Gol Intelligent Airlines (GOLLQ) 14 Mar 222021 Q4 Earnings call transcript

Good day and welcome to the GOL Airlines Fourth Quarter 2021 Results Conference Call. This morning, the company made it’s numbers available along with three videos with the results presentation, financial review and preliminary question-and-answer. GOL hopes everyone connected, has watched them. After the company's brief remarks, we will initiate the Q&A session when further instructions will be provided. This event is also being broadcast live via webcast and may be accessed through the company's website at www.voegol.com.br/ir and MZiQ platform at www.mziq.com. call via and may either the their the during presentation on our answered conference the GOL management platform the the questions this is following finished. the team post webcast questions by Investor Those Relations by after or will be

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

morning, the in on XX% domestic half of XXXX. the of a travel cost and like Good We best adjusted the and flexible month results the the demand first and reaching are December, the the were and possible made recovery our we employees, more the volume relevant most which was month creation dynamic EBITDA same the focus operation, trust of XXXX to suppliers quarter of to ratifying by projecting our a within of of margin. a the customers, In everyone. outbreak investors. start received quarter pandemic important from by due had would we relentless since I XX%

Cana, and Brazil, return Buenos markets Aires Punta Paramaribo. all the as like new We routes and to the of are already addition in ones main Montevideo, including such in Cancun, Pelotas, some international to flying Bonito

Gross sales improvement the market. are shuttle our travel in fourth market-leading business 'XX core the reestablished a XXXX. segment, XXXX service quarter XX% market represented development of approximately signs fourth seeing encouraging is between corporate exceeded We given in also quarter in we've of significant that and the Brazilian

capacity the XX% Our Load enduring to management, protected yields, a pre-pandemic the by utilization factors Flight increased and and quarter in GOL market for disciplined share consecutive positioned approach Smiles' the continue growing despite achieved quarter management exceeding of to and frequencies synergies. capacity fourth disciplined and XXXX. levels grew profitably. has improve. contribution now with from aircraft fourth liquidity significant We

debt and was sheet short-term balance in preserved the Our lowest years. is the four

with American recently Our Airlines. by be the liquidity finalized enhanced investment further will

Boeing We equity drive carbon MAX are transition reduce further accelerating to XXX to cost value create emissions. efficiencies and

value. reduction present unit expect a of X% incremental equity fleet around cost created and BRLX it’s be and billion with around at respective in financial our the should plan We the transformation

related predictability meeting the As recognize the a with result for of in that will occur contractual effect billion cash expect we we until BRLX.X to of better without additional the had aircraft is the this associated return costs return revised results. of to in the schedule. We acceleration, and quarterly we provision forecast This NGs XXXX. nonrecurring an return the obligations

aircraft the tax expect as results this the with also increase million of increasing a will greater maintenance synergies of quarter, effect. gradual synergies already Such In years. provided. intensifies expenses achieved the we show we and of to continues XXX Smiles have savings new merger that observed efficiencies. some BRLXXX We for honeymoon the reduction upcoming a MAX number the in in fleet

Finally, mention I the CADE's of approval would to MAP. acquisitions of like

financial our and of achieving CFO, over the Airport, will new Richard some efficiency. seats expanding Richard? to hand flight highlights. As the floor a routes result, departing offer per I present With Congonhas Thanks. we started and cost Lark, destinations greater number that, who to will from

Kaki. Thanks,

make Our capital of and investors. with our like have results over customers, decades comments to collaboration up built on structure of I'd employees, suppliers reflect couple the liquidity capital a and management. social we two GOL's

analysis earnings shared the today our release had quarter, was for video detailed and that in presentation a to the the access it and As this hope I financial them. chance for you've morning

stable Our October. available considering liquidity debt of billion the end billion remains announced of at at BRLX.X quarter last of BRLX.X 'XX, the fourth refinancing

XXXX, debt lowest short-term million approximately years. of Our four the end in the BRLXXX at totaled level

to we global in 'XX. fully million markets year, capital we paid obligations quarter had Although honored leasing in commitments BRLXXX of and the another fourth challenging our the

among net among gross EBITDA debt adjusted months our advantage XX, to was a ratio financial program market XX, December which including ratio, the peers. stable debt at the industry lowest is peers achieved competitive aircraft current management last XX relation in in September leverage Xx the liability XXXX, leasing to This represents XXXX. Our The lowest environment. xX

during capital growth to our initiatives I be return availability optimizing which floor Kakinoff. of of to Our now obtain for ensure additional for sufficient sources the cost liquidity, of will XXXX. will funds the

We stronger to determination to Thanks, extreme condition in normalization the question-and-answer are of Team on GOL like position to solid reiterate a professionalism puts more Eagles, with the operations. Richard. the move us I'd with session. who that of commitment. We now employees, the and expand thanking again our emerge close and our working market. will by All resilient even this

the from [Operator question Instructions] Zamacona come ahead. Alejandro go with Credit Suisse. will first And Please

you for my questions. thank Hi, taking

Just question yields. a on quick

Smiles considering a we can normalized yield think the improvement? after saw we quarter significant about for integration, how this the that So

with had apples-to-apples yields Yes, as already year, management in on XX% last management, from going increase what there. take things, reincorporation in system means basis of by that yield third The normalized creating there's a on management, can't now affected Smiles I in right around of that. general. really inventory And question. better September, I'll we unified XX% roughly and a to the unifying yields comparison an quarter yield -- because One, on a worked lot of highlighted, because in a of on say we couple the the that a couple we things.

normalize it's in yield speak are And been also should do. And XXXX also and yield short March, many we've hard comments about getting tracking able yields the BRLX.XX two of probably that domestic to made the now going the related yield XX% sold, prices the which we're we're to the possible But on yield of the the by the management. we obviously, we've been capacity. is the in recovering inventory now to our in take so I'll is your -- That with demand and Brazilian now influenced to what's yields where May deal and kind with the ago. oil weeks about short-term we number incorporated, of work that What's terms in right of comparison that correlates advantage versus general in BRLX.XX. about a of sold and like term run have to market of it's already market, seasonal we make which that at above ticket in you of which months that at couple a dynamic about are down price that yields been hard and environment rate into yield to highly question on a other normalized increases. management XX% dealing by operate up in of very Obviously, to current is because still a our that market today, to environment we're April, characteristics adjust

a and costs gradual the price so as are capacity the adjustments And Also, factors opposed But has ends XX%. that Smiles in variation LATAM yields on oil as a to down quick to the increase adjust capacity a to XX% of your XX% we've XX% on anyway, principal done issue the going those competitors situation transaction also velocity and to affect you've for what -- made can yield. as with seen their of it's well adjusting result that The what capacity. question, back reincorporation. the will reduced adjustments. about market, up happens But being be about about reduced the by as

I if Okay. may. And second then my question,

capacity, it terms a implying higher small when decrease of the then we which saw expected. in guidance in reduction new has capacity. the But meaningful we outlook, Just at terms of a is look

the we roughly load factor what Because is stable. missing? So are

So what are we there. sure make want I missing to just

be NG to Well, the missing transformation what better also has the would how terms is aircraft understanding doing what you accelerating larger MAX utilization. from our we're ASK we're in which of a aircraft about and transformation, and fleet network doing per production

full creates referring are a back be what will the in higher XX back operating with and factors same you're to second the that from per the in accelerating fleet aircraft our time, the guidance still And of not half. hours the at particular production. only so transition of we're slightly production that's That the XX efficiency. We're the high in then to, operating And when we're to MAX the case all at ASK day, which aircraft. has per the utilization NG ASK between those

That our more want seats, that a And you producing basis aircraft so is will, on if right? be about basis, same-store stores, that if think seats. it our you to capacity and will on sales a

after and modeling larger reach you the more a the seat and on help is the contact utilization. that, the if we Mario there. aircraft details other so with And can factor call. there's slightly [ph] count any -- And myself in just need then But out you off-line,

Alejandro, management. like along mean, rationality. by led that market now I'd the observed I GOL that I Okay. sense, that you capacity have to saying name game of years in complement mean, have is the towards last the

the considering international the days around more Because fuel current and the comparison additional But in coming current there prices, industry market. is oil the the are between prices. ever, XX important all rationality that's we have retail kind jet not delay jet what therefore, the of seen cost jet demonstrated far. airlines. a even oil from of fuel Now level Brazil, the has to to than And higher pressures we parity envisioning so fuel, in those the current price an

we to at be the could following XX the case reductions expect have prices further even level that oil believe I the days. in XX, forecast So we will that that kept

Thank Paulo. you, Okay.

Thank you.

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

yields, contribution of business. Hey, the at without quarter the was fourth Rich, thanks. that looking I'm

just on full that's Or that actions BRLX comment quarter business we've simply that to being your year-to-date? that BRLX.XX. of Does mix were restoration a BRLX a I'm rate here. yields back, business? is another pricing the run the revenue And and normalized about that another of seen based or in thinking So billion of include closer billion

Hello. muted. are speakers Perhaps ours

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Okay. Yes. Thanks.

Yes.

the in normalized and was. yields I are normalized term most question is didn't I got said us repeat, what what's going your I Sorry. yields, on normalized what Dan. The is I'll say short just yields because think of the which matters. what was,

asking cost with as the but will about in to yields QX going side. what's react what's as going the well You're capacity the on industrial on

a focus prices, As guys side oil high the tend there's correlation only was of internationally an Kaki between you offset there lot the and real of oil there. the Brazilian U.S. the A in on mentioned, to equation.

of put on fuel X.X does. [ph] negative. been We answering We as a the me a have here correlation [ph] because passes some that. impact. But if oil also some lag the automatically bit has, run-up Kaki us quick about jet can us only strong mute. usually that me offset and a It's the of on X.X there's of which the you side I But have the on and realize as prices immediate adjust will, platform it to saying, was put does ticket hasn't has equation. to And negative. to -- I recently. roughly was increases prices. between It XX-day the those It's give of visibility The little question let the cost in when currency time break just producer closer

you if make the first I could go so Just question to of sure just back can your I there, part it. answer

Yes.

be to Just potentially? just contribution get what without that trying XXXX sense is business. And fourth the of I'm to quarter a record was yields, in addition that here the going of

there services. recovery Well, the in market the started August of the not not that XXXX large XX% traffic. such and corporate they only consumption, that the There's recovered. beverages the it's there massive today the clients Yes. last that below. of clients, Right that overall. of We is And education most place it's are financial end that some sectors the as and blue in business. -- towards above still represents sectors our food point-to-point for gas, get it's metals that and -- ones The oriented direct we oil specific recovered. specific contribution travel. main and in are especially specific are year, fully without and And corporate because chips started traffic the are that and around are There's Brazilian the sectors are mining global to GOL below are upside, not network

that of of kind the we'd our more like then be GOL leisure. the VFR, the XX-XX to customers is that business normalized QX. by traveling on and we rest something more the July, travel restrictions of on yields activity of corporates yes, yes, VFR the The mix that have QX was expect VFR to being a continues XX% network these mix positively So in And leisure/business. and present were evolve probably that back large and their employees and leisure, less imposed driven by many June, as that of for

be by and be, in of to there, out traffic and on in the industry the a the providing half passenger favor if there that. versus happening is take the of time, is guys relative and also of capacity then the lower-yielding I of same service, basis, the you are there saying QX required off. happening. that, the then speak QX are we'll rolls we're And And alternation crowding definitely can all increase some adjustments fare extent, higher-yielding data capacity pandemic QX mentioning, you restrictions at cost that that have there higher-yielding much you're the benefit very going to have So case, a mix will that correct. in in of the with a is on the if What second the the as to as, the you so general reductions will, an which there's to passengers; in our

doesn't as through BRLX.XX be kind that which of in that to normalized a short not correlate of it normalized it's variety not OTAs the number price ticket leisure. an burn what currency and at which the Brazilian certain term. to and BRLXXX side of mentioning It's a right average helped in more real like there were segments can ticket in increase back BRLXXX yield about mean kind I -- was also the is between has promotional achieving now, corporate so used that necessarily forward increases. activity significantly also not tariffs things of over ticket basis of the stimulate reducing on mentioned, coming be And fully on large we're of because would overall. BRLX.XX the where an is demand BRLXXX or near and hasn't It term the in what of at prices, oil full it's in average discounts the we just compensated it's And and well yield. room a to is. somewhere appreciation would VFR currency we the kind that you And private just eliminating of, Remember, traffic looking but the

things it's in that compensate So component for the increase to doing cost. of variety there the we're of a fuel unit the

Okay. video, respect I for as thanks with the that well. guess to

of M&A You an highlighted the urgency M&A outside looking appeared wondering any in, had that conversations. guys impact in been volatility LATAM touched your price MAP. fuel interested hasn't it on has if just on but and simply I'm And of

Dan, it's Kakinoff here.

accelerating. authorities. the corporate good question. catch-up Just After curve Brazilian protocols related before we first quarter this strong the believe to that not the and And we saw, but I from started, with the for your to is the I second another alongside towards yet mainly Carnival, It's pre-pandemic the seen levels since coming pandemic large have time a information the will we corporate in the third have from on, positive that affecting the moment relaxation year. answer demand, this the that coming yields, the way, close the on to

the, American looking a synergies, is this everybody opportunities. will global the M&A I there no is be reason to I additional -- Regarding believe mean think for say, environment, let here. there some me might happen that cooperations, not that trend for is South airlines

happens. we major a trend the being the prepared but I things is I I done parallel, I between in the and developed to in concrete ourselves trend, or but can also of to and synergies envision; play [indiscernible] to planned is usually of that believe kind some, plenty other believe believe mean, be But full is there about We get are possibilities involve have that cooperations -- are it which happen that a a role worldwide. codeshare there It if the towards merger. mean moving this that I market we market competitors this now might direction. GOL is nothing and

time. thanks your Okay, for

Thank you.

Evercore. will Duane come question go next Pfennigwerth The ahead. Please from with

is Thank my Jake question. Duane. you this Hi, Gunning on for for taking

is on call? who Sorry, the

Jake Gunning, Duane's associate.

high periods typically Brazil historically, inflation. inflationary have So where risen with has fares seen

Do now to comments You prices? inflation to the relationship would Brazil to recent Or U.S. ticket expect you be similar in think seeing you America? specific also relating to your on increase South it in in this result yield. is seem a or

relationship? Which

inflation? prices between broader relationship ticket The and market inflation with

much is labor. very costs market it's more are Yes. our much price Well, much Inflation, more sensitive. leisure aircraft price inelastic. more yes, You the market, main view different, U.S. have of right? in again, and our market Brazil The fixed is

and we So cost then impacted aircraft And for the is in what's exchange are fixed contracts. the what have the of there by rates. more demand on going global supply aircraft the and labor of

December. so we was living negotiated an on cost adjustment don't -- have of annual in And already which we labor

see fixed our impact U.S. cost structure in really not you does the inflation might so And like

component variable would cost, cost is vary but we've the talked variable it our that about. fuel main the On

overall more with not issue necessarily economy, is the the Brazilian as impacting so it's GOL inflation directly. And

it economy, the be economy, what's oil, so economy. But overall And is going materials-driven Brazil impacting like iron as overall is the that. raw the commodities main a would Brazilian Brazilian impacting prices, with that effect ore, is things on

The And I the on impact is a that inflation and so as in at Brazilian the is Brazil-specific, economy. can the for current bullish -- this becomes rate on consumption increases interest very us point then is Brazil, environment mean is the have as issue that, government well where particular. in

on on you, you And that It's factors so It's And told if it what can rate on demand. positive We up demand. a Based have the just the have real-denominated pretty facilities. much can related neutral more sheet. mentioned. impact balance us. of it's for high cost being the of impacts then see I variable the to inflation on that component ends a muted you don't on very

a impact the I are is in more only goods retail our And us has manage balance the and travel I sheet. it purchase to to installment ability final customers their we to more comment payments. make So insensitive how of in guess would muted Brazil price-sensitive air that terms on

And have well so that. that manage we tool to as

question, people address the -- misinformation out go we make just fire is some the in in I'm rapid and to seeing I to consulting put operator, with to us reports I analysts. not the by time spend queue next correcting is this that to our asks without buy pressure sometimes sure side the understand the to sell-side Before out sell-side that wanted analysts queue. on And us

to and because because our relates it's as release explained impact results, contractual have you analyst. to of time the you And That increased the a does it's aircraft conditions. costs, it, it in the aircraft in by return just quarter, understand provisions not because probably it to we through and manage at will, returns XXXX, on you trigger have mention specific NG to if early results XXXX the results. the and yet But of important how JPMorgan estimated quarter many those for it XXXX the of transition we an the expenses couple point I'll redeliveries, next fleet mistake it. not accounting in that the in management accelerate the complicated reflects had over it it the for is was on it time go of made MAX. the the was from through this it’s the And return the XXXX and a look big So fourth our fourth decision so you provisioned based in to the we lease And years.

purpose They're off. year That I'm -- to those And near was is me the not Abdalla we then made four JPMorgan what those needs into incorrect said, of keeps Fernando what very million not return over operations. the my -- because there future forward. year XXXX XXXX, screen back looking And BRLX.X do this misleading. not next going already from won't exact to and idle okay, is hear same expenses aircraft provisions or because but another what be is That's correct. cost debt, are years. to had we disclose aircraft not So the you they so said not and that that that's put report to provisions those Can short-term that five a in BRLX.X research NG they computer in sure here component of that are said not affect billion operators? impact

short-term and difference that. so debt and the BRLXXX material We have of on that's significant a and million around tour caveat

in some operator, please. platform. then of for next we give the after received go person some And do that on the person like queue, the in I'd can is the what webcast next the queue, So space we questions the to to

communicating are in environment. this hybrid folks Some way that with new us

sir. Yes,

Our next Please Raymond ahead. from go question Syth James. come with will Savi

in today, was I color it where XXXX volume or revenue? more terms on what provide generally, is if good Hey, in versus of business bit Dan's of demand you or a actually. good up If afternoon, little on guide? And like like the may are I question either could on assuming maybe you wondering the follow kind recovery. morning XXXX,

number what XXXX. XX% I had are customers today that, the to moment, sales of forecasting, is forecast in and Hi That's flying mean, corporate bookings and Savi, forward along our XX% we comparison achieve the we here current XXXX. Kakinoff quarter. Difficulty] percentage XX% second got the the XX% to than that we XX% considering might [Technical what it's in in -- in at the

Kaki, the currently or... earlier XX% And helpful. you it's That's missed part. saying to sorry, Are I XX%

you we need okay? are forward differentiate currently on to moment what today as because getting board we selling that's and So the Yes, the bookings, what at are difference.

If snapshot, to And bookings in take percentage you a comparison are board on telling levels, to the customers X-X. would what's second getting the us might corporate pre-pandemic to forward during today of XX% achieve the that would quarter, XX%, that be XX%. we the XX%

are kind And think hearing get that and is -- be you -- know to there? along I that clients don't to is any permanent XXXX I there reason like those we great be lines, kind but there there of kind to are just if that there corporate mean, impairment visibility levels is have back demand assumption from of some is that there'll an you you in beyond grows? because any Or levels as growth the of beyond GDP going

up catching last an the travels year. over postponed those somehow demand now to pretty believe we the those XXXX reasons And is performing phenomenon what combining these pandemic. are fast. natural is the mean, which with Therefore, will the pandemic And element period. travels not somehow all I I the demand during precise but unleashed. are And it's this business there additional during it's hard behind exactly really the are now they today additional real capacity. is elements Savi, the disguising

if I EBITDA a That's a clarification just the might, And guide. good XXXX question point. then quick on

I fleet the says costs. I we cash kind what it as related be return might XXXX cash wondering Is to component. cost? outlay NG And the that excludes the forecast maintenance in think transformation was of

are All fully provisioned. Yes. those

So forward does closets. cost contract the -- return constantly have on provisioned expense it relates with your based companies, your full you're impact to is related -- to work supposed to there's fleet going no how

transaction, is almost return with updated. we what operations. returns did allows the million is MAXs. the other when won't the you -- to we there finance -- we're to which to fully And we're the announced conditions in doing conditions at the the it financing as have specific related intake They're XXXX, be with you we transaction constantly point we And saw have January. tie the saying us announced And in the of $XXX doing NGs so lease in you're those that what is, that matching

So in and $X to significant outlay be affect million are the expenses cost those to this a redelivery $X between any year, mainly on XXXX, on there returns. engine each redeliveries But won't required basis, basis. to related gross net a can cash related the million, overhaul that

GOL, average grounding, aged years not plan. which of hit years about MAX last So going over pandemic MAX fleet remember, and negatively specifically four we've two is of to up XX in our the what because the case of our years of was been years with the and two

see sweet back years this you'll or to so our getting acceleration in lower. of spot And seven as us

high issues with on mentioned of to components time the we've longer are going those I and also of cash abnormally all for So periods older conserving all been related the been these keeping engine in tied operating costs because NGs and pandemic. what's up

we not a so fleet. coming on linked But year a do MAXs And this that. end for and all on buy but catch-up basis this with will that be by just are reset value the in equity it's year on data or create this it year also finishing replacement a to that in borrow you financing going a you're the is the that? us do gave of on so able which whatever can to MAX; figure is you the mention be for NGs. help on that to a basis, how dial XX above generation help we'll us when out net We that return And basis against the looking just when we important we're we I MAXs of the that to

you. That’s helpful. Thank

questions take would you the webcast to Lark, Mr. now? like

many. hedged that year $XX we've this around got right is generally but given with have not -- GOL, going works you anyway, some two are down queue who XX around as so person birds and one currently in I Yes, current are to to pick. we're don't Yes, ask environment? your so the hedged, this company, The be we'll following good around your need you maybe basis. think forward there significant we've a about and this that far is stone. on short the of At that's answer XX-month How know, question. next XX% hedges things. enough for -- paid? Yes, we probably have to of for XX who's hedged. I'll hedging -- provide know on XX% in was month going just program about with I a just months got a one kill oil been it's thinking XX% then us, we've I'll fuel the a and generally additional forward year folks are you exposure, one be those which now. Can -- color for -- got couple you XX what's on We're around will I

given hedged on of conservation, environment, the and pandemic has main are have what's liquidity for been would many caused be XX that and that not XX been with to in focus we the prices that we have -- months. going XX% our next us Given were given cash and triggers months hit we our oil

QX defaulted. why oil One that. BRLX.X the mark-to-market about And had that know only hedging on of negative that X scenario counterparties. situation the hedge prices. XXXX, back our end of comments that with we price the cash. company those in just program. months you had our our we into so, those and and extracted assets. we've to the year else is almost Having they of 'XX for September, we of having peers the everyone the started pandemic in that, XX market deposited with our an were of down current us lasting X And hedges, ago, these in in beginning billion pay then using of our gains the all then monetizing position. couple hedged oil liquidity or November and But around at were 'XX, that's and that's used which or the points we around in at positions And ran of all. on billion one. pandemic relatively hedge year, we rolled did for that prior needs right existing of BRLX that, triggers is of from always fully oil now low this unhedged mid-XXs kept still year, we And but started assets when the went then of on of we we out how imagined were a XX -- fully among follow the literally the we We're Now put run-up not last next one said we're number months, industry I to XXs, cash say And noncash example we about have said XX% roughly the said the positions

is not the doing XX side puts be There's when it's curve, time the as premium flow the make should the manage the look way been at mean now across that capacity months. a -- there's point we've uncertainty XX% would the least cash I echoing pressure, in the this entire a that final probably then that we dictates then doing out curve. that hedging. situation. you And And which almost exact Kaki's present that's comments to least would XX horizon in time years. would at it's the market the for affected the And and I is at around so go entire this on

right while so where significantly market have below now. they're is do And triggers, the we

us expect that. from anything see so don't I on And to

of a that that's question long so a but was couple there questions to answer doing to what other on hedging. And related we're

Of person to Operator, course, all as statements easier well to in can data next the go financial our but to get you make just it in queue. this to. is the

will The go next Monsivais from with Pablo come ahead. Please question Barclays.

have I one. just question. my simple taking for a thanks and morning good Hi,

jet price the your for deploy FX moving What Looking at plans the in is are the but is markets, direction. fuel more international right particularly capacity increasing U.S.? that to the to

operations the to to our So are we resume in about U.S., May.

been capacity that specific deploying pretty route. in for cautious We additional have

a a Florida unique is to -- offer operating know, that fly and directly GOL produced Brazil offer level. to make from profitable at you by route us such As probably a to that capable of

Regarding factor presentation the current pretty such a additional absorbed the same imposed level of the higher that at prices. have and XXXX, strategy those rationality. yields accordingly, the much has a a The this the in so above we those Richard is see basically we line has that, industry. good the been yield bookings I industry we is have the disciplined capacity foreseen -- travelers, And the tickets exactly through that indicators as level make level, XX% that that of in April talking the costs indicators, prepandemic mentioned higher the in demands have so higher by have highlighted as do We load it with enough not by to about precisely at operating industry the in we disciplined overall, clearly market deployed outcome wouldn't have May, beginning phenomenon and with behaving I XXXX. and has jet additional was cope mean March, to sold higher if this I far. last of combination And by it think be a but of much been leisure his been fuel strong forward with seen the capacity possible answer.

Very Thank you very much. good.

you. Thank

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questions. a that my that mentioned taking ago. but have you of But couple policy for I of the already pricing my Thanks Most questions minutes fuel think Richard. Hi, you regarding answered.

back the Okay. to come Operator, queue in question one then platform. from on we'll a with I'll question go the and -- other

with next come The ahead. will Please sir. Rogério go Yes, from question UBS. Araújo

Hi, thanks regarding fleet. Richard. question Hi, have the Yes. for I the end-of-year one opportunity. aircraft single

was return that beyond could reduction costs aircraft guidance. were would provisioned? this think And [indiscernible] capacity first, year? this it. still the the in can create were the I provision included those extra That's reduction we already. second, assume slight like in to costs to a And not there So this level during

one there I in not Morgan of reports, Yes, question. Stanley it the good some report, The I'm sure. think there the also other that's a out -- misinformation was was

we We you finished total made through We let this haven't really with Well, some walk we me of aircraft on, XXXX will, fleet. -- it. XXX in year. if kind finished the changed adjustments for the I fleet guidance -- just mean, we

As XXX see size. same guidance, roughly in you it's and fleet the it's so the XXX, between

levers. the the have And Either MAXs with can coming in can an transition. match that, MAXs going accelerating MAX within We than or then we're we a have fleet we NGs slower. out in working going faster out. So have we three on can NG -- out

so we to pretty match adjust capacity well And our can demand.

utilization. driver is aircraft, matching lower then to demand going do efficiency. as is really just in demand is And network for short that through And aircraft the other lever the need be is what's lower regulate operating first level can a we of And efficiency aircraft so it. way with return on there with our the us slightly The picks it have by to we on and then expensive aircraft if the up. we having

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from is bureaucracy -- increase. approval. close the webcast basically just exclusive but maybe in queue on the which think which the the us imminent. for out I have rights after queue to one BRLX additional weeks -- we our the occur on days -- just It's top approval short run I'll offering. is is process that, in That but capital the don't timing might term, antitrust And to do other or with expected affect go of billion antitrust Just to of codeshare question the final of preemptive then have in And I Airlines? American the we a the with what's would it's updated the the

can you the So operator, anyone said, do is with message in last see maybe queue. wants to else that I'm so -- come here if getting the the to call

Please question will ahead. with Mike Instructions] come [Operator from next Linenberg go sir. The Yes, Bank. Deutsche

the we're I'm forecast, shave percent. think BRLXX looks a the for quick here. are for XX%. revenue importantly, when only like one thanks the just Rich, the about And I guys, BRLXX.X XXXX now, few squeezing Hey points one forecast yet down five your going versus you in. me to ask more but revised think on billion, down it I capacity, seats billion

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current And back coming so they're this with dovetailing likely most scenario.

you, those yields if don't with So leverage and that that mentioning I of see head don't substantial argue, to my Mike, I am in both like might have of I give to database -- wrong the way I to numbers respect that yields. I back know, I'm you factors would might the yield are XXXX but us all mistaken. And and to levels be the keep not go to those

that BRLX.XX No, ever I when you think like, before. I heard I've -- seen thing haven't yield, said was to first that's said that I don't the BRLX.XX wow,

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requirements airline slot been suspended they've are we've again the guys us. are that we being back airlines during that's all we're that's all kept that pandemic, of you on you just other entire range, And the numbers the the it to the given And thinking the as this the the end suspended. at impacting hitting going for way been And season -- capacity September. capacity. until then question, I impact so that's low two, mean by most the that's next prudent know, divide U.S.

on market there's So share that's no focus -- no reason reason. there's to

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guys sending going least takes... to it definitely capacity, message to the a you you're move that are what do making So at I on market a mean,

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GOL concludes today. This very have Thank for day. for participation your call great Airlines you and conference the a much