GOL Linhas Aereas Inteligentes SA (NYSE: GOL) Releases Air Traffic Results For June 2021

GOL Linhas Aereas Inteligentes SA (NYSE: GOL) has released preliminary air traffic figures for June 2021 compared with last year. 

GOL saw a 282% increase in domestic flights demand 

The Brazilian airline reported a 282% increase in domestic market demand for its flights with supply (ASK) increasing 260%. The company’s domestic load factor was 83.9% YoY in June, implying a 4.7 p.p growth compared to the same month in 2020. In June, the airline transported around 1.2 million passengers, which is a 278% YoY increase. It is important to note that the company didn’t operate regular flights internationally. 

The company serves over 36 million passengers annually. It has the largest network in Brazil, offering over 750 daily flights to more than 100 destinations across the country, the Caribbean, South America, and the United States. Its logistics and cargo transportation unit, GOLLOG, serves over 3,400 municipalities in Brazil and over 200 international destinations in 95 countries. In addition, GOL has a reward program, SMILES, with over 16 million clients, which allows customers to collect miles and redeem them to over 700 destinations globally. 

GOL finalizes equity capital increase 

Recently the company concluded a term for eligible shareholders to exercise preemptive rights for share subscription-related with the equity capital raise that the company announced on April 28, 2021. The equity capital increase was anchored with R$268 million by GOL’s controlling stockholder, the Constantino brothers. In addition, the company’s minority shareholders contributed an additional R$155 million, bringing the aggregate raised the amount to R$423. 

The company issued around $1 billion in new equity in June, making it the only Airline in South America to increase equity capital in the past year. With the equity issuance, GOL is one of the most liquid airline stocks across Latin America.

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