Gol Intelligent Airlines (GOLLQ) 28 Jul 222022 Q2 Earnings call transcript

Welcome to the GOL Airlines Second Quarter 2022 Results Conference Call. This morning the company made available its results. After GOL's presentation we will initiate the Q&A session for analysts and investors, when further instructions will be provided. This event is also being broadcast live via webcast and may be accessed to the company website at www.voegol.com.br/ir and MZiQ platform at www.mziq.com. Those following the presentation via the webcast may post their questions on the platform and their questions will either be answered by the management during this call or by the GOL’s Investor Relations' team after the conference is finished.

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

and everyone. for this GOL took with customer its been on you day, forward the as team to a dynamic best more will you role I'm consistency the serving the and industry, airline to company. focus the our to trends recovery. being commitment to I Good us help the And heights. of confident is today. look with VOEGOL’s, with growth, about post-pandemic the as time an Thank even joining to proximity has It that all pillars: the exciting as and goal are quarter three emerging leading new the quarters. this trends always and guiding greater the sharing light coming in and in of over for CEO main commitment continue demand for be the

of highest in achievements, Turning one our now weakest recorded to We revenues GOL's considering quarterly year. levels the especially recognized important results. of the of revenues quarter. seasonality period, of operating very the we and results the the history. for grew two Notably, the historically the the We improve our

a demand sustainable travel. of in had in in new through company's management, increasing of focus of corporate of percentage high ability represents want coming the with strong GOL's the the and increase the higher resumption us in consistent leisure a yield our this that stability competitors. months attention again, quarter believe a and derives pre-pandemic working and our way. the travel, second second curves vaccinated from milestone profitability of stimulated particular demand traffic in quarter draw numbers preserving for and differential, I to and Brazilian Once increase the continue liquidity. hybrid on the efficient to than disciplined capacity recovery continuous air XXXX. management We in PRASK. The yields combination by faster the This companies The and forms was the to will future yields are XX% than XX% booking population make market. increase of And our XX% growing in main in

Our capacity also Q growth significant to measured of to sales the that returning is more in but to second us double pandemic. implies those surpassed than we that XXXX. These XXXX numbers only Q track was now it the ASK second prior our are and as not

and million passengers unit an Our demonstrates than metric flights carrying efficiency XXX approximately important markets more leadership According second reaching The provides an The cost which Guarulhos more Grande Rio and the had of corporate of routes Paulo in market, of we presence during new the the double savings. of best our do connectivity evolving and greater XX%, XXXX. a Preto Airport, state José for quarter, in X Buenos serve longer in customer its Aires Boeing for GOL the the these the Fundo maintain average services. Miami, Ribeirão account Sao places this the in passengers Orlando and state of We XXX for margins expanded In in using to improve is and in that flights passengers fuel the us position and daily demand, segment. basis; do international these flight efficiency rebound four aircraft in number in ex-fuel continues Passo the our to São its of increased a with We the how XXX pandemic. around our productivity of and to ABRACORP, a our decreased markets and carried quarter Rio company. by regional Sul. than GOL Preto privileged to MAX network resumed to GOL Uruguaiana

departing our to also Paraguay addition, resumed demand our average we capacity and In Guarulhos. The we our our from double operations and comparison, year-over-year daily Bolivia flights.

leading cost advantageous unit in lowest region, quarters the put us, achieve position to to our of an XX% the model environment Brazilian the operating result, grew demand in to proven challenging and our As revenue be business one for capture the the a rebound history. structure the Time-after-time us in highest efficient and on revenue in market. the by GOL's highly that,

pace fleet are We our greater and from keeping sustainability the in the plan advantages the due to cost combination of carbon modernization emissions. reduction of a

MAX of have NG. and end one around aircraft the This representing XXX the we of XXX of aircraft, fleet. delivery XXX new total expect XXXX, quarter, returned By MAX we one-third took to XX three

to have million aircraft the our scheduled will quarters approximately preserve following GOLLOG. comprised explained in by GOL liquidities for to potential previously return offset which Livre BRLXXX the will to fleet deposits return MAX models target to the partnership for aircraft Our XX% of returned is costs. accumulated Mercado freighter revenue incremental be using XXX the converted aircraft, of XXXX. dedicated maintenance to with generate will Three be The

in the month. aircraft next beginning is first The operation

minority additional and The from at set one of expect Synergies Turning payback million levers capital that the base And important tax will in we in on optimize were billion the following the of still BRLX in management, liquidity. program, Smiles period year. level And Customers Smiles interest markets. the BRLX acquisition of had sales achieved least billion inventory working the our surpassed GOL's lowest and years. generating XX in quarter. a synergies

we the release. to a Adjustments in in to revenue Thus, margins Now, exchange and adjusted you Eagles, industry our remain partially compensated earnings over fuel the a would lower recurring reflect of our couple scenario our and XXXX business to Team I leverage of rest debt EBITDA. expect strong around would in due model demonstrate eight in challenging like the to again, I our terms guidance, CapEx of thank addition by net dynamics, by about our investors for customers, variations, and conclude, more a suppliers company make and times of like the management. confidence to at continually year in rate comments environment. detailed who

we financial Richard? on Now, comment our will highlights.

RASK GOL's XXXX more respectively than XX% and BRLXX.XX. levels RASK XX% an of of the quarter approximately second increase period of and XX% ASK the achieving GOL'S same presented of XXXX compared doubled, in and pre-pandemic year. Yield to heating the

the XX% in compared dollars, quarter capacity more of substantial mostly We oil of of and increased quarter record to and fuel XX% numbers. because XXXX. XX% and result, pre-pandemic second company XX% reduction costs had had our registered in XX.X% compared quarter sales three times impacted And of doubling XQ BRLX.X level by in in GOL difference realized in quarter of our fuel partially X% match we XXXX second a hour. efficiency, the for a As expected reals, sales considerable in a represented by total improvement a fleet net airlines, revenue, respectively, superior quarter ASKs billion which level level, in quarter and the reduction GOLLOG. GOL terms a XXXX recurring increase rate year. which volatility. consecutive recurring increased prices, for potential already of at measured all second rebound X% the company's by levels in the period approximately per Brazilian which second our of presented average fifth XXXX growth third the sales GOL's recurring compared results. half for to was our X.X% CASK, fleet second than higher which fuel a costs the ticket an this decrease around increased being a the quarter was of of X% increase XXXX prices of idleness. more demonstrates XX% revenue. second further second the of quarter to note offset EBITDA we were in a approximately more The and you'll of daily Ancillary to by revenue And experience oil demand our the Brazilian of in exchange flight higher XXXX. revenue CASK of positive in sales GOL's higher than recurring consequently. in same our there. consecutive average of the revenues the when surge jet and the had to fuel GOL Like driven EBIT managing lower were in increased Smiles price sold, and margins increase approximately over unit have the XX% Further, achieved the with of consumption than and pre-pandemic

by quarter by As jet net fuel partially recurring mentioned, increase by introduction exchange the fuel result and this driven fleet with from MAXs of considerable price the rate billion, more BRLX.X in brings we're the XXXX, income. for the renewal, was lower the BRLX.X to cost Nonetheless, of continuing operating savings the of quarter offset additional second billion compared which into variations negative impact fleet. of our XXX

operating in operating by revenues of flow cash flow increase BRL cost, billion. cash impacted positive billion Regarding BRLX.X the in we had a fuel that, generated although, X.X the

had investment our billion As flow and positive cash of investment payments. part BRLX.X including was BRLX.X in cash capitalized a billion. billion, spare parts aircraft inventory, lease BRLX.X an of in flow maintenance, we Financial

last used an increase the the maintained of mainly company's of billion obtained quarter BRLX.X in to high and we the and BRLX.X cost the of in beginning accounts XX% in interest minority of BRLX.X financial raised the to billion more amortization the We increase assets compared Funds second a due acquisition of discipline when during billion We period approximately with at of Smiles. pandemic in of of cautiously such the to and return the in the receivable company's in result, a since interest liabilities. As of than management continued XXXX, XXXX. expenses liquidity invest as end paid the quarter. to were capital reduce other the

position has our lower short-term competitors, with levels leading which on future commitments our The throughout debt us liability productivity. in the management of significantly have competitors. successful than among period lowest focus benefits company's a the benefit put our We

leverage recovery Celso? our margin will levels. In addition, the pre-pandemic EBITDA gradually adjusted of reduce towards

am you our GOL's the commitment thank one in more IR initiatives and in to acknowledge year. a website. I ESG Through comprehensive our sustainability available I results, each the their closer consult a and to improving with customers. to than like I in of report today that XX,XXX of utilization, the build the employees season which committed aircraft in we competitive our conclude everyone's second that in of market half prepared Team you emphasize overcome dedication, our lead productivity and that the the improve during remarks and by current advantages may challenges the high growth. to want are I with annual Q&A Furthermore, want size session. to are our relationship to our Eagles Also, we to increase invite industry the would will of next initiate addition phase airline to opportunity the Operator, convinced to data

McKenzie Thank is go now [Operator from first Dan ahead. Please for conference Seaport questions. call Global. from question you. The Instructions] open comes The

Rich, put finer guys. point morning, Good Thanks. morning's on outlook. like to this a Hey. I'd

a and thing to an that stands despite outlook full revenue one year half flat got me, pre-tax losses. first an for out the So unchanged margin guide we've the improved

more got So forward? half out should a Is profitability of corporate if the we us. meaningful can better move dynamic that for as just line that back travel wondering a we just spend given flesh of see sight I'm you in the that the supply-demand you've thought bit on And behind year. that little implies increased

Number Yes, a know bit one. corporate made generally Number the which some to of QX, into strong in in Brazil, being I One given what's quarter know mix. of Yes, February, our kind mark which here and as QX to QX year the strongest couple of a you beginning would do of is we've crowd back terms tend at is being yields. our also travel significant to the is of level but of in say three, of more to maintain ability very disciplined continue question. on leisure ticket you particularly, things. from of the number our -- forward. as two, Dan, business expect full we on in with second improve kind end thanks time, of the since our in with of and QX And holiday costs adjustments the significant that for fare the the end QX industry and structure going significant going that the season out half same business and results fuel increase the we're the fares in increase at capacity VFR being we'll average terms transition travel does so of costs, in terms

And go tailwinds per QX give year across year part this cost because as whole slight going year will help into as day in full initial back get into Against the our on so increase in we productivity, some market increases the started the gold of some compensate is target this to of ex-fuel applies of cutting you when factors where capacity to what's to high we're given fleet the a being to saw this our -- capacity a which good was year. combination those of fuel we roughly this hours entire the the and back unit half as by is year in costs. the season us the peak that, rationally we as aircraft go the XX

that year. for to productivity GOL pushed be the next of For will peak us, QX

dynamics. the the And of through we're fares so all But driver obviously there. big revenues what of seeing side equation increase through you're managing combination of also on is those cost the are the a and a kind of but capacity in going

I And see so if question. pause there your let respond me just

leverage going well. reducing guess, finer on question the from clear and the second morning strengthening here here presentation go. earnings it and I And, as point seems to is of and others let to that's goal that. my for sheet balance the appreciate pretty I PowerPoint sort just in I'll and But the release Understood that this direction put dig Yes. a plans

positive the yet put then this. in seem that's just cash the lease and minimis like a the fourth given from air finer just again I'm in looks movements build wondering are if we're maturities and that point financed third just returns that -- GOL see pretty I'd another to another in here? like on So fair conclusion traffic It should And de quarter. liability seeing quarter,

know optimization to three mean to a which over mean, are in levels higher XX component in I to The take process resulting revenues a XXXX the context months as up perspective fleet what XX% Yes. our is of to achieve. needs dealing leverage. going put today I here. times The higher from yields policy we than leverage, and these be. where catch WAC that's we're obviously that's it efficiency you it target is And that's needs with

still that other aircraft back X.X goes XXXX that to cash As on dollar happen? to and majority able when But including of aircraft our you know going through February QX carrying scenario in pandemic the which question we're of terms probably with the inefficiency we're on the is saying until met billion. and that's to be the year. manage we this like going efficiency next it's our were hitting pandemic now. to when better QX. this of we so room we was on fleet suppliers, would pandemic, is relationships for the to the But relative that longer idles in on we proforma be be kept cost EBITDA that's basis we're still levels, further previously, we in EBITDA going during side. of of to have until taking year, January, would QX the a going run into cost originally, rate this I need until given dilution, improve a surpass of performance As BRL the the to the more looking carrying up The US XXXX side thought also basis, year, It's QX and

rate with normal the fleet when so, [ph] capacity, and CASK hitting is be efficiency normalized those we'll numbers. run And is corrected

And for is, business. complement that so, QX we're what mean you're to how those the QX about I you that's projections just what and managing said. talking really

still hopefully everybody still that component at is, cash this appreciates We're back management. other flow margin to The doing company. we're not management

and we it's component. still business, focused margins we're back out the accounting matching the going it. to here. managing going we're We're that's And be is that though focused so on not until And yet just to matching that have how conventions statements probably margins in inflows this providing be managing you assets liabilities, which I to those that year our we're with to how QX management. will be outflows even are hit come guidance of margin pause not financial we're on the back on

wanted I there. think on to compliment Celso point that

first the very But time point value pricing year. and oil curve had that in force once you points side, to fares I is how like your will instead somehow just for and because And the doing much prices be we company. second sense the we in that the curve already have that. management your curve a And in by On there, industry your drive that now some curve. step the so it's management the to concentrated the yield strong inventory back parallel will more so quarter of what yield really second steep will the we step on a we create come in We are rational. raise to on you inventory to expect follow management. we question, about pricing Yes. Dan, mean that And here I then want you a increase partially need sold quarter and lower we to compensate are this have

time, the for Thanks guys. Terrific.

from ahead. question Mike go Linenberg comes Please Deutsche next from The Bank.

you everyone. me? Can morning, hear good guys Hey,

little hear but Yes, you. can fuzzy, we

speaker. my pickup me Let

here. your deserved. one, on a congratulations role, guess I of Celso new questions So, number couple well

this Now I opportunities next cargo your with over the you maybe XXX% as news been that I maybe us these five curious moving any and the carrier company the of differently you you Smiles you position. obviously I think the yet perspective. same to of timing time some C-suite can business. on may with change than see the GOL stones level? level. of you of leadership you've in to years, the talk that? you've GOL horizon. things moving things propitious slightly be and develop normally fly sort it with And Brazilian grow maybe next historically a give is a to think GOL some into lot you just to And watch next maybe And recently some and kind a these GOL I'm strong There's leading all low-cost or seizing opportunity ABRA. the about out, opportunities for and a the today very is with of predecessor XXXs mentioned? you're Now just looking about Can And just you in thinking how propitious stepping bringing company the with I as to of of mean had if sort timing. that position could on I perspective the leadership may with do about, your take different on touch all own the guess of

Okay. kind Mike. words. Thank Thank for you, you your

years are the the ever. faced that coming worst two from airline We

was down our decided I we here, At don't change I mean change. to Becky to here need of to and with [ph], everybody beginning change. pandemic, model. we need and Richard and we business the the we we need sat So,

strong growth, transition deserve, like require a and a treat In pandemic Let's will this market as new simplicity, new to business model. will which adaptability a market. company a the

year. focus company. of Richard of are pandemic. also I company. want company, we to migration So, where business what we on transform the changed lot business we model mean my model Smiles problems the back and Sabre we time Like pandemic I We per we the came contrary. cost We course, really with now, costs going through a we and mean bring reduce going to way the should expect the some of now to quite in hours than mentioned, just to I focus increased to environment really really this And pillar times customers. it's productivity. there. planes synergies is that back together. you I productivity main now and airport to is faced generating fly from to customer also bring more the all We our digital to to platform to mentioned, time XX recover don't have the faster But change right the leverage turn like and need digital be need back the transformation it's our we to the The the turnaround be. the in need base during day. just system more PSS to planes But it in want to the of last the to we in a to really forward a priority. mean, and it's in

that areas same customers' the all now have as structure Smiles. grow in We the

really is for one Smiles -- So what that leverage we customer want and and will as want to position. company look GOL we to

here. So opportunities we looking through for are with on are to as the facing of and this also [ph] There We're the automation going to are incremental airline new new This we [ph] this that and partnership can talking also that new e-commerce revenue Mali Smiles cargo employees we access is focus platform. a first my revenue business. one launch.

on start this. we Livre we that that we GOLLOG aircraft, pilots same productivity same the way have apply, us, with We are It's we six also the also saying are go six operation with facing the same the Mercado more It's tremendous This aircraft aircraft. and synergies side. starting opportunity to a maintenance. cargo for are to with is

side start as we're many cargo convert ABRA. in And in so to [indiscernible], mentioned the the -- cargo facility convert our We here you to well. cargo planes will to for on things going do

the in tough market. combination is tough high front tough I a is the level. in we us. Fuel us that a FX way highest very super see I Brazil. we costs are putting think, scenario this point. of in mean market is a the at at position The of it's have now the two

So, is lot kind alliance where a is which alliances, sure ventures joint way develop organization, going we consolidation, new of and cost are Latin strong to leverage cover a America. we our new network all forms ABRA, a of efforts now synergies and thinking putting airline to of new on a the also to of make also the side are

So, these are -- I mean, the key items in my agenda right now.

great rundown. a That's

on because that may going Just some a would that. coming. hear finer maybe on something are there's rollout us -- Abra Maybe we point now. hearing we had when be regulatory you like I a on hoped just Can by to it be there sounds hurdles. update

should go like to only be lot to a that When we hear behind our announce. something two deep. that one a or when website in seems more You there's pages Is that summer? expect going on it's of them structure? it have detail lot to more end something the Presumably goes you to that

happening the approval expected quarter has we regulatory near go the at Yes, obviously, all it I the here the domiciles. in down basically to third and and it's just regulatory we've through the at, -- And mean, that's yes, process But definitely very Mike, various carefully that but it table. our proper perhaps planned sit it's can approvals term, inside of before soon. in in

in I could more. squeeze just Rich, one if

But guiding you on quarter flow have BRL it. your said helpful. apologize I know to your cash at super X.X billion you said this end. waterfall may You on and were I if

came at You BRL billion. in X

lot a of have Page XX. buckets different on You here

BRL that's did Now came my your better million like you like math -- It were like sounded wrong, you it like. guiding it is maybe to BRL in in last XXX from what where looked where guidance. looks did that XXX million additional looks but the -- came what it you

Yes, BRL there reduced access increase than receivable. or also value FX of expected then was the calculations. it's and than also a we'll But million expected higher our And the due liquidity of in receivables higher deposits changes. the accounts accounts basically slight to about those receivable in sales, XXX which

Okay.

that…. So

those or we aircraft-related maintenance aircraft overhauls redeliveries. activities deposits cost it out be engine use And maintenance to or

deposits, And outflows we cash to we our estimate. because the so use in those include offset liquidity them in

increase very That in in is supportive revision your meaningful year. though right. of for revenue receivables upward That's the the pretty

Thanks. So Good that Thanks. makes quarter. it. Appreciate sense.

Thank you, Mike.

Citi. Trent comes Please ahead. go question next The from from Stephen

my Good first morning for margin just on management. focusing off taking management very And very flow quick Thanks ones. I comments But had on questions. two the versus much your we any cash XXXX on dealing gentlemen. EBITDA? versus were when be we will are expenses about fleet think sort of extent high-level view what think still with when to EBITDA about helpful adjusted

for Hi, Thanks asking XXXX. Steve. the question about

a plan, this all when QX. saying, our network plan was we operating fleet I As get operation into our plan, year, call we our normalized began were calibrated to back what to

the this that pushed that well. into been a is plan schedules. QX, But And the the QX. back QX And efficiency are to reflected at fleet, getting are doing as aircraft is same demand our goal accelerate of capacity that the the side for through it of overall with As because we from to you of also NG operating time, peak been short trying modernization fleet recalibrated we get lower planning to to on to the in longer of of out end the of on the on our terms guys the going what capacity industry what carrying you in since what's year other February serve we pandemic, in of need we've of and fuel in know December that that's see it's aircraft across no going per day roughly the That's doing year. we hours next entire XX the MAXs.

the that QX be should the are be full forward the so also in that us, is first do part efficiency out. we'll we forward. low no next fleet this And transformation be operating for side XXXX. that in component of the half to acceleration number to the – Those the of is year. costs this next including in a And QX MAX going in transition adjustment, by we'll year, difference But on rest continue you're end the of will related MAXs fleet the normalized started approaching replacement not there's idleness, and probably QX either normalized back And really asking, fleet, we of throughout most results that next year. from the the XX the very QX of to year. And other of because not the have kind be And separate in anymore, continue this the non-recurring year of question of aircraft to will or behind idleness expect the it's difference be going into the by that approaching adjustment. to around NG this year, last of more would acceleration a we'll that transformation

to I think want complement point to going Celso is that. a on

the fares health perspective, market year, we expect we has Yeah. be transformation this are the better the they We practice and also Steve, And side for revenue the and been on environment it right understand now. that price only a customer see will level customers running next big not should our year. now what the

these repairs. is line year We're of we're to going activity also – revenues also cargo well. new have our next naturally going going plan way to the and results as top these – I to the be think more SMILES the in

year strong XXXX. we So, expect in a

questions comments the from – we going to sell buy the platform. side, the the I'm questions have on side some in from of the weave webcast from operator, And to just Yeah. the

year? to [indiscernible] of pay And you Can implies $X.X our more for deferrals lease BRLX.X Asset types so working Are much information adjusted any the the here during of of this expecting how from leases to Management. have lease billion you're on guidance, that you debt we According XXXX? on payments. annual question is provide billion

So you in guidance. our have that

Some quarters can cutoff can have other. one from a payments the on quarter to that different shift

that includes is manage XX which have lease, lessors, of including do that monthly and Barbosa, by across sell $XX to here I refinancing And assets of we current lease have How of different can concept we the increases our to on in capacity? going our similar responding question portfolio, terms liabilities platform second pre-pandemic fare year? other in to you some payments, the operating question The the is for in very behave MAX new deliveries. is portfolio. competition As How negotiated individual across based to one squeeze supplemental I'll expect room the levels. approximately of upcoming and rents your the side, our BRLX.X payments month outflows. from place this demand expansion there been the we've for which do still we fare there's from agreements before almost regarding that Lucas in Celso? matching And view? billion in from And Is deferrals next million our Santander. inflows the half lease

certain quarter. said the Yeah. revenues our I compensate will a lot of at adjust point, because fuel point, during at cap before network. We a this. take we the And results that, certain on But were expecting the And pretty going this Richard. that a probably at somehow capacity to to may like are revenue will accordingly. segments, achieve to make we and cost curve we the was add grew I we we and need – steeply for the this

now, our going are guidance can right you see like our in forward. So, reducing capacity we

September, more rationality the also inside to than August as other as cut we forward. are right now be going We follow. competitors this XX% the well think quarter going And capacity doing from and there's even we more by

the the liability half for is tract year is by other So, that the more than of thing important the XX%. air next that grew

second good fuel prepared to costs. year been the face So, on that the higher we had of is half news the

the we to the prior much advanced started long to quarter. work So, customers purchase in

quarter now. actually are XX% revenue because we on and more this but second segment quarter fuel in be with the this the remaining they they continue are to accordingly will in going So are to responding we already entering on passengers, right

and we increase COVID had that June. in it's factor bit also our a customers So, back XX%, load June. and year had we then In of also a during We frequent the almost now the we some XX% then of expect flat at XX% corporate flyer, peak saw April little between the corporate faster catch-up. May of of demand XX% hit in June, the cases a of beginning

quarter forward. the don't expect going we the third and So, us in hitting fourth COVID the

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

Boeing low kind of and the Southwest the being and end I of kind side MAXs? have high seeing the of capacity both be terms just of deliver think Ryanair what account, And good the able delays. kind can kind in about ask of capacity MAX to you're on and end? you Hey taking that talked I'm Can into XXXX delivery the what morning. of wondering kind

Savi. Hi

plans not far. are impacted and facing so our delay We delays any has significant

of in now second able a in been delays. all the took in they XX, deliver package eight delivered doing were received first new they delay, built those us. and months the MAX-X the have of we set last most accommodate already this XXX XX we there days the We were Seattle And planes the pre-delivery aircraft XX quarter. plans just on that are Boeing And like and are were year down to facing but to we have and the quarter and three all for the activities

flag to going our And on have deliveries our don't configuration, the a are own production red beginning by of start but XXXX. of We both. we order. to That's line own take

and So, we growing the of deliver to this the that accordingly fleet expect have XX to and place our plan continuously we year plan. to

Great.

especially of XXXX Just you're to it returning first thinking capacity sounds we quarter. what utilization on could any like the color -- by that full like expect

curious kind what of be of flying. should in likely it fleet the capacity full growth So, could kind But XXXX? be

view this if domestic our and now And year is hike XXXX about rates. price, are this planning of the the fuel year, the the half we of all Omicron achieve the of war interest we year. market. compare the It's we seeing XXXX And now, growth which then the levels. XXXX going for we of the last way Yes. to right the according are -- slightly quarter to are and on the concerns beginning first at everything Especially, global where face the we

first So And our we what represent half of compared of think where think first -- we to the sustain half next can we of the be half significant view fleet we year that of second year. the productivity. XXXX. plan is -- year, growth of level expect now this our And to represents next this to

year, fleet of this we the or more size. the So are ending less same next

we year and are the now us, -- is total next So aircraft aircraft. XXX this year XXX for

it's terms growth So of in a return aircraft. We need small the NGs. to

We NGs. returning are

the NGs going returned during are how we remember, keeping that we You XX, many and based forward. pandemic have

the this have growing this to XX% are of slightly but going have bigger, the going to have of terms are we what we fleet year. So at fleet we utilization least in productivity to the comparing

the if in And of That’s of in a kind might well super on here get terms I just back XXXX. into comment upside a back or if of demand half. curious, kind we the kind revenue? was I there volume clarification I'm more if of helpful. here on in corporate be might that wondering, second as just corporate get as

expect travelers is were in to July we in as recovery more May June what corporate of What clarity in we June travelers. in like from elections had and a a was Yes. comparing segment, in around we revenue. a what plan Like increase the we terms than kind XX% in when terms of and little said, August a everything, had passengers, business in XXX% and it's more on of of peak September, number a and April, July. expect plateau come. we October quarter. of XX% from tickets year is have the also Then we and on, plateau, I terms have to also But And the for first more business

an come XX%, to So years as we also than more see upside with our system.

you Thank Super helpful.

now, the and we'll of to Because funded? costs are based costs, I'm the that from for how one side of with can the MAX the fully cycles [ph] next by either this in plan. question the Berlin that us of we remaining most the to answer fleet. the fleet return And quarter new which to, is goes the deposits cost buy going down, fleet and year revisions return how on that we be provisions will or Right and sell-side will combined to liquidity. are include the according go self-financed up quarter. what to utilized related Operator, deliveries then rules of the conditions cost BRLXXX return or on the going use is C. the financed analyst And of hours new redelivery this just There's noncash expected those credit question. platform the lease the incurred adjust entire and next provisioned, Before lines to -- is question transformation acquire be his our I’m to through on and deposits, combination always question of that from our the a about mechanisms, of number take use credit we provisioned the you MAX deliveries. per which remember accounting every million did fully to that have pro-rated is of

next The from question Please comes Pablo Monsivais Barclays. ahead. go from

talked and lower competitors efforts if your little bit moving following I you or about following capacity. you. my on raising ask the yields and these a you, Thank can more on know first efforts? How Hi. seen Thanks and question a I But taking they already your are you for competitors, you seeing Have environment. with lot are just, capacity? competitive not

Hi, we Pablo. a I on price. had mean, the fuel spike

in And So second behave of look the we of our seeing is not leading be are we forced we also all when What and rational are you entire the to industry especially start a terms and market that the in can view quarter. in what rational beginning during year this we capacity quarter the is capacity second year, was fares the really loading Actually see in we fly. adjustments. July. start at the we now the if

step-by-step side. behavior loading much also us increase the loading cutting to high on we environment. cut, competition sustain and activity rational the when cautiously because schedules while saw this I it October at is we put We we cost was a industry we competition that are in say fare do now our an XX% XX%. required than very in the saw introducing changing year. we What September spike can are also to also been more beginning We have cut This scenario the for the of was to more right a the and all system, saw capacity

now since been cautiously competition need preserve to much as So beginning, as we also with trying deal and but cautious see the power we these pricing that circumstances. we have to can do more being we

much. very you Thank Perfect.

question next from ahead. Credit go Alejandro The from comes Zamacona Please Suisse.

Thank you taking you. Celso the questions. for for my Thank thanks call. Hi,

the of In or fuel prices terms in higher of in able the higher much words the to how yields other and is extent find you say would you been more what the to cost yields, reflected it have do pass-through prices, current fuel already of to customers?

me -- Let little just the is bad. connection bit a

we're the in increase how question? question Your fuel Was the is prices? managing that

higher I how yields? fuel the the in is reflected of Yeah. current much prices already mean,

assume That's to obviously, And, down, business did In was go costs had fuel the of up we've been a and I QX in we effect. in our new say able -- fuel prices our we're we're planning. the was if US than exchange increased our roughly recapture you in the effect. for impact recapture, XX% addition how there's we'll generally which Okay. a effect half the of XXX% case the which in in markets scenario going different be it to And able in in increment on our to XXth, just the fares. XX% oil until price or got meaning let's our fuel prices numbers we'll managed And the That's And the XX% it how if our -- QX, this business second the planning, to of little much predominantly less rate be question. recapture retain benefit. in local normally, Airlines, Since roughly different. you managing this up, fuel February up also the the carry XX% a of of we've in to prices. providing tumor for down, generally only we recapture. go when now year. from here we of the Brazil was different began, combined to terms bit Brazil. abnormal on have how the recapture around able And get an on QX price XXX% view has being QX increase market. was the Remember the roughly of

be to But have the have in now up return careful market the of comparing with about You the until US starting European in the accelerated Brazil we like Brazil. week February, or market traveler. last corporate of

our in element And coincidentally markets the majority the in here phenomenon same us Hemisphere. in main at that to that business allowed achieve that that, so was of Western GOL at least you've Having that specifically. that said seen follow we

phenomenon, very want if which that? don't probably with a off. saw to most I do demand to know as fallen likely have the travel has COVID similar comment return internationally You of both you just and restrictions, restrictions domestic

we to mentioned. it's going Alejandro, Richard Yeah. are need to -- with mean, this. we deal I what exactly

capture We the rate expect also are we going forward. mean, to competitive that to we as the we can. as much be the environment pass-through need And to adjusting support able I pricing structure whole

Okay.

going. I'm So just

Alejandro. ahead, go So

Yeah. Thank you.

another question So follow-up. terms just the it's ABRA, in a of

in $XXX So according announcement, ABRA. million there the commitment of were former a to

Thank of resources So considered how this we could GOL? these expect for being much you.

on have get Yeah. after more appropriate being announcement we the we'll the Alejandro, that. was the point. is Once that's transaction all this May made to closing the in provided at information of approvals, that information

Thank Okay. you. Perfect.

of been And that's manage provide from and the how how match continue our that count a forget the transparency it. [indiscernible] of pre-pandemic been managing other and I than that basis What to do capital that. is that pandemic. do the the just to how billion didn't no The X you of a also working sources -- we have MetLife. we doubts and Well, focus that available are the I'll we management we overall of to flow nothing there's information we've at of we on relative more platform it terms finish, liquidity as on has to during answer. the present? this size on main more on question how That BRL from the in seen I new is terms asset source main on liabilities the Hopefully, there's in generated cash business, you've one business.

you a expect QX piece capital year. normalize as the We're the As receivables the the be be of size But the to to missing of of now of we accounts balance end to QX. we main by increase still current business from assets going receivable through this that receivable. relative through source the do then accounts normalized saw in is and to working QX,

in And we current from current so sheet that's the was kind end terms can of liability QX perspective of of QX make how this XXXX those to where the asset, comparisons at expect be a balance matching year. of you

banks to with We continue of and SMILES. partners tickets do sales to and SMILES, points

consistently. continue think of also I we kind our something many that is look that do they over And or perhaps glossed So not how have in business. to that included at

closed increasing year that component As Celso about and program that dividend cash paid of is And X-year we was X.X of value the loyalty then recycled including achieved BRL on mentioned, increases June also we to billion. payback the the on its and transaction volumes reacquired the minority interest its little a in over cash year. a payback that customer. ago, that. last we The We've already

capital growing the very management sources. here. working do solid incorporated is which consistent continues liquidity, of how to in And source all our are that a we main be and so and fully Those

highly working All obviously, requires of management, sources, of in those management, are are management. liquid and agile capital precise and kind very our those

which got amount assets. I of that we're able -- cash which one we it outflows existing aircraft to loyalty are In just as those that our significant that know, question, those are working on I'll levered already our can as assets that, as relates a finally, final generated programs such fleet with our unencumbered you deposits And process, asset on you our have of use which finally, we just to created data deposits both have the to as renewal assets of capital, where how and portion either large have other addition to our we a then deposits, unencumbered the maintenance offset through slip. uncovered guess And be program. assets well financing related as the

and think The across XXXX. we've minutes had same We five GOL's continue activities? since we into can set built do program management oil -- is to here. another just about could execute your the hedging talk of FX programs you question that fuel I always

specifically of In mid second do terms is doing analysis year -- And not comparative as hedging, in and fuel half to how hedge is the you position breaks. question XXs the of the but this our roughly provide have that's protection are XX% XX% that risk for important via different companies XXXX of which for do hedging. any high downside instruments

or We requirements. through that's premiums so side strategies, of collar paying XXXX oil the using the significant since produce options have costless call opted basically downside roughly, to and can the QX some allocate for budget, on not swap And which of equation. margin risk

and year this XXXX. half second So of roughly XX%

equation, the next hedged the around side XX% FX also year. the half of On of this X% for we're for year second and

I the questions, run is think through almost we the majority time our of that up. and

operator. So, back I'll to over you flip

All right.

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

you I as very We time is appreciate our hope And Q&A Thank our helpful. you Investor found Relation's speak your our in and needed. team session and company. much. with available interest to you presentation

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