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After Avianca’s crisis, Brazilian airlines register better results in second quarter

Gol, Latam e Azul: Check out the results of the top 3 Brazilian airlines in the second quarter

Gol, Latam e Azul: Check out the results of the top 3 Brazilian airlines in the second quarter
  • Gol led liquid revenues during the quarter;
  • Meanwhile, Azul had the best results in terms of profits;
  • Gol and Azul were the airlines that most benefited from the crisis of Avianca.

Whether it is due to less competition after the crisis of Avianca or the reduction of costs by the airlines, the primary players of the Brazilian airline industry saw their margins grow during the second quarter of 2019.

All of them; Gol, the market leader, Latam, and Azul, that had the best profits; registered positive results at the close of the second quarter. Although in a scenario of intense struggle, as is the case of the Brazilian airline industry, Avianca’s exit played a key role, both in the second quarter’s results and in the recent investments announced by the airlines.

Browse through the following results:

Gol

The leader of commercial airlines in the country, occupying almost 35% of the market share, Gol was the company that had the best liquid revenue from the three major airlines in Brazil: BRL 3.14 billion in revenue in the second quarter of 2019, which amounts to 33% more than their revenue during the same period of last year and the biggest ever reported by the company in any second quarter.

Net losses also surprised the Brazilian airline: 120.82 million. Last year, Gol reported significant losses in the amount of BRL 1.9 billion.

“The strong demand of clients, primarily in the corporate market, allied with our discipline, permitted us an exceptional result in operations during the second quarter, a traditional period of low-season in air travel in Brazil,” said Paulo Kakinoff, president of the airline, to Exame.

Operational revenue per available seat/kilometer (RASK), an important indicator for companies in the airline industry, increased 25.3% in the second quarter, reaching 27.63 cents (BRL).

Latam

Second-placed within the top 3 Brazilian airlines, Latam does not report its results by country, but in a balance sheet released by the company and made available to Valor Econômico, the airline reported a rise of 4.8% in air travel in Brazil. The company’s RASK registered 0.27 cents (BRL) in the second quarter, a growth of 29.5%.

Overall, the losses of Latam were BRL 246.2 million ($ 62.8 million); that is, 69.8% less (in dollars) than the same quarter of 2018.

Azul

Despite placing third in the competition with Gol and Latam, Azul performed best during the second quarter in terms of profits. The liquid profit reported was BRL 345.5 million in the period, a value that balanced the airline’s net losses of BRL 791.4 million during the second quarter of 2018.

Leader in regional flights and alternative routes, Azul added BRL 2.6 billion in liquid revenue, a growth of 31.3% in comparison with the same period last year.

The type of revenue represented by RASK grew 13.6% in the second quarter, reaching 32.09 cents (BRL), which is yet another indicator of Azul’s performing above the competition among the three airlines.