Gol, Brazil’s largest domestic airline, has announced positive Q2 results with revenue up 27.9 percent year-over-year. The company recorded a profit of BRL 556.3 million (USD 117.9 million) in Q2, a far cry from the BRL 2.9 billion loss from this time last year. The results come amid a rebound in tourism nationwide.
Brazil’s tourism sector is having a stellar year, with 2.7 million international visitors arriving in the country in the first four months of 2023. This is up 41 percent from the same period last year. The recovery is being driven by a number of factors, including the end of the Covid pandemic, the feel-good economic atmosphere in Brazil, and a favorable exchange rate.
Gol’s recurring Ebitda (earnings before interest, taxes, depreciation, and amortization) margin hit 22.8 percent between April and June, and the positive results led the company to increase its year-end Ebitda forecast from 24 percent to 25 percent.
Gol carried 6.7 million passengers in Q1, up 49 percent from the same period last year. Gol’s load factor, which is the percentage of seats filled on flights, was 81 percent and is expected to remain the same for the rest of 2023.
Despite the positivity, however, the results were seen as unsurprising and actually caused Gol shares to lose value since this morning. The airline had already released a Q2 results preview some weeks ago, meaning the improved results were already priced into Gol’s stock price as of this morning.
Since the beginning of today’s trading session, Gol shares have lost over 3 percent in value (by 1:30 pm).
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