GOL Airlines released its financial report for August 2024, revealing a significant deterioration in the company’s financial health compared to July. The airline reported a net loss of R$544 million ($100 million), more than doubling the previous month’s loss of R$221 million ($41 million). This increase highlights the ongoing struggles GOL is facing amid its Chapter 11 bankruptcy process.
The report indicates a concerning trend across various financial metrics. GOL’s EBITDA dropped to R$91 million ($17 million) from R$415 million ($76 million) in July, with the EBITDA margin shrinking dramatically to 6%. Operating performance also suffered, with EBIT turning negative at R$69 million ($13 million).
Revenue figures reflect the challenges the airline is experiencing, with net revenue for August decreasing to R$1.568 billion ($0.29 billion) from R$1.784 billion ($0.33 billion) in July. The report also shows an increase in net debt to R$28.391 billion ($5.21 billion) by the end of August.
GOL’s situation is a result of broader industry challenges exacerbated by the COVID-19 pandemic. The airline’s restructuring efforts are ongoing, with the company securing financing to maintain operations. The coming months will be crucial for GOL as it navigates negotiations with creditors and stakeholders to emerge stronger.
GOL Airlines’ August Losses Soar: Net Loss Doubles to R$544 Million