Gol Linhas Aereas Inteligentes S.A.(GOL) - 2022 Q4 - Annual Report

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].