Gol Linhas Aéreas Inteligentes S.A. Stock Price, News & Analysis

GOL Linhas Aéreas, Brazil's largest airline, reported a 31% decrease in average daily flights to 245 in March 2021. Consolidated gross revenues fell to R$300 million, with a 71.8% load factor amid declining travel demand due to COVID-19's second wave. The airline has sufficient liquidity of R$1.9 billion and expects synergies of over R$400 million from a merger with Smiles, enhancing operational competitiveness. Despite a conservative recovery outlook, GOL remains focused on efficient cost management and adapting fleet operations to align with decreasing demand.

GOL Linhas Aéreas reported a significant decline in air traffic for March 2021 compared to March 2020, attributed to the effects of the second wave of Covid-19. The airline operated 7,581 flights, down 52%, with a domestic load factor of 71.8%. Demand (RPK) decreased by 47.7% year-over-year, and total seats offered dropped by 50.7%. The company's operational performance reflected a continued impact from pandemic-related travel disruptions.

Despite these challenges, GOL maintained a high on-time departure rate of 97.9%.

GOL Linhas Aéreas Inteligentes S.A. filed its 2020 annual report on Form 20-F with the U.S. Securities and Exchange Commission, covering the financial year ending December 31, 2020. Shareholders can obtain copies of the report by requesting it from GOL's Investor Relations Department. The report is also available online at GOL's Investor Relations website. GOL is Brazil's largest airline, offering over 750 daily flights to more than 100 destinations and serving over 36 million passengers annually. The company operates a fleet of 128 Boeing 737 aircraft.

On March 25, 2021, GOL Linhas Aéreas Inteligentes S.A. announced details regarding the merger with Smiles Fidelidade S.A. Shareholders are entitled to withdrawal rights, allowing them to opt for reimbursement based on the share values outlined in Brazilian Corporate Law. Shareholders can exercise these rights between March 30, 2021, and April 28, 2021. Additionally, the exchange ratio for SMILES shares has been adjusted to include cash installments and GOL shares, with options available for shareholders. Further information on the merger can be found on GOL's investor relations website.

On March 24, 2021, GOL Linhas Aéreas Inteligentes S.A. announced significant developments regarding its corporate structure. An extraordinary general meeting approved a reorganization that will transfer SMILES Fidelidade S.A.'s shareholder base to GOL. Shareholders will receive an implicit price of R$27.00 per SMILES share, with options including cash and GOL preferred shares. GOL specified that the conditions previously outlined remain unchanged and promised further details on withdrawal rights and implementation steps for the Reorganization.

On March 24, 2021, GOL Linhas Aéreas Inteligentes S.A. (GOL) announced a reorganization plan that aims to migrate the shareholder base of SMILES Fidelidade S.A. to GOL. The proposal includes offering SMILES shareholders an implicit price of R$27 per share, with two options for compensation: a cash amount of R$9.14 plus 0.6601 preferred shares or a cash amount of R$22.54 plus 0.1650 preferred shares. All other terms from the February 12, 2021, material fact remain unchanged.

GOL Linhas Aéreas announced a 17.1% increase in the consideration offered to SMILES shareholders during its reorganization plans. This adjustment raises the exchange ratio from 0.825 to 0.966, leading to a price of R$26.14 per share based on the unaffected price. The revised offer enhances the premium for SMILES shareholders from 26.3% to 47.9% compared to the previous proposal and aims to better match investor preferences. The reorganization meeting for GOL and SMILES took place on March 24, 2021.

On March 19, 2021, GOL Linhas Aéreas executed an advanced sale of airline tickets from GOL to Smiles Fidelidade for R$300 million, backed by GOL as a guarantor. The tickets will yield 115% of the CDI rate, approximately 3.05% per annum. The deal includes favorable commercial terms for Smiles and a commitment to maintain the existing contractual structure throughout 2021. GOL, headquartered in São Paulo, operates over 750 daily flights and serves more than 36 million passengers annually, maintaining Brazil's largest airline network.