GLA Merger with Smiles Approved; Company Prepares for Demand Acceleration in 2Q21

SÃO PAULO, April 29, 2021 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL  and B3: GOLL4), Brazil's largest domestic airline, today announced its consolidated results for the first quarter of 2021 (1Q21), also outlining its continued initiatives in response to the Covid-19 pandemic.

All information is presented in Brazilian reais (R$), according to both International Financial Reporting Standards (IFRS) and adjusted metrics, and is made available to enable comparability of this quarter with the same period last year. Such adjusted metrics exclude expenses related to the portion of the non-operating fleet that GOL grounded this quarter and are detailed in the table showing "operating expenses". Comparisons are made to the first quarter of 2020 (1Q20), unless otherwise specified.

The 1Q21 was marked by three relevant trends for GOL's resumption of growth going forward:

The first is related to the merger between GLA ("GOL Linhas Aéreas") and Smiles, whose approval was granted by shareholders in the respective extraordinary meetings on March 24, 2021. This transaction is expected to provide operating and financial synergies to both companies that can exceed R$400 million per year, mainly through a more dynamic management of the inventory of seats, unification of marketing initiatives, optimization of yield management and greater tax efficiency.

"The shareholders of GOL and Smiles recognize the high potential to generate value for the integrated entities, as well as the differential generated by synergies in maximizing the Group's competitive performance," said Paulo Kakinoff, CEO. "The transaction will be self-financed through Smiles' own cash generation, and it has significant benefits when considering the potential operational, financial and tax synergies that were not available in the configuration of separate companies."

The other important trend was the second wave of the Covid-19 pandemic in Brazil, which reached its peak at the end of March. This situation, combined with the beginning of the low season in Brazil, led to a pause in the market recovery process during the first quarter. GOL flexibly readjusted its flight network in response to the lower demand, protecting the balance sheet and liquidity.

"Since the beginning of the pandemic, the Company has maintained the necessary agility to adjust its supply according to fluctuations in demand, and it remains to be a differentiator for us. Fortunately, we are already seeing a promising decline in the second wave of Covid-19 cases, including the virus transmission rate in Brazil falling below 1 for the first time since November/20. GOL has seen a corresponding resumption in ticket sales over the last few weeks. Based on the experience of airlines in the United States and United Kingdom, countries that are more advanced than Brazil in the roll-out of vaccines, we expect the National Program for Immunization to positively impact on the normalization of demand for air travel in Brazil," added Kakinoff.

The third trend is the Company's long-term commitment to sustainability. This is a key component in combating the effects of the pandemic and is a strategic driver for perpetuity and growth of the business going forward. GOL remains committed to being a leader in sustainability and is focused on reaching net zero carbon emissions by 2050. Recently, the Company increased the transparency of its ESG reporting, including detailed information using SASB and TCFD metrics and, for the first time, a specific subsection for projections at its IR website ( By adopting these standards and providing additional relevant data to the public, GOL reinforces the transparency and accountability with its various stakeholders.

Summary of 1Q21 Results

  • Revenue Passenger-Kilometers (RPK) decreased 44% compared to the same period in 2020, totaling 5.6 billion;
  • Available Seat Kilometers (ASK) reduced 44% compared to 1Q20;
  • GOL transported 4.5 million Customers in the quarter, a 46% year-on-year reduction;
  • Net revenues totaled R$1.6 billion, decreasing 50% from 1Q20. Other revenues (mainly cargo and loyalty) amounted to R$151 million, equivalent to 9.7% of total revenues;
  • Net Revenue per Available Seat Kilometer (RASK) was 22.40 cents (R$), 11.3% lower than in 1Q20. Net Passenger Revenue per Available Seat Kilometer (PRASK) was 20.24 cents (R$), a 14.2% reduction over 1Q20;
  • Adjusted EBITDA totaled R$354 million (23% margin) and adjusted EBIT was R$208 million (13% margin), reflecting GOL's rational and responsible management of supply based on demand; and
  • The net loss after minority interest was R$892 million, excluding exchange and monetary variations, non-recurring net expenses, gains related to Exchangeable Notes and capped calls unrealized results.


Access earnings release, management videos, presentation and complete financial statements at:

1Q21 Conference Call: April 29, 2021, 11:00 a.m. (NY Time), Phone: +1 (412) 317-6382, Code: GOL, with webcast (

Investor Relations:, +55 (11) 2128-4700

About GOL Linhas Aéreas Inteligentes S.A. ( Brazil's largest airline group with three main businesses: passenger transportation, cargo transportation and coalition loyalty program.


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SOURCE GOL Linhas Aéreas Inteligentes S.A.

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