liquidity. to B, our of mentioned, had QX Loan the cancelled saying, this other those of XXth, March March I in prudently we were The do also the and to which year, Term already proposal were sorry, of we preserve minorities we've Smiles going -- we XXth, QX, we early the both to

so had to And balance preserve sheet we and on it. that had we cash

financing, generally work. just vanilla structure doing you pure the here using and And cash, the had and have a balance of cash, are a good so, very a secured to spare already work a structuring we had it's spend we been lot we are sheet talk a of we issuance. type secure receptivity and when challenge QX financing created. in plain spare on already some time financed basically assets with project about on on that that do secured through Obviously, we which engines, did, a do that is July the parts -- on What our do are more

Brazilian fairly supported roughly that includes to our a that viable Brazilian have to -- not what, spent to warrants long make way and continue been our with development with been And yet XX%. out and dealt also it's on way that's lot the work over in debenture time up we real, come the know budget, yes, using trying structure of -- the else months is if and have is development crack figure other XX% that if we articulating be viable So it's you has structure, a to kind budget. saying also million have it's the and structure we've our will. of would bank able because $XXX to of co-invest we bank assets unencumbered seven code that local Everything in on the up we potential straightforward five-year is a to doable, last financing Brazilian of we that to the a which a not type on offered you

of bit But morphed situation little reflect different that see a in way. they other like of that's kind the I you I think can into you're relationships what think on those, think mentioning, a on to is when as as try we saying yes, busted we and the we in believe public And that, well growth to butts them. before created to think, June that our we've our count And saying capital and and keep as in equity. ever can I sum of there was we year. get and both investors markets maintained our since liquidity working went XXXX, balance like I before we next good well, was need real relationship debt with we the is I finance expansion we the on sheet, [Ph] so capital to

days the mesh, on the are transactions are that the of have airlines you securities limited really a which the the the combination -- the we and collateral because obviously have, these we that We need not will have, that if for have, table. with unsecured market we assets that

to have secured you And transaction. a so, do

we careful very cannibalized out been much second have, doing side and in us that now we've hard future so like I generally through you It's what we to left because, things be Brazil, aircraft if we the And of went and worse situation we're the kind massive and and assets securitizing sheet quarter which that. have in think about can do with compare that just we'd the of do other how in do a been able to saw not burn airlines. program as such that to like balance of U.S. assets, types transactions they revenues airlines, have loyalty

surviving seen other you've which any or the free cost, from what from been grants not U.S. the have U.S. big majority with airlines. gotten They've government. over and the Brazilian from also -- the the last of government, very things the or is payroll paying low money months loans We with cost low

Brazil. We have here in that not had

haven't a dime the We Brazilian got from government.

like been entities taxes we things while that, gotten payments and and not Now have postpone that. have we government able to to

much we to so where get tougher And today. been it's are to

citizen, to working. because on we, two say a and feet of the I'd to point own here. had hands good the certain to mindset, get been you Brazilian think that's now, pretty a this our how our that's feet, this until government more, off might you're of up expecting has If two We're to much but on we're we've have going own that we're survive on

getting we're our so now And results. quarter through our -- third with phase this

to always your doing, in some here Let's it's of the see corporate are in mean, to blue we thoughts on know But how and iPhones -- here done without of the the what to moment throwing of see. years, we'll and well, we the complex markets a over it's appreciate baby now experience around with bathwater, everybody's sense maps side finds for my of kind the red with you kind shape and up I have us feedback obviously and this going Company. short finance right companies having see with a in out XX what as guys and what match apply and studying all equation, makes problem term. this fix find are we're meaning, we'll all the what can the to creating as for that buy competitors non-competitors we're that interesting

And stay that. on so tuned

Okay.

adjustments amortizations QX than debt I've appears now the now now that QX that currency the financial before. are that they accurate? done the and Is the it were for So amortization larger -- schedule,

if mind, on you have get But -- I depends to have the wouldn't to in currency your it Well, we next assumption another Matt. hour. questions to five half get

guy, I problem, I So, get don't of guys and one -- guys call buy-side when through when just -- we from that, do we'll don't could up walk no one can had great. won't sell-side the tend a to call if criticisms a the I'm I I offline, said on not I we separately because that. name that question, I criticized minutes mind, his you don't But for was and mention good it that'd ten be who in me quarterly take the last like, spend but you that yes, question, apologize set

Please go is The Dan Seaport from question with ahead. next Global. McKenzie

XXXX. questions get Hey, Rich, correctly by to you're heard I couple thanks. leverage the three of looking times if mid A here,

is potential And in outlook? have is raises to clarify, where target and going capital that embedded seems somewhat some than imply a just would guess to so I the that I question. GOL one recovery faster guess guess, here with after that's I that's the I'm anticipated. I the

a just my question really first clarification question. that's So

and A as or or know, Thanks a it's that. that. we a a for below for which couple GOL, at that with deal that. oil this is here for here of have all always volatility we currency, prices to minimization with Then to not One the to leverage. is we airline things. not the -- That is with three Company. Thanks a issues have that, this manage Brazilian you We've like the airline, right of number times is pandemic. had and it's have WACC our budget, deal the economy, this now policy

so, And seek that. still we

of to that from second in I is half is run next the We right. first half on more EBITDA, one the problem a the was transition in will the rate -- because when of saying year, that Dan, number the basis

only And the or so going you're tracking second EBITDA, of the couldn't currency you post be to the normalized in is normal EBITDA But year. next in tell what a on there new quarter pandemic we're doing which to month. is with I start our leverage, there. component

be they more this back also quarter was The first be and workers quarter Brazil. QX and starts quarter, their come right, transporting the to be start be the same where down probably it comparison, QX a quarter next again year was the second large would pandemic, the to and year -- and going this first around traveling working is is normalized, of which it's a that but because corporates probably quarter normally the of QX weird destroyed, then, to of going year of

the on liabilities but a next right with And annualized you're way that we'll rematching. have if have QX based be point that and rate -- think match basis obviously in be run going it's on other we've the carrying we'll thinking relink it, costs so to will the rate a LTM, of a time, year, you aircraft QX we year, probably the what middle on In or assets help we're meaning, at annualized we in getting look that XX-month the capacity going next the done about and to and at demand, around so way the words, on calculations. basis, to the run adjustments, on obviously -- number

In in want to with that goal. line, getting back to reconnect addition our costs we also

part main make adjustments costs your Now, I liability it's is to mean, the question aircraft. aircraft, not rightsize other go either is yes, number, reducing to have, overcapacity because or we up there assets, on of to need the we we get going ends to further if be reducing that being I the don't the to -- is a if first fleet our liability. If

you're that were that on leverage And XX% XX sheet so, in operating the debt. accounting, that even about all and number our leases seeing remember on-balance is a basis those that aircraft includes all of IFRS which it XXX% though the are

because convert a to has is And then maturity, to to to get back QX QX will X% and We plan which liabilities or and size have XXXX already aircraft in got liability is costs that. we XXXX, environment. happen equity me that gone X.XX%, between think which significant the so X% so -- And We right other don't the and debt like rematching looking that probably respectively. scenario. the demand We have now QX. those current XXXX plan, to our to and any do have manage, maturity our I going perp

So I targets any have other aircraft. don't -- other I for don't than really liability management

demand, if controlling he like, billion, raise like, was and saying Rich, one and was raising first, when equity need And said, as since this we like about. I once your $X billion just then also when he need the rule, up we who's our you're he called to $X well up get have State He of why so, pick airlines no, but -- learnt Florida, the I'm market we more the from before shareholder. the he also with be I cap GOL's and a capital. matched I'd and But cash up was if as from moments, me more we rule was was called called and billion, additional it Rich, of Dan, it's who is called he aircraft retired, talking right predecessors $X to it got when I me always me don't me size, call me always

that we that So cognizant have plans don't to now we and have, raise reason can't equity. we're of we I'm saying don't equity very right is raise

I'm describing And so have that's question at -- right But do not answering this. other the not on financially it's the this of as on through supporting now this you're are depends of doing, this baseline. we ways Company. us exactly for What we your saying. XXXX was comparison as directly see ourselves on table is is, this that recoveries part I guys in that you the because

and leverage. on and our those because The around. It you match is whatever to match scenario going terms, other talk I'll our Okay, our that to not goes right comparison we're capacity right therefore demand. to is We but to that's liabilities way the demand the therefore new the comparison.

supply one industries match their airlines industries of have the in are demand. to their most only the Now course world offer probably of ability, that to the have

of because these last has management ability -- The this. been that's the have problem beauties also hampered you We or demand create is extremely it months revenue management. the to revenue stimulate during demand, suppress right, in one of can't eight airline demand

it were In could to fact, but you they in we're Dan, stimulate beginning you here the and because management were the using -- until of and because corporates some -- downwards of to just starting the large trying London back, to off have those we've analytics fly get just for revenue there pensions spiraling the been kept models come stories data the going pandemic, back that's $XXX We're at where the $XX and for demand starting going. going Brazil, but table.

ask guys of are in when mean on so traveling and large you that know to guys in guys you got Brazil when many will know know conferences because them, you you'll buying and GOL -- so, to probably talk and large are corporates just included, if I corporates tickets back And we happens. you guys you

it's said, so And scenario giving describing, a I year. a of it's for I'm QX us is of to -- QX was the not like this evolving. thanks next it's -- saying be kind is This not moving target, going Michael

about on this see adjusting that the But the guess year, of as best whatever QX, about by demand think our we're of the we're domestic that's of the not February our end would XX% that. serving that Brazilian XXth, but probably which through season. scenario be business the is keeping And of or year, -- you new revenue of on by probably be quarter, we and we'll only be asset structure, that's the a we'll to end going basis, what Brazilian be be will is. will next there, below is fixed the next we're XXXX matched cost second still we'll I thinking of can the XXXX believe to of are -- structure summer Brazilian mark QX, comparison. XX% we're year, end the normally beginning those market, Now of our markets which continue year Carnival be at QX

up down, know, but ability or just also Boeing. have deal with flex to with through As you operating our not we also the the the we have fleet lessors,

expire accelerate leases. operating off for the that to we have of the back, couple also to two because organically per the if of transformation We MAX, naturally aircraft roughly the years, roughly the MAX comes to, one month ability have next

have of wouldn't another them And why ability over be it the XX the reason question we when demand that We could leasing have with of part organically, I aircraft couple we why the we to that by And in MAX further. if was next years contracts, and aircraft. back. we XX the of saying back to increased want previous the -- the Or comes just so one those reasons component replaced another as the next could get aircraft return variable naturally. downsize our to, cost said of year then we downsize

at the And so can a cost. very on low ground keep we them

worst period hedged And for demand best case scenario. a all on naturally possible. scenarios be of scenario the so, demand can that The and time demand case we're

you're I are you I'm my us guess, back kind that's recovery. pace right, just led actually you help to second and of that Thanks attract question year are can and your ago look so of the of January and two you're when of the we for with mix relationship mix Where on traffic that wondering that versus comprehensive then at question. XX%, versus route just U.S.-Brazil might I XXXX, of getting if travel And corporate the the $XX comes in And American, And a the the what prior in, times corporate answer. that's today, see we like if partner. link the of just we kind XX% potentially. could

share. XX% the So market of

propel it of also as seems this So you for help this that domestic. well, some could potentially corporate mix

I'm So of light thinking you're on, some maybe that. more you just just wondering about if kind how could shed

neither the are it flying and around And might gradually I increasing to small will are still is We really and what corporate the believe be by levels. used the exactly travels resuming to on, travels be. what next it do mainly moment. the least only the This accounts, might I are volatile. executives the herd three, talking now mean, Actually, about things leisure Brazilian they it that big under drop quarter. quarter -- It's talking dramatically we of pragmatically to or demand already mean, pretty quarter, American the medical certain will at is Airlines... rules, And Dan. we one that will those this inoculated, next before to the we the previous medium employees earlier companies be Hi, is available are mainly believe medical it that which all improved situation after not should sticking forecast. have I to second from about happening, vaccine three hard believe -- predict be corporate those protocols are rate. expect the pre-COVID allowing and of forecasting But when we see second second might we missing. the the is what new alternatives. to enhanced have because, will already well something can second the compliance I see mix between at then solved quarter the the immunization, year. XX% those the or The we don't we the the ones than four domestic, that plane. when achieve be year And situation and expect [indiscernible] one market fatality take And

a like a going of a Europe little If you is chart, It But look Fortaleza a just in The at close So like in look going these that. the X presentations. night you're you of the at there, for slope 'XXs they we're slope at point markets, an And feels real these starting 'XXs weather, and I places 'XXs. flights Dan, been has like have a looks it one of in peak I know million, bit look up other even wearing if least, one. and been versus good know week, that this Difficulty] degrees X. wish the looks on like of let Brazil me like on XX the is one. backtrack it some right, take a $X,XXX had I our fall at if an that am, add in are we I week we're now. what's if it's [indiscernible] aficionado going it graph in that all not, because I collapse. but Brazil going Kaki -- million put sleeping $XXX in, season in and this I sweaters you down should could because summer to a July, at like of just our graph in, -- it's was in now, know here, and at we but be you you the to morning, down [Technical it

in the after really and months also and the we months level The B not. start segments self quarantining Brazil, Argentina us. southern months C, got five front in of E you'll in summer and see, this. second now A about did four of we've of Chile here up so, in And high had And And now a again, the to in to hemisphere, in three to think opening segments D, and quarter. Brazil

-- with the default the D, C, when immunity you herd E kind so the option talk population. and And segments about the it was of for

live truck be So saying, I goes in the gained there once on of lot neighborhood houses spikes a right. very front week, kind was those cases vaccines. Kaki sprays of dengue, that the around July a for the and at buildings country Brazil in, time a same through as to of time a and and And as tropical proactive is on

will in we there's And XXX to than a against have, of fatalities just per things. infra rate but ourselves making it when fatality And fatality that right. not of we lot homicides, and rate of at for lower structure day Brazil hit the all, protect so light built in types that certain be is

And so test day it's per homicide country. like has U.K. when like look I very for U.K. country when a in day perspective, X,XXX a per one whole different a that and COVID, hits like at entire that's

a it's very And perspective. so different

to be co-living So and developed than seeing Europe. like maybe remember going these talk different markets here phenomena, just our you U.S. some when in reality you're the about with of concept in is Brazil I think and

played the and the to how pre-COVID it this. And a is we the or we can is big normal in willing the or stay the we before. than much toward resume in months continuously is his topic. what is mainly customer Never had lives flavor after I that behavior is life, [indiscernible] the customer It life. of of for this And more pre-COVID -- segment, recover I we which expect like terms believe controversial in cities, approaching, people mean, the her will mean I mean behavior its I demand that's airline the I very increasing, are morbidity between, following mean describe the at is And the moment.

the to times that more hanging potential and we prior with bit two our partnership. experienced was we to a American three had there the between March first between three Airlines, two have the traffic weeks is and of So the only about verify that partnership enough of companies talking for fully already

that seems an already we interline It like had with American.

through And the share already so the that's and larger There Interline. observing code no partnership. we data no are was

this in to often this that is we it strategy the because, predicted. [indiscernible] as Airlines than looking much American as bigger other forward Company are will fly to And any more is is Brazil resuming as soon And Brazil.

the on So those the [indiscernible]. comment are

question-and-answer I with This go ahead, like remarks. sir. concludes Kakinoff to session. his Mr. closing Please proceed today's would invite to

I and gentlemen, Ladies hope our presentation found you and session Q&A helpful.

teams available speak you with needed. much. Relations Investor you very all Our to as Thank are

Thank Goal very you This today. a call and for day. concludes conference for Airlines have much participation nice

now may disconnect. You