Market Overview - The Brazilian loyalty market is projected to grow by 16.9% annually, reaching US$1.95 billion in 2025 [1] - The market has recorded a CAGR of 19.1% from 2020 to 2024 and is expected to continue growing at a CAGR of 14.3% from 2025 to 2029, increasing from US$1.66 billion in 2024 to US$3.33 billion by 2029 [2][18] Key Insights - The loyalty program landscape in Brazil is evolving due to technological advancements, changing consumer behavior, and industry growth, with trends such as Pix integration, personalization, coalition models, experiential rewards, and mobile platforms [3] - Companies that leverage these trends are likely to enhance customer loyalty and competitive advantage in the expanding market [3] Integration of Digital Payment Systems - Brazilian companies are integrating digital payment systems like Pix into loyalty programs, facilitating seamless rewards accrual and redemption [4] - The widespread adoption of Pix, with over 150 million users in 2024, is transforming consumer-business interactions and enhancing customer engagement [4] Personalization of Loyalty Rewards - Businesses are increasingly personalizing loyalty rewards based on customer preferences, utilizing advanced analytics and CRM systems [10] - Personalized loyalty programs are expected to increase customer satisfaction and retention rates [10] Growth of Coalition Loyalty Programs - Coalition loyalty programs are gaining traction, allowing customers to earn points across various transactions and redeem them for diverse rewards [10] - The growth in sectors like travel and retail post-COVID is driving the need for shared loyalty platforms [10] Emphasis on Experiential Rewards - Brazilian loyalty programs are shifting towards offering unique experiences rather than just transactional rewards, appealing particularly to millennials and Gen Z [10] - Companies investing in experiential rewards are likely to foster stronger customer-brand relationships [10] Adoption of Mobile Loyalty Platforms - Mobile apps are becoming the primary channel for loyalty program engagement in Brazil, with smartphone penetration exceeding 90% [10] - Businesses are investing in app development to enhance customer experience and engagement, with mobile platforms expected to dominate loyalty program delivery [10] Competitive Landscape - The Brazilian loyalty market is moderately fragmented, with dominant players like Livelo, Dotz, and major banks shaping the competitive landscape [12][17] - Established players benefit from brand loyalty and extensive networks, while smaller players face challenges in competing with large coalition programs [12][17] Regulatory Changes - Brazil's General Data Protection Law (LGPD) imposes stricter data usage and privacy practices for loyalty programs, requiring explicit consent for data collection [16][22] - Compliance with evolving data protection laws can be resource-intensive for loyalty operators, particularly smaller players [22]

Golar LNG's 4th Quarter 2024 results will be released before the NASDAQ opens on Thursday, February 27, 2025. In connection with this a webcast presentation will be held at 1:00 P.M (London Time) on Thursday February 27, 2025. The presentation will be available to download from the Investor Relations section at www.golarlng.com We recommend that participants join the conference call via the listen-only live webcast link provided. Sell-side analysts interested in raising a question during the Q&A session tha ...

Golar LNG Limited ("Golar" or "the Company") is pleased to announce that the company has acquired Seatrium’s and Black & Veatch’s minority ownership interests in the FLNG Hilli. The acquisitions comprise all third-party interests in the asset, including a total of 5.45% common units, 10.9% Series A shares and 10.9% Series B shares. The transaction is equivalent to ~8% of the full FLNG capacity. The total consideration for the acquisitions is $90.2 million, of which $59.9m is in equity and $30.3 million is a ...

Gol Linhas Aéreas Inteligentes S.A. (GOL) Q3 2024 Earnings Conference Call November 13, 2024 7:30 AM ET Company Participants Celso Ferrer - President and CEO Eduardo Gotilla - EVP, CFO and IRO Conference Call Participants Operator Welcome to GOL Linhas Aereas Conference Call to discuss the Third Quarter 2024 Results. This event is being broadcast via Zoom and can be accessed on the Company's website in www.voegol.com.br/ir. We informed you that all participants will only be watching the event during the pre ...

SÃO PAULO, Nov. 13, 2024 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4), one of the leading airlines in Brazil and part of the ABRA Group, announced today its consolidated results for the third quarter of 2024 (3Q24). All information herein is presented in Brazilian Reais (R$), unless otherwise noted, in accordance with international accounting standards (IFRS), with adjusted metrics made available to enable comparison of this quarter (3Q24) with the third quarter of 2023 (3Q23) and the fir ...

SÃO PAULO, Aug. 14, 2024 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4), one of the leading airlines in Brazil and part of the ABRA Group, announced today its consolidated results for the second quarter of 2024 (2Q24). All information herein is presented in Reais (R$), in accordance with international accounting standards (IFRS) and with adjusted metrics, made available to enable comparison of this quarter with the same period of the previous year (2Q23 & 2H23). HIGHLIGHTS GOL – Passenger B ...

PART I [Explanatory Note: Chapter 11 Filing](index=6&type=section&id=Explanatory%20Note) GOL and its subsidiaries filed for Chapter 11 bankruptcy on January 25, 2024, securing up to US$1 billion in DIP financing to support operations during restructuring - GOL and its subsidiaries filed for Chapter 11 bankruptcy protection on January 25, 2024, in the Southern District of New York[16](index=16&type=chunk) - The company secured a Debtor-in-Possession (DIP) financing commitment, which was approved for up to **US$1 billion** to fund operations during the restructuring. As of the report date, all amounts under the DIP financing have been drawn[16](index=16&type=chunk) - The consolidated financial statements have been prepared on a going concern basis and do not include any adjustments that might result from the Chapter 11 cases[20](index=20&type=chunk) [Item 3. Key Information](index=9&type=section&id=ITEM%203.%20Key%20Information) This section details significant investment risks, including uncertainties from Chapter 11 proceedings, Brazilian economic and political instability, and airline industry-specific challenges [Risks Relating to Chapter 11 Cases](index=9&type=section&id=Risks%20Relating%20to%20Our%20Chapter%2011%20Cases) The company faces substantial risks from its Chapter 11 filing, including challenges in confirming a reorganization plan, maintaining business relationships, and securing liquidity, with existing equity value highly speculative - Key risks include the ability to confirm a reorganization plan, emerge from bankruptcy, comply with DIP financing terms, and maintain relationships with creditors, suppliers, and customers[39](index=39&type=chunk)[42](index=42&type=chunk) - The company has substantial liquidity needs for ongoing operations and significant professional fees related to the Chapter 11 cases, with no assurance that the **US$1 billion** DIP financing will be sufficient[48](index=48&type=chunk)[49](index=49&type=chunk) - Trading in the company's ADSs is highly speculative, as the post-bankruptcy capital structure may dilute or completely extinguish the value of existing equity securities[123](index=123&type=chunk)[124](index=124&type=chunk) [Risks Relating to Brazil](index=11&type=section&id=Risks%20Relating%20to%20Brazil) The company's operations are significantly influenced by Brazil's economic and political environment, including government intervention, currency volatility, and tax reforms, with substantial U.S. dollar-denominated costs and debt - The Brazilian government's significant influence over the economy, including changes in interest rates, tax policies, and currency controls, could adversely affect the company[56](index=56&type=chunk) - In 2023, **48.6%** of total operating costs were denominated in or linked to U.S. dollars, while **94.3%** of indebtedness was U.S. dollar-denominated, creating significant exposure to the depreciation of the Brazilian real[77](index=77&type=chunk) - Brazil's tax reform (EC No. 132/2023) aims to simplify consumption taxes, but its effects and interpretation are uncertain and could impact the company's financial condition[82](index=82&type=chunk) [Risks Relating to the Company and Airline Industry](index=15&type=section&id=Risks%20Relating%20to%20Us%20and%20the%20Brazilian%20Airline%20Industry) The company faces industry-specific risks including fuel price volatility, intense competition, liquidity challenges, reliance on a single aircraft manufacturer, and ongoing going concern uncertainties in its financial statements - Fuel costs are a significant and volatile expense, representing **39%** of total operating costs in 2023. The company is exposed to price fluctuations and supplier risk, with Petrobras Distribuidora being the primary source[85](index=85&type=chunk)[87](index=87&type=chunk) - The company relies exclusively on Boeing for its aircraft (737 NG and 737 MAX models) and CFM for engines, creating significant risk related to manufacturer performance, delivery delays, or grounding of aircraft models[94](index=94&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - As of December 31, 2023, the company had negative working capital of **R$9.973 billion**. The auditor's reports for 2021, 2022, and 2023 expressed substantial doubt about the company's ability to continue as a going concern[87](index=87&type=chunk)[92](index=92&type=chunk) - Recent credit rating downgrades by Fitch, Moody's, and S&P in late 2023 and early 2024 may adversely affect the company's ability to secure financing and conduct business[93](index=93&type=chunk) [Item 4. Information on the Company](index=22&type=section&id=ITEM%204.%20Information%20on%20the%20Company) GOL, a leading low-cost carrier, details its history, recent Chapter 11 filing, and business units including airline operations, loyalty, cargo, and MRO, alongside the Brazilian airline industry context [History and Development](index=22&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Founded in 2000, GOL pioneered the low-cost model in Brazil, with recent developments including its January 2024 Chapter 11 filing and March 2023 corporate reorganization under the Abra Group - On January 25, 2024, GOL filed for Chapter 11 bankruptcy protection to restructure its finances, securing up to **US$1 billion** in DIP financing[136](index=136&type=chunk) - In March 2023, a corporate reorganization placed GOL under the Abra Group Limited holding structure, which also has economic interests in Avianca, with voting control split **50/50** between Abra Mobi LLP and Abra Kingsland LLP[133](index=133&type=chunk)[137](index=137&type=chunk) Operating Metric | Operating Metric | 2022 | 2023 | | :--- | :--- | :--- | | Revenue passengers carried (thousands) | 27,269 | 30,818 | | Load factor (%) | 80.0% | 82.0% | | Aircraft utilization (block hours/day) | 11.0 | 11.7 | | RASK (R$ cents) | 37.3 | 43.6 | | CASK (R$ cents) | 35.9 | 35.8 | | CASK ex-fuel (R$ cents) | 20.5 | 22.0 | [Business Overview](index=23&type=section&id=B.%20Business%20Overview) GOL's core low-cost airline operations are supported by Smiles, GOLLOG, and GOL Aerotech, featuring a standardized Boeing 737 fleet, significant domestic market share, and strategic international partnerships - GOL's domestic market share by RPKs was **33.7%** in 2022 and **33.3%** in 2023. The company holds a leading market share in key airports, including **44.0%** at São Paulo (CGH) and **53.1%** at Salvador (SSA) in 2023[141](index=141&type=chunk)[144](index=144&type=chunk)[191](index=191&type=chunk) - The fleet is being modernized by replacing Boeing 737 NG aircraft with more fuel-efficient Boeing 737 MAX aircraft. As of year-end 2023, the fleet comprised **97 NG** and **44 MAX** aircraft, with firm orders for **101** additional MAX aircraft through 2030[152](index=152&type=chunk)[154](index=154&type=chunk)[158](index=158&type=chunk) - The Smiles loyalty program is a key business unit with **22.6 million** members as of December 31, 2023, generating revenue from miles redemption and partnerships with banks and retailers[196](index=196&type=chunk) - GOLLOG cargo operations are expanding, notably through a 10-year agreement with e-commerce giant Mercado Livre, utilizing a dedicated fleet of **six** Boeing 737-800 BCF cargo aircraft[202](index=202&type=chunk)[203](index=203&type=chunk) - The company has strategic partnerships with major international carriers, including an expanded exclusive codeshare agreement with American Airlines and a renewed 10-year strategic partnership with Air France-KLM[182](index=182&type=chunk)[185](index=185&type=chunk)[188](index=188&type=chunk) [Organizational Structure](index=43&type=section&id=C.%20Organizational%20Structure) GOL Linhas Aéreas Inteligentes S.A. is a holding company with nine subsidiaries, primarily operating its air transportation business through GOL Linhas Aéreas S.A. (GLA) - The company is a holding entity with **nine** subsidiaries. The primary air transportation operations are conducted through its subsidiary GOL Linhas Aéreas S.A. (GLA)[262](index=262&type=chunk) [Property, Plant and Equipment](index=43&type=section&id=D.%20Property%2C%20Plant%20and%20Equipment) The company's main physical assets include corporate offices in São Paulo and three GOL Aerotech maintenance hangars in Confins, Brasília, and Congonhas, supporting its Boeing 737 fleet - Key properties include corporate offices in São Paulo and three GOL Aerotech maintenance hangars in Confins, Brasília, and Congonhas, which form one of the largest MRO centers in South America[263](index=263&type=chunk) [Item 5. Operating and Financial Review and Prospects](index=43&type=section&id=ITEM%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes GOL's financial performance, highlighting **R$18.8 billion** net revenue and a **R$1.2 billion** net loss in 2023, alongside liquidity challenges, significant indebtedness, and Chapter 11 uncertainties [Operating Results (FY 2023 vs. FY 2022)](index=43&type=section&id=A.%20Operating%20Results) In 2023, GOL's net revenue grew **23.5%** to **R$18.8 billion**, with operating income improving to **R$3.3 billion**, but a substantial increase in net financial expenses resulted in a **R$1.2 billion** net loss Financial Metric (in millions of R$) | Financial Metric (in millions of R$) | 2022 | 2023 | Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | **15,198.7** | **18,774.0** | **+23.5%** | | Passenger Revenue | 14,153.1 | 17,251.5 | +21.9% | | **Total Operating Costs** | **(14,641.6)** | **(15,435.0)** | **+5.4%** | | Aircraft Fuel | (6,288.4) | (5,950.4) | -5.4% | | Maintenance, Materials & Repairs | (461.6) | (1,364.6) | +195.6% | | **Income from Operations** | **557.1** | **3,339.0** | **+499.3%** | | Net Financial Expense | (2,074.8) | (4,295.8) | +107.0% | | **Net Loss** | **(1,561.5)** | **(1,222.3)** | **-21.7%** | Operational Metric | Operational Metric | 2022 | 2023 | Change | | :--- | :--- | :--- | :--- | | RASK (R$ cents) | 37.3 | 43.6 | +17.0% | | CASK (R$ cents) | 35.90 | 35.85 | -0.1% | | CASK ex-fuel (R$ cents) | 20.48 | 22.03 | +7.6% | - Maintenance expenses surged **195.6%** primarily due to higher costs associated with the return of six aircraft during the period[303](index=303&type=chunk) - Net financial expense more than doubled to **R$4.3 billion**, largely driven by a **R$1.8 billion** loss on derivative financial instruments, specifically related to exchangeable senior notes[306](index=306&type=chunk)[314](index=314&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company's liquidity remains constrained with **R$10.0 billion** negative working capital and **R$1.6 billion** total liquidity, while total indebtedness decreased to **R$20.7 billion**, with significant future commitments for new aircraft - As of December 31, 2023, the company had a negative working capital of **R$10.0 billion**, an improvement from **R$10.9 billion** at year-end 2022[326](index=326&type=chunk) Indebtedness (in millions of R$) | Indebtedness (in millions of R$) | Dec 31, 2022 | Dec 31, 2023 | | :--- | :--- | :--- | | Loans and financing | 11,984.9 | 10,583.6 | | Lease liabilities | 11,207.0 | 9,441.4 | | **Total indebtedness** | **23,191.9** | **20,709.9** | - The company has firm commitments for **101** Boeing 737 MAX aircraft, representing a present value of **R$18.8 billion (US$3.9 billion)** for deliveries through 2030[327](index=327&type=chunk)[352](index=352&type=chunk) - As of December 31, 2023, the company was in compliance with the financial covenants of its indebtedness agreements that require maintenance of specified financial ratios[350](index=350&type=chunk) [Trend Information](index=58&type=section&id=D.%20Trend%20Information) Brazilian air travel demand increased in 2023, but capacity remains constrained, with the company's operational recovery and revenue subject to uncertainties from fuel costs, political policies, and Chapter 11 restructuring - Domestic demand, measured by RPKs, increased by **5.9%** in 2023 compared to 2022[366](index=366&type=chunk) - The company's average daily flights decreased by **9.0%** in December 2023 compared to December 2022, indicating capacity constraints[366](index=366&type=chunk) - The financial statements have been prepared on a going concern basis, but do not include adjustments that might result from the inability to continue as a going concern due to the Chapter 11 proceedings[367](index=367&type=chunk) [Item 6. Directors, Senior Management and Employees](index=58&type=section&id=ITEM%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section details GOL's governance, including its Board of Directors and executive officers, **R$30.6 million** aggregate compensation in 2023, and employee relations, with **13,837** active employees as of year-end 2023 - The Board of Directors is chaired by founder Constantino de Oliveira Junior. As of the report date, the board comprises **nine** members, **five** of whom are independent[374](index=374&type=chunk)[378](index=378&type=chunk)[379](index=379&type=chunk) - The executive team is led by CEO Celso Guimarães Ferrer Junior, who has been with the company for **17 years** and is also a Boeing 737 pilot[391](index=391&type=chunk)[392](index=392&type=chunk) - Aggregate compensation for the board of directors and executive officers in 2023 was **R$30.6 million**, excluding stock options[396](index=396&type=chunk) - The company has stock option and restricted share plans, with the combined total not to exceed **5%** of preferred shares. In the last three years, **4.8 million** stock options and **1.5 million** restricted shares were granted[398](index=398&type=chunk)[402](index=402&type=chunk)[403](index=403&type=chunk) - As of December 31, 2023, the company had **13,837** active employees. GOL has not experienced a work stoppage since its inception and believes it has a good relationship with its employees and their unions[415](index=415&type=chunk)[419](index=419&type=chunk) [Item 7. Major Shareholders and Related Party Transactions](index=65&type=section&id=ITEM%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section details GOL's ownership structure, with control held jointly by Abra MOBI LLP and Abra Kingsland LLP, and outlines major related party transactions including transportation and commercial agreements Shareholder | Shareholder | Common Shares (%) | Preferred Shares (%) | Total Economic Interest (%) | | :--- | :--- | :--- | :--- | | Abra MOBI LLP | 50.0% | 18.80% | 24.90% | | Abra Kingsland LLP | 50.0% | 18.80% | 24.90% | | American Airlines Inc. | – | 6.60% | 5.31% | | Free float | – | 50.58% | 40.70% | - The company has ongoing transportation agreements with bus companies (Expresso Caxiense, Viação Piracicabana) that are controlled by its controlling shareholders. In 2023, expenses under these agreements totaled **R$3.0 million**[426](index=426&type=chunk)[427](index=427&type=chunk) - GOL has commercial partnership agreements with Pagol and Comporte, entities owned by the company's main shareholders, related to financial products and the sale of Smiles miles[430](index=430&type=chunk)[434](index=434&type=chunk) - Following the formation of the Abra Group, Avianca is now a related party. GOL has several agreements with Avianca, including for codesharing and loyalty program participation[437](index=437&type=chunk)[438](index=438&type=chunk) [Item 8. Financial Information](index=68&type=section&id=ITEM%208.%20Financial%20Information) This section details GOL's legal proceedings, with **R$858.5 million** in provisions for probable losses, and its dividend policy, which mandates a **25%** minimum distribution but has seen no payments in the last five years Provision for Legal Proceedings (Probable Loss) | Provision for Legal Proceedings (Probable Loss) | Amount (in millions of R$) | | :--- | :--- | | Civil | 169.3 | | Labor | 442.8 | | Tax | 246.4 | | **Total** | **858.5** | - The company has several significant tax proceedings classified as a possible risk of loss (not provisioned), including disputes over goodwill amortization and social security credits, with total exposure exceeding **R$1.4 billion**[447](index=447&type=chunk)[449](index=449&type=chunk)[450](index=450&type=chunk)[973](index=973&type=chunk) - In September 2022, GOL finalized settlement agreements with the Brazilian Federal Public Ministry, the DOJ, and the SEC regarding investigations into certain payments, agreeing to pay a total of **US$44.9 million** in fines and disgorgement[456](index=456&type=chunk) - The company's bylaws require a mandatory dividend distribution of at least **25%** of adjusted annual net income. However, the board may suspend this distribution if it is inadvisable given the company's financial condition[468](index=468&type=chunk) - GOL has not distributed dividends in the last five years[480](index=480&type=chunk) [Item 9. The Offer and Listing](index=73&type=section&id=ITEM%209.%20The%20Offer%20and%20Listing) This section details the trading of GOL's preferred shares on B3 and its ADSs, which were delisted from NYSE following the Chapter 11 filing and now trade on the less liquid over-the-counter market - As a result of the Chapter 11 filing, the NYSE suspended trading of GOL's ADSs on January 26, 2024, and began the delisting process[483](index=483&type=chunk) - The ADSs are currently traded in the over-the-counter (OTC) market, which is less liquid than a major exchange[483](index=483&type=chunk) - The company's preferred shares (GOLL4) are listed on the B3's Level 2 of Differentiated Corporate Governance Practices, which requires adherence to higher standards of corporate governance and shareholder rights than standard listings[491](index=491&type=chunk) [Item 10. Additional Information](index=76&type=section&id=ITEM%2010.%20Additional%20Information) This section provides additional information on GOL's corporate structure, material contracts like aircraft purchase and fuel supply agreements, and the regulatory framework for exchange controls and taxation of its shares and ADSs - Preferred shares are non-voting but have dividend priority, receiving **35 times** the dividend per common share. They also have tag-along rights in a change of control, valued at **35 times** the price paid per common share[513](index=513&type=chunk)[514](index=514&type=chunk) - Material contracts include a long-term aircraft purchase agreement with Boeing for 737 MAX aircraft and a commercial fuel supply agreement with Petrobras Distribuidora[555](index=555&type=chunk)[556](index=556&type=chunk) - Brazilian tax law generally exempts dividends paid from profits earned after January 1, 1996, from withholding tax for non-Brazilian holders. However, distributions of 'interest on shareholders' equity' are subject to a **15%** withholding tax (or **25%** for residents of low-tax jurisdictions)[565](index=565&type=chunk)[581](index=581&type=chunk) PART II [Item 13. Defaults, Dividend Arrearages and Delinquencies](index=91&type=section&id=ITEM%2013.%20Defaults%2C%20Dividend%20Arrearages%20and%20Delinquencies) The company is in material default on its debt obligations and has breached covenants, but Chapter 11 proceedings initiated on January 25, 2024, impose an automatic stay preventing creditor actions - The company is in material default on its debt obligations, including payments of principal and interest[638](index=638&type=chunk) - Actions by creditors regarding these defaults are stayed as a result of the Chapter 11 filing[638](index=638&type=chunk) [Item 15. Controls and Procedures](index=92&type=section&id=ITEM%2015.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with material weaknesses identified in 2022 successfully remediated - Management concluded that both disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2023[641](index=641&type=chunk)[643](index=643&type=chunk) - Material weaknesses in internal controls that were identified as of year-end 2022 have been remediated during 2023[644](index=644&type=chunk) [Item 16G. Corporate Governance](index=94&type=section&id=ITEM%2016G.%20Corporate%20Governance) As a foreign private issuer, GOL's corporate governance practices differ from NYSE standards, notably regarding independent directors and committee structures, while maintaining a statutory audit committee meeting SEC requirements - Unlike NYSE rules, Brazilian law does not require a majority of the board to be independent. While GOL has independent directors, they do not constitute a majority[657](index=657&type=chunk) - The company has a statutory audit committee whose members meet SEC independence requirements for foreign private issuers. Marcela de Paiva Bonfim Teixeira is designated as the 'audit committee financial expert'[663](index=663&type=chunk)[646](index=646&type=chunk) - GOL does not have a dedicated compensation committee composed entirely of independent directors as required by the NYSE. Instead, its Corporate Governance and People Policies Committee reviews and recommends compensation policies to the board[665](index=665&type=chunk)[666](index=666&type=chunk) [Item 16K. Cybersecurity](index=96&type=section&id=ITEM%2016K.%20Cybersecurity) GOL maintains an integrated cybersecurity risk management strategy, overseen by a dedicated manager and various committees, with no material adverse effects on operations or financial condition reported to date - The company has a comprehensive cybersecurity risk management process that is integrated into its overall risk management system and strategy[675](index=675&type=chunk) - Governance is structured with a cybersecurity manager reporting to the Chief IT Officer, with oversight from the risk committee, statutory audit committee, and the board of directors[683](index=683&type=chunk)[686](index=686&type=chunk) - As of the report date, risks from cybersecurity threats have not materially adversely affected the company's business strategy, results of operations, or financial condition[682](index=682&type=chunk) PART III [Item 18. Financial Statements](index=103&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section presents GOL's audited consolidated financial statements for fiscal year 2023, prepared under IFRS, including the independent auditor's report and detailed financial statements with accompanying notes [Report of Independent Registered Public Accounting Firm](index=104&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young issued an unqualified opinion on GOL's 2023 consolidated financial statements, while including an explanatory paragraph highlighting substantial doubt about the company's going concern ability due to recurring losses and Chapter 11 filing - The auditor's report contains an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern[700](index=700&type=chunk) - The going concern uncertainty is based on recurring losses from operations, a significant working capital deficiency, and the company's filing for Chapter 11 bankruptcy protection[700](index=700&type=chunk) - The auditor identified 'Passenger transportation revenue' and 'Provision for aircraft and engine return' as critical audit matters due to their complexity and the subjective judgments involved[703](index=703&type=chunk)[704](index=704&type=chunk)[708](index=708&type=chunk) - The auditor issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2023[699](index=699&type=chunk)[714](index=714&type=chunk) [Consolidated Financial Statements](index=109&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements as of December 31, 2023, show total assets of **R$16.7 billion**, total liabilities of **R$39.9 billion**, an equity deficit of **R$23.2 billion**, and a net loss of **R$1.2 billion** for the year Consolidated Statement of Financial Position (in thousands of R$) | | Dec 31, 2022 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **16,970,285** | **16,726,194** | | Total Current Assets | 2,993,543 | 3,028,253 | | Total Non-Current Assets | 13,976,742 | 13,697,941 | | **Total Liabilities** | **38,329,100** | **39,893,308** | | Total Current Liabilities | 13,861,247 | 13,001,593 | | Total Non-Current Liabilities | 24,467,853 | 26,891,715 | | **Total Equity (Deficit)** | **(21,358,815)** | **(23,167,114)** | Consolidated Statement of Operations (in thousands of R$) | | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | | **Total Net Revenue** | **7,433,384** | **15,198,725** | **18,774,024** | | Total Operating Costs | (11,267,979) | (14,641,611) | (15,435,046) | | **Income (Loss) from Operations** | **(3,834,595)** | **557,114** | **3,338,978** | | **Net Loss for the Year** | **(7,183,804)** | **(1,561,473)** | **(1,222,259)** | Consolidated Statement of Cash Flows (in thousands of R$) | | 2022 | 2023 | | :--- | :--- | :--- | | Net cash flows from operating activities | 2,168,772 | 1,821,748 | | Net cash flows used in investing activities | (787,510) | (871,989) | | Net cash flows used in financing activities | (1,673,546) | (626,458) |

SÃO PAULO, May 14, 2024 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL and B3: GOLL4), one of the leading airlines in Brazil and part of the Abra Group, today announced its consolidated results for the first quarter of 2024 (1Q24). The Company remained focused on operational efficiency through its single fleet model and diligent yield management, while striving for excellence in the products offered to Customers. All information in this release is presented in Reais (R$) ...

Financial Reporting and Compliance - The consolidated financial statements have been prepared in accordance with IFRS, with amounts translated into U.S. dollars at a rate of R$5.2177 to US$1.00 for the year ended December 31, 2022[19]. - The report indicates that certain figures have been rounded, which may affect the arithmetic sum of totals presented[22]. - The company has not independently verified third-party market data, which could impact the accuracy of competitive position and market share assessments[21]. Operational Performance Metrics - The report includes key performance metrics such as available seat kilometers (ASK) and revenue passenger kilometers (RPK), which are critical for assessing operational efficiency[23][27]. - Operating costs and expenses per available seat kilometer (CASK) are used to measure operational cost efficiency, with CASK ex-fuel providing insights into costs excluding fuel[26]. - The load factor, representing the percentage of seating capacity utilized, is a vital metric for the airline's performance[25]. - The company achieved a daily aircraft utilization rate of 11.0 block hours per day in 2022, up from 10.0 in 2021 and 9.6 in 2020, contributing to revenue generation and cost dilution[94]. - The average load factor for the company was 80.0% in 2022, maintaining best-in-class performance even during the pandemic[110]. Economic and Market Conditions - Brazil's GDP contracted by 4.1% in 2020, grew by 4.6% in 2021, and 2.9% in 2022, impacting the demand for the company's products and services[41]. - The SELIC rate was 2.0% in 2020, increased to 9.25% in 2021, and further to 13.75% in 2022, affecting the cost of indebtedness[51]. - Inflation rates in Brazil were 4.5% in 2020, 10.1% in 2021, and 5.8% in 2022, which may influence operational costs[50]. - Political instability and economic uncertainty in Brazil could adversely affect the company's operations and market perception[42]. Fuel and Cost Management - Fuel costs represented 28%, 23%, and 43% of total operating costs in 2020, 2021, and 2022, respectively, indicating significant volatility in fuel expenses[63]. - The average price of West Texas Intermediate crude oil was US$39.13, US$67.34, and US$94.33 in 2020, 2021, and 2022, respectively, affecting fuel cost dynamics[63]. - The company maintains a fuel hedging program to manage price volatility and reduce exposure to fuel cost fluctuations[167]. - Fuel costs increased significantly from R$2,631.9 million in 2021 to R$6,288.4 million in 2022, representing 43% of total operating costs[163]. Financial Stability and Indebtedness - As of December 31, 2022, 93.7% of the company's indebtedness was denominated in U.S. dollars, exposing it to currency fluctuations[57]. - The company had R$21,737.1 million in U.S. dollar-denominated indebtedness as of December 31, 2022, which may impact financial stability[57]. - As of December 31, 2022, the company's total indebtedness was R$23,191.8 million, an increase from R$22,663.0 million in 2021, primarily due to lease agreements signed in 2022[65]. - The company reported negative working capital of R$10,867.7 million as of December 31, 2022, raising concerns about its liquidity and ability to meet obligations[65]. - The average maturity of loans and financing decreased from 3.4 years in 2021 to 2.5 years in 2022, indicating a potential liquidity risk[65]. Competitive Position and Market Share - The company emphasizes the importance of maintaining a competitive position in the Brazilian and international airline industries, based on reliable third-party data[21]. - The Brazilian airline industry is highly competitive, with significant pressure from existing airlines and potential new entrants affecting fare levels and market share[85]. - The domestic passenger market in Brazil grew from 30.8 million passengers in 2001 to 82.2 million in 2022, with the company's market share increasing from 4% in 2001 to 34% in 2022[107][108]. - The company maintained a domestic market share of 33.7% in 2022, compared to 31.7% in 2021, while LATAM Brasil increased its share to 36.5%[199]. Strategic Initiatives and Future Outlook - Forward-looking statements in the report highlight potential growth opportunities and the effects of regulation and competition on future performance[31]. - The company plans to have 50% of its fleet as Boeing 737 MAX aircraft by 2024, having entered into purchase agreements for 28 additional MAX aircraft[110]. - The company aims to achieve a regular supply of sustainable aviation fuel, targeting a 1% biofuel supply by 2025[173]. - The company has a goal to achieve carbon neutrality by 2050, with its fleet transformation to Boeing 737 MAX aircraft being a key component of this strategy[110]. Customer Engagement and Loyalty Programs - The loyalty program, Smiles, had 20.5 million members as of December 31, 2022, contributing significantly to ticket sales and repeat customers[1]. - Smiles loyalty program allows members to accumulate miles through flights, credit card spending, and retail partnerships, enhancing customer engagement[205]. - The Smiles loyalty program had 20.5 million members as of December 31, 2021, contributing significantly to ticket sales and repeat customers[139]. - Smiles has established partnerships with major Brazilian banks and fintechs, including Nubank and C6 Bank, to enhance its loyalty program[206]. Environmental and Social Responsibility - The company has saved 9.7 million liters of jet fuel and reduced greenhouse gas emissions by 24,300 tons through the use of Boeing 737 MAX aircraft since 2019[110]. - The company reported total fuel consumption of 37,630,000 GJ in 2022, with greenhouse gas emissions of 2,737,745 tons CO2, a significant increase from 1,905,556 tons CO2 in 2021[189]. - The company is committed to achieving zero net direct carbon emissions by 2050 as part of its long-term corporate goals[173]. - As of December 31, 2022, the company employed 14,816 individuals, with 44% of employees being women and a 36% participation rate of women in leadership positions[175][176]. Operational Challenges and Risks - The company faces risks from fluctuations in crude oil prices, which impact fuel costs, particularly due to geopolitical tensions[30]. - The company has experienced operational disruptions due to liquidity limitations, resulting in certain aircraft remaining non-operational[83]. - The company relies on a single supplier for aircraft and engines, which poses a risk if there are negative developments related to Boeing 737 MAX aircraft[71]. - Regulatory changes in Brazil's civil aviation framework could increase costs and affect competitive dynamics, impacting the company's operations[76].

Financial Performance - GOL achieved a record net operating revenue of R$4.7 billion in 4Q22, the highest in the company's history, with a 25.3% increase in RASK and a 24.8% increase in yield compared to 4Q21[10]. - The company recorded a significant increase in sales, generating approximately R$5.4 billion in 4Q22, driven by efficient ticket inventory management and growth in ancillary business units[11]. - Total net revenue for the consolidated entity reached R$15,198,725 in 2022, a significant increase from R$7,433,384 in 2021, representing a growth of 103.8%[102]. - Gross profit for the consolidated entity was R$3,149,774 in 2022, compared to a gross loss of R$1,160,312 in 2021, indicating a turnaround in profitability[103]. - The company reported a loss for the fiscal year of R$1,561,473 in 2022, an improvement from a loss of R$7,221,538 in 2021[106]. - Total comprehensive income for the fiscal year was a loss of R$1,278,880 in 2022, improving from a loss of R$6,787,271 in 2021[106]. - The company reported a net loss of R$1,561,473 for the fiscal year 2022, compared to a loss of R$7,221,538 in 2021, indicating a significant improvement in financial performance[110]. - The basic and diluted loss per share for the consolidated entity was R$0.109 in 2022, compared to R$0.545 in 2021, showing a reduction in loss per share[103]. Passenger and Operational Metrics - The company transported over 7.7 million passengers in 4Q22, bringing the total for 2022 to approximately 27.3 million[6]. - GOL's total revenue passenger kilometers (RPK) reached 9,107 million in 4Q22, a 25.1% increase compared to 4Q21[36]. - The domestic market RPK was 8,208 million, up 14.6% year-over-year, achieving 85% of the RPK recorded in 4Q19[37]. - GOL's total ASK (available seat kilometers) increased by 29.0% to 11,375 million in 4Q22 compared to the previous year[36]. - The company transported approximately 7.4 million customers in 4Q22, marking a 22.4% increase year-over-year[37]. - GOL's load factor for the total market was 80.1%, a decrease of 2.5 percentage points compared to 4Q21[36]. Fleet and Capacity Management - The company expects to receive 15 new Boeing 737-MAX 8 aircraft in 2023, increasing the total to 53 MAX aircraft in its fleet[23]. - GOL's total fleet increased to 146 Boeing 737 aircraft by the end of 4Q22, up from 135 in 4Q21[44]. - GOL has 91 firm orders for the acquisition of Boeing 737-MAX aircraft, with plans to return about 17 operational aircraft by the end of 2023[44]. - The operational network resumed to levels close to 2019, achieving 86% of the supply equivalent to the same period in 2019 by the fourth quarter of 2022[131]. - The Company received 15 Boeing 737-MAX aircraft in the fiscal year ended December 31, 2022, which consume approximately 15% less fuel and produce around 16% less carbon compared to the Boeing 737-NG aircraft[141]. Financial Position and Debt Management - GOL's net debt will be reduced by over US$100 million following the issuance of Senior Secured Notes due in 2028, resulting in more than US$30 million in annual interest expense savings[33]. - The average maturity of GOL's bonds improved from 2.5 years to 4.4 years due to recent liability management operations[35]. - Current liabilities exceeded total current assets by R$10,868 million, raising concerns about the company's liquidity[71]. - The company reported negative shareholders' equity of R$21,359 million as of December 31, 2022, indicating significant financial distress[71]. - The company has substantial doubt about its ability to continue as a going concern due to financial uncertainties[71]. Revenue Streams and Ancillary Services - GOL's ancillary revenues from SMILES and GOLLOG tripled to R$340.7 million in 4Q22, representing about 7.2% of total net revenue[16]. - GOL's SMILES program ended 4Q22 with 20.9 million customers, a 6% increase from 4Q21, and recorded R$1.1 billion in revenue for the quarter[17]. - The company reported a significant increase in advance ticket sales, totaling R$832,087 in 2022, compared to R$619,670 in 2021, indicating strong demand[110]. Strategic Initiatives and Partnerships - GOL signed an investment agreement with American Airlines, which involved an investment of R$948,320 for 22,224,513 preferred shares, enhancing commercial cooperation between the two airlines[139]. - The Company signed a 10-year cargo service agreement with Mercado Livre, which includes a dedicated cargo fleet of 6 Boeing 737-800 BCFs, with plans to add another 6 cargo aircraft by 2025[145]. - The Company plans to significantly increase its cargo carrying capacity in tons in 2023 to generate additional revenue, responding to the growing Brazilian e-commerce market[146]. Compliance and Audit - The independent auditor's report confirmed that the financial statements present fairly the company's financial position in accordance with IFRS[69]. - The company’s financial statements were prepared in accordance with Brazilian accounting practices and IFRS[86]. - The audit included significant procedures to assess the accuracy of passenger transportation revenue recognition[75]. - The auditor's report did not cover the Management Report, which is the responsibility of the company's management[84]. Risk Management and Financial Instruments - The Company contracts derivative financial instruments to mitigate risks from interest rates, foreign exchange rates, and aviation fuel prices[182]. - Derivative instruments designated as cash flow hedges protect future income from fluctuations in interest rates and fuel prices, with variations recorded in "Other Comprehensive Income (Expenses)"[185].