Cover
Cover | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Entity Registrant Name | Gol Intelligent Airlines Inc. |
Entity Central Index Key | 0001291733 |
Document Type | 20-F |
Trading Symbol | GOL |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Title of 12(b) Security | American Depositary Shares (as evidenced by American Depositary Receipts), each representing one share of Preferred Stock |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | D5 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | International Financial Reporting Standards |
Entity Common Stock, Shares Outstanding | 2,863,682,710 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Consolidated statements of fina
Consolidated statements of financial position - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | R$ 1645425 | R$ 826187 |
Short-term investments | 953,762 | 478,364 |
Restricted cash | 304,920 | 133,391 |
Trade receivables | 1,229,530 | 853,328 |
Inventories | 199,213 | 180,141 |
Recoverable taxes | 309,674 | 360,796 |
Derivative assets | 3,500 | |
Advance to suppliers and third parties | 142,338 | 55,132 |
Other assets | 139,015 | 423,496 |
Total current assets | 4,927,377 | 3,310,835 |
Non-current assets | ||
Deposits | 1,968,355 | 1,612,295 |
Restricted cash | 139,386 | 688,741 |
Advance to suppliers and third parties | 48,387 | |
Recoverable taxes | 174,142 | 95,873 |
Deferred taxes | 59,809 | 73,822 |
Other credits and amounts | 991 | |
Derivative assets | 143,969 | |
Investments | 1,254 | 1,177 |
Property, plant and equipment | 6,058,101 | 2,818,057 |
Intangible assets | 1,776,675 | 1,777,466 |
Total non-current assets | 10,371,069 | 7,067,431 |
Total | 15,298,446 | 10,378,266 |
Current liabilities | ||
Loans and financing | 2,543,039 | 1,103,206 |
Leases | 1,404,712 | 255,917 |
Suppliers | 1,286,275 | 1,403,815 |
Suppliers - forfeiting | 554,467 | 365,696 |
Salaries, wages and benefits | 396,010 | 368,764 |
Taxes payable | 116,523 | 111,702 |
Landing fees | 728,339 | 556,300 |
Air traffic liability | 1,966,148 | 1,673,987 |
Mileage program | 1,009,023 | 826,284 |
Advances from customers | 16,424 | 169,967 |
Provisions | 203,816 | 70,396 |
Derivatives | 9,080 | 195,444 |
Other liabilities | 128,744 | 99,078 |
Total current liabilities | 10,362,600 | 7,200,556 |
Non-current liabilities | ||
Loans and financing | 5,866,802 | 5,340,601 |
Leases | 4,648,068 | 656,228 |
Suppliers | 10,142 | 120,137 |
Provisions | 1,053,240 | 829,198 |
Mileage program | 171,651 | 192,569 |
Deferred taxes | 244,041 | 227,290 |
Taxes payable | 84 | 54,659 |
Derivatives | 11,270 | 214,218 |
Other liabilities | 35,965 | 48,161 |
Total non-current liabilities | 12,041,263 | 7,683,061 |
Equity (deficit) | ||
Capital stock | 3,008,178 | 2,942,612 |
Advances for future capital increase | 584 | 2,818 |
Treasury shares | (102,543) | (126) |
Capital reserves | 225,276 | 205,889 |
Equity valuation adjustments | 188,247 | 259,962 |
Accumulated losses | (10,996,413) | (8,396,567) |
Deficit attributable to equity holders of the parent company | (7,676,671) | (4,985,412) |
Non-controlling interest (NCI) | 571,254 | 480,061 |
Total deficit | (7,105,417) | (4,505,351) |
Total liabilities and deficit | R$ 15298446 | R$ 10378266 |
Consolidated statements of oper
Consolidated statements of operations - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net revenue | ||||
Passenger | [1] | R$ 13077743 | R$ 10633488 | R$ 9564041 |
Mileage Program, cargo and other | 786,961 | 777,866 | 764,993 | |
Total net revenue | 13,864,704 | 11,411,354 | 10,329,034 | |
Operating Costs and Expenses | ||||
Salaries, wages and benefits | (2,361,268) | (1,903,852) | (1,708,111) | |
Aircraft fuel | (4,047,344) | (3,867,673) | (2,887,737) | |
Aircraft rent | (1,112,837) | (939,744) | ||
Landing fees | (759,774) | (743,362) | (664,170) | |
Aircraft, traffic and mileage servicing | (707,392) | (613,768) | (628,140) | |
Passenger service expenses | (578,744) | (474,117) | (437,045) | |
Sales and marketing | (670,392) | (581,977) | (590,814) | |
Maintenance, materials and repairs | (569,229) | (570,333) | (368,719) | |
Depreciation and amortization | (1,727,982) | (668,516) | (505,425) | |
Other income (expenses), net | (309,917) | 524,656 | (610,310) | |
Total operating costs and expenses | (11,732,042) | (10,011,779) | (9,340,215) | |
Equity pick up method | 77 | 387 | 544 | |
Income before financial results, exchange rate variation, net and income taxes | 2,132,739 | 1,399,962 | 989,363 | |
Financial results | ||||
Financial income | 389,563 | 259,728 | 213,446 | |
Financial expenses | (1,748,265) | (1,061,089) | (1,050,461) | |
Total financial results | (1,358,702) | (801,361) | (837,015) | |
Income before exchange rate variation, net and income taxes | 774,037 | 598,601 | 152,348 | |
Exchange rate variation, net | (385,092) | (1,081,197) | (81,744) | |
Income (loss) before income taxes | 388,945 | (482,596) | 70,604 | |
Income taxes | ||||
Current | (178,621) | (52,139) | (239,846) | |
Deferred | (30,986) | (244,989) | 547,059 | |
Total income (loss) taxes | (209,607) | (297,128) | 307,213 | |
Net income (loss) for the year | 179,338 | (779,724) | 377,817 | |
Net income (loss) attributable to: | ||||
Equity holders of the parent company | (117,273) | (1,085,393) | 18,792 | |
Non-controlling interest shareholders | R$ 296611 | R$ 305669 | R$ 359025 | |
Preferred Share [Member] | ||||
Basic loss per share | ||||
Basic earnings (loss) per share (in R$ per shares) | R$ 0.333 | R$ 3.115 | R$ 0.054 | |
Diluted loss per share | ||||
Diluted earnings (loss) per share (in R$ per shares) | (0.333) | (3.115) | 0.053 | |
Common Share [Member] | ||||
Basic loss per share | ||||
Basic earnings (loss) per share (in R$ per shares) | (0.010) | (0.089) | 0.002 | |
Diluted loss per share | ||||
Diluted earnings (loss) per share (in R$ per shares) | R$ 0.010 | R$ 0.089 | R$ 0.002 | |
[1] | Eliminations are related to transactions between GLA and Smiles Fidelidade. |
Consolidated statements of comp
Consolidated statements of comprehensive income (loss) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Net income (loss) for the year | R$ 179338 | R$ 779724 | R$ 377817 |
Other comprehensive (loss) income - items that are or may be reclassified subsequently to profit or loss | |||
Actuarial losses from post-employment benefits | (41,045) | ||
CCash flow hedge, net of income tax | (30,021) | (420,706) | 67,913 |
Total | (71,066) | (420,706) | 67,913 |
Total comprehensive income (loss) for the year | 108,272 | (1,200,430) | 445,730 |
Comprehensive income (loss) attributable to: | |||
Equity holders of the parent company | (188,339) | (1,506,099) | 86,705 |
Non-controlling interest shareholders | R$ 296611 | R$ 305669 | R$ 359025 |
Consolidated statements of chan
Consolidated statements of changes in equity - BRL (R$) R$ in Thousands | Capital Stock [Member] | Advance for future capital increase [Member] | Treasury shares [Member] | Premium on transfer of shares [Member] | Special premium reserve of subsidiary [Member] | Share-Based payments [Member] | Cash flow hedge reserve [Member] | Post employment benefit [Member] | Net gains from purchase/sale of non-controlling interest [Member] | Accumulated losses [Member] | Deficit attributable to equity holders of the parent company [Member] | Non-controlling interests [Member] | Total | |
Balances as of beginning of period at Dec. 31, 2016 | R$ 2924492 | R$ 13371 | R$ 20420 | R$ 70979 | R$ 113918 | R$ 147229 | R$ 693251 | R$ 7331641 | R$ 3669181 | R$ 293247 | R$ 3375934 | |||
Changes in equity [Abstract] | ||||||||||||||
Other comprehensive income (loss), net | 67,913 | 67,913 | 67,913 | |||||||||||
Net income (loss) for the year | 18,792 | 18,792 | 359,025 | 377,817 | ||||||||||
Stock options exercised | 2,692 | 2,692 | 2,692 | |||||||||||
Effects of the change in interest in investment | 3,994 | 3,994 | 3,994 | |||||||||||
Interest on shareholders' equity distributed by Smiles | (14,071) | (14,071) | ||||||||||||
Capital increase from exercise of stock option in subsidiary | 1,988 | 1,988 | ||||||||||||
Share issuance costs | (523) | (523) | ||||||||||||
Share-based payments | 11,956 | 11,956 | 192 | 12,148 | ||||||||||
Sale of interest subsidiary | 63,300 | 63,300 | 4,865 | 68,165 | ||||||||||
Treasury shares transferred | 9,203 | (2,637) | (6,566) | |||||||||||
Minimum dividends declared by Smiles | (46,931) | (46,931) | ||||||||||||
Additional dividends distributed by Smiles | (185,779) | (185,779) | ||||||||||||
Balances as of end of period at Dec. 31, 2017 | 2,927,184 | (4,168) | 17,783 | 70,979 | 119,308 | (79,316) | 760,545 | (7,312,849) | (3,500,534) | 412,013 | (3,088,521) | |||
Changes in equity [Abstract] | ||||||||||||||
Initial adoption of accounting standards - IFRS 9 | 1,675 | 1,675 | 38 | 1,713 | ||||||||||
Other comprehensive income (loss), net | (420,706) | (420,706) | (420,706) | |||||||||||
Net income (loss) for the year | (1,085,393) | (1,085,393) | 305,669 | (779,724) | ||||||||||
Stock options exercised | 15,428 | R$ 2818 | 18,246 | 18,246 | ||||||||||
Effects of the change in interest in investment | (561) | (561) | 561 | |||||||||||
Treasury shares buyback | (15,929) | (15,929) | (15,929) | |||||||||||
Stock options in subsidiary | 875 | 875 | ||||||||||||
Share-based payments | 17,790 | 17,790 | 782 | 18,572 | ||||||||||
Treasury shares transferred | 19,971 | (286) | (19,685) | |||||||||||
Dividends and interest on shareholders' equity paid by Smiles | (172,865) | (172,865) | ||||||||||||
Dividends and interest on shareholders' equity distributed by Smiles | (67,012) | (67,012) | ||||||||||||
Balances as of end of period at Dec. 31, 2018 | 2,942,612 | 2,818 | (126) | 17,497 | 70,979 | 117,413 | (500,022) | 759,984 | (8,396,567) | (4,985,412) | 480,061 | (4,505,351) | ||
Changes in equity [Abstract] | ||||||||||||||
Initial adoption of accounting standards | (2,482,573) | (2,482,573) | (256) | (2,482,829) | ||||||||||
Adjusted balance as of January 1st , 2019 | 2,942,612 | 2,818 | (126) | 17,497 | 70,979 | 117,413 | (500,022) | 759,984 | (10,879,140) | (7,467,985) | 479,805 | (6,988,180) | ||
Other comprehensive income (loss), net | (30,021) | R$ 41045 | (71,066) | (71,066) | ||||||||||
Net income (loss) for the year | (117,273) | (117,273) | 296,611 | 179,338 | ||||||||||
Total comprehensive income (loss) for the year | (30,021) | (41,045) | (117,273) | (188,339) | 296,611 | 108,272 | ||||||||
Advances for future capital increase | 584 | 584 | 584 | |||||||||||
Stock options exercised | 65,566 | (2,818) | 7,137 | 69,885 | 2,366 | 72,251 | ||||||||
Effects of the change in interest in investment | (649) | (649) | 649 | |||||||||||
Treasury shares buyback | (102,417) | (102,417) | (102,417) | |||||||||||
Subscription warrants | [1] | 12,250 | 12,250 | 12,250 | ||||||||||
Interest on shareholders' equity distributed by Smiles | (208,177) | (208,177) | ||||||||||||
Balances as of end of period at Dec. 31, 2019 | R$ 3008178 | R$ 584 | R$ 102543 | R$ 17497 | R$ 83229 | R$ 124550 | R$ 530043 | R$ 41045 | R$ 759335 | R$ 10996413 | R$ 7676671 | R$ 571254 | R$ 7105417 | |
[1] | Exercise price R$39.24. |
Consolidated statements of cash
Consolidated statements of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net income (loss) for the year | R$ 179338 | R$ 779724 | R$ 377817 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | |||
Depreciation and amortization | 1,727,982 | 668,516 | 505,425 |
Provision for expected credit losses | 5,668 | (9,789) | 24,913 |
Provision for legal proceedings | 195,465 | 243,860 | 158,263 |
Provision for inventory obsolescence | 2,168 | 5,023 | 3,059 |
Provision for loss on advances from suppliers | 161,228 | ||
Adjustment to present value of advance from suppliers | 10,604 | ||
Deferred taxes | 30,986 | 244,989 | (547,059) |
Equity pick up method | (77) | (387) | (544) |
Share-based payments | 40,725 | 18,572 | 14,849 |
Actuarial losses from post-employment benefits | 4,907 | ||
Foreign exchange, net | 399,174 | 946,732 | 95,132 |
Interest on loans and financing and leases | 1,126,527 | 679,985 | 566,902 |
Provision for aircraft and engine return | 231,821 | ||
Provision for maintenance reserve | 75,451 | 65,334 | |
Result of derivatives recognized in profit or loss | 22,022 | (13,239) | 8,639 |
Unrealized hedge results | (40,717) | ||
Termination of obligation due to contractual term reduction | (275,921) | ||
Provision for labor obligations | 280,320 | 127,618 | 65,573 |
Disposals of property, plant and equipment and intangible assets | 152,017 | 90,639 | 145,855 |
Other provisions | (14,602) | 15,184 | |
Adjusted net income (loss) | 4,315,086 | 2,288,129 | 1,434,008 |
Changes in operating assets and liabilities: | |||
Trade receivables | (384,147) | 95,844 | (198,370) |
Short-term investments | 162,167 | 695,831 | (353,231) |
Inventories | (21,240) | (6,673) | 1,038 |
Deposits | (399,345) | (402,495) | 46,388 |
Recoverable taxes | (27,147) | ||
Suppliers | (232,021) | 16,382 | (202,462) |
Suppliers - forfeiting | 188,771 | 267,502 | 76,157 |
Advance from ticket sales | 292,161 | 197,473 | 271,386 |
Mileage program | 161,821 | 65,535 | (47,714) |
Advances from customers | (153,543) | 148,249 | 4,895 |
Salaries, wages and benefits | (253,074) | (64,308) | (43,641) |
Landing fees | 172,039 | 190,649 | 126,085 |
Taxes obligation | 179,706 | 127,663 | 460,980 |
Derivatives | (124,548) | (20,998) | (44,753) |
Receipt (payment) of fuel derivative bonus | (43,008) | 29,383 | 12,443 |
Advance to suppliers and third parties | (305,906) | ||
Payments for lawsuits and aircraft return | (317,591) | (236,882) | (270,970) |
Operating leases | 103,838 | 131,877 | |
Prepaid expenses | (49,352) | ||
Other assets and liabilities, net | 501 | (736,638) | 18,157 |
Interest paid | (470,794) | (508,973) | (528,398) |
Income tax paid | (229,460) | (167,642) | (221,122) |
Net cash flows from operating activities | 2,461,076 | 2,081,869 | 672,753 |
Investing activities | |||
Sale of interest in subsidiary | 68,163 | ||
Short-term investments, net | (501,607) | (163,218) | (171,174) |
Restricted cash | 377,826 | (548,928) | (100,835) |
Receipt of dividends and Interest on shareholders' equity through subsidiary | 543 | 1,249 | |
Advances for property, plant and equipment acquisition, net | (30,804) | (106,628) | 68,679 |
Receipt of aircraft sales | 348,389 | ||
Acquisition of fixed assets | (872,570) | (686,946) | (370,438) |
Acquisition of intangible assets | (75,845) | (82,079) | (55,449) |
Net cash flows used in investing activities | (754,611) | (1,587,256) | (559,805) |
Financing activities | |||
Loans and financing issued, net of costs | 2,275,615 | 1,703,933 | 1,898,738 |
Costs of borrowing and repurchasing securities | (80,953) | (39,926) | (65,628) |
Loan and financing payments | (793,537) | (1,318,349) | (274,480) |
Early payment of senior notes | (630,989) | (707,142) | |
Payments of leases liabilities | (1,617,677) | (251,557) | (239,092) |
Treasury share buyback | (102,417) | (15,929) | |
Derivative premium payment | (407,322) | ||
Dividends and interest on shareholders' equity paid to non-controlling interests | (210,242) | (219,493) | (254,892) |
Warrants | 12,250 | ||
Capital increase | 31,526 | 15,428 | 2,692 |
Capital increase from non-controlling interests | 875 | ||
Shares to be issued | 584 | 2,818 | |
Shares issuance costs | (523) | ||
Net cash flows (used in) from financing activities | (892,173) | (753,189) | 359,673 |
Foreign exchange variation on cash held in foreign currencies | 4,946 | 57,901 | (7,966) |
Net (decrease) increase in cash and cash equivalents | 819,238 | (200,675) | 464,655 |
Cash and cash equivalents at the beginning of the year | 826,187 | 1,026,862 | 562,207 |
Cash and cash equivalents at the end of the year | R$ 1645425 | R$ 826187 | R$ 1026862 |
1. Operating context
1. Operating context | 12 Months Ended |
Dec. 31, 2019 | |
Operating Context [abstract] | |
Operating context | 1. Operating context Gol Linhas Aéreas Inteligentes S.A. (the “Company” or “GOL”) is a publicly-listed company incorporated on March 12, 2004, under the Brazilian Corporate Law. The Company’s bylaws provide that it has as its corporate purpose the exercise of share control of GOL Linhas Aéreas S.A. (“GLA”), through subsidiaries or affiliated companies, as well as exploring: regular and non-scheduled air transportation services for passengers, cargo and postal bags, at national and international levels, as per the concessions of the due authorities; complementary air transportation service activities by chartering passengers, cargo and postal bags; provision of maintenance services, repair of aircraft, own or third parties, engines, parts, and pieces; provision of aircraft hangar services; provision of courtyard and runway service, the supply of flight attendants and aircraft cleaning; development of other activities related or complementary to air transportation and the other activities described above; development of loyalty programs; and interest in the capital of other companies as a partner or shareholder. The Company’s shares are traded on B3 S.A. - Brasil, Bolsa, Balcão (“B3”) and on the New York Stock Exchange (“NYSE”) under the ticker GOLL4 and GOL, respectively. The Company adopted Level 2 Differentiated Corporate Governance Practices from B3 and is included in the Special Corporate Governance Stock Index (“IGC”) and the Special Tag Along Stock Index (“ITAG”), which were created for companies committed to applying differentiated corporate governance practices. The Company’s corporate address is located at Praça Comandante Linneu Gomes, s/n, portaria 3, prédio 24, Jardim Aeroporto, São Paulo, Brazil. As of March 11, 2019, as a result of the second accident involving a Boeing 737 Max 8 aircraft, the Company’s Management decided to suspend the operation of its seven aircraft prior to this being mandated by regulatory authorities, given that safety is the Company’s number one priority. As a result of this strategy, the Company quickly reconfigured its flight network. The use of these aircraft is subject to authorization by the Brazilian regulatory authorities and destination countries, mainly the United States of America. The Company did not need and does not intend to interrupt any of its routes due to the suspension of the use of these aircraft. The management assessed and carried out impairment tests for these aircraft by comparing their carrying amount with the market value indicated in independent specialized publications ("BlueBook"), concluding that there are no losses related to the right-of-use asset and, therefore, no provision was recognized. On December 10, 2019, Delta Airlines ended the process of divesting its equity interest in GOL. This interest in GOL was held only for investment purposes and the revenues from the agreements with Delta represented only around 0.4% of GOL’s total revenues. 1.1. Capital structure and net working capital As of December 31, 2019, the Company had a consolidated deficit of R$7,676,671 (R$4,985,412 on December 31, 2018) and a negative net working capital of R$5,435,223 (R$3,889,721 on December 31, 2018). The increase in consolidated deficit is mainly a consequence of the initial adoption of IFRS 16 - “Leases”, with an impact of R$2,436,334 in the consolidated financial statements. According to Management’s assessment, the consolidated current assets and the forecasts of net cash flows generated by operating activities will be sufficient to meet the Company’s need for working capital and capital expenditures for the foreseeable future. This assessment considers the sale of 11 aircraft which was announced subsequent to year-end on February 11, 2020 (see note 38.4) and is expected to reduce the Company’s net debt by approximately R$500,000, reducing the Company’s leases liability by R$130,000 and increasing cash and cash equivalents by R$370,000. The Company plans to use large portion of the balance to pay down its financial debts. Furthermore, Management’s assessment considers the Company’s business plan including future actions planned by Management, as well as other relevant macroeconomic and sector specific assumptions, like actual forecasts of the USD foreign exchange rate and fuel prices. Management’s assessment also considers that the Company carried out several initiatives to adjust its fleet size and match seat supply to demand, in order to maintain a high load factor, reduce costs and adjust its capital structure. Considering the unpredictability of the economic crisis triggered by the COVID-19 pandemic and its impacts, Management concluded that there are substantial doubt related to the Company's ability to continue operating, but that the assumption of continuity is still valid, considering all relevant information available up to the authorization date for issuing these financial statements, as well as the business plan. As such, these consolidated financial statements do not include any adjustments that might result from Company’s inability to continue as a going concern. If the Company cannot continue as a going concern, adjustments to the carrying values and classification of our assets and liabilities and the reported amounts of income and expenses could be required and could be material. 1.2. Corporate Structure The corporate structure of the Company and its subsidiaries, on December 31, 2019, is shown below: Entity Date of incorporation Location Principal activity Type of control % of Interest in the capital stock 2019 2018 Offshore subsidiaries: GAC 03/23/2006 Cayman Islands Aircraft acquisition Direct 100.0 100.0 Gol Finance Inc. 03/16/2006 Cayman Islands Fund-raising Direct 100.0 100.0 Gol Finance 06/21/2013 Luxembourg Fund-raising Direct 100.0 100.0 Subsidiaries: GLA 04/09/2007 Brazil Flight transportation Direct 100.0 100.0 AirFim 11/07/2003 Brazil Investment fund Indirect 100.0 100.0 Sul América Gol Max 03/14/2014 Brazil Investment fund Indirect - 100.0 Smiles Fidelidade 08/01/2011 Brazil Loyalty program Direct 52.6 52.7 Smiles Viagens 08/10/2017 Brazil Tourism agency Indirect 52.6 52.7 Smiles Fidelidade Argentina (a) 11/07/2018 Argentina Loyalty program Indirect 52.6 52.7 Smiles Viagens Argentina (a) 11/20/2018 Argentina Tourism agency Indirect 52.6 52.7 Fundo Sorriso 07/14/2014 Brazil Investment fund Indirect 52.6 52.7 Company in shareholding: SCP Trip 04/27/2012 Brazil Flight magazine Indirect 60.0 60.0 Associate: Netpoints (b) 11/08/2013 Brazil Loyalty program Indirect - 25.4 (a) Companies with functional currency in Argentine pesos. (b) On February 1, 2019, the subsidiary Smiles Fidelidade sold its equity interest in the affiliate for the total amount of R$914, recognized in consolidated statements of operations under “Other operating income”. The subsidiaries GAC Inc., GOL Finance and GOL Finance Inc., are entities incorporated with the specific purpose of continuing the Company's operations. They do not have their own governing body and do not have autonomy in the decision-making process; therefore, the assets and liabilities of these entities are consolidated in the parent company's financial statements. On November 7 and 20, 2018, the subsidiaries Smiles Fidelidade S.A. and the subsidiaries Smiles Fidelidade S.A. and Smiles Viajes Y Turismo S.A. were incorporated, both based in Buenos Aires, Argentina, with the purpose of promoting the operations of the Smiles Program and the sale of airline tickets in that country. On August 10, 2017, the subsidiary Smiles Fidelidade acquired all shares of Smiles Viagens e Turismo S.A. (“Smiles Viagens”), whose main purpose is the intermediation of travel organization services, including the reservation or sale of airline tickets, accommodation, tourism packages, among others. Smiles Viagens started operations in January 2018. The Company was also the direct parent company of Gol Dominicana Lineas Aereas SAS (“Gol Dominicana”) until September 14, 2018. 1.3. Corporate reorganization plan On December 9, 2019, the Company, together with its subsidiaries, announced the corporate reorganization plans with the main purpose of ensuring the long-term competitiveness of GOL Group, by aligning the interests of all stakeholders, reinforcing a consolidated capital structure, simplifying the corporate governance of companies, reducing the operating, administrative and financial costs and expenses, and increasing the market liquidity for all GOLs shareholders, through the incorporation of Smiles shares by GLA. Subsequent to year-end, the corporate reorganization plan was canceled – refer to note 37.1 1.4. Compliance program Since 2016, the Company has adopted several measures to strengthen and expand its internal control and compliance programs, among which we can highlight: hiring specialized companies to assess risks and review internal controls regarding fraud and corruption; integrating risk, compliance and internal control functions through the Executive Board of Corporate Risks, Compliance and Internal Controls, reporting directly to the CEO and with independent access to the Board of Directors and the Statutory Audit Committee; monitoring transactions with politically exposed people; improving the procedures to supervise the execution of contracted services; updating the procurement and contract management flow policies; reviewing the code of ethics, the conduct manual and many compliance policies including massive mandatory training. As previously disclosed in the financial statements for the year ended December 31, 2017, and 2018, the Company entered into an agreement with the Brazilian Federal Public Ministry in December 2016 (“Agreement”), under which the Company agreed to pay R$12 million in fines and make improvements to its compliance program. In turn, the Federal Public Ministry agreed not to raise any charges related to activities that are the subject of the Agreement. In addition, the Company paid R$4.2 million in fines to the Brazilian tax authorities. The Company voluntarily informed the U.S. Department of Justice (“DOJ”), the Securities and Exchange Commission (“SEC”) and the Brazilian Securities and Exchange Commission (“CVM”) of the Agreement and the external independent investigation hired by the Company, and about the Agreement. The investigation was completed in April 2017 and revealed that immaterial payments were made to politically exposed people. None of the current employees, representatives or members of the Company’s Board or Management knew of any illegal purpose behind any of the transactions identified, or of any unlawful benefit to the Company arising from the investigated operations. The Company informed the due authorities of the result of the investigation and will continue to communicate on the development of the issue, following the analyzes already initiated by these bodies. These authorities may impose fines and possibly other sanctions on the Company. There were no further developments on the subject during the year ended December 31, 2019. |
2. Management' statement, basis
2. Management' statement, basis for preparing and presenting the financial statements | 12 Months Ended |
Dec. 31, 2019 | |
Statement of the Management, basis for preparing and presenting the financial statements [abstract] | |
Management' statement, basis for preparing and presenting the financial statements | 2. Management' statement, basis for preparing and presenting the financial statements The Company’s financial statements were prepared in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). The Company's financial statements were prepared based on the Real (“R$”) as the functional and presentation currency, expressed in thousands of Reais, except when otherwise indicated. The disclosures of amounts in other currencies, when necessary, were also made in thousands. The items disclosed in foreign currencies are duly identified, when applicable. The preparation of the Company’s financial statements requires Management to make judgments, use estimates and adopt assumptions affecting the stated amounts of revenues, expenses, assets, and liabilities. However, the uncertainty inherent in these judgments, assumptions, and estimates could give rise to results that require a material adjustment of the book value of certain assets and liabilities in future reporting years. The Company is continually reviewing its judgments, estimates, and assumptions. The Management, when preparing these financial statements, used the following disclosure criteria: (i) regulatory requirements; (ii) relevance and specificity of the information on the Company’s operations to users; (iii) the informational needs of users of financial statements; and (iv) information from other entities in the same industry, mainly in the international market. The Management confirms that all the material information in these financial statements is being demonstrated and corresponds to the information used by Management in the development of its business management activities. The financial statements have been prepared based on historical cost, with the exception of the following significant items recognized in the statements of financial positions: · short-term investments classified as cash and cash equivalents measured at fair value; · short-term investments comprising exclusive investment funds, which financial instruments are measured at fair value; · restricted cash measured at fair value; · derivative financial instruments measured at fair value; and · investments accounted for using the equity method. The Company’s consolidated financial statements as of December 31, 2019, and 2018 and for the years ended December 31, 2019, 2018 and 2017 have been prepared assuming that it will continue as going concern, realizing assets and settling liabilities in the normal course of business, as detailed in Note 1.1. |
3. Approval of financial statem
3. Approval of financial statements | 12 Months Ended |
Dec. 31, 2019 | |
Approval of Financial Statements [abstract] | |
Approval of financial statements | 3. Approval of financial statements The approval and authorization for the issuance of these financial statements took place at the Board of Directors’ meeting held on June, 29, 2020. |
4. Summary of significant accou
4. Summary of significant accounting practices | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant accounting practices [absract] | |
Summary of significant accounting practices | 4. Summary of significant accounting practices 4.1. Consolidation The financial statements include the financial statements of the Company and of the subsidiaries in which the Company has direct or indirect control. All transactions and balances between GOL and its subsidiaries were eliminated in the consolidation, as well as the unrealized profits or losses arising from these transactions, including charges and taxes. Accounting practices were uniformly applied to all consolidated companies, adopted in the previous year. 4.2. Investments Investments in associates are initially recognized at cost and subsequently adjusted using the equity method. If the investee generates operating losses that lead the shareholders’ equity to become negative, the Company adopts the provisions set forth in IAS 28 - “Investment in Associates, Subsidiaries and Jointly-Controlled Companies and does not make additional records. The equity method result is recorded again when the investee recovers all accumulated losses. 4.3. Cash and cash equivalents The Company classifies in this group the balances of cash, banks and financial investments of investment funds and securities of immediate liquidity which, according to analyzes, are readily convertible into a known amount of cash with an insignificant risk of change in value. Financial investments classified in this group, due to their very nature, are measured at fair value through profit or loss and will be used by the Company in a short period of time. 4.4. Short-term investments In the presentation and measurement of financial assets, the Company considers the provisions of IFRS 9 - “Financial Instruments” which establishes that financial assets must be initially measured at fair value less costs directly linked to their acquisition. In turn, the subsequent measurement is divided into two categories: 4.4.1. Amortized cost Financial investments are measured at amortized cost when all of the following conditions are met: · the Company plans to hold the financial asset to collect the contractual cash flows; · the contractual cash flows represent only the payments of interest and principal (“SPPI”); and · the Company did not opt for the fair value methodology to remove inconsistencies in the measurement, which are called “accounting mismatch”. 4.4.2. Fair Value · through comprehensive income · through profit or loss 4.5. Restricted cash Restricted cash includes financial investments measured at fair value through profit or loss, used mainly as guarantees linked to short- and long-term financial instruments as well as escrow deposits for leases operations. 4.6. Trade receivables They are measured based on the invoiced figure, net of estimated allowance for credit losses, and approximate the fair value given their short-term nature. With the adoption of IFRS 9 - “Financial Instruments”, since as of January 1, 2018, the allowance for credit losses is measured through a simplified approach, using historical data, projecting the expected loss over the contractual life and no longer based on the historical loss incurred, by segmenting the receivables portfolio into groups that have the same receipt pattern and according to the respective maturity terms. In addition, for certain cases, the Company carries out individual analyses to assess the receipt risks. 4.7. Inventories Inventory balances mainly include materials for maintenance and replacement of parts. Inventories are measured at the average acquisition cost plus expenses such as non-recoverable taxes and customs expenses incurred in the acquisition and transportation expenses until the current location of the items. Provisions for inventory obsolescence are recorded for those items that have no expectation of realization. 4.8. Income taxes 4.8.1. Current taxes In Brazil, includes income tax (“IRPJ”) and social contribution on profit (“CSLL”), which are calculated monthly based on the taxable income, after offsetting tax losses and negative social contribution base, limited to 30% of the taxable income, applying the rate of 15% plus an additional 10% for the IRPJ and 9% for the CSLL. 4.8.2. Deferred taxes Deferred taxes represent credits and debits on IRPJ’s carry forwards tax losses and negative CSLL’s bases, as well as temporary differences between the tax and accounting basis. Deferred tax assets and liabilities are classified as non-current. A valuation allowance is recognized when the Company’s internal studies indicate that the future use of these credits is not probable. Deferred tax assets and liabilities are shown net if there is an enforceable legal right to offset tax liabilities against tax assets and if it is related to taxes levied by the same tax authority under the same taxable entity, for presentation purpose the balances of tax assets and liabilities that do not meet the legal criterion of realization are disclosed separately. Deferred tax assets and liabilities are measured at the rates that are expected to be applicable in the period in which, it is expected that the asset is going to be realized or the liability is going to be settled, based on the tax rates and legislation in force on the date of the financial statements. The forecast of future taxable income on tax losses and negative social contribution base is prepared based on the business plans and are reviewed and approved annually by the Company’s Board of Directors. 4.9. Rights and obligations with derivative financial instruments Derivatives financial instruments are measured at fair value at recognition and at subsequent reporting dates. Variations in interest rates, foreign exchange rates, and aviation fuel prices expose the Company and its subsidiaries to risks that may affect their financial performance. To mitigate such risks, the Company, through its subsidiaries, contracts derivative financial instruments that may or may not be designated for hedge accounting and, if designated, are classified as cash flow hedge. 4.9.1. Derivative financial instruments not designated as hedge accounting The Company may contract derivative financial instruments that are not designated for hedge accounting when Risk Management’s purposes do not require such classification. Transactions not designated as hedge accounting have the change in their fair value accounted for directly in the financial result. 4.9.2. Derivative financial instruments classified as cash flow hedge The instruments designated as cash flow hedges have the purpose to protect future results arising from changes in interest rates and fuel prices. The effectiveness of the variations is estimated based on statistical methods of correlation and by the proportion between the hedge’s gains and losses and the variation of the costs and expenses protected. The effective variations in fair value are recorded in the shareholders’ equity in “Other Comprehensive Income”, up to the recognition of the result of the hedge’s object. The inefficiencies found in each reporting period are recognized in the financial result. The hedge transactions recorded in “Other Comprehensive Income” are net of tax effects. 4.9.3. Discontinuation and write-off of derivative financial instruments The hedge accounting is discontinued prospectively when the Company and its subsidiaries (i) cancel the protection relationship; (ii) the derivative instrument expires or is sold, terminated or executed, (iii) when there is low predictability of realization of the hedge’s object, or (iv) when it no longer qualifies as hedge accouning. If the operation is discontinued, any gains or losses previously recognized in Other Comprehensive Income” and accumulated in the shareholders’ equity up to that date are immediately recognized in the result for the year. 4.10. Deposits 4.10.1. Deposits for the maintenance of aircraft and engines Refer to payments made in US dollars to lessors for the future maintenance of aircraft and engines. The realization of these assets occurs, substantially, in the use of the deposit for payment to the workshop when the maintenance is carried out or through the receipt of financial resources, according to the negotiations carried out with the lessors. The exchange rate change of these payments is recognized as an expense or income in the financial result. The Management regularly assesses the recovery of these deposits based on the eligibility of the application of such amounts in future maintenance events and believes that the figures reflected in the statements of financial position are realizable. Some of the agreements foresee that, if there are no maintenance events with the possibility of using the deposits, the deposits for this operation are not refundable. Such amounts are retained by the lessor and represent payments made according to the use of the components until the return date. Hence, such amounts are recognized directly in the statements of operations due to payments made under the item “Maintenance and Repair Material”. In addition, the Company has agreements with some lessors to replace deposits for credit bills, which can be executed by the lessors if the maintenance of the aircraft and engines does not occur according to the review schedule. Several aircraft leases agreements do not require maintenance deposits and have credit bills to ensure the maintenance is carried out in the scheduled periods (see Note 14). Until December 31, 2019, no credit bill had been executed against the Company. 4.10.2. Deposits as guarantee and collateral for leases agreements Deposits and guarantees are denominated in US dollars and updated monthly by the foreign exchange rates, and do not earn interest income and are refundable to the Company at the end of the leases agreements. 4.10.3. Judicial deposits On the course of the legal actions initiated against the company, and over which the legitimacy is being challenged, Company might be requested to make judicial deposits in order to continue its defense actions. The amounts related to judicial deposits are monetarily updated by inflationary index, when applicable, and represents amounts not available to the Company until court decision. 4.11. Property, plant, and equipment Property, plant, and equipment, including rotables (spare parts), are recorded at acquisition and/or construction cost and include interest and other financial charges. Every item of the property, plant, and equipment that has a significant cost in relation to the total asset is depreciated separately. The estimated economic useful life of property, plant, and equipment, for purposes of depreciation, is shown in Note 16. The estimated market price at the end of its useful life is the premise used to set the residual value of the Company’s property, plant, and equipment. The residual value and useful life of the assets are reviewed annually by the Company. Any variation due to changes in the expectation of using such items results in prospective changes. The book value of the property, plant, and equipment is analyzed to verify possible impairment loss when facts or changes in circumstances indicate that the book value is greater than the estimated recoverable amount. The book value of the aircraft is annually tested for impairment, even if there are no circumstances that indicate losses. An item of property, plant, and equipment is written-off after disposal or when there are no future economic benefits resulting from the continued use of the asset. Any gains or losses on the sale or write-off of an item are established by the difference between the amount received on the sale and the book value of the asset and are recognized in the result. Additionally, the Company adopts the following treatment for the groups below: 4.11.1. Advances for aircraft acquisition Refers to prepayments in US dollars made to Boeing for the acquisition of 737-MAX aircraft. Prepayments are converted at the historic rate. 4.11.2. Leases agreements On December 31, 2018, for leases agreements in which the risks and benefits of the leased asset were transferred to the Company, the asset was recognized in the statements of financial position with a corresponding entry in the financial liability, at the beginning of the leases term, at amounts equivalent to the fair value of the leased asset or, if lower, at the present value of the minimum leases payments. Leased assets were depreciated over their useful lives. However, when there was no reasonable certainty that the Company would obtain the property at the end of the leases term, the asset was depreciated over its estimated useful life or the leases term, whichever is less. The other aircraft and engine leases were classified as operating leases and payments were recognized as an expense in the consolidated statements of operations on a straight-line basis over the term of the agreement, under the item “Operating Leases”. The future payments of such agreements did not represent an obligation recorded in the statements of financial position; the commitments undertaken were duly presented in the Notes. As of January 1, 2019, the Company started recording leases agreements in accordance with IFRS 16 - “Leases Operations” which differs significantly from the accounting practice previously adopted. The new accounting practice, as well as the effects of its adoption, are presented in detail in Item 4.26.1 of these financial statements. 4.11.3. Sale and leaseback transactions From January 1 ST After the fair value is defined, gains or losses are initially calculated based on the difference between the fair value and the book value of the assets and subsequently adjusted according to the proportionality of the right of use transferred to the lessor (the latter being the effective value recognized in the result as income or loss). The proportionality calculation is carried out considering the fair value less the difference between the leases payment flow brought to present value and the embedded financing (we consider that there is an embedded financing when the transaction is carried out above the fair value; when the transaction is carried out below the fair value, we consider that there is a prepayment and, therefore, such amount is directly adjusted to the right of use recognized in the asset). Until December 31, 2018 gains or losses arising from the Company’s sale-leaseback transactions classified after the sale of rights as operating leases are accounted as follows: • Immediately in profit or loss when it is clear that the transaction is established at fair value; • If the transaction price is below or above the fair value, any gain or loss is immediately recognized in profit or loss, however if the loss is compensated by future leases payments at below or above market price (the gains or losses are deferred and amortized in proportion to the leases payments during the period that the assets will be used); The amount of deferred losses is recorded as other current or non-current assets, and the amount of deferred gains is recorded as other liabilities. The breakdown between short and long-term is based on the leases terms. 4.11.4. Capitalization of contractual obligations with aircraft return conditions At the start date of the leases agreement the Company records estimates of expenses to meet aircraft return conditions as part of the cost of assets with a corresponding entry to a provision in liabilities. After the initial registration, the asset is depreciated on a straight-line basis over the contractual term and the provision is updated in accordance with the current capital remuneration rates (“WACC”) and the effects are recorded in the statement of positions as “financial expenses”. The provision is reviewed annually. 4.11.5. Capitalization of expenses with major maintenance of engines, aircraft, landing gear and apus (auxiliary power unit) Expenses with major maintenance events, which include replacement of parts and labor, are capitalized only when there is an extension of the estimated useful life of the corresponding asset. Such costs are capitalized and depreciated over the estimated period to be incurred until the next major maintenance. Expenses incurred that do not extend the useful lives of assets are recognized directly in the consolidated statements of operations. 4.12. Intangible assets 4.12.1. Finite useful life Intangible assets acquired are measured at the cost of their initial recognition. After initial recognition, intangible assets with finite useful lives, usually software, are stated at cost, less the accumulated amortization and impairment losses, when applicable. Intangible assets generated internally, excluding development costs, are not capitalized and the expense is reflected in the consolidated statements of operations for the year in which it was incurred. The useful life of an intangible asset is evaluated as finite or indefinite. Intangible assets with finite lives are amortized over their economic useful lives and are assessed for impairment whenever there is an indication of impairment. The amortization period and method for an intangible asset with a finite life are reviewed at least at the end of each fiscal year. The amortization of intangible assets with finite lives is recognized in the in the consolidated statements of operations in the expense category consistent with the economic useful life of the intangible asset. 4.12.2. Indefinite useful life 4.12.2.1. Goodwill for expected future profitability In this category, the amounts corresponding to the goodwill arising from business combinations carried out by the subsidiaries GLA and Smiles Fidelidade are recorded. The goodwill value is tested annually by comparing the book value with the recoverable value of the cash-generating unit. Management evaluates and establishes assumptions to assess the impact of macroeconomic and operational changes, to estimate future cash flows and measure the recoverable value of assets. 4.12.2.2. Airport operation rights (“slots”) In the business combination of GLA and Webjet, slots were acquired, recognized at their fair values on the acquisition date and were not amortized. The estimated useful life of these rights was considered indefinite due to several factors and considerations, including requirements and permits to operate in Brazil and the limited availability of use at the most important airports in terms of air traffic volume. The book value of these rights is assessed annually, based on the GLA cash-generating unit regarding its recoverable amount or in cases of changes in circumstances that indicate that the book value may not be recoverable. No impairment loss has been recorded to date. 4.13. Loans and financing Loans and financing are initially recognized at fair value less any directly attributable transaction costs. After the initial recognition, these financial liabilities are measured at amortized cost using the effective interest method, except for the contracted derivatives linked to Exchangeable Senior Notes, which are measured at fair value through profit or loss. 4.14. Suppliers and other obligations They are initially recognized at fair value and subsequently increased, when applicable, by the corresponding charges and monetary and exchange rate changes incurred up to the closing dates of the financial statements. 4.14.1. Suppliers - forfeiting The Management carried out a negotiation with suppliers with the purpose to extend payment terms. Accordingly, the Company signed an agreement with financial institutions that allows receivables from its suppliers to be anticipated. Considering that the anticipation of this receipt with the financial institutions is an option of the suppliers, as well, the Company is not reimbursed and/or benefited by the financial institution with discounts for payment before the maturity date agreed with the supplier, there is no change in the degree of subordination in case of judicial execution. On December 31, 2019, the balance of suppliers that benefited from the agreement corresponds to R$554,467 (R$365,696 on December 31, 2018), as described in Note 21. 4.15. Advance from ticket sales Represents the Company’s obligations to provide air transportation services and other ancillary services to its clients, net of breakage revenue already recognized in the consolidated statements of operations, as detailed in Note 4.18.1. 4.16. Provisions 4.16.1. Provision for aircraft return Aircraft negotiated under an operating leases regularly have contractual obligations establishing conditions for return. In these cases the Company makes provisions for the return costs, since these present obligations, arising from past events and which will generate future disbursements, which are measured with reasonable certainty. These expenses basically refer to expenses related to aircraft reconfiguration (interior and exterior), obtaining licenses and technical certifications, return checks, painting, etc., as established in the agreement. The estimated cost is initially recorded at present value in property, plant, and equipment (see 4.11.4) and the corresponding entry of the provision for aircraft return is recorded in the “Provisions”. After the initial recognition, the liability is updated according to WACC rate estimated by the Company, with a corresponding entry in the financial result. Any changes in the estimate of expenses to be incurred are recorded prospectively. 4.16.2. Provision for engine return They are estimated based on the minimum contractual conditions under which the equipment must be returned to the lessor, observing the historical costs incurred and the conditions of the equipment at the time of the appraisal. These provisions are recorded in the consolidated statements of operations for the year from the moment the contractual requirements are met, and the next maintenance is scheduled for a date later than the date scheduled to return the engine. The Company estimates the provision for the return of the engine according to the expense expected to incurred and when the amount can be reliably estimated. The amount of a provision will be the present value of the expenses that are expected to be required to settle the minimum obligation. The term will be based on the date that the leased engine is expected to be returned, that is, the term of the leases. 4.16.3. Provision for tax and labor risks Provisions are recognized when the Company has a present obligation, contractual or not, as a result of a past event and it is probable that economic benefits will be required to settle the obligation and a reliable estimate of its value can be made. The Company is a party to several legal and administrative proceedings, mainly in Brazil. Assessments of the likelihood of loss in these lawsuits include an analysis of the available evidence, the hierarchy of laws, the available jurisprudence, the most recent court decisions and their relevance in the legal system, as well as the assessment of external lawyers. Provisions are reviewed and adjusted to reflect changes in circumstances, such as the applicable statute of limitations, conclusions of tax inspections or additional exposures identified based on new matters or court decisions. 4.17. Post-employment benefit As of the year ended December 31, 2019, the Company started to recognize actuarial assets and liabilities related to the health care plan benefits offered to its employees in accordance with IAS 19 - “Benefits to Employees”. Actuarial gains and losses are recognized in other comprehensive income based on the actuarial report prepared by independent experts, while the benefits paid directly by the Company, the cost of current service and the cost of interest are recognized in the result for the year. Management evaluated the impact of not adopting the accounting practices in previous years, and concluded that the effects were immaterial and did not distort the financial information previously disclosed (see note 24.1). 4.18. Recognition of revenue 4.18.1. Revenue from passengers, cargo and ancillary services Passenger revenue is recognized when air transportation is actually provided. Tickets sold but not yet used are recorded in the item of advance from ticket sales, representing deferred revenue from tickets sold to passengers to be transported at a future date, net of the estimated breakage revenue. Breakage revenue calculates, on a historical basis, tickets issued that will expire due to non-use, that is, passengers who have purchased tickets and are very likely not to use them. The calculations are reviewed at least once a year to reflect and capture changes in customer behavior in relation to ticket expiration. From the perspective of the financial statements, the cycle of recognition of revenue in relation to the exchange of miles from the Smiles Program for airline tickets is only completed when passengers are effectively transported. Revenues from cargo shipments are recognized when performance obligations are met. Other revenues that include charter services, on-board sales services, flight rebooking fees, baggage drop-off, and other additional services are recognized along with the primary passenger transportation obligation. 4.18.2. Adoption of hedge accounting to protect future revenues with passengers and ancillary services In the regular course of its operations, the Company has recurring sales in US dollars (US$), mainly as a result of international routes in South, Central, and North America. Accordingly, as of August 1, 2019, Management adopted the cash flow hedge accounting as a hedge for future foreign currency revenues, which are considered highly probable, required in Paragraph 6.3.1 of IFRS 9, using as hedge instruments 50 leases agreements recorded as indebtedness due to the adoption of IFRS 16. With the adoption of hedge accounting, the foreign exchange gains and losses arising from the leases agreements (hedge instrument) will be accumulated in shareholders equity, Adjustments to Equity Valuation, appropriated to the Company's results upon the realization of the income from sales in US$. Hedge accounting derives from the natural hedge of the Companys operations, portrayed by cash flow (revenues and amortization of indebtedness in US$) and does not represent an increase in financial costs, allowing the elimination of some of the exchange rate volatility in the Company's results. The final position of shareholders equity is not affected by the adoption of this accounting practice. The elements of hedge accounting are: (1) hedged object: highly probable sales revenue in US$; (2) hedge instrument: 50 leases agreements linked to US$; (3) designated amount: 60 months of highly probable revenues based on a range of 80 to 85% of historically earned revenues, totaling US$903,102 at the initial adoption; (4) nature of the hedged risk: exchange rate change; (5) specification of the hedged risk: USD/BRL spot exchange rate change; (6) type of hedge: cash flow. On December 31, 2019, the losses accumulated in other comprehensive income totaled R$165,436. 4.18.3. Mileage revenue The Smiles Program has the purpose to build customer loyalty by granting mileage credits to participants. The obligation generated by issuing miles is measured based on the price at which the miles were sold to Smiles’ air and non-air partners, considered as the fair value of the transaction. The revenue is recognized in the result for the year when the miles are redeemed by participants in the Smiles Program and exchanged for awards with their partners. The subsidiary Smiles acts as an agent and fulfills its performance obligation when participants redeem the miles of the Smiles Program and exchange them for awards with its partners. This is the moment when revenue is recognized in the results. Accordingly, the gross revenue is shown net of its respective direct variable costs related to making goods and services available to participants. As a result of its characteristics, the miles program also provides the possibility of recognizing a breakage revenue, which in turn is established based on the calculation of miles that have a high expiration potential to their non-use by the Smiles Program’s participants. The calculation is applied to the miles issued in the period, giving rise to the breakage revenue. It should be noted that future events can significantly change the profile of customers and their historical pattern of redemption of miles. Such changes may lead to significant changes in the balance of deferred revenue, as well as in the recognition of breakage revenue. The policy of the Smiles mileage program provides for the cancellation of all miles in the customers’ accounts after 36 months, with the exception of Gold and Diamond customers, whose mileage expiration period is 48 and 120 months, respectively. The Smiles Club miles are valid for 120 months. The Company reviews the statistical calculation annually. 4.19. Share-based payments 4.19.1. Stock options The Company offers stock option plans to its executives. The Company recognizes as an expense, on a straight-line basis, the fair value of the options or shares, calculated on the grant date, during the period of service required by the plan, as a corresponding entry to the shareholders’ equity. The accumulated expense recognized reflects the acquisition period and the Company’s best estimate of the number of shares that will be acquired. The expense or revenue from the movement occurred during the year is recognized in the consolidated statements of operations. The expense is reversed if an acquisition condition is not met. The effect of outstanding options is reflected as an additional dilution in the calculation of diluted earnings per share. The plans have been settled in shares. 4.19.2. Restricted shares The Company can also offer to its executives a plan to transfer restricted shares, taking place at the end of 3 years after the grant date, provided that the beneficiary has held his/her employment relationship during this period. Such transfer occurs preferably through shares held in the treasury. The impact of any revision of the number of restricted shares that will not be acquired in relation to the original estimates, if any, is recognized in the results for the year, in such a way that the accumulated expense reflects the revised estimates with the corresponding adjustment in the shareholders’ equity. The plans have been settled in shares. 4.20. Profit-sharing for employees and members of the management The Company’s employees are entitled to profit-sharing based on certain goals agreed annually. For the members of the management, the goals are based on the statutory provisions proposed by the Board of Directors and approved by the shareholders. The profit-sharing is recognized in the consolidated statements of operations for the period in which the goals are achieved. 4.21. Financial revenues and expenses Include interest income on amounts invested, exchange rate changes on assets and liabilities, changes in the fair value of financial assets measured at fair value through profit or loss, gains and losses on hedge instruments that are recognized in the result and interest on loans and financing, interest on loans, commissions and bank charges, unwind of discount on certain provision among others. Interest income and expenses are recognized in the consolidated statement of operations using the effective interest method. 4.22. Earnings (loss) per share Basic earnings per share are calculated by dividing the net income for the year attributed to the Company’s controlling shareholders by the weighted average number of all classes of shares outstanding during the year. Diluted earnings (loss) per share are calculated by adjusting the weighted average number of outstanding shares by instruments potentially convertible into shares, unless these adjustments woud be anti dilutioinal. 4.23. Segments An operating segment is part of the Company that develops business activities to obtain revenues and incur expenses. The operating segments reflect the way in which the Company’s management reviews the financial information to make decisions. The Company’s Management identified the operating segments, which meet the quantitative and qualitative parameters of disclosure and represent the main types of business: air transportation and mileage program. 4.23.1. Air transportation segment The operations in this segment originate mainly from the subsidiary GLA, for the provision of air passenger transportation services and the main revenue-generating assets are its aircraft. Other revenues originate mainly from cargo operations and re |
5. Seasonality
5. Seasonality | 12 Months Ended |
Dec. 31, 2019 | |
Seasonality [abstract] | |
Seasonality | 5. Seasonality The Company expects revenues and operating results from its flights to be at their highest levels in the summer and winter months of January and July, respectively, and during the last weeks of December and in the year-end holiday period. Given the high proportion of fixed costs, this seasonality tends to drive variations in operating results across the fiscal-year quarters. |
6. Cash and cash equivalents
6. Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 6. Cash and cash equivalents 2019 2018 Cash and bank deposits 418,447 157,970 Cash equivalents 1,226,978 668,217 Total 1,645,425 826,187 The breakdown of cash equivalents is as follows: Weighted average rate (p.a.) 2019 2018 Local currency Private bonds and deposits with banks 90.4% of CDI 514,356 74,819 Government bonds - - 39 Investments funds - - 307,499 Automatic deposits 29.4% of CDI 5,505 - Total local currency 519,861 382,357 Foreign Currency Deposits with banks 2.0% 707,117 285,860 Total foreign currency 707,117 285,860 Total 1,226,978 668,217 |
7. Short-term investments
7. Short-term investments | 12 Months Ended |
Dec. 31, 2019 | |
Short term investment [absract] | |
Short-term investments | 7. Short-term investments Weighted Average Rate (p.a.) 2019 2018 Local Currency Government bonds 104.2% of CDI 56,532 21,100 Investment funds 100.2% of CDI 862,868 365,249 Total Local Currency 919,400 386,349 Foreign currency Deposits with banks 3.0% 1,713 92,015 Government bonds 1.8% 29,684 - Investment funds - 2,965 - Total foreign currency 34,362 92,015 Total 953,762 478,364 |
8. Restricted cash
8. Restricted cash | 12 Months Ended |
Dec. 31, 2019 | |
Restricted cash [absract] | |
Restricted cash | 8. Restricted cash Weighted Average Profitability (p.a.) 2019 2018 Local currency Deposits in guarantee of letter of credit 97.6% of CDI 138,164 100,394 Escrow deposits 96.2% of CDI 85,351 72,089 Escrow deposits - leases 98.5% of CDI 136,438 102,880 Other deposits 66.4% of CDI 9,922 113,465 Total local currency 369,875 388,828 Foreign currency Escrow deposits for hedge margin 1.6% 74,431 433,304 Total foreign currency 74,431 433,304 Total 444,306 822,132 Current 304,920 133,391 Non-current 139,386 688,741 |
9. Trade receivables
9. Trade receivables | 12 Months Ended |
Dec. 31, 2019 | |
Trade receivable [absract] | |
Trade receivables | 9. Trade receivables 2019 2018 Local currency Credit card administrators 740,967 393,557 Travel agencies 253,494 226,627 Cargo agencies 33,677 40,431 Airline partner companies 291 3,243 Other 15,690 52,216 Total local currency 1,044,119 716,074 Foreign currency Credit card administrators 121,844 97,488 Travel agencies 36,845 21,005 Cargo agencies 1,384 1,378 Airline partner companies 30,740 23,294 Other 11,550 5,373 Total foreign currency 202,363 148,538 Total 1,246,482 864,612 Allowance for expected loss on trade receivables accounts (16,952) (11,284) Total trade receivables 1,229,530 853,328 The aging list of trade receivables, net of allowance for expected loss on trade receivables accounts, is as follows: 2019 2018 Not yet due Until 30 days 567,567 527,878 31 to 60 days 213,334 101,226 61 to 90 days 100,478 49,696 91 to 180 days 187,883 83,128 181 to 360 days 76,902 36,801 Above 360 days 1,499 268 Total not yet due 1,147,663 798,997 Overdue Until 30 days 47,959 13,167 31 to 60 days 23,290 4,726 61 to 90 days 3,986 2,672 91 to 180 days 3,009 11,173 181 to 360 days 421 9,863 Above 360 days 3,202 12,730 Total overdue 81,867 54,331 Total 1,229,530 853,328 The changes in an expected loss on trade receivables are as follows: 2019 2018 Balance at the beginning of the year - (38,681) Initial adoption adjustment – IFRS 9 - 2,593 Adjusted balance at the beginning of the year (11,284) (36,088) Exclusions and reversals (13,499) 9,789 Write-off 7,831 15,015 Balances at the end of the year (16,952) (11,284) |
10. Inventories
10. Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [absract] | |
Inventories | 10. Inventories 2019 2018 Consumables 14,274 14,848 Parts and maintenance materials 184,939 165,293 Total 199,213 180,141 The changes in the provision for obsolescence are as follows: 2019 2018 Balances at the beginning of the year (12,808) (12,509) Additions (2,168) (5,023) Write-offs 674 4,724 Balances at the end of the year (14,302) (12,808) |
11. Recoverable taxes
11. Recoverable taxes | 12 Months Ended |
Dec. 31, 2019 | |
Taxes [abstract] | |
Taxes | 11. Recoverable taxes 2019 2018 IRPJ and CSLL prepayments 195,864 268,428 Withholding income tax 3,969 4,744 PIS and COFINS to recover (*) 273,152 163,921 Value added tax (VAT) abroad 4,650 5,649 Other 6,181 13,927 Total 483,816 456,669 Current 309,674 360,796 Non-current 174,142 95,873 (*) During the year, the subsidiaries Smiles Fidelidade and GLA accounted for PIS and COFINS untimely tax credits related to the last 5 years, totaling R$49,518 and R$91,066, respectively. The amounts of R$17,300 related to credits in 2019 and R$99,605 related to credits recorded in 2018 were realized against tax obligations until the reporting date of these financial statements. |
12. Deferred taxes
12. Deferred taxes | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Taxes [abstract] | |
Deferred taxes | 12.Deferred taxes 12.1. Deferred tax assets (liabilities) The positions of deferred assets and liabilities are presented below and comply with the enforceable offset legal rights that consider taxes levied by the same tax authority under the same tax entity. 2018 Statement of operations Accumulated profits Exchange Rate change Reclassification 2019 Company and controlled subsidiary Smiles Income Tax losses carry forward 16,983 25,868 - (56) - 42,795 Negative basis of social contribution 6,114 8,246 - - - 14,360 Temporary differences Allowance for expenses loss on trade receivables and other credits 196 1,762 - - - 1,958 Provision for legal proceedings and tax liabilities 916 (220) - - - 696 Unrealized intercompany profits 49,613 - - - (49,613) - Total deferred taxes - assets 73,822 35,656 - (56) (49,613) 59,809 Controlled subsidiary GLA and Smiles Income tax losses carry forward 58,384 (58,384) - - - - Negative basis of social contribution 21,018 (21,018) - - - - Temporary differences Allowance for expenses loss on trade receivables and other credits 72,649 (15,911) - - - 56,738 Breakage provision (172,869) (23,337) - - - (196,206) Provision for losses on other credits 143,350 - - - - 143,350 Provision for legal proceedings and tax liabilities 93,221 (2,170) - - - 91,051 Provisions for aircrafts redelivery 62,642 83,597 - - - 146,239 Derivative transactions 5,335 (47,489) - - - (42,154) Slots (353,226) - - - - (353,226) Depreciation of engines and parts for aircraft maintenance (174,129) (9,848) - - - (183,977) Goodwill (127,659) - - - - (127,659) Aircraft leases and other 30,956 33,145 278 - - 64,379 Other 113,038 (23,725) - - - 89,313 Unrealized profits - 18,498 - - 49,613 68,111 Total deferred taxes – liabilities (227,290) (66,642) 278 - 49,613 (244,041) Total effect deferred taxes - income - (30,986 ) - - - The Company and its subsidiaries GLA and Smiles (Fidelidade Argentina) have carry forward tax net operating losses and negative social contribution basis, which can be offset against 30% of future annual tax profits in future, with no time limit for prescription, in the following amounts: GOL GLA Smiles Fidelidade Argentina 2019 2018 2019 2018 2019 Accumulated income tax losses 159,559 170,418 5,017,227 5,631,209 8,343 Negative basis of social contribution 159,559 170,418 5,017,227 5,631,209 - Deferred tax assets 54,250 57,942 1,705,857 1,914,611 2,905 The analysis of the realization of deferred tax credits was performed by the company, as follows: GOL Management estimates that deferred tax credits, recorded on tax losses and negative social contribution basis, will be realized as follows: Year Amount 2020 4,768 2021 8,375 2022 7,473 2023 8,332 2024 9,471 2025 to 2029 15,831 Total 54,250 GLA Smiles Fidelidade Argentina: The reconciliation of effective income taxes and social contribution rates for the fiscal year ended on December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 Income (loss) before income taxes 388,945 (482,596) 70,604 Combined tax rate 34% 34% 34% Income at the statutory tax rate (132,241) 164,083 (24,005) Adjustments to calculate the effective tax rate: Equity method investees 26 132 185 Tax rate difference on results of offshore subsidiaries (207,565) 201,043 (106,533) Non-deductible expenses, net (61,219) 161,815 (65,718) Exchange rate change on foreign investments (101,329) (173,964) (20,225) Interest on shareholders’ equity 8,212 6,998 4,817 Extemporaneous tax credit 31,942 - Deferred tax assets (liabilities) net recognized 252,567 (653,343) 291,002 Use of tax credits in non-recurring installment Payments - (3,892) 227,690 Total income tax (209,607) (297,128) 307,213 Income taxes Current (178,621) (52,139) (239,846) Deferred (30,986) (244,989) 547,059 Total income (loss) taxes (209,607) (297,128) 307,213 |
13. Advance to suppliers and th
13. Advance to suppliers and third parties | 12 Months Ended |
Dec. 31, 2019 | |
Advance to Suppliers and Third Parties [abstract] | |
Advance to suppliers and third parties | 13.Advance to suppliers and third parties 2019 2018 Oceanair advance 192,715 - Advance to national suppliers 95,596 17,373 Advance to international suppliers 25,316 5,648 Advance for materials and repairs 48,930 32,111 Total 362,557 55,132 Adjustment to present value of advance to suppliers (10,604) - Provision for loss of advance to oceanair (161,228) - Total advance to suppliers 190,725 55,132 Current 142,338 55,132 Non-current 48,387 - Within the scope of the judicial recovery plan of Oceanair Linhas Aéreas S.A. (“Oceanair”) and AVB Holding S.A. (“Judicial Recovery Plan”), approved by its creditors on April 5, 2019, the Company: (i) granted DIP (debtor in possession) Loans to Oceanair in the amount of R$31,487, and (ii) granted an advance to Elliott Group which is the main Oceanair creditors, in the amount of R$161,228 (“Advance”) pursuant to an agreement entered into on April 3, 2019. It was anticipated that the advances would be refunded by Elliott Group if: (a) the Company or any third party acquires an isolated production unit (mainly comprised of a set of slots) as provided for in the Oceanair Linhas Aéreas S.A, Judicial Recovery Plan; or (b) another judicial recovery plan involving this sale of Oceanair’s landing and takeoff times. In return for granting the Advance, and subject to certain conditions, the Elliott Group would pay to the Company a part of the funds that were recovered by Elliott Group under the Recovery Plan. On July 10, 2019, under the Judicial Recovery Plan, the Company presented winning bids for the acquisition of certain isolated production units (“UPIs”), in the total amount of US$77.3 million. The Judicial Recovery Plan provided that DIP loans would be offset against the price to be paid by the Company for the acquisition of UPIs. In December 2019, the Court considered the judicial reorganization plan unenforceable, and, as a consequence, Avianca Brasil/Oceanair Linhas Aéreas bankruptcy was declared and the UPI auction was invalidated. Accordingly, Management provided for amounts related to advances granted that were not supported by guarantees, however, it continues to evaluate alternatives for asset recovery. |
14. Deposits
14. Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits from customers [abstract] | |
Deposits | 14.Deposits 2019 2018 Judicial deposits 841,746 726,491 Maintenance deposits 830,282 647,057 Deposits in guarantee for leases agreements 296,327 238,747 Total 1,968,355 1,612,295 14.1. Judicial deposits Judicial deposits represent guarantees of tax, civil and labor lawsuits, kept in court until the resolution of the disputes to which they are related. Part of the judicial deposits refers to civil and labor lawsuits arising from succession requests in lawsuits filed against Varig S.A. or also labor lawsuits filed by employees of third party service providers. Considering that Management does not believe that the Company is legally responsible for such claims and the release of the judicial deposits has been claimed. On December 31, 2019, the judicial deposits referring to the succession processes of Varig S.A. and third-party claims were R$115,390 and R$107,510, respectively (R$113,979 and R$76,415 on December 31, 2018). GLA also has judicial deposits resulting from a lawsuit filed by the National Union of Airlines (“SNEA”) against the 72% increase in airport fares promoted by the Airspace Control Department (“DECEA”). On December 31, 2019, the amount deposited corresponds to R$239,929 (R$153,128 on December 31, 2018). The same amount is recorded in current liabilities under “Landing fies”. 14.2. Maintenance deposits The Company makes deposits in US dollars for the maintenance of aircraft and engines, which will be used in future events as established in certain leases agreements. Maintenance deposits do not exempt the Company, as a lessee, from contractual obligations related to the maintenance or the risk associated with operating activities. The Company has the right to choose to carry out the maintenance internally or through its suppliers. The Company has two categories of maintenance deposits: Maintenance Guarantee Maintenance Reserve 14.3. Deposits in guarantee for leases agreements As required by the leasing agreements, the Company makes guarantee deposits (in US dollars) to the leasing companies, which can be fully redeemed at maturity. |
15. Investments
15. Investments | 12 Months Ended |
Dec. 31, 2019 | |
DisclosureOfSeasonalityTextBlock | |
Investments | 15.Investments 15.1. Breakdown of investments The investment information is shown below: Trip Relevant investment information on December 31, 2019 Capital stock 1,318 Interest 60.00% Total equity 2,103 Adjusted equity (a) 1,254 Net income for the year 129 Net income for the year attributable to the company’s interest 77 Trip Net Points Relevant investment information on December 31, 2018 Total number of shares - 130,492,408 Capital stock 1,318 75,351 Interest 60.0% 25.4% Total equity 1,962 (20,758) Adjusted equity (a) 1,177 - Net Income for the year 644 (3,613) Net Income for the year attributable to the company’s interest 387 - (a) Adjusted shareholders' equity corresponds to the percentage of total shareholders' equity net of unrealized profits. 15.2. Changes in investments Trip Balances on December 31, 2018 1,177 Equity method results 77 Balances on December 31, 2019 1,254 Trip Changes in investments Balances on December 31, 2017 1,333 Equity method results 387 Dividends and interest on shareholders’ equity (543) Balances on December 31, 2018 1,177 |
16. Property, plant and equipme
16. Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, Plant and Equipment | 16.Property, plant and equipment Weighted average rate (p.a.) 2018 Adoption IFRS 16 (3) Additions Disposals (6) Transfers (5) 2019 Flight equipment Cost Aircraft - ROU (1) 673,675 - - (13,419) - 660,256 Aircraft - ROU with no purchase option - 2,821,509 914,532 (161,811) (12,250) 3,561,980 Spare parts and engines 1,583,865 - 191,219 (8,579) (2,210) 1,764,295 Spare parts and engines - ROU - 71,327 39,569 (919) - 109,977 Aircraft and engine overhauling 2,443,747 - 887,177 (246,901) - 3,084,023 Tools 44,121 - 7,599 (553) 2,287 53,454 4,745,408 2,892,836 2,040,096 (432,182) (12,173) 9,233,985 Depreciation Aircraft - ROU with purchase option 5.76% (222,240) - (17,612) 13,419 - (226,433) Aircraft - ROU with no purchase option 24.90% - - (760,482) 41,105 - (719,377) Spare parts and engines 7.15% (590,239) - (120,173) 3,638 393 (706,381) Spare parts and engines - ROU 33.29% - - (26,745) - - (26,745) Aircraft and engine overhauling 40.19% (1,275,298) - (677,092) 234,838 - (1,717,552) Tools 10.00% (21,153) - (3,566) 338 (331) (24,712) (2,108,930) - (1,605,670) 293,338 62 (3,421,200) Total, net - flight equipment 2,636,478 2,892,836 434,426 (138,844) (12,111) 5,812,785 Property, plant and equipment in use Cost Vehicles 11,513 - 1,428 (1,260) - 11,681 Machinery and equipment 59,404 - 4,073 (386) - 63,091 Furniture and fixtures 30,698 - 2,601 (316) - 32,983 Computers and peripherals 40,813 - 6,510 (1,591) - 45,732 Computers and peripherals - ROU - 20,619 1,373 - - 21,992 Communication equipment 2,692 - 70 (214) - 2,548 Safety equipment 856 - - - - 856 Leasehold improvements - CMA (4) 107,637 - - - - 107,637 Leasehold improvements 60,115 - 973 - 10,086 71,174 Third-party real Estate - ROU - 20,801 1,553 - - 22,354 Construction in progress 15,443 - 12,549 - (10,086) 17,906 329,171 41,420 31,130 (3,767) - 397,954 Depreciation Vehicles 20.00% (9,609) - (649) 967 - (9,291) Machinery and equipment 10.00% (41,619) - (4,131) 313 - (45,437) Furniture and fixtures 10.00% (18,188) - (2,016) 296 - (19,908) Computers and peripherals 20.00% (31,314) - (3,424) 1,548 - (33,190) Computers and peripherals - ROU 36.59% - - (7,682) - - (7,682) Communication equipment 10.00% (2,089) - (154) 162 - (2,081) Safety equipment 10.00% (533) - (82) - - (615) Leasehold improvements – CMA (4) 10.43% (91,395) - (11,280) - - (102,675) Leasehold improvements 22.09% (29,354) - (9,685) - - (39,039) Third party real estate - ROU 32.18% - - (7,156) - - (7,156) (224,101) - (46,259) 3,286 - (267,074) Total, net - property, plant and equipment in use 105,070 41,420 (15,129) (481) - 130,880 Impairment losses (2) - (48,839) - - 7,120 - (41,719) Total 2,692,709 2,934,256 419,297 (132,205) (12,111) 5,901,946 Advances for property, plant and equipment - 125,348 - 79,343 (48,536) - 156,155 Total property, plant and equipment 2,818,057 2,934,256 498,640 (180,741) (12,111) 6,058,101 Weighted average rate (p.a.) 2017 Additions Disposals (6) Transfers (5) 2018 Flight equipment Cost Aircraft - ROU (1) 2,000,866 - (1,327,191) - 673,675 Spare parts and engines 1,345,161 242,655 (3,951) - 1,583,865 Aircraft and engine overhauling 1,807,133 759,483 (122,869) - 2,443,747 Tools 36,199 8,078 (156) - 44,121 5,189,359 1,010,216 (1,454,167) - 4,745,408 Depreciation Aircraft - ROU with purchase option 5.76% (649,430) (44,578) 471,768 - (222,240) Spare parts and engines 6.91% (494,684) (128,169) 32,610 4 (590,239) Aircraft and engine overhauling 30.47% (941,372) (441,771) 107,845 - (1,275,298) Tools 10.00% (18,125) (3,107) 83 (4) (21,153) (2,103,611) (617,625) 612,306 - (2,108,930) Total, net - flight equipment 3,085,748 392,591 (841,861) - 2,636,478 Property, plant and equipment in use Cost Vehicles 10,548 1,177 (212) - 11,513 Machinery and equipment 57,834 1,958 (388) - 59,404 Furniture and fixtures 28,148 2,963 (413) - 30,698 Computers and peripherals 39,458 4,406 (3,051) - 40,813 Communication equipment 2,617 86 (11) - 2,692 Safety equipment 843 13 - - 856 Leasehold improvements – CMA (4) 107,127 436 - 74 107,637 Leasehold improvements 34,645 654 - 24,816 60,115 Third-party real estate - ROU 33,503 6,830 - (24,890) 15,443 314,723 18,523 (4,075) - 329,171 Depreciation Vehicles 20.00% (9,100) (612) 103 - (9,609) Machinery and equipment 10.00% (37,792) (4,189) 362 - (41,619) Furniture and fixtures 10.00% (16,639) (1,918) 369 - (18,188) Computers and peripherals 20.00% (30,464) (3,870) 3.020 - (31,314) Communication equipment 10.00% (1,915) (181) 7 - (2,089) Safety equipment 10.00% (437) (96) - - (533) Leasehold improvements – CMA (4) 10.43% (80,209) (11,186) - - (91,395) Leasehold improvements 19.06% (20,792) (8,562) - - (29,354) (197,348) (30,614) 3,861 - (224,101) Total, net - property, plant and equipment in use 117,374 (12,090) (214) - 105,070 Impairment losses (2) - (26,076) (22,763) - - (48,839) Total 3,177,046 357,738 (842,075) - 2,692,709 Advances for property, plant and equipment - 18,720 277,419 (166,762) (4,029) 125,348 Total property, plant and equipment 3,195,766 635,157 (1,008,837) (4,029) 2,818,057 (1) ROU - right of use (2) Refers to provisions for impairment losses for rotable items, classified under “Spare Parts and Engines”, recorded by the Company in order to present its assets according to the actual capacity for the generation of economic benefits. (3) Effect related to IFRS 16 adoption, as disclosed in Note 4.26.1. (4) CMA - Maintenance Center - Confins/MG (5) Transfer from other GAC credits. (6) The amounts are composed of sales and write-offs. |
17. Intangible assets
17. Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets [absract] | |
Intangible assets | 17.Intangible assets The breakdown of and changes in intangible assets are as follows: Weighted average Rate (p.a.) 2018 Additions Write-offs 2019 Cost Goodwill - 542,302 - - 542,302 Slots - 1,038,900 - - 1,038,900 Software - 528,426 75,845 (24,901) 579,370 Other - 10,000 - - 10,000 Total Cost 2,119,628 75,845 (24,901) 2,170,572 Amortization Software 23.93% (339,995) (74,053) 24,318 (389,730) Other 20.00% (2,167) (2,000) - (4,167) Total amortization (342,162) (76,053) 24,318 (393,897) Net intangible assets 1,777,466 (208) (583) 1,776,675 Weighted average Rate (p.a.) 2017 Additions Write-offs 2018 Cost Goodwill - 542,302 - - 542,302 Slots - 1,038,900 - - 1,038,900 Software - 456,282 82,079 (9,935) 528,426 Other - 10,000 - - 10,000 Total Cost 2,047,484 82,079 (9,935) 2,119,628 Amortization Software 22.09% (300,032) (49.898) 9,935 (339,995) Other 20.00% (167) (2,000) - (2,167) Total amortization (300,199) (51,898) 9,935 (342,162) Net intangible assets 1,747,285 30,181 - 1,777,466 The balances of goodwill and slots were tested for impairment on December 31, 2019 and 2018 through the discounted cash flow for each cash-generating unit, giving rise to the value in use. For the purpose of assessing impairment, assets are grouped at the lowest level for which there is separately identifiable cash flow (cash-generating unit or CGU). To establish the book value of each CGU, the Company considers not only the recorded intangible assets but also all tangible assets necessary for conducting business, as it is only through the use of this set that the Company will generate economic benefits. The Company allocates goodwill to two cash-generating units: GLA and Smiles, and airport operating rights are fully allocated to GLA’s cash-generating unit, as shown below: Goodwill GLA Goodwill Smiles Airport operation rights December 31,2019 Intangible assets – book values 325,381 216,921 1,038,900 Intangible assets - book value - UGC 3,615,949 161,669 3.615,949 Intangible assets - value in use 26,543,428 6,061,994 21,373,789 Intangible assets - discount rate 12.20% 12.07% 12.85% Intangible assets - perpetuity growth rate 3.55% 3.55% 3.53% December 31,2018 Intangible assets – book values 325,381 216,921 1,038,900 Intangible assets - book value - UGC (275,500) 602,740 1,038,900 Intangible assets - value in use 23,058,697 7,005,622 15,158,551 Intangible assets - discount rate 14.91% 16.95% 13.94% Intangible assets - perpetuity growth rate 3.50% 3.50% 3.50% The results obtained were compared with the book value of each cash-generating unit and, as a result, the Company did not recognize losses in relation to the impairment of its CGUs. The assumptions adopted in the impairment tests of intangible assets are in accordance with the internal projections for the five-year period. For the period after five years, extrapolation is applied using a perpetuity growth rate. The discounted cash flow that calculated the value in use of the cash-generating units was prepared in accordance with the Company’s business plan approved by the Company's Board of Directors. The main assumptions considered by the Company to calculate the value in use of the cash generating units are: Capacity and Fleet: Considers the utilization, the capacity of the aircraft used in each section and the projection of the size of the fleet in operation. Demand: Market efficiency is the main input for the Company's projected growth in demand. Management considers that market efficiency is the ratio between its market share and its seat share. This indicator reflects how efficiently the company employs its share of the total market supply due to its capture of demand for air transportation. Revenue per Passenger: Considers the average price charged by GLA and considers the effects of market variables (see variables used below). Operating costs associated with the business: Based on its historical cost and updated by indicators, such as inflation, relation to supply, demand and variation in the US currency. The Company also considered market variables such as GDP (source: Central Bank of Brazil), US dollar (source: Central Bank of Brazil), kerosene barrel (source: Brazilian Agency of Oil - “ANP”) and interest rate (source: Bloomberg). |
18. Loans and financing
18. Loans and financing | 12 Months Ended |
Dec. 31, 2019 | |
Loans And Financing [abstract] | |
Loans and financing | 18.Loans and financing The breakdown of and changes in short and long-term indebtedness are as follows: 2018 2019 Maturity Interest rate p.a. Current Non-current Total Funding Unrealized gain and loss from ESN (*) Payments Interest accrued Interest Paid Exchange rate variation Cost amortization Current Non-current Total In R$: Debentures VII (a) 09/2021 120% of DI rate 288,991 577,981 866,972 - - (295,834) 52,596 (52,475) - 7,466 289,423 289,302 578,725 In US$: Term loan (b) 08/2020 6.70% 25,255 1,147,196 1,172,451 - - - 76,927 (76,612) 47,688 9,146 1,229,600 - 1,229,600 Import financing (c) 11/2020 5.32% 503,869 - 503,869 164,234 - (27,399) 33,666 (33,743) 23,352 - 663,979 - 663,979 Senior bonus IV (d) 01/2022 9.24% 13,640 352,205 365,845 - - (50,320) 27,762 (28,013) 9,050 1,045 12,102 313,267 325,369 ESN (*) (e) 07/2024 3.75% - - - 1,638,011 (40,717) - 93,826 (14,748) 104,231 2,366 29,443 1,753,526 1,782,969 Credit line - engine Maintenance (f) 09/2024 2.75% 173,422 189,888 363,310 500,199 - (403,039) 14,160 (15,570) 7,578 9,204 198,363 277,479 475,842 Senior bonus VIII (g) 01/2025 7.09% 72,658 2,439,492 2,512,150 - - - 177,539 (166,894) 92,708 8,556 75,587 2,548,472 2,624,059 Loan with guarantee of engines (h) 12/2026 5.16% 13,051 120,557 133,608 56,452 - (16,945) 11,398 (11,394) 9,285 144 31,727 150,821 182,548 Perpetual notes (i) - 8.75% 12,320 513,282 525,602 - - - 45,880 (44,557) 19,825 - 12,815 533,935 546.750 Total 1,103,206 5,340,601 6,443,807 2,358,896 (40,717) (793,537) 533,754 (444,006) 313,717 37,927 2,543,039 5,866,802 8,409,841 (a) Issuance of 88,750 debentures by the subsidiary GLA on October 22, 2018, for the purpose of early full settlement of Debentures VII. (c) Credit lines with private banks used to finance the import of spare parts and aeronautical equipment. Maturities will occur throughout 2019. The interest rates negotiated are Libor 3m + 4.40% p.a. and Libor 1m + 3.25% p.a. (d) Issuance of Senior Bonus IV by the subsidiary Gol Finance on September 24, 2014, with the purpose to fund the partial repurchase of Senior Bonuses I and II. (e) Issuance of Exchangeable Senior Notes ("ESN") by the subsidiary Gol Finance in March, April and July 2019, totaling US$425 million, maturing in 2024, which will bear a nominal interest of 3.75% per annum. (f) Issuance of 3 series of Guaranteed Notes to finance engine maintenance. (g) Issuance of Senior Bonds VII by the subsidiary Gol Finance on July 7, 2016, resulting from the private exchange offer of Senior Bonds I, II, III, IV and Perpetual Bonds. In the year ended on December 31, 2018, the financing was settled in advance (further details were disclosed in the financial statement for the year ended on December 31, 2018). (h) Loans with a guarantee of 5 engines in total, made on June 28, 2018. The contracted rates vary between Libor 6m + 2.35% p.a. up to Libor 6m + 4.25% p.a. (i) Issuance of Perpetual Bonds by the subsidiary Gol Finance on April 5, 2006 to finance the acquisition of aircraft. Total loans and financing on December 31, 2019 include funding costs of R$143,119 (R$83,684 on December 31, 2018) that are amortized over the term of the respective loans and financing. 18.1. New loans and financing contracted during the year ended on december 31, 2019 18.1.1. Exchangeable senior notes (“ESN”) The Company, through GOL Equity Finance (“issuer”), a special purpose company incorporated under the laws of Luxembourg, issued Exchangeable Senior Notes (“ESN”), maturing in 2024, which will bear a nominal interest of 3.75% p.a., to be paid in semi-annual installments. This transaction was guaranteed by the Company and GLA. Holders of the securities will be entitled to exchange their securities for American Depositary Shares (“ADSs”), with each representing two GOL preferred shares. The initial exchange rate of the Notes is 49.3827 ADSs per US$1,000 of the Notes principal amount, which is equivalent to an initial exchange price of approximately US$20.25 per ADS and represents an exchange premium of approximately 35% above the initial public offering price of the ADSs sold in the simultaneous offering of ADSs described below, which was US$15.00 per ADS. The securities exchange rate is subject to adjustments on the occurrence of certain events. Settlement of the ESN may be made in cash, ADSs or through a combination of both. Funding under this operation for the fiscal year ended on December 31, 2019 is as follows: Amount in US$ thousand Date Nominal issue Premium Cost assigned to the indebtedness component Cost assigned to the derivative component Capped call Net funding 03/26/2019 300,000 - (12,179) (6,533) (26,190) 255,098 04/17/2019 45,000 - (3,862) (1,463) (3,929) 35,746 07/17/2019 80,000 16,000 (2,123) (2,247) (9,680) 81,950 425,000 16,000 (18,164) (10,243) (39,799) 372,794 Amount in R$ Date Nominal issue Premium Cost assigned to the indebtedness component Cost assigned to the derivative component Capped call Net funding 03/26/2016 1,169,010 - (47,067) (25,248) (101,214) 995,481 04/17/2019 177,539 - (14,870) (5,760) (15,499) 141,410 07/17/2019 301,192 60,194 (7,987) (8,453) (36,444) 308,502 1,647,741 60,194 (69,924) (39,461) (153,157) 1,445,393 In addition, in connection with the pricing of the Notes, the issuer entered into cash-settled private capped call transactions with certain of the initial purchasers of the Notes subscribers and/or other financial institutions ("counterparties"), which are generally expected to reduce the potential dilution of GOL's preferred shares and ADSs upon the exchange of any Notes and/or offset any cash payments required of the issuer that exceed the principal amount of the Notes exchanged, as the case may be, such reduction or compensation being limited by the cap. The maximum capped call price is approximately US$27.75 per ADS (representing a premium of approximately 85% above the price of the initial public offering of the ADSs sold in the simultaneous offer of ADSs). The capped call is recorded under “Derivatives”. For further information, see Note 33.3.4. As of December 31, 2019, the component corresponding to the option to convert securities to market value corresponds to R$626,557 and is presented together with the ESN balance, see Note 33.2. The Company will use the proceeds from the issue of the Notes to pay the transaction costs associated with the issue, including costs related to derivatives, and to finance its operations. 18.1.2. Import financing During the fiscal year ended on December 31, 2019, the Company, through its subsidiary GLA, obtained funding and renegotiated the maturities of the agreements, with the issue of promissory notes as collateral for these transactions, which are part of a credit line maintained by GLA for import financing in order to carry out engine maintenance, purchase spare parts and aircraft equipment. The funding operations are as follows: Transaction Principal amount Interest date (US$) (R$) rate (p.a.) New Issuances 01/24/2019 6,454 24,409 6.57% 02/04/2019 5,924 21,777 6.52% 02/21/2019 7,069 26,576 6.46% 04/18/2019 7,045 27,737 4.98% 07/05/2019 4,334 16,560 5.93% 08/20/2019 3,396 13,729 4.37% 11/19/2019 7,172 30,466 4.46% 12/18/2019 735 2,980 5.74% 42,129 164,234 18.1.3. Credit line - engine maintenance During the fiscal year ended on December 31, 2019, the subsidiary GLA obtained new credit lines by issuing Guaranteed Notes for engine maintenance services with Delta Air Lines. The funding operations are as follows: Transaction Principal amount Costs Interest date (US$) (R$) (US$) (R$) rate (p.a.) 02/15/2019 10,219 37,969 319 1,185 Libor 3m+0.75% p.a. 05/10/2019 10,219 40,444 289 1,143 Libor 3m+0.70% p.a. 08/30/2019 25,722 106,659 922 3,818 Libor 3m+0.60% p.a. 10/07/2019 54,784 226,724 340 1,408 Libor 3m+2.25% p.a. 12/06/2019 24,525 98,852 718 2,895 Libor 3m+0.55% p.a. 125,469 510,648 2,588 10,449 18.1.4. Loan with guarantee of engines In the fiscal year ended on December 31, 2019, the Company, through its subsidiary GLA, obtained funding with a guarantee of the Company’s own engines. The funding operations are as follows: Transaction Principal amount Costs Interest Date (US$) (R$) (US$) Date (US$) 01/22/2019 11,700 43,129 154 580 Libor 3m+0.75% p.a. 04/24/2019 1,161 4,603 - - Libor 1m+3.25% p.a. 06/13/2019 1,161 4,463 - - Libor 1m+3.25% p.a. 09/30/2019 1,161 4,837 - - Libor 1m+3.25% p.a. 15,183 57,032 154 580 18.1.5. Loan and financing - non-current On December 31, 2019, the maturities of loans and financing recorded in non-current liabilities are as follows: 2021 2022 2023 2024 2024 onwards Without maturity date Total In R$: Debentures VII 289,302 - - - - - 289,302 In US$: Credit line - engine maintenance 95,574 17,747 17,747 146,411 - - 277,479 Senior notes IV - 313,267 - - - - 313,267 ESN - - - 1,753,526 - - 1,753,526 Senior notes VIII - - - - 2,548,472 - 2,548,472 Loan with guarantee of engines 18,377 19,052 19,769 20,522 73,101 - 150,821 Perpetual notes - - - - - 533,935 533,935 Total 403,253 350,066 37,516 1,920,459 2,621,573 533,935 5,866,802 The fair value of indebtedness as of December 31, 2019 is as follows: Book value Fair Value Senior notes and perpetual notes 3,496,178 3,746,016 Term loan 1,229,600 1,235,697 ESN 1,782,969 2,021,414 Debentures 578,725 591.666 Other 1,322,369 1,322,369 Total 8,409,841 8,917,162 18.2. Covenants The Company has restrictive covenants on the Term Loan and Debentures VII. The Company has restrictive covenants on the Term Loan and must make deposits for reaching contractual limits of the indebtedness pegged to the U.S. dollar. On December 31, 2019, the Company did not have collateral deposits linked to the contractual limits of the Term Loan. In the Debentures VII, the following were measured: (i) net indebtedness/earnings before interest, tax, depreciation, amortization and expenses with leases (“EBITDAR”) and (ii) indebtedness coverage rate (“ICSD”). Both meet the standards required by the agreements. The mandatory measurement of such indicators is carried out in compliance with the issue deed, that is, every six months. The next measurement will be carried out at the end of the first half of 2020. |
19. Leases
19. Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [abstract] | |
Leases | 19.Lease 2018 2019 Weighted average rate (p.a.) Current Non-current Total IFRS adoption 16 (1) Additions Write-offs Contractual amendment Payments Payment (escrow deposit) Payment (maintenance reserve) Interest accrued Interest payment Exchange rate variation Current non-current Total In R$: Leases without purchase option 12.92% - - - 49,975 2,925 - - (18,085) - - 9,992 - - 21,781 23,026 44,807 Total - - - 49,975 2,925 - - (18,085) - - 9,992 - - 21,781 23,026 44,807 In US$: Leases with purchase option 3.75% 120,118 520,542 640,660 - - 137 - (113,362) - - 22,931 (23,304) 21,768 128,936 419,894 548,830 Leases Without purchase Option 8.55% - - - 5,540,621 954,101 (7,676) (275,921) (1,437,957) (476) (6,498) 469,621 - 223,328 1,253,995 4,205,148 5,459,143 Operation leases - 135,799 135,686 271,485 (219,728) - - - (48,273) - - - - (3,484) - - - Total 255,917 656,228 912,145 5,320,893 954,101 (7,539) (275,921) (1,599,592) (476) (6,498) 492,552 (23,304) 241,612 1,382,931 4,625,042 6,007,973 Total leases 255,917 656,228 912,145 5,370,868 957,026 (7,539) (275,921) (1,617,677) (476) (6,498) 502,544 (23,304) 241,612 1,404,712 4,648,068 6,052,780 (1) Effects related to the adoption of IFRS 16 “Leases” as disclosed in Note 4.26.1. The future payments of leases liabilities agreements are detailed as follows: Without purchase option With purchase option 2019 2019 2018 2019 - - 140,307 2020 1,691,357 148,613 140,080 2021 1,324,403 148,744 139,852 2022 1,125,060 207,654 139,624 2023 904,627 72,801 69,985 2024 thereafter 1,938,987 16,830 65,776 Total minimum leases payments 6,984,434 594,642 695,624 Less total interest (1,480,484) (45,812) (54,964) Present value of minimum leases payments 5,503,950 548,830 640,660 Less current portion (1,275,776) (128,936) (120,118) Non-current portion 4,228,174 419,894 520,542 The weighted average discount rate used to calculate the present value of minimum leases payments is 8.15% on December 31, 2019 and 1 st There are no significant differences between the present value of the minimum leases payments and the market value of these leases liabilities. 19.1. Sale-leaseback transactions During the year ended December 31, 2019, the Company recorded a net gain of R$7,924 arising from one aircraft sale-leaseback transaction recorded under “Sale-Leaseback Transactions”. |
20. Suppliers
20. Suppliers | 12 Months Ended |
Dec. 31, 2019 | |
Suppliers Abstract | |
Suppliers | 20.Suppliers 2019 2018 Local currency 833,781 959,791 Foreign currency 462,636 564,161 Total 1,296,417 1,523,952 Current 1,286,275 1,403,815 Non-current 10,142 120,137 On December 31, 2019, the balance to be paid to related parties recorded in the caption “Suppliers” was R$1,822 (R$1,107 on December 31, 2018), and refers substantially to transactions with Viação Piracicabana Ltda. |
21. Suppliers - forfeiting
21. Suppliers - forfeiting | 12 Months Ended |
Dec. 31, 2019 | |
Suppliers - Forfeiting | |
Suppliers - forfeiting | 21.Suppliers - forfeiting The Company has an arrangement in place that allow suppliers to receive their payments in advance with the financial institution. On December 31, 2019, the amount recorded under current liabilities from forfeiting operations totaled R$554,467 (R$365,696 as of December 31, 2018). |
22. Taxes payable
22. Taxes payable | 12 Months Ended |
Dec. 31, 2019 | |
Taxes payable [absract] | |
Taxes payable | 22. Taxes payable 2019 2018 PIS and COFINS 39,133 43,237 Installment payments - PRT and PERT 2,117 23,858 Withholding income tax on salaries 54,649 34,883 ICMS 424 46,952 IRPJ and CSLL payable 9,496 8,991 Other 10,788 8,440 Total 116,607 166,361 Current 116,523 111,702 Non-current 84 54,659 |
23. Air traffic liability
23. Air traffic liability | 12 Months Ended |
Dec. 31, 2019 | |
Advances from ticket sales [absract] | |
Air traffic liability | 23.Air traffic liability On December 31, 2019, the balance of Advance from Ticket Sales classified in current liabilities was R$1,966,148 (R$1,673,987 on December 31, 2018) and is represented by 6,239,179 tickets sold and not yet used (5,804,941 on December 31, 2018) with an average use of 59 days (57 days on December 31, 2018). The balances of air traffic liability are presented net of breakage R$415,688 on December 31, 2019 (R$359,123 on December 31, 2018). |
24. Provisions
24. Provisions | 12 Months Ended |
Dec. 31, 2019 | |
Provisions [abstract] | |
Provisions | 24.Provisions Post-employment benefit Aircraft and engine return (a) Legal proceedings (b) Total Balances on December 31, 2018 - 652,134 247,460 899,594 Post-employment benefit at beginning of the year 46,496 - - 46,496 Additional provisions recognized 45,952 357,206 195,465 598,623 Provisions used - (166,287) (151,304) (317,591) Adjustment to present value 4,312 - - 4,312 Foreign exchange rate variation, net - 26,025 (403) 25,622 Balances on December 31, 2019 96,760 869,078 291,218 1,257,056 As of December 31, 2019 Current - 203,816 - 203,816 Non-current 96,760 665,262 291,218 1,053,240 Total 96,760 869,078 291,218 1,257,056 As of December 31, 2018 Current - 70,396 - 70,396 Non-current - 581,738 247,460 829,198 Total - 652,134 247,460 899,594 (a) The additional provisions recognized for the return of aircraft and engines also include the effects of adjustment to present value. (b) The provisions consider write-offs due to the revaluation of the estimate and settled proceedings. 24.1. Provisions for post-employment benefits The Company offers its employees a health care plan that, in compliance with the current legislation, generates an obligation for post-employment benefits. The changes in actuarial assets and liabilities related to the post-employment benefit, prepared based on an actuarial report (see note 4.17), are presented below: 2019 Actuarial liabilities at beginning of the year 46.496 Current service cost recognized in income 4.910 Cost of interests recognized in income 4.311 Sponsor contributions (2) Effect of changing financial assumptions (discount rate reduction) 34.305 Effect of plan experience 6.740 Actuarial liabilities at the end of the year 96,760 Actuarial assumptions Weighted average of assumptions to determine the defined benefit obligation Nominal discount rate 7.23% Long-term estimated inflation rate 3.50% HCCTR - medical inflation rate 6.86% Mortality table AT-2000 with improvement of 10% Weighted average of assumptions to determine the cost (revenue) of the defined benefit Nominal discount rate 9.93% Long-term estimated inflation rate 4.00% HCCTR - medical inflation rate 7.38% Mortality table AT-2000 with improvement of 10% 24.2. Provision for aircraft and engine return Such provisions consider the costs that meet the contractual conditions for the return of engines held under an operating lease, as well as for the costs to be incurred to reconfigure the aircraft, upon their return, according to the conditions established in the leases agreements. The consideration is capitalized in fixed assets, under the heading “Aircraft and Engines Overhauling”. 24.3. Provision for legal proceedings The Company and its subsidiaries are involved in certain legal matters arising from the regular course of their business, which includes civil, administrative, tax, social security and labor lawsuits. The Company classifies the risk of loss in legal proceedings as probable, possible, or remote. The provision recorded in relation to such lawsuits is set by the Company's Management, based on the analysis of its legal counsel, and reasonably reflects the estimated probable losses. If the Company has lawsuits whose values are not known or reasonably estimated, but the likelihood of loss is probable, these will not be recorded, but their nature will be disclosed. The Company’s Management believes that the provision for tax, civil and labor risks, created in accordance with CVM Resolution 594/09, is sufficient to cover possible losses from administrative and legal proceedings, as shown below: Probable loss Possible loss 2019 2018 2019 2018 Civil 78,119 64,005 62,473 61,942 Labor 210,699 181,556 237,253 183,506 Taxes 2,400 1,899 586,812 548,136 Total 291,218 247,460 886,538 793,584 Provisions are reviewed based on the evolution of lawsuits and the history of losses through the best current estimate for civil and labor claims. The tax lawsuits presented below were assessed by Management and legal counsel as relevant and with possible risk on December 31, 2019: The GLA discusses the non-application of the additional 1% rate of COFINS on imports of aircraft, parts, and pieces, in the amount of R$82,301 (R$65,679 as of December 31, 2018). The classification as a possible risk arises from the fact that there was no express revocation of the tax relief (zero rates) granted to regular air transportation companies. • Tax on Services of Any Nature (ISS), amounting to R$24,809 (R$22,927 as of December 31, 2018) arising from Tax Notices issued by the City of São Paulo against the Company, from January 2007 to December 2010, referring to a possible incidence of ISS on agreements signed with partners. The classification as possible risk arises from the fact that the matters under discussion are interpretative and involve discussions on factual and probative matters. In addition, there is no final positioning of the Superior Courts. Customs fine totaling R$64,923 (R$49,078 on December 31, 2018) related to the Infraction Notices drawn up against the Company for an alleged non-compliance with customs rules related to temporary aircraft importation processes. The classification as possible risk arises from the fact that there is no final position of the Superior Courts on the matter. Goodwill BSSF Air Holdings (“BSSF”), in the amount of R$110,741 (R$107,579 on December 31, 2018) arising from the Infraction Notice filed due to the deductibility of goodwill allocated as future profitability. The classification of possible risk results from the fact that there is no final positioning from the Superior Courts. Goodwill GLA (arising from the acquisition of the former VRG) totaling R$86,998 (R$83,704 on December 31, 2018) arising from the Infraction Notice filed due to the deductibility of goodwill allocated as future profitability. The classification of possible risk results from the fact that there is no final positioning from the Superior Courts. In May 2018, the subsidiary Smiles received an Infraction Notice for 2014 and 2015, drawn up due to: (i) the deductibility of the goodwill allocated as future profitability after the merger process of GA Smiles by Smiles S.A. on December 31, 2013, and (ii) the deductibility of the financial expenses of the debentures issued in June 2014. The total of R$123,495 on December 31, 2019 (R$118,119 on December 31, 2018) was assessed by the Management and legal counsel as a possible risk, that is, likely to be accepted by the tax authorities, since there are defense arguments in the context of administrative appeal. There are other tax lawsuits assessed by Management and legal counsel as a possible risk, totaling R$93,545 (R$101,050 on December 31, 2018) which, added to the above lawsuits, total R$586,812 on December 31, 2019 (R$548,136 on December 31, 2018). |
25. Shareholders' equity
25. Shareholders' equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity (deficit) | |
Shareholders' equity | 25.Shareholders’ equity 25.1. Capital stock On December 31, 2019, the subscribed capital fully paid-up by the shareholders was of R$3,163,796, corresponding to 3,137,364,724 shares, with 2,863,682,710 common shares and 273,682,014 preferred shares. On December 31, 2018 the Company’s capital stock was R$3,098,230, represented by 3,131,226,450 shares, comprised by 2,863,682,710 common shares and 267,543,740 preferred shares. The cost with the issuance of shares on December 31, 2019, and 2018 corresponds to R$155,618. On December 20, 2018, the Volluto fund, which controls the Company, carried out a partial split of its shareholders’ equity and, therefore, transferred all its preferred shares to MOBI Fundo de Investimento em Valores, which in turn belongs to the same holders of the Volluto fund, also observing the same shareholding. The shareholding structure is as follows: 2019 2018 Common Preferred Total Common Preferred Total Fundo Volluto 100.00% - 23.00% 100.00% - 23.42% Mobi FIA - 37.59% 28.94% 48.85% 37.41% Delta Air Lines, Inc. - - - - 12.29% 9.41% AirFrance - KLM - 1.55% 1.19% - 1.58% 1.21% Other - 2.23% 1.73% - 1.03% 0.79% Free Float - 58.63% 45.14% - 36.25% 27.76% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% The authorized share capital on December 31, 2019, is R$6 billion. Within the authorized limit, the Company may, upon a resolution of the Board of Directors, increase the share capital regardless of statutory reform, by issuing shares, without keeping a proportion between the different types of shares. Under the terms of the Law, in the case of a capital increase within the authorized limit, the Board of Directors will establish the issuance conditions, including the price and payment term. The Company’s Board of Directors approved capital increases during the year ended December 31, 2019, through the subscription of shares, due to stock option exercises on: (i) February 27, 2019, in the amount of R$4,589, through the subscription of 521,528 preferred shares; and on (ii) April 26, 2019, in the amount of R$512, due to the subscription of 140,896 preferred shares; (iii) July 31, 2019, in the amount of R$300, due to the subscription of 84,477 preferred shares; (i) October 30, 2019, in the amount of R$60,165, due to the subscription of 5,391,373 preferred shares. On December 31, 2019, the Company had a balance of shares to be issued totaling R$584 due to the subscription of 186,109 preferred shares through the exercise of stock options. The share capital increase will be brought to the Board of Directors for evaluation and approval. 25.2. Treasury shares On December 31, 2019, the Company had 3,006,390 treasury shares, totaling R$102,543 (6,390 shares in the amount of R$126 as of December 31, 2018). On December 31, 2019, the average market price of treasury shares was R$33.84. |
26. Earnings (loss) per share
26. Earnings (loss) per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings (loss) per share [absract] | |
Earnings (Loss) per Share | 26.Earnings (loss) per share Although there are differences between common and preferred shares in terms of voting rights and preference in case of liquidation, the Company’s preferred shares do not grant the right to receive fixed dividends. Preferred shares have the economic power and the right to receive dividends 35 times greater than common shares. Accordingly, the Company considers that the economic power of preferred shares is greater than that of common shares. Therefore, the result for the period attributed to the Company shareholders is allocated proportionally in relation to the total economic participation of the amount of common and preferred shares. Basic earnings per share are calculated by dividing the net income for the period attributed to the Company shareholders by the weighted average number of each class shares outstanding during the year. Diluted earnings (loss) per share are calculated by adjusting the weighted average number of outstanding shares by instruments potentially convertible into shares. The Company has only one category of potentially dilutive shares (stock option), as described in Note 27. However, due to the losses ascertained in the year ended on December 31, 2019, these instruments issued by company have no dilutive effect and therefore were not included in the total quantity of outstanding shares to calculate diluted losses per share. 2019 2018 2017 Common Preferred Total Common Preferred Total Common Preferred Total Numerator Net income (loss) for the year Attributable to equity holders of the parent (27,269) (90,004) (117,273) (254,828) (830,565) (1,085,393) 7,708 11,084 18,792 Denominator Weighted average number of outstanding shares (in thousands) 2,863,683 270,053 2,863,683 266,676 4,891,350 204,664 Effect of dilution from stock options - - - - - 2,614 Adjusted weighted average number of outstanding shares and diluted presumed conversions (in thousands) 2,863,683 270,053 2,863,683 266,676 4,891,350 207,278 Basic loss per share in Brazilian RS (0.010) (0.333) (0.089) (3.115) 0.002 0.054 Diluted loss per share (0.010) (0.333) (0.089) (3.115) 0.002 0.053 |
27. Share-based payments
27. Share-based payments | 12 Months Ended |
Dec. 31, 2019 | |
Share-based payments [absract] | |
Share-based payments | 27.Share-based payments The Company has two additional compensation plans for the members of its Management: the Stock Option Plan (“Stock Option Plan”) and the Restricted Stock Plan, both with the purpose to encourage and promote the alignment of the goals of the Company, the management, and the employees, and mitigate the risks in generating value for the Company due to the loss of its executives, strengthening their commitment and productivity in long-term results. 27.1. Stock Option Plan - GOL Beneficiaries of stock options may purchase shares at the price established on the grant date over a period of 3 years as of the grant date, provided that the beneficiary has kept his/her employment relationship during this period. The options become exercisable at the rate of 20% in the first year, an additional 30% in the second year and the 50% remaining in the third year. In all cases, the options can be exercised within 10 years after the grant date. In all stock options, the expected volatility is based on the historical volatility of the 252 business days of the Company’s shares traded on B3. As of December 31, 2019 the position of granted options is as set forth below: Grant Year Grant date Total options granted Number of options outstanding Exercise price of the option (in reais) Fair Value at grant date (in reais) Estimated volatility of share price Expected dividend yield Risk - free return rate Average remaining maturity (in years) (a) 2010 02/02/2010 2,774,640 245,007 20.65 16.81 77.95% 2.73% 8.65% 0.1 2011 12/20/2010 2,722,444 484,009 27.83 16.07 (b) 44.55% 0.47% 10.25% 0.8 2012 10/19/2012 778,912 205,716 12.81 5.32 (c) 52.25% 2.26% 9.00% 2.7 2013 05/13/2013 802,296 220,413 12.76 6.54 (d) 46.91% 2.00% 7.50% 3.3 2014 08/12/2014 653,130 197,661 11.31 7.98 (e) 52.66% 3.27% 11.00% 4.5 2015 08/11/2015 1,930,844 601,793 9.35 3.37 (f) 55.57% 5.06% 13.25% 5.5 2016 06/30/2016 5,742,732 3,172,111 2.62 1.24 (g) 98.20% 6.59% 14.25% 6.4 2017 08/08/2017 947,767 548,604 8.44 7.91 (h) 80.62% 1.17% 11.25% 7.6 2018 05/24/2018 718,764 478,935 20.18 12.68 (i) 55.58% 0.60% 6.50% 8.4 2019 12/11/2019 1,749,223 1,506,606 25.40 12.10 (j) 61.98% 3.17% 9.00% 9.3 Total 12/31/2019 18,820,752 7,660,855 (a) In April 2010, a complementary grant of 101,894 shares was approved, referring to the 2010 plan. (b) Fair value calculated by the average of R$16.92, R$16.11 and R$15.17 for the respective vesting periods (2011, 2012 and 2013). (c) Fair value calculated by the average of R$6.04, R$5.35 and R$4.56 for the respective vesting periods (2012, 2013 and 2014). (d) Fair value calculated by the average of R$7.34, R$6.58 and R$5.71 for the respective vesting periods (2013, 2014 and 2015). (e) Fair value calculated by the average of R$8.20, R$7.89 and R$7.85 for the respective vesting periods (2014, 2015 and 2016). (f) Fair value calculated by the average of R$3.61, R$3.30 and R$3.19 for the respective vesting periods (2015, 2016 and 2017). (g) On July 27, 2016, 900,000 shares were granted in addition to the 2016 plan. The fair value was calculated by the average of R$1.29, R$1.21 and R$1.22 for the respective vesting periods (2017, 2018 and 2019). (h) Fair value calculated by the average of R$8.12, R$7.88 and R$7.72 for the respective vesting periods (2017, 2018 and 2019). (i) Fair value calculated by the average of R$13.26, R$12.67 and R$12.11 for the respective vesting periods (2018, 2019 and 2020). (j) Fair value calculated by the average of R$12.90, R$12.32 and R$11.65 for the respective vesting periods (2019, 2020 and 2021). The value of the Company’s share traded on B3 on December 31, 2019 was R$36.80 (R$25.10 on December 31, 2018). The movement of stock options during the year ended on December 31, 2019 is shown below: Number of stock options Weighted average exercise price Outstanding options on December 31, 2018 7,820,512 9.19 Options granted 2,732,163 25.40 Conversion of restricted shares to call options 3,372,183 2.62 Options exercised (5,804,249) 5.23 Options canceled and adjustments in estimated prescribed rights (459,754) 27.54 Outstanding options on December 31, 2019 7,660,855 7.11 Number of options exercisable as of: December 31, 2018 7,065,174 8.01 December 31, 2019 5,939,631 8.42 The expense recognized in the statement of operations for the year corresponding to the stock option plans was R$40,735 (R$7,476 in 2018 and R$5,413 in 2017). 27.2. Restricted shares plan - GOL The Company’s Restricted Stock Plan was approved on October 19, 2012 at the Extraordinary Shareholders’ Meeting, and the first grants were approved at a meeting of the Board of Directors on November 13, 2012. As of December 31, 2019 the position of restricted shares is as set forth below: Grant year Approval date Total Shares granted Total vested shares Average fair value at grant date 2016 06/30/2016 4,007,081 - 2.62 2017 08/08/2017 1,538,213 1,010,249 8.44 2018 05/24/2018 773,463 523,747 20.18 Total 12/31/2019 6,318,757 1,533,996 The movement of total restricted shares during the year ended on December 31, 2019 is shown below: Total restricted shares Restricted shares outstanding as of December 31, 2018 4,865,741 Conversion of restricted shares to call options (3,372,183) Restricted shares transferred to the employee (283,483) Restricted shares cancelled and adjustments in estimated expired rights 323,921 Restricted shares outstanding as of December 31, 2019 1,533,996 On August 21, 2019, through an extraordinary shareholders’ meeting, the Company’s shareholders approved the conversion of the restricted stock grant, held in 2016, into preferred stock options. The expense recognized in the statement of operations for the year corresponding to the restricted shares plans was R$5,315 (R$9,615 in 2018 and R$9,028 in 2017). 27.3. Stock option plan – Smiles Fidelidade Beneficiaries of stock options may purchase shares at the price established on the grant date over a period of 3 years as of the grant date, provided that the beneficiary has kept his/her employment relationship during this period. The options become exercisable at the rate of 20% in the first year, an additional 30% in the second year and the 50% remaining in the third year. In all cases, the options can be exercised within 10 years after the grant date. In all stock options, the expected volatility is based on the historical volatility of the 252 business days of the Company’s shares traded on B3. As of December 31, 2019 the position of granted options is as set forth below: Grant Year Date of approval Total options granted Number of options outstanding Exercise price of the option (in reais) Average fair value at grant date Estimated volatility of share price Expected dividend yield Risk-Free return rate Average remaining maturity (in years) 2013 08/08/2013 1,058,043 - 21.7 4.25 (a) 36.35% 6.96% 7.40% 3.5 2014 04/02/2014 1,150,000 - 5.58 4.90 (b) 33.25% 10.67% 9.90% 4.0 2018 07/31/2018 1,300,000 975,000 48.82 8.93 (c) 41.28% 9.90% 6.39% 8.6 Total 12/31/2019 3,508,043 975,000 (a) Average fair value in reais calculated for the 2013 stock option plan of R$4.84 and R$4.20 for the 2013 and 2014 vesting periods; and, R$3.73 for the 2015 and 2016 vesting periods. (b) Average fair value in reais calculated for the 2014 stock option plan of R$4.35, R$4.63, R$4.90, R$5.15 and R$5.37 for the 2014, 2015, 2016, 2017 and 2018 vesting periods. (c) Average fair value in reais calculated for the 2018 stock option plan of R$8.17, R$8.63, R$9.14, and R$9.77 for the 2019, 2020, 2021 and 2022 vesting periods. The share price of the subsidiary Smiles traded at B3 on December 31, 2019 was R$39.27 (R$43.77 on December 31, 2018). The movement of stock options during the year ended on December 31, 2019 is shown below: Number of stock options Weighted average exercise price Outstanding options on December 31, 2018 1,077,053 50.16 Adjustments in estimated prescribed rights 48.947 26.21 Options exercised (151,000) 5.58 Outstanding options on December 31, 2019 975,000 48.82 During the year ended on December 31, 2019, the Company recognized R$3,131 in equity referring to the share-based compensation with a corresponding entry in the consolidated statements of operations under personnel expenses (R$1,489 for the year ended on December 31, 2018). Additionally, referenced to the Company’s shares, a complementary cash-settled bonus is granted to executives and employees, to strengthen their commitment and productivity with the results. On December 31, 2019, the balance of this obligation totaled R$6,079 (R$6,899 as of December 31, 2018) recorded under “Salaries, wages and benefits”, referenced to 120,586 equivalent Company’s shares. The same amount was recorded under “Salaries, wages and benefits” in the statement of operations (R$7,450 during the year ended on December 31, 2018) related to these rights. |
28. Transactions with related p
28. Transactions with related parties | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Transactions with related parties | 28.Transactions with related parties 28.1. Transportation and consulting services In the course of its operations, the Company, by itself and through its subsidiaries, entered into agreements with the companies listed below: Mobitrans Administração e Participações S.A.: Viação Piracicabana Ltda.: In the year ended December 31, 2019, the subsidiary GLA recognized a total expense related to these services of R$10,560 (R$12,237 in the year ended December 31, 2018). On the same date, the balance payable to related companies, under “suppliers”, was of R$1,822 (R$504 on December 31, 2018), and refers mainly to transactions with Viação Piracicabana Ltda. 28.2. Contracts of uatp (“universal air transportation plan”) to grant credit limit Gol's use of the UATP corporate travel payment platform has the benefit of having an acquisition rate of less than the acquisition fees charged by other credit card administrators. The related parties described in the explanatory note are bus companies that carry out passenger transportation between cities in the country, and Gol's goal is to offer corporate customers the possibility of integrating air travel, carried out on Company aircraft, with road segments served by the Constantino family bus companies. The possibility of integration does not present economic gains for Gol, as there is no increase in the price of the flight ticket. The UATP account (virtual card) is accepted as a payment method on the purchase of airline tickets and related services, seeking to simplify billing and facilitate payment between the participating companies. The subsidiary GLA entered into UATP account opening agreements with the related parties indicated below: Aller Participações S.A.; BR Mobilidade Baixada Santista S.A. SPE; Breda Transportes e Serviços S.A.; Comporte Participações S.A.; Empresa Cruz de Transportes Ltda.; Empresa de Ônibus Pássaro Marron S.A.; Empresa Princesa do Norte S.A.; Expresso Itamarati S.A.; Expresso Maringá do Vale S.A.; Expresso União Ltda.; Glarus Serviços Tecnologia e Participações S.A.; Limmat Participações S.A.; Quality Bus Comércio de Veículos S.A.; Super Quadra Empreendimentos Imobiliários S.A.; Thurgau Participações S.A.; Transporte Coletivo Cidade Canção Ltda.; Turb Transporte Urbano S.A.; Vaud Participações S.A.; and Viação Piracicabana Ltda., all with no expiration date, whose purpose is to issue credits to purchase airline tickets issued by the Company. Such companies are owned by the individuals who control the funds Volutto and Mob FIA, which are the controlling shareholders of the Company. 28.3. Commercial partnership and maintenance agreement On February 19, 2014, the Company signed an exclusive strategic partnership agreement for business cooperation with AirFrance-KLM. On January 1, 2017, the Company signed an extension of the scope for the inclusion of maintenance services. During the year ended on December 31, 2019, expenses with component maintenance incurred at the AirFrance-KLM workshop were R$284,691 (R$151,936 on December 31, 2018). On December 31, 2019, the Company had no deferred revenue recorded as “other liabilities” (R$8,565 as of December 31, 2018) and had R$142,241 recorded under “Suppliers” in current liabilities (R$170,673 as of December 31, 2018). 28.4. Disposal of equity interest On December 10, 2019, Delta Airlines completely ended the process of divesting its equity interest in GOL through the negotiation of its preferred shares. 28.5. Remuneration of key management personnel 2019 2018 2017 Salaries, wages and benefits 69,609 75,979 57,838 Related taxes and charges 15,813 11,062 6,019 Share-based payments 8,880 10,234 11,219 Total 94,302 97,275 75,076 2019 2018 Number of Executives Board of directors 8 9 Statutory executive officers 4 5 Non-statutory executive officers 22 26 Fiscal council 3 3 Other governance committees 7 7 Total 44 50 |
29. Revenue
29. Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Net revenue | |
Revenue | 29.Revenue 2019 2018 2017 Passenger transportation (*) 13,461,470 11,148,292 10,027,414 Cargo transportation 411,054 400,959 354,561 Mileage revenue 446,871 446,448 554,380 Other revenue 113,253 95,681 109,045 Gross revenue 14,432,648 12,091,380 11,045,400 Related tax (567,944) (680,026) (716,366) Net revenue 13,864,704 11,411,354 10,329,034 (*) Of the total amount, the total of R$583,242 for the year ended on December 31, 2019 is made up of the revenue from non-attendance of passengers, rescheduling, ticket cancellation (R$479,136 for the year ended December 31, 2018). Revenue by geographical location is as follows: 2019 % 2018 % 2017 % Domestic 11,965,181 86.3 9,729,498 85.3 8,798,002 85.2 International 1,899,523 13.7 1,681,856 14.7 1,531,032 14.8 Net revenue 13,864,704 100.0 11,411,354 100.0 10,329,034 100.0 |
30. Financial Income
30. Financial Income | 12 Months Ended |
Dec. 31, 2019 | |
Financial income (expenses) [absract] | |
Financial Income | 30.Financial Income 2019 2018 2017 Financial Income Gain on Derivatives 84,862 17,838 35,053 Gains from Financial Investments 225,535 161,223 119,863 Inflation Indexation 42,967 78,169 14,208 (-) Taxes on Financial Income (a) (26,818) (20,372) (24,393) Unrealized Gains - Conversion Right - ESN 16,148 - - Interest Income 7,451 - - Other 39,418 22,870 68,715 Total Financial Income 389,563 259,728 213,446 Financial Expenses Loss with Derivatives (86,990) (51,674) (40,770) Derivative Losses - Capped Call (23,229) - Unrealized Loss - Conversion Right (778,557) (710,787) (727,285) Bank Charges and Expenses (73,171) (75,673) (61,711) Exchange Offer Costs - (53,952) (53,041) Losses from Financial Investments (111,679) (33,999) (44,263) Interest on Leases (b) (488,278) - - Other (186,361) (135,004) (123,391) Total Financial Expenses (1,748,265) (1,061,089) (1,050,461) Foreign Exchange Rate Change, Net (385,092) (1,081,197) (81,744) Total (1,743,794) (1,882,558) (918,759) (a) Relates to taxes on financial income (PIS and COFINS), according to Decree 8426 of April 1, 2015. (b) Amount related to present value adjustments of the right of use from the initial adoption of IFRS 16. For further information, see Note 4.26.1. |
31. Segments
31. Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segments [absract] | |
Segments | 31.Segments The operating segments are defined based on business activities that can generate revenues and incur expenses. The operating results are regularly reviewed by the Company's decision makers to assess the performance and allocate resources to the respective segments. The Company has two operating segments: the air transportation segment and the loyalty program segment. The accounting policies of the operating segments are the same as those applied to the financial statements. In addition, the Company has different natures between its two operating segments, having no common costs and revenues between the reported operating segments which would require allocation. The Company holds a majority shareholding in the subsidiary Smiles Fidelidade, and the interest of non-controlling shareholders on December 31, 2019 and 2018 was of 47.4%. The information below presents the summarized financial position of the reportable operating segments as of December 31, 2019 and December 31, 2018: 31.1. Assets and liabilities of the operating segments 2019 Flight transportation Smiles loyalty program Total reportable segments Eliminations Total Assets Current 3,243,363 2,763,448 6,006,811 (1,079,434) 4,927,377 Non-current 10,888,299 121,135 11,009,434 (638,365) 10,371,069 Total Assets 14,131,662 2,884,583 17,016,245 (1,717,799) 15,298,446 Liabilities Current 9,941,112 1,321,534 11,262,646 (900,046) 10,362,600 Non-current 11,867,062 357,714 12,224,776 (183,513) 12,041,263 Total equity (deficit) (7,676,512) 1,205,335 (6,471,177) (634,240) (7,105,417) Total liabilities and equity (deficit) 14,131,662 2,884,583 17,016,245 (1,717,799) 15,298,446 2018 Flight transportation Smiles loyalty program Total reportable segments Eliminations Total Assets Current 2,216,168 2,365,789 4,581,957 (1,271,122) 3,310,835 Non-current 7,373,864 269,339 7,643,203 (575,772) 7,067,431 Total Assets 9,590,032 2,635,128 12,225,160 (1,846,894) 10,378,266 Liabilities Current 7,012,120 1,347,684 8,359,804 (1,159,248) 7,200,556 Non-current 7,563,287 273,214 7,836,501 (153,440) 7,683,061 Total equity (deficit) (4,985,375) 1,014,230 (3,971,145) (534,206) (4,505,351) Total liabilities and equity (deficit) 9,590,032 2,635,128 12,225,160 (1,846,894) 10,378,266 31.2. Results of the operating segments 2019 Flight transportation Smiles loyalty Total reportable segments Eliminations Total consolidated program (b) Net revenue Passenger (a) 12,592,018 - 12,592,018 485,725 13,077,743 Cargo and other (a) 463,651 - 463,651 (38,563) 425,088 Mileage - 1,051,124 1,051,124 (689,251) 361,873 Gross profit 13,055,669 1,051,124 14,106,793 (242,089) 13,864,704 Operating costs and expenses Salaries, wages and benefits (2,270,009) (91,259) (2,361,268) - (2,361,268) Aircraft fuel (4,047,344) - (4,047,344) - (4,047,344) Aircraft rent - - - - - Sales and marketing (587,445) (82,947) (670,392) - (670,392) Landing fees (759,774) - (759,774) - (759,774) Aircraft, traffic and mileage servicing (766,483) (128,590) (895,073) 187,681 (707,392) Maintenance, materials and repairs (569,229) - (569,229) - (569,229) Depreciation and amortization (1,701,115) (26,868) (1,727,983) 1 (1,727,982) Passenger costs (578,744) - (578,744) - (578,744) Other operating income (expenses), net (354,302) 44,384 (309,918) 1 (309,917) Total operating expenses (11,634,445) (285,280) (11,919,725) 187,683 (11,732,042) Equity pick up method 294,976 (2,530) 292,446 (292,369) 77 Income before financial income (expense), exchange (variation) and income taxes 1,716,200 763,314 2,479,514 (346,775) 2,132,739 Financial results Financial income 636,554 125,455 762,009 (372,446) 389,563 Financial expenses (2,116,438) (4,273) (2,120,711) 372,446 (1,748,265) Total financial results (1,778,170) 121,182 (1,358,702) - (1,358,702) Income before exchange rate variation, net 236,316 884,496 1,120,812 (346,775) 774,037 Exchange rate change, net 390,454 4,669 (385,785) 693 (385,092) Income (loss) before income taxes (154,138) 889,165 735,027 (346,082) 388,945 Income and social contribution taxes 36,865 (271,156) (234,291) 24,684 (209,607) Net income for the year (117,273) 618,009 500,736 (321,398) 179,338 Attributable to equity holders of the parent (117,273) 321,398 204,125 (321,398) (117,273) Attributable to non-controlling interests of Smiles - 296,611 296,611 - 296,611 (a) Eliminations are related to transactions between GLA and Smiles Fidelidade. (b) Amounts include Smiles S.A. and Smiles Fidelidade. 2018 Flight transportation Smiles loyalty program (b) Eliminations Consolidated Net revenue Passenger (a) 10,199,092 - 10,199,092 434,396 10,633,488 Cargo and other (a) 422,432 - 422,432 (12,799) 409,633 Mileage program - 987,444 987,444 (619,211) 368,233 Total net revenue 10,621,524 987,444 11,608,968 (197,614) 11,411,354 Operating costs and expenses Salaries, wages and benefits (1,821,521) (82,331) (1,903,852) - (1,903,852) Aircraft fuel (3,867,673) - (3,867,673) - (3,867,673) Aircraft rent (1,112,837) - (1,112,837) - (1,112,837) Sales and marketing (507,721) (74,256) (581,977) - (581,977) Landing fees (743,362) - (743,362) - (743,362) Aircraft, traffic and mileage servicing (661,260) (107,489) (768,749) 154,981 (613,768) Maintenance, materials and repairs (570,333) - (570,333) - (570,333) Depreciation and amortization (651,158) (17,358) (668,516) - (668,516) Passenger service expenses (474,117) - (474,117) - (474,117) Other operating income, net 483,699 35,959 519,658 4,998 524,656 Total operating costs and expenses (9,926,283) (245,475) (10,171,758) 159,979 (10,011,779) Equity pick up method 315,721 - 315,721 (315,334) 387 Income before financial income (expense), exchange (variation) and income taxes 1,010,962 741,969 1,752,931 (352,969) 1,399,962 Financial results Financial income 166,348 220,628 386,976 (127,248) 259,728 Financial expenses (1,185,889) (2,326) (1,188,215) 127,126 (1,061,089) Total financial results (1,019,541) 218,302 (801,239) (122) (801,361) Income before the exchange rate variation, net (8,579) 960,271 951,692 (353,091) 598,601 Exchange rate change, net (1,084,543) 3,223 (1,081,320) 123 (1,081,197) Income (loss) before income taxes (1,093,122) 963,494 (129,628) (352,968) (482,596) Income taxes 7,729 (317,652) (309,923) 12,795 (297,128) Net income (loss) for the year (1,085,393) 645,842 (439,551) (340,173) (779,724) Attributable to equity holders of the parent (1,085,393) 340,173 (745,220) (340,173) (1,085,393) Attributable to non-controlling Interests of Smiles - 305,669 305,669 - 305,669 (a) Eliminations are related to transactions between GLA and Smiles Fidelidade. (b) Amounts include Smiles S.A. and Smiles Fidelidade. 2017 Flight transportation Smiles loyalty program (b) Total reportable segments Eliminations Consolidated Net revenue Passenger (a) 9,165,936 - 9,165,936 398,105 9,564,041 Cargo and other (a) 388,548 - 388,548 (40,159) 348,389 Mileage program - 899,576 899,576 (482,972) 416,604 Total net revenue 9,554,484 899,576 10,454,060 (125,026) 10,329,034 Operating costs and expenses Salaries, wages and benefits (1,654,388) (53,723) (1,708,111) - (1,708,111) Aircraft fuel (2,887,737) - (2,887,737) - (2,887,737) Aircraft rent (939,744) - (939,744) - (939,744) Sales and marketing (518,025) (69,917) (587,942) (2,872) (590,814) Landing fees (664,170) - (664,170) - (664,170) Aircraft, traffic and mileage servicing (649,498) (86,132) (735,630) 107,490 (628,140) Maintenance, materials and repairs (368,719) - (368,719) - (368,719) Depreciation and amortization (491,806) (13,619) (505,425) - (505,425) Passenger service expenses (437,045) - (437,045) - (437,045) Other operating income, net (591,087) (26,385) (617,472) 7,162 (610,310) Total operating costs and expenses (9,202,219) (249,776) (9,451,995) 111,780 (9,340,215) Equity pick up method 395,245 - 395,245 (394,701) 544 Income before financial income (expense), exchange (variation) and income taxes 747,510 649,800 1,397,310 (407,947) 989,363 Financial results Financial income 184,448 205,431 389,879 (176,433) 213,446 Financial expenses (1,225,315) (2,201) (1,227,516) 177,055 (1,050,461) Total financial results (1,040,867) 203,230 (837,637) 622 (837,015) Income before the exchange rate variation, net (293,357) 853,030 559,673 (407,325) 152,348 Exchange rate change, net (78,462) (3,284) (81,746) 2 (81,744) Income (loss) before income taxes (371,819) 849,746 477,927 (407,323) 70,604 Income taxes 390,611 (89,131) 301,480 5,733 307,213 Net income (loss) for the year 18,792 760,615 779,407 (401,590) 377,817 Attributable to equity holders of the parent 18,792 401,590 420,382 (401,590) 18,792 Attributable to non-controlling Interests of Smiles - 359,025 359,025 - 359,025 (a) Eliminations are related to transactions between GLA and Smiles Fidelidade. (b) Amounts include Smiles S.A. and Smiles Fidelidade. Capital expenditures per business segments is comprised of R$33,836 for loyalty program and R$914,579 for flight transportation. In the individual financial statements of the subsidiary Smiles Fidelidade, which is the Loyalty Program segment, and in the information provided to the main operating decision-makers, the revenue is recognized when the miles are redeemed by the participants. From the perspective of this segment, such treatment is appropriate, as it is the moment when the revenue recognition cycle is completed, since Smiles transfers to GLA the obligation to provide services or deliver products to its customers. However, from a consolidated perspective, the cycle of revenue recognition in relation to the exchange of miles in the loyalty program for airline tickets of the Company is only completed when passengers are effectively transported. Therefore, to reconcile the assets, liabilities and consolidated results, as well as for the equity pickup and consolidation, in addition to eliminations, an adjustment of unrealized transactions in revenues from the Smiles Program is carried out. In this case, within the consolidated perspective, the miles that were used to redeem airline tickets are only recognized as revenue when the passengers are transported, in accordance with the accounting practices adopted by the Company. |
32. Commitments
32. Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments [absract] | |
Commitments | 32.Commitments On December 31, 2019, the Company had 129 firm orders for aircraft acquisitions with Boeing. These aircraft acquisition commitments include estimates for contractual price increases during the construction phase. 2019 2018 2020 - 1,791,661 2021 3,201,198 5,046,966 2022 3,690,205 7,883,277 2023 4,103,490 8,766,165 2024 thereafter 18,606,054 39,747,570 Total 29,600,947 63,235,639 From December 31, 2019, the commitments are demonstrated considering the estimated discount to be granted by the manufacturer, based on historical experience, while the amounts disclosed in 2018 considered the price list, for this reason the numbers above are not comparable. Of the total commitments presented above, the Company should disburse R$9,245,057 (corresponding to US$2,293,660 on the balance date) as advances for aircraft acquisition, according to the financial flow below: 2019 2018 2019 - 283,579 2020 1,169,967 816,766 2021 1,152,456 1,072,048 2022 1,300,668 1,250,361 2023 1,366,345 1,313,497 2024 thereafter 4,255,621 4,091,021 Total 9,245,057 8,827,272 The difference between the total amount of the commitment and the disbursements, which corresponds to around 85% of the total cost of the aircraft, must be financed. The Company has been making payments related to aircraft acquisitions using its own resources, loans, cash generated from operations, short- and medium-term credit lines and supplier financing. The Company leases its entire aircraft fleet through a combination of leases without a purchase option and with a purchase option. On December 31, 2019, the total fleet included 137 aircraft (121 on December 31, 2018) 126 with commercial leases without a purchase option and 11 with commercial leases with a purchase option (on December 31, 2018, 10 of these aircraft has a purchase option and 110 had no purchase option). |
33. Financial instruments and r
33. Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2019 | |
Financial instruments and risk management [absract] | |
Financial instruments and risk management | 33.Financial instruments and risk management Operational activities expose the Company and its subsidiaries to market risk (fuel prices, foreign currency and interest rate), credit risk and liquidity risk. These risks can be mitigated by using swaps, futures and options contracts based on oil, U.S. dollar and interest markets. Financial instruments are managed by the Financial Policy Committee (“CPF”) in line with the Risk Management Policy approved by the Risk Policy Committee (“CPR”) and submitted to the Board of Directors. The CPR establishes guidelines, limits and monitors the controls, including mathematical models adopted to continuously monitor the exposures and possible financial impacts, in addition to preventing the exploitation of operations of a speculative nature with financial instruments. The Company does not hedge the entire risk exposure; therefore, the Company is subject to market variations for a significant part of its exposed assets and liabilities. The decisions on the part to be hedged consider the financial risks and costs of the hedging and are set and reviewed at least quarterly, in line with the CPR strategies. The results obtained from the operations and the application of controls to manage risks are part of the monitoring carried out by the Committee and have been satisfactory to the proposed goals. 33.1. Accounting classifications of financial instruments The accounting classifications of the Company’s consolidated financial instruments on December 31, 2019 and 2018 are as follows: Measured at fair value through profit or loss Amortized cost (c) 2019 2018 2019 2018 Assets Cash and cash equivalents 5,505 307,538 1,639,920 518,649 Short-term investments 953,762 478,364 - - Restricted cash 444,306 822,132 - - Derivative assets 147,469 - - - Trade receivables - - 1,229,530 853,328 Deposits (a) - - 1,126,609 885,804 Other assets - - 140,006 478,628 Liabilities Loans and financing (b) 626,557 - 7,783,284 6,443,807 Suppliers - - 1,296,417 1,523,952 Suppliers - forfeiting - - 554,467 365,696 Derivatives 20,350 409,662 - - Leases - - 6,052,780 912,145 Other liabilities - - 164,709 147,239 (a) Excludes judicial deposits, as described in Note 14. (b) The amount on December 31, 2019, classified as measured at fair value through profit or loss, is related to the derivative contracted through Exchange Senior Notes. For further information, see Note 18.1.1. (c) Items classified as amortized cost refer to credits, indebtedness with private institutions which, in any early settlement, there are no substantial alterations in relation to the values recorded, except the amounts related to Perpetual Notes and Senior Notes, as disclosed in Note 18. The fair values approximate the book values, according to the short-term maturity period of these assets and liabilities. During the year ended December 31, 2019, there was no change on the classification between categories of the financial instruments. 33.2. Derivative and non-derivative financial instruments The Company’s derivative financial instruments were recorded in the following Statements of financial position items: Derivatives Non-derivative Fuel Interest rate risk Foreign currency risk Capped call ESN (**) Revenue hedge Total Fair value variations: Derivative rights (obligations) on December 31, 2017 40,647 (34,457) - - - - 6,190 Net gains (losses) recognized in profit or loss (a) (25,280) (4,488) 9,272 - - - (20,496) Net (losses) recognized in OCI (349,252) (37,719) - - - - (386,971) Settlements payments (received) during the year (29,383) 30,270 (9,272) - - - (8,385) Derivative assets (liabilities) at 2018 (363,268) (46,394) - - - - (409,662) Fair value variations: Derivative rights (obligations) on December 31, 2018 (363,268) (46,394) - - - - (409,662) Gains (losses) recognized in profit or loss - - 1,207 (23,229) 16,148 - (5,874) Gains (losses) recognized as exchange variation - - - 13,946 (43,575) - (29,629) Gains (losses) recognized in other comprehensive income (loss) 299,910 (205,383) - - - - 94,527 Settlements (payments received) During the year 43,008 251,777 2,293 153,252 (599,130) - (148,800) Derivative assets (liabilities) at 2019 (20,350) - 3,500 143,969 (626,557) - (499,438) Changes in other Comprehensive income (loss) Balances on December 31, 2017 35,505 (114,821) - - - - (79,316) Fair Value adjustments during the year (275,583) (37,719) - - - - (313,302) Time value of options (73,669) - - - - - (73,669) Net reversal to profit or loss (64,955) 31,220 - - - - (33,735) Balances on December 31, 2018 (378,702) (121,320) - - - - (500,022) Fair Value adjustments during the year 299,910 (205,383) - - - - 94,527 Adjustments of hedge accounting of revenue - - - - - (188,267) (188,267) Net reversal to profit or loss 25,549 15,339 - - - 22,831 63,719 Balances in 2019 (53,243) (311,364) - - - (165,436) (530,043) Effect on profit or loss (25,549) (15,339) 1,207 (9,282) (27,427) 165,436 89,045 Classification of effects on income 2019 Net revenue (18,806) Aircraft fuel - operating costs (28,892) Leases - interest expenses (8,662) Unrealized losses with conversion right -ESN - interest expenses 16,148 Derivative losses - capped call - interest expenses (23,229) Derivative gains and losses - interest expenses (300,414) Foreign exchange rate change, net 452,900 Total 89,045 The Company may adopt hedge accounting for derivatives contracted to hedge the cash flow and that qualify for this classification as per IFRS 9 - “Financial Instruments”. On December 31, 2019, the Company adopts as a cash flow hedge to protect the interest rates (predominantly Libor), and to protect the aviation fuel. Cash flow hedges are scheduled for realization and, therefore, reclassification to expense according to the following periods: 2020 2021 2022 2023 2024 onwards Interest derivatives (9,924) (19,417) (25,304) (25,591) (214,437) Revenue derivatives (38,504) (37,091) (35,888) (35,442) (18,511) Fuel derivatives (35,513) (17,730) - - - Expected realization (*) (83,941) (74,238) (61,192) (61,033) (232,948) (*) Negative values represent losses. 33.3. Market risks 33.3.1. Fuel The aircraft fuel prices fluctuate due to the volatility of the price of crude oil by the product price fluctuations. To mitigate the risk of fuel price, as of December 31, 2019, the Company held call options and WTI, Brent and Collar derivatives. During the year ended December 31, 2019, the Company recognized total loss in the consolidated statements of operations totaling R$25,549 related to fuel derivatives (on December 31, 2018, the Company recognized total gains in the consolidated statements of operations totaling R$39,675 related to fuel derivatives designated as hedge accounting). The Company uses different instruments to hedge its exposure to the fuel price. The choice depends on factors such as liquidity in the market, the market price of the components, levels of volatility, availability and margin deposit. The main instruments are futures, calls, calls spreads, collars, swaps (see note 33.2). The Company’s strategy for Fuel Risk Management is based on statistical models. Through the developed model, the Company can (i) measure the economic relationship between the hedging instrument and the hedged object, thus able to assess if the relationship between the price of aviation fuel and the price of international fuel behaves as expected; and (ii) adequately define the hedge index, thus able to establish the appropriate volume to be contracted to hedge the number of liters of fuel that will be consumed in a given period. The Company’s models consider the potential factors of inefficiency that may impact on Risk Management strategies, such as changes in the pricing of aviation fuel by suppliers and the mismatch of the term of the hedging instrument and the hedged object. The Company has hedged around 68.2% of its fuel consumption for the year 2020 and 16.6% for the year 2021. The analysis of sensitivity to variation in the price of aviation fuel is presented in Note 34.6.2. 33.3.2. Interest rate The Company’s strategy for interest risk management combines fixed and floating interest rates and establishes if it will be necessary to expand or reduce the interest rate exposures. The Company manages its exposure by calculating the Basis Point Value (“BPV”) of each agreement and uses volumes that correspond to the amount of BPVs necessary to achieve the goals proposed in the Risk Management to contract derivatives. Through statistical models, the Company proves the economic relationship between the hedging instrument and the hedged object, considering potential factors of ineffectiveness, such as the mismatch of the term of the hedging instrument and the hedged object. The Company is mainly exposed to leases transactions indexed to variations in the Libor rate until the aircraft is received. To mitigate such risks, the Company may use derivative financial instruments of interest rate (Libor) swaps. During the year ended December 31, 2019, the Company recognized a total loss from interest hedge operations in the amount of R$15,339 (loss of R$35,708 in the year ended December 31, 2018). On December 31, 2019, the Company and its subsidiaries do not have open Libor interest derivative agreements. The analysis of sensitivity to variation in the price of aviation fuel is presented in Note 33.5.3. 33.3.3. Foreign currency risk Foreign currency risk derives from the possibility of unfavorable fluctuation of foreign currencies to which the Company’s liabilities or cash flows are exposed. During the period ended December 31, 2019, the Company recognized a total gain with foreign exchange hedge operations in the amount of R$1,207 (there were no foreign exchange hedge operations in the period ended December 30, 2018). The Company’s foreign currency exposure is summarized below: 2019 2018 Assets Cash, equivalents, short-term investments and restricted cash 1,035,802 963,973 Trade receivables 202,363 148,538 Recoverable taxes 5,312 - Deposits 1,126,609 885,804 Derivative assets 147,469 - Other assets - 352,437 Total assets 2,517,555 2,350,752 Liabilities Loans and financing (7,831,116) (5,576,835) Leases - (640,660) Foreign currency suppliers (462,636) (903,287) Derivatives (20,350) (409,662) Operating leases (6,007,973) (271,485) Total liabilities (14,322,075) (7,801,929) Exchange Exposure (11,804,517) (5,451,177) Commitments not recorded in the statements of financial position Future commitments resulting from operating leases (*) - (7,135,784) Future commitments resulting from firm aircraft orders (29,600,647) (63,235,639) Total (29,600,647) (70,371,423) Total foreign currency exposure - R$ (35,356,555) (75,822,600) Total foreign currency exposure - US$ (8,771,815) (19,568,133) Exchange rate (R$/US$) 4.0307 3.8748 (*) On January 1, 2019, due to the initial adoption of IFRS 16, the obligations corresponding to the operating leases were recognized in the Company’s statements of financial position, as per Note 4.1.1, as well as the corresponding right of use associated with this obligation. The Company is mainly exposed to the variation of the U.S. dollar. 33.3.4. Capped call The Company, through Gol Equity Finance, in the context of the pricing of the ESN issued on March 26, 2019, April 17, 2019, and July 17, 2019, as detailed in Note 18.1.1, contracted private derivative operations (“capped call”) with part of the Note subscribers with the purpose of minimizing the potential dilution of the Company’s preferred shares and ADSs. The Company recognized a total expense with capped call operations in the amount of R$23,229 for the year ended December 31, 2019 The analysis of sensitivity to variation in the exchange rate change (US$) is presented in Note 32.5.5. 33.4. Credit risk The credit risk is inherent in the Company’s operating and financing activities, mainly represented by cash and cash equivalents, short-term investments and trade receivables. Financial assets classified as cash, cash equivalents, and short-term investments are deposited with counterparties rated investment grade or higher by S&P or Moody's (between AAA and AA-), pursuant to risk management policies. Credit limits are set for all customers based on internal credit rating criteria and carrying amounts represent the maximum credit risk exposure. Customer creditworthiness is assessed based on an internal system of extensive credit rating. Outstanding trade receivables are frequently monitored by the Company. Derivative financial instruments are contracted in the over-the-counter market (OTC) with counterparties rated investment grade or higher, or in a commodities and futures exchange (B3 or NYMEX), thus substantially mitigating credit risk. The Company's obligation is to evaluate counterparty risk involved in financial instruments and periodically diversify its exposure. 33.5. Liquidity risk The Company is exposed to liquidity risk in two different ways: (i) market liquidity risk, which varies according to the types of assets and markets in which the assets are traded, and (ii) cash flow liquidity, related to the emergence of difficulties to comply with the operational obligations contracted on the scheduled dates. To meet the liquidity risk management, the Company invests its resources in liquid assets (federal government bonds, CDBs and investment funds with daily liquidity) and the Cash Management Policy establishes that the weighted average term of the indebtedness must be greater than the weighted average term of the investment portfolio. The maturity schedules of the Company’s financial liabilities on December 31, 2019, and 2018 are as follows: Carrying amount Less than 6 months 6 to 12 months 1 to 5 years More than 5 years Total Loans and financing current / non-current 8,409,841 1,112,414 1,724,940 7,519,263 1,890,448 12,247,065 Leases 6,052,780 1,257,430 1,018,266 5,862,268 967,404 9,105,368 Suppliers 1,296,406 1,286,264 - 10,142 - 1,296,406 Suppliers - forfeiting 554,567 554,467 - - - 554,467 Derivatives 20,350 9,080 - 11,270 - 20,350 On December 31, 2019 4,219,655 2,743,206 13,402,943 2,857,852 23,223,656 Loans and financing current / non-current 6.443.807 901,588 438,386 3,692,463 4,394,544 9,426,981 Leases 912,145 227,985 227,879 1,452,842 8,965 1,917,671 Suppliers 1,523,952 1,403,793 22 120,137 - 1,523,952 Suppliers - forfeiting 365,696 365,696 - - - 365,696 Derivatives 409,662 95,773 99,671 214,218 - 409,662 On December 31, 2018 2,994,835 765,958 5,479,660 4,403,509 13,643,962 33.6. Sensitivity analysis of financial instruments The sensitivity analysis of financial instruments was prepared with the purpose of estimating the impact on the fair value of financial instruments operated by the Company, considering three scenarios in the risk variable considered: most likely scenario, in the evaluation of the Company (this being the maintenance of market levels); deterioration of 25% (possible adverse scenario) in the risk variable; deterioration of 50% (remote adverse scenario). The estimates presented do not necessarily reflect the amounts ascertained in the next financial statements. The use of different methodologies can have a material effect on the estimates presented. The tables below show the analysis of sensitivity on foreign exchange exposure, open derivatives position and interest rates on December 31, 2019 for market risks considered relevant by the Company’s Management. The values shown as positive are asset exposures (assets greater than liabilities) and negative values are liability exposures (liabilities greater than assets). 33.6.1. Foreign currency risk On December 31, 2019, the Company adopted an exchange rate change of R$4.0307/US$1.00, corresponding to the month’s closing rate disclosed by the Central Bank of Brazil as a probable scenario. The table below shows the sensitivity analysis and the effect on profit or loss of exchange rate fluctuations in the exposure on December 31, 2019: Exchange rate Effect on profit or loss Derivative Net Liabilities exposed to the risk of appreciation of the U.S. dollar 4.0307 11,804,517 21,500 Dollar Depreciation (-50%) 2.0154 (5,902,259) (10,750) Dollar Depreciation (-25%) 3.0230 (2,951,129) (5,375) Dollar Appreciation (+25%) 5.0384 2,951,129 5,375 Dollar Appreciation (+50%) 6.0461 5,902,259 10,750 33.6.2. Fuel risk On December 31, 2019, the Company, through its subsidiary GLA, has oil derivative contracts for protection equivalent to 68.2% of 12-month consumption, protection equivalent to 41.7% of 24-month consumption. The probable scenarios used by the Company are the market curves at the close of December 31, 2019, for derivatives that hedge the fuel price risk, both for derivatives that protect the fuel price risk and for derivatives that protect the Libor interest rate risk. The table below shows the sensitivity analysis in U.S. dollars of the fluctuations in jet fuel barrel prices: Fuel US$/bbl (WTI) US$/bbl (WTI) Decline in prices/barrel (-50%) 28.42 (942,142) Decline in prices/barrel (-25%) 42.62 (557,695) Increase in prices/barrel (+25%) 71.04 345,830 Increase in prices/barrel (+50%) 85.25 826,924 33.6.3. Interest rate risk On December 31, 2019, the Company holds financial investments and financial liabilities indexed to several rates and positions in Libor derivatives. In its sensitivity analysis of non- derivative financial instruments, it was considered the impacts on the yearly interest of the exposed values on December 31, 2019 (see Note 18) that were exposed to fluctuations in interest rates, as the scenarios below show. The amounts show the impacts on profit or loss according to the scenarios presented below: Short-term investments net of financial indebtedness (a) Risk Increase in the CDI rate Decrease in the Libor rate Reference rates 4.40% 1.91% Exposure amount (probable scenario) (b) (1,183,581) 1,206,135 Remote favorable scenario (-50%) 23,412 (11,733) Possible favorable scenario (-25%) 11,706 (5,866) Possible adverse scenario (+25%) (11,706) 5,866 Remote adverse scenario (+50%) (23,412) 11,733 (a) Total invested and raised in the financial market at the CDI rate and Libor interest rate. (b) Book balances recorded as of December 31, 2019. Measurement of the fair value of financial instruments To meet the disclosure requirements of financial instruments measured at fair value, the Company and its subsidiaries must group these instruments at levels 1 to 3 based on the observable degree of fair value: Level 1: Fair value measurements are obtained from quoted (unadjusted) prices in identical active or passive markets; Level 2: Fair value measurements are obtained from other variables other than the quoted prices included within Level 1, which are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and Level 3: Fair value measurements are obtained from valuation techniques that include variables for the asset or liability, but are not based on observable market data (unobservable data). The following table shows a summary of the financial instruments measured at fair value of the Company and its subsidiaries, including their related classifications of the valuation method, on December 31, 2019 and December 31, 2018: 2019 2018 Fair value level Book value Fair value Book value Fair value Cash and cash equivalents Level 1 5,505 5,505 - - Cash and cash equivalents Level 2 - - 307,538 307,538 Short-term investments Level 1 953,762 953,762 21,100 21,100 Short-term investments Level 2 - - 457.264 457.264 Restricted cash Level 2 444,306 444,306 822,132 822,132 Derivative assets Level 2 147,469 147,469 - - Fair value adjustment of derivatives Level 2 (626,557) (626,557) - - Derivatives liabilities Level 2 (20,350) (20,350) (409,662) (409,662) 33.7. Capital management The Company seeks alternatives to capital in order to meet its operational needs, aiming a capital structure that takes into account suitable parameters for the financial costs, the maturities of funding and its guarantees. The Company monitors its financial leverage ratio, which corresponds to loans and financing, including short and long-term indebtedness. The table below shows the Company’s financial leverage as of December 31, 2019 and 2018: 2019 2018 Total loans and financing 8,409,841 6,443,807 Total leases to pay 6,052,780 912,145 (-) Cash and cash equivalents (1,645,425) (826,187) (-) Financial investments (953,762) (478,364) (-) Restricted cash (444,306) (822,132) A – Net indebtedness 11,419,128 5,229,269 B – Total Negative shareholders’ equity (7,105,417) (4,505,351) C = (B + A) – Total capital 4,313,711 723,918 |
34. Non-cash Transactions
34. Non-cash Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Non-cash Transactions [abstract] | |
Non-cash Transactions | 34.Non-cash Transactions 2019 2018 2017 Initial adoption - IFRS 16 (property, plant and equipment / accumulated loss / minority interest) 2,436,333 - - Share-based compensation (capital / share-based compensation) (31,222) - - Unrealized results from derivatives (derivative obligations / equity valuation adjustment) 30,021 - - Effects of changes in equity interest (capital reserves / minority interest) (649) - - Actuarial losses from post-employment benefits (actuarial liabilities / equity valuation adjustment / accumulated losses) 87,541 - - Interest on shareholders’ equity to be distributed, net of taxes - (8,672) (49,602) Dividends 238,359 (58,632) - Deposits in guarantee for leases agreements - - 10,307 Write-off of leases agreements - (805,081) (15,334) Provision for aircraft return - 147,548 - Acquisition of property, plant and equipment through financing (fixed assets / loans and financing) 164,234 193,506 63,066 Guarantee deposits (deposits / leases payable) (476) - - Maintenance reserve (deposits / leases payable) (6,498) - - Right to use flight equipment (fixed assets / leases payable) 957,026 - - |
35. Liabilities from financing
35. Liabilities from financing activities | 12 Months Ended |
Dec. 31, 2019 | |
Changes in liabilities arising from financing activities [abstract] | |
Liabilities from financing activities | 35.Liabilities from financing activities The changes in the liabilities of the Company’s financing activities are shown below for the years ended December 31, 2019 and 2018: 2019 Non-cash changes Adjustment to profit Opening balance Net cash flows (used in) from financing activities Net cash flows from operating activities Property, plant and equipment acquisition through financing and lease Maintenance reserve Escrow deposit Initial adoption adjustment – IFRS 16 Gains (losses) recognized in other comprehensive income (loss) Exchange rate variation, net Interest accrued and cost amortization Write-offs and Contractual amendment Other results Closing balance Short and long-term debt 6,443,807 1,401,125 (444,006) 164,234 - - - - 313,717 571,681 - (40,717) 8,409,841 Leases 912,145 (1,617,677) (23,304) 957,026 (6,498) (476) 5,370,868 - 241,612 502,544 (283,460) - 6,052,780 Derivatives 409,662 (407,322) (43.008) - - - - (94,527) (13,946) - - 22,022 (127,119) 2018 Non-cash changes Exchange rate variation, net Opening balance Cash flow Income for the year Property, plant and equipment acquisition through financing Disposal property, plant and equipment Dividends provisioned through the subsidiary Smiles Provision for interest on loans Treasury shares sold Gains on change in investment Interest payments and loan cost Other Closing balance Short and long-term debt 7,105,667 (536,888) - 193,506 (805,081) - 565,854 - 1,043,117 (481,708) - 7,084,467 Other liabilities 143,473 (219,493) - - - 238,879 - - - - - (15,620) 147,239 Non-controlling interests from Smiles 412,013 875 305,669 - - (239,877) - - 561 - - 820 480,061 Treasury shares (4,168) (15,929) - - - - - 19,971 - - - - (126) Shares to be issued - 2,818 - - - - - - - - - - 2,818 Capital stock 2,927,184 15,428 - - - - - - - - - - 2,942,612 2017 Non-cash changes Opening balance Cash flow Income for the year Property, plant and equipment acquisition through financing Interest payments and loan cost Exchange rate variation, net Provision for interest on loans Other Closing balance Short and long-term debt 6,379,220 612,396 - 63,066 (505,105) 68,895 502,529 (15,334) 7,105,667 Non-controlling interests from Smiles 293,247 (238,669) 359,025 - - - - (1,590) 412,013 Capital stock 2,924,492 2,169 - - - - - 523 2,927,184 |
36. Insurance coverage
36. Insurance coverage | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Insurance [abstract] | |
Insurance coverage | 36.Insurance coverage On December 31, 2019, the most relevant insurance coverage, by nature, considering the aircraft fleet in relation to the maximum reimbursable amounts indicated in U.S. dollars, together with the insurance coverage of the subsidiary Smiles, are as follows: In thousands of R$ In thousands of US$ GLA Warranty - hull/war 342,610 85,000 Civil liability per event/aircraft (a) 3,023,025 750,000 Inventories (local) (b) 1,007,675 250,000 Smiles Rent guarantee (cond. Rio Negro - Alphaville) 1,318 - D&O liability insurance 100,000 - Fire (property insurance cond. Rio Negro - Alphaville) 12,747 - (a) In accordance with the agreed amount for each aircraft up to the maximum limit indicated. (b) Values per incident and annual aggregate. Pursuant to Law 10744 of October 9, 2003, the Brazilian government assumed the commitment to complement any civil-liability expenses related to third parties caused by war or terrorist events, in Brazil or abroad, which GLA may be required to pay, for amounts exceeding the limit of the insurance policies effective since September 10, 2001, limited to the amount in Brazilian Reais equivalent to US$1.0 billion. |
37. Subsequent events
37. Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent events | 37.Subsequent events 37.1 Corporate restructuring On March 13, 2020, the Company and its subsidiary Smiles issued informing that, due to the extraordinary events in the national and international markets caused by the spread of COVID-19, and particularly by virtue of its structuring impacts on the aviation sector, they had canceled the corporate reorganization proposal submitted on December 9, 2019 and on February 4, 2020. 37.2 New codeshare agreement On February 4, 2020, the Company, through its subsidiary GLA, announced a new reciprocal codeshare agreement with the airline American Airlines, thus creating the most frequent service between the United States and South America. 37.3 Call notice for the extraordinary shareholders’ meeting On February 4, 2020, the Company issued a call notice for an extraordinary shareholders’ meeting to be held on March 5, 2020, to resolve on: i. approving the Protocol and Reasoning (“Protocol and Reasoning”) to be signed between the Management of the Company and the Management of the subsidiaries GLA and Smiles, which establishes the terms and conditions of the corporate reorganization, whose acts and events are linked and interdependent, in which the shares issued by Smiles will be merged into GLA and the shares issued by GLA will be merged into the Company. As a result, the Company will indirectly hold all shares issued by Smiles, with the resulting merger of the operations and equity base of the Company and of the subsidiary Smiles (“Reorganization”); ii. ratifying the appointment of the specialized company Apsis Consultoria e Avaliação Ltda. to prepare the valuation report of the economic value of GLA’s equity, for the Company to incorporate the shares issued by GLA (“Valuation Report of GLA Shares”); iii. approving the Valuation Report of GLA Shares; iv. approving the proposed Reorganization, under the terms of the Protocol and Reasoning; v. authorizing, due to the incorporation of GLA Shares, the increase of the Company’s share capital, to be subscribed and paid-in by GLA’s Management, with the due amendment of its bylaws (after establishing the final number of shares, depending on of the exchange ratio to be chosen by Smiles’ shareholders, and, therefore, the final number of shares of the to be issued by the Company due to the incorporation of GLA Shares) and also authorizing the Board of Directors to establish, after concluding Reorganization, the exact number of shares to be issued, as well as the amounts to be allocated to the share capital and the capital reserve; vi. approving the creation of preferred shares and redeemable preferred shares issued by the Company; and vii. approving the succession of the Long-Term Incentive Plan - Stock Option - Company’s Option to Purchase Smiles Shares, with the due assumption of the obligations arising therefrom. 37.4 Sale and leaseback of aircraft On February 11, 2020, the Company has announced, through a Notice to the Market, announced the sale of 11 aircraft, which will reduce the Company’s net indebtedness by around R$500,000, reducing R$130,000 in the financial leases indebtedness and adding R$370,000 to the cash liquidity. Subsequently, the Company plans to use approximately R$330,000 of these funds to redeem the amount available from its Senior Notes of 8.875%, maturing in 2022. 37.5 Redemption of 2022 senior notes On February 21, 2020, the Company has announced, through a Notice to the Market, that initiated the redemption of its 2022 senior notes which bear interest of 8.87% p.a. The notes will be redeemed on March 23, 2020, at a price equivalent to 102.219% of the principal, and accrued interest not paid. 37.6 Actions and impacts resulting from the COVID-19 pandemic The COVID-19 pandemic, which is seen by the World Health Organization as a “public health emergency of international interest,” has rapidly disseminated throughout the world, causing important disruptions in the global economic activity and starting an unprecedented crisis. This crisis has significantly increased the uncertainty in the macroeconomic environment, and it will inevitably lead to global recession, according to the World Bank’s report named “The Economy in the Time of COVID-19,” published on April 12. In Brazil, a 5% GDP retraction is being expected in 2020, caused, above all, by weak external demand, lower oil prices, and sharp fall in the economic activity in order to contain the virus. The measures taken in Brazil to reduce the speed of spread and dissemination of the disease include social distancing, travel restrictions and the closing of borders. As a result, the aircraft industry was one of the first and more affected sectors with regard to its operations and results. These impacts were immediate and severe. To face this absolutely disruptive scenario, our Company, through its Executive Committee, which is made up of all management bodies, is attentively monitoring this situation and its developments; establishing financial and operational strategies; and defining how it can support the society. In a moment like this, our Company is willing to make all contributions possible by using the tools under its control. This said, our Management took the following actions in the subsequent period of theses financial statements: 37.6.1 Adjustment of operations – Essential Network On March 16, GOL started to reduce its capacity by 50% to 60% in the domestic market, and by 90% to 95% in the international market, in order to reflect the changes in the demand from Customers. On March 24, as Brazilians were adopting responsible social distancing measures and avoiding travelling due to the pandemic, we adjusted our network again from 750 to 50 essential daily flights between the São Paulo International Airport, located in the city of Guarulhos, and all 26 state capitals and Brasília (“Essential Network”). Since then, GOL has gradually resumed its operations, operating an average of 120 daily flights during the month of June 2020. 37.6.2 Reduction in fixed and variable costs Variable costs: as mentioned above, we reviewed our flight network as the end of March in order to ensure essential services in all Brazilian capitals and the federal district, which corresponded to a reduction of 93% in domestic flights, and a temporary interruption in all international flights, thus reducing the related variable costs; Personnel Expenses: with effects expected as of April, the Company adopted measures aiming at a planned reduction of approximately 50% in payroll expenses and relevant charges, particularly with reduction of working hours and, consequently, a reduction of 35% in salaries of air service and ground service workers; negotiation to reduce the working hours of our crew by 50%; 40% reduction in the compensation of our officers; adoption of unpaid leave (LNR) by approximately 5.4 thousand employees (approximately 34% of our total staff), with these adoptions signed until March 31, 2020; and In April, with effects expected as of May, we adopted the measures provided for in MP [Provisional Measure] 936/20, reducing the salaries of employees by 50%, the compensation of officers by 60%, and adopting the suspension of labor agreements of around 800 employees, in addition to the 5,400 employees previously mentioned. Other expenses: suspension of expenses for advertising and publicity, and immediate interruption of projects of any nature which are not absolutely essential for the continuity of operations. 37.6.3 Preservation and strengthening of our cash position and liquidity Aircraft and engines lease: negotiation with key lessors on the postponement of payments for a period of 3 to 6 months, which should enable us to retain funds of approximately R$452.4 million; Fuel costs: agreements with suppliers on the postponement of payments, which should be resumed in installments as of September 2020; Personnel Expenses: interruption in the payment of profit sharing and bonuses for the year 2019, and in the payment of the advance of the 13 th Investments: suspension of non-essential CAPEX, including the interruption of “ pre-delivery payments (PDPs); Engine maintenance services: postponement by 60 to 90 days of payments to suppliers; Taxes, contributions and social charges – suspension of payment of federal taxes through the issue of a court injunction, and also as a result of the measures enacted by the Federal Government; Other expenses and revenues: agreement on the refund of expenses incurred since grounding of 737MAX aircraft, with an immediate effect of R$447 million on cash, which was received on April 1 st Loans and financing: postponement of the R$148-million installment maturing in March 2020 to March 2022; obtainment of a waiver for all covenants maturing in 2020; and postponement of the maturity of working capital transactions scheduled for the first quarter of 2020. 37.6.4 Support from the Government and regulatory bodies Maintenance of receivables from air tickets: reduction in reimbursements and cancellations based on the Provisional Measure enacted by the Government, which provides for the rescheduling of flights within a period of up to 12 months; Airport fees: change in the terms of payment of navigation and airport fees, which may be paid until December without penalties; and Maintenance of slots - ANAC: (i) allowance for cancellation of slots as per the regularity index, valid until the end of October 2020, in line with a similar decision issued by other civil aviation organizations and authorities, such as the European Commission and FAA; and (ii) extension of 120 days for renewal of licenses. 37.6.5 Adjustments and reclassifications accounted for in the subsequent period As mentioned above, the impacts of the COVID-19 pandemic on the Company were immediate and severe, its main consequence being the adoption of the essential network. Below is presented a table summarizing the adjustments and reclassifications recorded in the subsequent period of these financial statements, as well as the details on each of these items and additional disclosures in the text below: Consolidated Adjustments Provision for cancellation of mileage exchange (22,271) De-recognition of the cash flow hedge – fuel (291,925) De-recognition of the cash flow hedge – revenues in US$ (290,346) Reclassifications Taxes to recover in the short- and long-term 61,020 As a link between the travel and tourism industries, the subsidiary Smiles is also being affected by the crisis, with impacts on its operations and results. The main effect was the reduction, in the first quarter of 2020, in the volume of redemption of miles accumulated by the participants of the Smiles Program, particularly regarding air tickets, hotel accommodation and car rental. In April, the Company also recorded cancellations, above the usual levels, of miles redeemed in previous months. Accordingly, a provision for cancellations, in the amount of R$22,271 was recorded as of March 31, 2020. Additionally, as a result of the reduction in operations due to the adoption of the essential network, the Company derecognized cash flow hedging transactions, since it expects a drop in the fuel consumption previously estimated. Accordingly, the amount of R$291,925 was transferred from the “equity valuation adjustment” group, in shareholders’ equity, to the item “derivative losses” in financial income. Also, as a result of the temporary interruption in all international flights, the Company also derecognized the hedge accounting transactions used for protecting future revenues in foreign currency (subject matter of the hedge), using lease agreements as hedge instruments. Accordingly, the amount of R$290,346 was transferred from the “equity valuation adjustment” group, in shareholders’ equity, to the item “exchange variation expenses” in financial income. The expectations of realization of assets and liabilities were reviewed. As a result, the Company reclassified Recoverable taxes and contributions in the amount of R$61,020, since the realization of these assets will be postponed. With regard to lease balances payable as of March 31, 2020, short-term obligations in the amount of R$233,081 were renegotiated with creditors. The Company has also conducted impairment tests in the balances of property, plant and equipment, goodwill and slots rights. No provision for impairment was recorded in the subsequent period. 37.6.6 Support to the Society, the Employees and the Customers Passenger transportation services are essential for the society. We recognize our duty of care towards our audiences, and we are working closely to the authorities to help reduce the impact of COVID-19 on the population and the health services. Regarding the flights in our essential network, we are taking extraordinary measures in addition to the strict sanitation standards of the civil aviation sector. Our aircraft are sanitized and disinfected on a daily basis. The measures used include keeping the integrity and health of our employees as a priority. As from the second week of March, all administrative employees have been working remotely. The employees are being continuously monitored by the Company’s leadership and the People and Culture area, which manages our human resources. In order to improve our Customer Assistance services in a period of high demand and uncertainty, we created specific communication channels on the coronavirus that are constantly updated. We reinforced our dedicated Customer Assistance team, giving priority to more urgent cases. This team helps customers with the reorganization of air ticket bookings with flexible conditions for changes in future flights. Regarding the Smiles loyalty program, we have also improved the digital channels by deploying the free online cancellation self-service, which is available in our website and in the “Smiles Fidelidade” app, and our chat, for customers with optional GOL tickets. This system was developed internally in a record time. Since the crisis may last for an undefined period and, thus, impact customers’ travel plans, our Smiles subsidiary announced that the effectiveness of the program’s categories is being postponed. Moreover, the current year is not being considered as base for requalification for the next year, since the analysis of downgrade of categories would take into account the accumulation of miles originated from stretches flown in the period from January to December 2020. This enables customers to gain more time within their categories, and take advantage of the benefits provided. At the social level, as a contribution to and in recognition of those who fight COVID-19 on the frontline of the battle, the Company, in partnership with GLA, is now providing free transportation to health professionals, and in partnership with the subsidiary Smiles is now crediting miles for them to travel throughout Brazil to provide care to patients affected. At each GOL stretch flown, they receive 1,000 miles. With the purpose of reducing the negative impacts of the COVID-19 crisis, Smiles Fidelidade has launched several initiatives to stimulate participants to use their miles in products offered by other partners, particularly retailers, through the Shopping Smiles program. The Company’s most important commitment will continue to be the integrity and health of persons. Accordingly, we are strictly following the guidelines issued by WHO, and undertaking to do everything we can to face this turbulent period in the best way possible. 37.7 Downtime status of Boeing 737 MAX In the first quarter of 2020,as a consequence the suspend the operation of its seven aircraft described in note 1 and the recognition of a long-lasting partnership, the Company reached an agreement with Boeing. The terms of the agreement are strictly confidential, but they aim at providing (a) compensation for losses incurred since the stoppage of aircraft operations, to date, and as a result of the non-delivery of aircraft, as set forth in the purchase agreements; (b) reduction in the number of firm orders by 34 aircraft to 95 in total; (c) the flexibility to additionally the number of 35 aircraft; and (d) the flexibility to convert the existing orders for other Max-models. In accordance with the accounting principles and standards in force, the amounts mentioned in the agreement were recognized in this quarterly financial information as follows: R$446,942 as “Receivables” in the current assets group, with counter-entries of R$136,962 in “advances for acquisition of property, plant and equipment” in fixed assets, since it is a repayment of “pre delivery payment” and R$309,980 recorded in the income statement, with R$63,041 as a result of exchange variation, R$193,503 as other income and expenses, net since it refers to a reimbursement of expenses incurred in prior years, and the remaining amount distributed in the other lines of the income statement. These amounts do not affect the statements of cash flow presented in this quarterly financial information. The amount of R$446,942 was received in full by GOL on April 1, 2020. Additionally, subject to future events, the Company will be entitled to credits with a present value of approximately R$1,901,306 to be invested in future acquisition of new aircraft, which, in turn, will reduce the amount of future depreciation and financial costs, since the credits will affect the present values of assets and liabilities related to use rights. |
4. Summary of significant acc_2
4. Summary of significant accounting practices (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant accounting practices [absract] | |
Consolidation | 4.1. Consolidation The financial statements include the financial statements of the Company and of the subsidiaries in which the Company has direct or indirect control. All transactions and balances between GOL and its subsidiaries were eliminated in the consolidation, as well as the unrealized profits or losses arising from these transactions, including charges and taxes. Accounting practices were uniformly applied to all consolidated companies, adopted in the previous year. |
Investments | 4.2. Investments Investments in associates are initially recognized at cost and subsequently adjusted using the equity method. If the investee generates operating losses that lead the shareholders’ equity to become negative, the Company adopts the provisions set forth in IAS 28 - “Investment in Associates, Subsidiaries and Jointly-Controlled Companies and does not make additional records. The equity method result is recorded again when the investee recovers all accumulated losses. |
Cash and Cash Equivalents | 4.3. Cash and Cash Equivalents The Company classifies in this group the balances of cash, banks and financial investments of investment funds and securities of immediate liquidity which, according to analyzes, are readily convertible into a known amount of cash with an insignificant risk of change in value. Financial investments classified in this group, due to their very nature, are measured at fair value through profit or loss and will be used by the Company in a short period of time. |
Short-Term Investments | 4.4. Short-Term Investments In the presentation and measurement of financial assets, the Company considers the provisions of IFRS 9 - “Financial Instruments” which establishes that financial assets must be initially measured at fair value less costs directly linked to their acquisition. In turn, the subsequent measurement is divided into two categories: 4.4.1. Amortized Cost Financial investments are measured at amortized cost when all of the following conditions are met: · the Company plans to hold the financial asset to collect the contractual cash flows; · the contractual cash flows represent only the payments of interest and principal (“SPPI”); and · the Company did not opt for the fair value methodology to remove inconsistencies in the measurement, which are called “accounting mismatch”. 4.4.2. Fair Value · through comprehensive income · through profit or loss |
Restricted Cash | 4.5. Restricted cash Restricted cash includes financial investments measured at fair value through profit or loss, used mainly as guarantees linked to short- and long-term financial instruments as well as escrow deposits for leases operations |
Trade Receivables | 4.6. Trade Receivables They are measured based on the invoiced figure, net of estimated losses on provision for loan losses, and approximate the fair value given their short-term nature. With the adoption of IFRS 9 - “Financial Instruments”, corresponding to IFRS 9, as of January 1, 2018, the provision for loan losses is now measured through a simplified approach, using historical data, projecting the expected loss over the contractual life and no longer based on the historical loss incurred, by segmenting the receivables portfolio into groups that have the same receipt pattern and according to the respective maturity terms. In addition, for certain cases, the Company carries out individual analyses to assess the receipt risks. |
Inventories | 4.7. Inventories Inventory balances mainly include materials for maintenance and replacement of parts. Inventories are measured at the average acquisition cost plus expenses such as non-recoverable taxes and customs expenses incurred in the acquisition and transportation expenses until the current location of the items. Provisions for inventory obsolescence are recorded for those items that have no expectation of realization. |
Income Taxes | 4.8. Income Taxes 4.8.1. Current Taxes In Brazil, includes income tax (“IRPJ”) and social contribution on profit (“CSLL”), which are calculated monthly based on the taxable income, after offsetting tax losses and negative social contribution base, limited to 30% of the taxable income, applying the rate of 15% plus an additional 10% for the IRPJ and 9% for the CSLL. 4.8.2. Deferred Taxes Deferred taxes represent credits and debits on IRPJ’s tax losses and negative CSLL bases, as well as temporary differences between the tax and accounting bases. Deferred tax and contribution assets and liabilities are classified as non-current. An impairment loss on these assets is recognized when the Company’s internal studies indicate that the future use of these credits is not probable. Deferred tax assets and liabilities are shown net if there is an enforceable legal right to offset tax liabilities against tax assets. However, for presentation purposes, if related to taxes levied by the same tax authority under the same taxable entity, the balances of tax assets and liabilities that do not meet the legal criterion of realization are disclosed separately. Deferred tax assets and liabilities should be measured at the rates that are expected to be applicable in the period in which the asset is realized or the liability is settled, based on the tax rates and legislation in force on the date of the financial statements. The forecast of future taxable income on tax losses and negative social contribution base is prepared based on the business plans and are reviewed and approved annually by the Company’s Board of Directors. |
Rights and Obligations with Derivative Financial Instruments | 4.9. Rights and obligations with derivative financial instruments Derivatives financial instruments are measured at fair value at recognition and at subsequent reporting dates. Variations in interest rates, foreign exchange rates, and aviation fuel prices expose the Company and its subsidiaries to risks that may affect their financial performance. To mitigate such risks, the Company, through its subsidiaries, contracts derivative financial instruments that may or may not be designated for hedge accounting and, if designated, are classified as cash flow hedge. 4.9.1. Derivative financial instruments not designated as hedge accounting The Company may contract derivative financial instruments that are not designated for hedge accounting when Risk Management’s purposes do not require such classification. Transactions not designated as hedge accounting have the change in their fair value accounted for directly in the financial result. 4.9.2. Derivative financial instruments classified as cash flow hedge The instruments designated as cash flow hedges have the purpose to protect future results arising from changes in interest rates and fuel prices. The effectiveness of the variations is estimated based on statistical methods of correlation and by the proportion between the hedge’s gains and losses and the variation of the costs and expenses protected. The effective variations in fair value are recorded in the shareholders’ equity in “Other Comprehensive Income”, up to the recognition of the result of the hedge’s object. The inefficiencies found in each reporting period are recognized in the financial result. The hedge transactions recorded in “Other Comprehensive Income” are net of tax effects. 4.9.3. Discontinuation and write-off of derivative financial instruments The hedge accounting is discontinued prospectively when the Company and its subsidiaries (i) cancel the protection relationship; (ii) the derivative instrument expires or is sold, terminated or executed, (iii) when there is low predictability of realization of the hedge’s object, or (iv) when it no longer qualifies as hedge accouning. If the operation is discontinued, any gains or losses previously recognized in Other Comprehensive Income” and accumulated in the shareholders’ equity up to that date are immediately recognized in the result for the year. |
Deposits | 4.10. Deposits 4.10.1. Deposits for the maintenance of aircraft and engines Refer to payments made in US dollars to lessors for the future maintenance of aircraft and engines. The realization of these assets occurs, substantially, in the use of the deposit for payment to the workshop when the maintenance is carried out or through the receipt of financial resources, according to the negotiations carried out with the lessors. The exchange rate change of these payments is recognized as an expense or income in the financial result. The Management regularly assesses the recovery of these deposits based on the eligibility of the application of such amounts in future maintenance events and believes that the figures reflected in the statements of financial position are realizable. Some of the agreements foresee that, if there are no maintenance events with the possibility of using the deposits, the deposits for this operation are not refundable. Such amounts are retained by the lessor and represent payments made according to the use of the components until the return date. Hence, such amounts are recognized directly in the statements of operations due to payments made under the item “Maintenance and Repair Material”. In addition, the Company has agreements with some lessors to replace deposits for credit bills, which can be executed by the lessors if the maintenance of the aircraft and engines does not occur according to the review schedule. Several aircraft leases agreements do not require maintenance deposits and have credit bills to ensure the maintenance is carried out in the scheduled periods (see Note 14). Until December 31, 2019, no credit bill had been executed against the Company. 4.10.2. Deposits as guarantee and collateral for leases agreements Deposits and guarantees are denominated in US dollars and updated monthly by the foreign exchange rates, and do not earn interest income and are refundable to the Company at the end of the leases agreements. 4.10.3. Judicial deposits On the course of the legal actions initiated against the company, and over which the legitimacy is being challenged, Company might be requested to make judicial deposits in order to continue its defense actions. The amounts related to judicial deposits are monetarily updated by inflationary index, when applicable, and represents amounts not available to the Company until court decision. |
Property, Plant, and Equipment | 4.11. Property, plant, and equipment Property, plant, and equipment, including rotables (spare parts), are recorded at acquisition and/or construction cost and include interest and other financial charges. Every item of the property, plant, and equipment that has a significant cost in relation to the total asset is depreciated separately. The estimated economic useful life of property, plant, and equipment, for purposes of depreciation, is shown in Note 16. The estimated market price at the end of its useful life is the premise used to set the residual value of the Company’s property, plant, and equipment. The residual value and useful life of the assets are reviewed annually by the Company. Any variation due to changes in the expectation of using such items results in prospective changes. The book value of the property, plant, and equipment is analyzed to verify possible impairment loss when facts or changes in circumstances indicate that the book value is greater than the estimated recoverable amount. The book value of the aircraft is annually tested for impairment, even if there are no circumstances that indicate losses. An item of property, plant, and equipment is written-off after disposal or when there are no future economic benefits resulting from the continued use of the asset. Any gains or losses on the sale or write-off of an item are established by the difference between the amount received on the sale and the book value of the asset and are recognized in the result. Additionally, the Company adopts the following treatment for the groups below: 4.11.1. Advances for aircraft acquisition Refers to prepayments in US dollars made to Boeing for the acquisition of 737-MAX aircraft. Prepayments are converted at the historic rate. 4.11.2. Leases agreements On December 31, 2018, for leases agreements in which the risks and benefits of the leased asset were transferred to the Company, the asset was recognized in the statements of financial position with a corresponding entry in the financial liability, at the beginning of the leases term, at amounts equivalent to the fair value of the leased asset or, if lower, at the present value of the minimum leases payments. Leased assets were depreciated over their useful lives. However, when there was no reasonable certainty that the Company would obtain the property at the end of the leases term, the asset was depreciated over its estimated useful life or the leases term, whichever is less. The other aircraft and engine leases were classified as operating leases and payments were recognized as an expense in the consolidated statements of operations on a straight-line basis over the term of the agreement, under the item “Operating Leases”. The future payments of such agreements did not represent an obligation recorded in the statements of financial position; the commitments undertaken were duly presented in the Notes. As of January 1, 2019, the Company started recording leases agreements in accordance with IFRS 16 - “Leases Operations” which differs significantly from the accounting practice previously adopted. The new accounting practice, as well as the effects of its adoption, are presented in detail in Item 4.26.1 of these financial statements. 4.11.3. Sale and leaseback transactions From January 1 ST After the fair value is defined, gains or losses are initially calculated based on the difference between the fair value and the book value of the assets and subsequently adjusted according to the proportionality of the right of use transferred to the lessor (the latter being the effective value recognized in the result as income or loss). The proportionality calculation is carried out considering the fair value less the difference between the leases payment flow brought to present value and the embedded financing (we consider that there is an embedded financing when the transaction is carried out above the fair value; when the transaction is carried out below the fair value, we consider that there is a prepayment and, therefore, such amount is directly adjusted to the right of use recognized in the asset). Until December 31, 2018 gains or losses arising from the Company’s sale-leaseback transactions classified after the sale of rights as operating leases are accounted as follows: • Immediately in profit or loss when it is clear that the transaction is established at fair value; • If the transaction price is below or above the fair value, any gain or loss is immediately recognized in profit or loss, however if the loss is compensated by future leases payments at below or above market price (the gains or losses are deferred and amortized in proportion to the leases payments during the period that the assets will be used); The amount of deferred losses is recorded as other current or non-current assets, and the amount of deferred gains is recorded as other liabilities. The breakdown between short and long-term is based on the leases terms. 4.11.4. Capitalization of contractual obligations with aircraft return conditions At the start date of the leases agreement the Company records estimates of expenses to meet aircraft return conditions as part of the cost of assets with a corresponding entry to a provision in liabilities. After the initial registration, the asset is depreciated on a straight-line basis over the contractual term and the provision is updated in accordance with the current capital remuneration rates (“WACC”) and the effects are recorded in the statement of positions as “financial expenses”. The provision is reviewed annually. 4.11.5. Capitalization of expenses with major maintenance of engines, aircraft, landing gear and apus (auxiliary power unit) Expenses with major maintenance events, which include replacement of parts and labor, are capitalized only when there is an extension of the estimated useful life of the corresponding asset. Such costs are capitalized and depreciated over the estimated period to be incurred until the next major maintenance. Expenses incurred that do not extend the useful lives of assets are recognized directly in the consolidated statements of operations. |
Intangible Assets | 4.12. Intangible Assets 4.12.1. Finite Useful Life Intangible assets acquired are measured at the cost of their initial recognition. After initial recognition, intangible assets with finite useful lives, usually software, are stated at cost, less the accumulated amortization and impairment losses, when applicable. Intangible assets generated internally, excluding development costs, are not capitalized and the expense is reflected in the income statement for the year in which it was incurred. The useful life of an intangible asset is evaluated as finite or indefinite. Intangible assets with finite lives are amortized over their economic useful lives and are assessed for impairment whenever there is an indication of impairment. The amortization period and method for an intangible asset with a finite life are reviewed at least at the end of each fiscal year. The amortization of intangible assets with finite lives is recognized in the income statement in the expense category consistent with the economic useful life of the intangible asset. 4.12.2. Indefinite Useful Life 4.12.2.1. Goodwill for Expected Future Profitability In this category, the amounts corresponding to the goodwill arising from business combinations carried out by the subsidiaries GLA and Smiles Fidelidade are recorded. The goodwill value is tested annually by comparing the book value with the recoverable value of the cash-generating unit. The Management evaluates and establishes assumptions to assess the impact of macroeconomic and operational changes, to estimate future cash flows and measure the recoverable value of assets. 4.12.2.2. Airport Operation Rights (“Slots”) In the business combination of GLA and Webjet, slots were acquired, recognized at their fair values on the acquisition date and were not amortized. The estimated useful life of these rights was considered indefinite due to several factors and considerations, including requirements and permits to operate in Brazil and the limited availability of use rights at the most important airports in terms of air traffic volume. The book value of these rights is assessed annually, based on the GLA cash-generating unit regarding its recoverable amount or in cases of changes in circumstances that indicate that the book value may not be recoverable. No impairment loss has been recorded to date. |
Loans and Financing | 4.13. Loans and Financing Loans and financing are initially recognized at fair value less any directly attributable transaction costs. After the initial recognition, these financial liabilities are measured at amortized cost using the effective interest method, except for the contracted derivatives linked to Exchangeable Senior Notes, which are measured at fair value through profit or loss. |
Suppliers and Other Obligations | 4.14. Suppliers and other obligations They are initially recognized at fair value and subsequently increased, when applicable, by the corresponding charges and monetary and exchange rate changes incurred up to the closing dates of the financial statements. 4.14.1. Suppliers - forfeiting The Management carried out a negotiation with suppliers with the purpose to extend payment terms. Accordingly, the Company signed an agreement with financial institutions that allows receivables from its suppliers to be anticipated. Considering that the anticipation of this receipt with the financial institutions is an option of the suppliers, as well, the Company is not reimbursed and/or benefited by the financial institution with discounts for payment before the maturity date agreed with the supplier, there is no change in the degree of subordination in case of judicial execution. On December 31, 2019, the balance of suppliers that benefited from the agreement corresponds to R$554,467 (R$365,696 on December 31, 2018), as described in Note 21. |
Advance from Ticket Sales | 4.15. Advance from Ticket Sales Represents the Company’s obligations to provide air transportation services and other ancillary services to its clients, net of breakage revenue already recognized in the income statement, as detailed in Note 4.18.1. |
Provisions | 4.16. Provisions 4.16.1. Provision for aircraft return Aircraft negotiated under an operating leases regularly have contractual obligations establishing conditions for return. In these cases the Company makes provisions for the return costs, since these present obligations, arising from past events and which will generate future disbursements, which are measured with reasonable certainty. These expenses basically refer to expenses related to aircraft reconfiguration (interior and exterior), obtaining licenses and technical certifications, return checks, painting, etc., as established in the agreement. The estimated cost is initially recorded at present value in property, plant, and equipment (see 4.11.4) and the corresponding entry of the provision for aircraft return is recorded in the “Provisions”. After the initial recognition, the liability is updated according to WACC rate estimated by the Company, with a corresponding entry in the financial result. Any changes in the estimate of expenses to be incurred are recorded prospectively. 4.16.2. Provision for engine return They are estimated based on the minimum contractual conditions under which the equipment must be returned to the lessor, observing the historical costs incurred and the conditions of the equipment at the time of the appraisal. These provisions are recorded in the consolidated statements of operations for the year from the moment the contractual requirements are met, and the next maintenance is scheduled for a date later than the date scheduled to return the engine. The Company estimates the provision for the return of the engine according to the expense expected to incurred and when the amount can be reliably estimated. The amount of a provision will be the present value of the expenses that are expected to be required to settle the minimum obligation. The term will be based on the date that the leased engine is expected to be returned, that is, the term of the leases. 4.16.3. Provision for tax and labor risks Provisions are recognized when the Company has a present obligation, contractual or not, as a result of a past event and it is probable that economic benefits will be required to settle the obligation and a reliable estimate of its value can be made. The Company is a party to several legal and administrative proceedings, mainly in Brazil. Assessments of the likelihood of loss in these lawsuits include an analysis of the available evidence, the hierarchy of laws, the available jurisprudence, the most recent court decisions and their relevance in the legal system, as well as the assessment of external lawyers. Provisions are reviewed and adjusted to reflect changes in circumstances, such as the applicable statute of limitations, conclusions of tax inspections or additional exposures identified based on new matters or court decisions. |
Post-Employment Benefit | 4.17. Post-employment benefit As of the year ended December 31, 2019, the Company started to recognize actuarial assets and liabilities related to the health care plan benefits offered to its employees in accordance with IAS 19 - “Benefits to Employees”. Actuarial gains and losses are recognized in other comprehensive income based on the actuarial report prepared by independent experts, while the benefits paid directly by the Company, the cost of current service and the cost of interest are recognized in the result for the year. Management evaluated the impact of not adopting the accounting practices in previous years, and concluded that the effects were immaterial and did not distort the financial information previously disclosed (see note 24.1). |
Recognition of Revenue | 4.18. Recognition of revenue 4.18.1. Revenue from passengers, cargo and ancillary services Passenger revenue is recognized when air transportation is actually provided. Tickets sold but not yet used are recorded in the item of advance from ticket sales, representing deferred revenue from tickets sold to passengers to be transported at a future date, net of the estimated breakage revenue. Breakage revenue calculates, on a historical basis, tickets issued that will expire due to non-use, that is, passengers who have purchased tickets and are very likely not to use them. The calculations are reviewed at least once a year to reflect and capture changes in customer behavior in relation to ticket expiration. From the perspective of the financial statements, the cycle of recognition of revenue in relation to the exchange of miles from the Smiles Program for airline tickets is only completed when passengers are effectively transported. Revenues from cargo shipments are recognized when performance obligations are met. Other revenues that include charter services, on-board sales services, flight rebooking fees, baggage drop-off, and other additional services are recognized along with the primary passenger transportation obligation. 4.18.2. Adoption of hedge accounting to protect future revenues with passengers and ancillary services In the regular course of its operations, the Company has recurring sales in US dollars (US$), mainly as a result of international routes in South, Central, and North America. Accordingly, as of August 1, 2019, Management adopted the cash flow hedge accounting as a hedge for future foreign currency revenues, which are considered highly probable, required in Paragraph 6.3.1 of IFRS 9, using as hedge instruments 50 leases agreements recorded as indebtedness due to the adoption of IFRS 16. With the adoption of hedge accounting, the foreign exchange gains and losses arising from the leases agreements (hedge instrument) will be accumulated in shareholders equity, Adjustments to Equity Valuation, appropriated to the Company's results upon the realization of the income from sales in US$. Hedge accounting derives from the natural hedge of the Companys operations, portrayed by cash flow (revenues and amortization of indebtedness in US$) and does not represent an increase in financial costs, allowing the elimination of some of the exchange rate volatility in the Company's results. The final position of shareholders equity is not affected by the adoption of this accounting practice. The elements of hedge accounting are: (1) hedged object: highly probable sales revenue in US$; (2) hedge instrument: 50 leases agreements linked to US$; (3) designated amount: 60 months of highly probable revenues based on a range of 80 to 85% of historically earned revenues, totaling US$903,102 at the initial adoption; (4) nature of the hedged risk: exchange rate change; (5) specification of the hedged risk: USD/BRL spot exchange rate change; (6) type of hedge: cash flow. On December 31, 2019, the losses accumulated in other comprehensive income totaled R$165,436. 4.18.3. Mileage revenue The Smiles Program has the purpose to build customer loyalty by granting mileage credits to participants. The obligation generated by issuing miles is measured based on the price at which the miles were sold to Smiles’ air and non-air partners, considered as the fair value of the transaction. The revenue is recognized in the result for the year when the miles are redeemed by participants in the Smiles Program and exchanged for awards with their partners. The subsidiary Smiles acts as an agent and fulfills its performance obligation when participants redeem the miles of the Smiles Program and exchange them for awards with its partners. This is the moment when revenue is recognized in the results. Accordingly, the gross revenue is shown net of its respective direct variable costs related to making goods and services available to participants. As a result of its characteristics, the miles program also provides the possibility of recognizing a breakage revenue, which in turn is established based on the calculation of miles that have a high expiration potential to their non-use by the Smiles Program’s participants. The calculation is applied to the miles issued in the period, giving rise to the breakage revenue. It should be noted that future events can significantly change the profile of customers and their historical pattern of redemption of miles. Such changes may lead to significant changes in the balance of deferred revenue, as well as in the recognition of breakage revenue. The policy of the Smiles mileage program provides for the cancellation of all miles in the customers’ accounts after 36 months, with the exception of Gold and Diamond customers, whose mileage expiration period is 48 and 120 months, respectively. The Smiles Club miles are valid for 120 months. The Company reviews the statistical calculation annually. |
Share-Based Payments | 4.19. Share-based payments 4.19.1. Stock options The Company offers stock option plans to its executives. The Company recognizes as an expense, on a straight-line basis, the fair value of the options or shares, calculated on the grant date, during the period of service required by the plan, as a corresponding entry to the shareholders’ equity. The accumulated expense recognized reflects the acquisition period and the Company’s best estimate of the number of shares that will be acquired. The expense or revenue from the movement occurred during the year is recognized in the consolidated statements of operations. The expense is reversed if an acquisition condition is not met. The effect of outstanding options is reflected as an additional dilution in the calculation of diluted earnings per share. The plans have been settled in shares. 4.19.2. Restricted shares The Company can also offer to its executives a plan to transfer restricted shares, taking place at the end of 3 years after the grant date, provided that the beneficiary has held his/her employment relationship during this period. Such transfer occurs preferably through shares held in the treasury. The impact of any revision of the number of restricted shares that will not be acquired in relation to the original estimates, if any, is recognized in the results for the year, in such a way that the accumulated expense reflects the revised estimates with the corresponding adjustment in the shareholders’ equity. The plans have been settled in shares. |
Profit-Sharing for Employees and Members of the Management | 4.20. Profit-Sharing for Employees and Members of the Management The Company’s employees are entitled to profit-sharing based on certain goals agreed annually. For the members of the management, the goals are based on the statutory provisions proposed by the Board of Directors and approved by the shareholders. The profit-sharing is recognized in the income statement for the period in which the goals are achieved. |
Financial Revenues and Expenses | 4.21. Financial Revenues and Expenses Include interest income on amounts invested, exchange rate changes on assets and liabilities, changes in the fair value of financial assets measured at fair value through profit or loss, gains and losses on hedge instruments that are recognized in the result and interest on loans and financing, interest on loans, commissions and bank charges, among others. Interest income and expenses are recognized in the income statement using the effective interest method. |
Earnings (Loss) per Share | 4.22. Earnings (loss) per share Basic earnings per share are calculated by dividing the net income for the year attributed to the Company’s controlling shareholders by the weighted average number of all classes of shares outstanding during the year. Diluted earnings (loss) per share are calculated by adjusting the weighted average number of outstanding shares by instruments potentially convertible into shares, unless these adjustments woud be anti dilutioinal. |
Segments | 4.23. Segments An operating segment is part of the Company that develops business activities to obtain revenues and incur expenses. The operating segments reflect the way in which the Company’s management reviews the financial information to make decisions. The Company’s Management identified the operating segments, which meet the quantitative and qualitative parameters of disclosure and represent the main types of business: air transportation and mileage program. 4.23.1. Air Transportation Segment The operations in this segment originate mainly from the subsidiary GLA, for the provision of air passenger transportation services and the main revenue-generating assets are its aircraft. Other revenues originate mainly from cargo operations and related services such as baggage drop-off, fines for rebooking and cancellation of tickets, etc. 4.23.2. Loyalty Program Segment The operations of this segment are represented by transactions for the sale of miles to air and non-air partners. In this context, it includes the management of the program, the marketing and redemption rights of products and services and the creation and management of a database of individuals and companies. The main cash-generating asset is its portfolio of program participants. |
Transactions in Foreign Currency | 4.24. Transactions in Foreign Currency Foreign currency transactions are recorded at the exchange rate change prevailing on the date on which the transactions take place. Monetary assets and liabilities designated in foreign currency are calculated based on the exchange rate change on the balance sheet date. Any difference resulting from the translation of currencies is recorded under the item “Exchange Rate Change, Net” in the income statement for the year. The exchange rate changes in reais in effect on the base date of these financial statements are as follows: Final Rate Average rate 2019 2018 2019 2018 US Dollar 4.0307 3.8748 4.1102 3.8841 Argentinian Peso 0.0673 0.1028 0.0686 0.1026 |
Main Accounting Estimates and Assumptions Used | 4.25. Main accounting estimates and assumptions used As disclosed in Note 2, the Management made judgments that have a significant effect on the amounts recognized in the financial statements, namely: • ticket and miles breakage revenue (Note 4.18.1 and 4.18.3); • allowance for expected loss on trade receivables accounts (Note 9); • annual analysis of the recoverable amount of taxes to be recovered and deferred tax (Note 12); • advances to suppliers and third parties (Note 13); • analysis of recoverability of maintenance deposits (Note 14); • the useful life of property, plant, and equipment and intangible assets with defined useful life (Notes 16 and 17); • annual analysis of the recoverable amount of goodwill (Note 17); • slot recovery analysis (Note 17); • advance from ticket sales (Note 23); • provisions for post-employment benefits (Note 24); • provision for tax, civil and labor risks (Note 24); • provision for the return of aircraft and engines (Note 24); • share-based compensation transactions (Note 27); • rights and obligations with derivative transactions (Note 33); and • the fair value of financial instruments (Note 33). The Company continuously reviews the assumptions used in its accounting estimates. The effect of revisions to accounting estimates is recognized in the financial statements in the period in which such revisions are made. |
New Accounting Standards and Pronouncements Adopted in the Current Year | 4.26. New accounting standards and pronouncements adopted in the current year 4.26.1. IFRS 16 - “Leases” IFRS 16 establishes the principles for recognizing, measuring, presenting and disclosing leases transactions and requires lessees to recognize all leases in accordance with a single statement of financial position model, similar to the recognition of finance leases pursuant to IFRS 16. The standard includes two recognition exemptions for lessees: leases of “low value” assets, for example, personal computers, and short-term leases, i.e. leases for which the term ends within 12 months or less. At the beginning of a lease, lessees recognize a liability to carry out payments (leases liability) and an asset representing the right to use the leased item for the leases term (right-of-use asset). Lessees should separately recognize interest expenses from the leases liability and depreciation expenses of the right-of-use asset. Lessees shall also reassess the leases liability if certain events occur, such as a change in the term of the leases or a change in future leases payment flows due to a variation in the reference index or rate used to calculate such payments. In general, lessees shall recognize any remeasurement to the leases liability as an adjustment against the right-of-use asset. Among the adoption methods provided for in the standard, the Company chose to adopt the modified retrospective approach. Therefore, in accordance with IFRS 16, we did not restate comparative information and balances. Within the modified retrospective method, the Company chose to adopt the following transition practical expedients and exemptions to the standard’s transition, which are detailed below: · the Company used hindsight, such as in determining the leases term and considering extensions and renegotiations throughout the agreement; and · the Company applied a single discount rate to its portfolio of leases with similar characteristics, considering the remaining term of the agreements and the guarantee provided for by the assets. To calculate the discount rate, the Company used as the main basis those contracted in recent funding operations in the European and North American markets, except for the perpetual bonds and exchangeable senior notes, thus concluding that the built-in inflationary effects are very low, added to the fact that 99.3% of the Company’s leasing obligations are in US$. The Company assessed the impacts arising from the adoption of this standard, considering the above-mentioned assumptions, which led to initially recording 120 aircraft leases agreements and 14 non-aircraft leases agreements as right-of-use. The effects of the initial adoption of this standard are shown in the table below: Assets Liabilities Shareholders’ Equity (c) Operating leases (a) - (219,728) 219,728 Right of use - aircraft agreements 2,892,836 5,540,621 (2,647,785) Right of use - non-aircraft agreements 41,420 49,975 (8,555) Deferred tax - Smiles (b) - - 278 Total 2,934,256 5,370,868 (2,436,334) (a) Refers to operating leases installments renegotiated during 2016. (b) Deferred income tax effects arising from the initial adoption of IFRS 16 recorded in the Smiles subsidiary. (c) Diference between assets and liabilities due to the adoption of the Standard through the simplified retrospective method and USD>BRL translation rate for aircraft and engine agreements (asset by historical exchange rate change and liability by the exchange rate change on the adoption date). As of January 1, 2019, the impacts arising from deferred taxes related to the adoption of IFRS 16 did not reflect the corresponding tax effects in GLA, given that has no history of taxable income and is currently recording tax credit assets limited to the amount of tax credit liabilities, in accordance with item 35 of IAS 12 – “Income Taxes”. As a consequence of the adoption of IFRS 16, the Company made some reclassifications in the statement of financial position as of December 31, 2018, presented for comparison purposes, as shown below: December 31, 2018 As Previously disclosed Reclassification As reclassified Current Short and long-term indebtedness 1,223,324 (120,118) 1,103,206 Leases to pay - 255,917 255,917 Operating leases 135,799 (135,799) - Non-current Short and long-term indebtedness 5,861,143 (520,542) 5,340,601 Leases to pay - 656,228 656,228 Operating leases 135,686 (135,686) - 4.26.2. IFRIC 23 “uncertainty over income tax treatments” In June 2017, the IASB issued IFRIC 23, which clarifies the application of requirements in IAS 12 - “Income Taxes” when there is uncertainty over the acceptance of income tax treatments by the tax authority. The interpretation clarifies that, if it is not probable that the tax authority will accept the income tax treatments, the amounts of tax assets and liabilities shall be adjusted to reflect the best resolution of the uncertainty. IFRIC 23 has been effective since January 1, 2019, and, after assessing the matter the Company’s Management concluded that there are no impacts or need for additional disclosures in this financial statements information due to the adoption of this standard. |
New Accounting Standards and Pronouncements not Yet Adopted | 4.28. New Accounting Standards and Pronouncements not Yet Adopted According to Management, there are no other standards and interpretations issued and not yet adopted that may have a significant impact on the result or equity disclosed by the Company. |
1. Operating context (Tables)
1. Operating context (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Context [abstract] | |
Schedule of ownership structure | The corporate structure of the Company and its subsidiaries, on December 31, 2019, is shown below: Entity Date of Incorporation Location Principal Activity Type of Control % of Interest in the Capital Stock 2019 2018 Offshore subsidiaries: GAC 03/23/2006 Cayman Islands Aircraft acquisition Direct 100.0 100.0 Gol Finance Inc. 03/16/2006 Cayman Islands Fund-raising Direct 100.0 100.0 Gol Finance 06/21/2013 Luxembourg Fund-raising Direct 100.0 100.0 Subsidiaries: GLA 04/09/2007 Brazil Flight transportation Direct 100.0 100.0 AirFim 11/07/2003 Brazil Investment fund Indirect 100.0 100.0 Sul América Gol Max 03/14/2014 Brazil Investment fund Indirect - 100.0 Smiles Fidelidade 08/01/2011 Brazil Loyalty program Direct 52.6 52.7 Smiles Viagens 08/10/2017 Brazil Tourism agency Indirect 52.6 52.7 Smiles Fidelidade Argentina (a) 11/07/2018 Argentina Loyalty program Indirect 52.6 52.7 Smiles Viagens Argentina (a) 11/20/2018 Argentina Tourism agency Indirect 52.6 52.7 Fundo Sorriso 07/14/2014 Brazil Investment fund Indirect 52.6 52.7 Company in shareholding: SCP Trip 04/27/2012 Brazil Flight magazine Indirect 60.0 60.0 Associate: Netpoints (b) 11/08/2013 Brazil Loyalty program Indirect - 25.4 (a) Companies with functional currency in Argentine pesos. (c) On February 1, 2019, the subsidiary Smiles Fidelidade sold its equity interest in the affiliate for the total amount of R$914, recognized in the statement of income under “Other operating income”. |
4. Summary of significant acc_3
4. Summary of significant accounting practices (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of significant accounting practices [absract] | |
Schedule of exchange rate changes in reais | The exchange rate changes in reais in effect on the base date of these financial statements are as follows: Final Rate Average rate 2019 2018 2019 2018 US Dollar 4.0307 3.8748 4.1102 3.8841 Argentinian Peso 0.0673 0.1028 0.0686 0.1026 |
Schedule of flight lease agreements and non-flight lease agreements | The Company assessed the impacts arising from the adoption of this standard, considering the above-mentioned assumptions, which led to initially recording 120 aircraft lease agreements and 14 non-aircraft lease agreements as right-of-use. The effects of the initial adoption of this standard are shown in the table below: Assets Liabilities Shareholders’ Equity (c) Operating Leases (a) - (219,728) 219,728 Right of Use - Aircraft Agreements 2,892,836 5,540,621 (2,647,785) Right of Use - Non-aircraft Agreements 41,420 49,975 (8,555) Deferred Tax - Smiles (b) - - 278 Total 2,934,256 5,370,868 (2,436,334) (a) Refers to operating lease installments renegotiated during 2016. (b) Deferred income tax effects arising from the initial adoption of IFRS 16 recorded in the Smiles subsidiary. (c) Diference between assets and liabilities due to the adoption of the Standard through the simplified retrospective method and USD>BRL translation rate for aircraft and engine agreements (asset by historical exchange rate change and liability by the exchange rate change on the adoption date). |
Schedule of reclassifications presented for comparison | As a consequence of the adoption of IFRS 16, the Company made some reclassifications in the statement of financial position as of December 31, 2018, presented for comparison purposes, as shown below: December 31, 2018 As Previously disclosed Reclassification As reclassified Current Short and long-term indebtedness 1,223,324 (120,118) 1,103,206 Leases to pay - 255,917 255,917 Operating leases 135,799 (135,799) - Non-current Short and long-term indebtedness 5,861,143 (520,542) 5,340,601 Leases to pay - 656,228 656,228 Operating leases 135,686 (135,686) - |
6. Cash and cash equivalents (T
6. Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | 2019 2018 Cash and Bank Deposits 418,447 157,970 Cash Equivalents 1,226,978 668,217 Total 1,645,425 826,187 |
Schedule of breakdown of cash equivalents | The breakdown of cash equivalents is as follows: Weighted Average Rate (p.a.) 2019 2018 Local Currency Private bonds and deposits with banks 90.4% of CDI 514,356 74,819 Government Bonds - - 39 Automatic Deposits 29.4% of CDI 5,505 307,499 Total Local Currency 519,861 382,357 Foreign Currency Deposits with Banks 2.0% 707,117 285,860 Total Foreign Currency 707,117 285,860 Total 1,226,978 668,217 |
7. Short-term investments (Tabl
7. Short-term investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short term investment [absract] | |
Schedule of short-term investments | Weighted Average Rate (p.a.) 2019 2018 Local Currency Government Bonds 104.2% of CDI 56,532 21,100 Investment Funds 100.2% of CDI 862,868 365,249 Total Local Currency 919,400 386,349 Foreign Currency Deposits with Banks 3.0% 1,713 92,015 Government Bonds 1.8% 29,684 - Investment Funds - 2,965 - Total Foreign Currency 34,362 92,015 Total 953,762 478,364 |
8. Restricted cash (Tables)
8. Restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restricted cash [absract] | |
Schedule of restricted cash | Weighted Average Profitability (p.a.) 2019 2018 Local Currency Deposits in Guarantee of Letter of Credit 97.6% of CDI 138,164 100,394 Escrow Deposits 96.2% of CDI 85,351 72,089 Escrow Deposits - Leases 98.5% of CDI 136,438 102,880 Other deposits 66.4% of CDI 9,922 113,465 Total Local Currency 369,875 388,828 Foreign Currency Escrow Deposits for Hedge Margin 1.6% 74,431 433,304 Total Foreign Currency 74,431 433,304 Total 444,306 822,132 Current 304,920 133,391 Non-current 139,386 688,741 |
9. Trade receivables (Tables)
9. Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade receivable [absract] | |
Schedule of trade receivables | 2019 2018 Local Currency Credit Card Administrators 740,967 393,557 Travel Agencies 253,494 226,627 Cargo Agencies 33,677 40,431 Airline Partner Companies 291 3,243 Other 15,690 52,216 Total Local Currency 1,044,119 716,074 Foreign Currency Credit Card Administrators 121,844 97,488 Travel Agencies 36,845 21,005 Cargo Agencies 1,384 1,378 Airline Partner Companies 30,740 23,294 Other 11,550 5,373 Total Foreign Currency 202,363 148,538 Total 1,246,482 864,612 Allowance for expected loss on trade receivables accounts (16,952) (11,284) Total Trade Receivables 1,229,530 853,328 |
Schedule of aging list of trade receivables | The aging list of trade receivables, net of allowance for expected loss on trade receivables accounts, is as follows: 2019 2018 Not Yet Due Until 30 days 567,567 527,878 31 to 60 days 213,334 101,226 61 to 90 days 100,478 49,696 91 to 180 days 187,883 83,128 181 to 360 days 76,902 36,801 Above 360 days 1,499 268 Total not Yet Due 1,147,663 798,997 Overdue Until 30 days 47,959 13,167 31 to 60 days 23,290 4,726 61 to 90 days 3,986 2,672 91 to 180 days 3,009 11,173 181 to 360 days 421 9,863 Above 360 days 3,202 12,730 Total Overdue 81,867 54,331 Total 1,229,530 853,328 |
Schedule of changes in allowance for doubtful accounts | The changes in an expected loss on trade receivables are as follows: 2019 2018 Balance at the beginning of the year - (38,681) Initial adoption adjustment – IFRS 9 - 2,593 Adjusted balance at the beginning of the year (11,284) (36,088) Exclusions and reversals (13,499) 9,789 Write-off 7,831 15,015 Balances at the end of the year (16,952) (11,284) |
10. Inventories (Tables)
10. Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [absract] | |
Schedule of inventories | 10. Inventories 2019 2018 Consumables 14,274 14,848 Parts and maintenance materials 184,939 165,293 Total 199,213 180,141 |
Schedule of changes in the provision for obsolescence | The changes in the provision for obsolescence are as follows: 2019 2018 Balances at the Beginning of the Period (12,808) (12,509) Additions (2,168) (5,023) Write-offs 674 4,724 Balances at the End of the Period (14,302) (12,808) |
11. Recoverable taxes (Tables)
11. Recoverable taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes [abstract] | |
Schedule of recoverable taxes | 2019 2018 IRPJ and CSLL prepayments 195,864 268,428 Withholding income tax 3,969 4,744 PIS and COFINS to recover (*) 273,152 163,921 Value added tax (VAT) abroad 4,650 5,649 Other 6,181 13,927 Total 483,816 456,669 Current 309,674 360,796 Non-current 174,142 95,873 (*) During the year, the subsidiaries Smiles Fidelidade and GLA accounted for PIS and COFINS untimely tax credits related to the last 5 years, totaling R$49,518 and R$91,066, respectively. The amounts of R$17,300 related to credits in 2019 and R$99,605 related to credits recorded in 2018 were realized against tax obligations until the reporting date of these financial statements. |
12. Deferred taxes (Tables)
12. Deferred taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Taxes [abstract] | |
Schedule of deferred tax assets (liabilities) - noncurrent | The positions of deferred assets and liabilities are presented below and comply with the enforceable offset legal rights that consider taxes levied by the same tax authority under the same tax entity. 2018 Statement of operations Accumulated profits Exchange Rate change Reclassification 2019 Company and controlled subsidiary Smiles Income Tax losses carry forward 16,983 25,868 - (56) - 42,795 Negative basis of social contribution 6,114 8,246 - - - 14,360 Temporary differences Allowance for expenses loss on trade receivables and other credits 196 1,762 - - - 1,958 Provision for legal proceedings and tax liabilities 916 (220) - - - 696 Unrealized intercompany profits 49,613 - - - (49,613) - Total deferred taxes - assets 73,822 35,656 - (56) (49,613) 59,809 Controlled subsidiary GLA and Smiles Income tax losses carry forward 58,384 (58,384) - - - - Negative basis of social contribution 21,018 (21,018) - - - - Temporary differences Allowance for expenses loss on trade receivables and other credits 72,649 (15,911) - - - 56,738 Breakage provision (172,869) (23,337) - - - (196,206) Provision for losses on other credits 143,350 - - - - 143,350 Provision for legal proceedings and tax liabilities 93,221 (2,170) - - - 91,051 Provisions for aircrafts redelivery 62,642 83,597 - - - 146,239 Derivative transactions 5,335 (47,489) - - - (42,154) Slots (353,226) - - - - (353,226) Depreciation of engines and parts for aircraft maintenance (174,129) (9,848) - - - (183,977) Goodwill (127,659) - - - - (127,659) Aircraft leases and other 30,956 33,145 278 - - 64,379 Other 113,038 (23,725) - - - 89,313 Unrealized profits - 18,498 - - 49,613 68,111 Total deferred taxes – liabilities (227,290) (66,642) 278 - 49,613 (244,041) Total effect deferred taxes - income - (30,986 ) - - - - |
Schedule of tax losses and negative social contribution | The Company and its subsidiaries GLA and Smiles (Fidelidade Argentina) have carry forward tax net operating losses and negative social contribution basis, which can be offset against 30% of future annual tax profits in future, with no time limit for prescription, in the following amounts: GOL GLA Smiles Fidelidade Argentina 2019 2018 2019 2018 2019 Accumulated income tax losses 159,559 170,418 5,017,227 5,631,209 8,343 Negative basis of social contribution 159,559 170,418 5,017,227 5,631,209 - Deferred tax assets 54,250 57,942 1,705,857 1,914,611 2,905 |
Schedule of estimates that deferred tax credits | Management estimates that deferred tax credits, recorded on tax losses and negative social contribution basis, will be realized as follows: Year Amount 2020 4,768 2021 8,375 2022 7,473 2023 8,332 2024 9,471 2025 to 2029 15,831 Total 54,250 |
Schedule of reconciliation of income taxes expense | The reconciliation of effective income taxes and social contribution rates for the fiscal year ended on December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 Income (loss) before income taxes 388,945 (482,596) 70,604 Combined tax rate 34% 34% 34% Income at the statutory tax rate (132,241) 164,083 (24,005) Adjustments to calculate the effective tax rate: Equity method investees 26 132 185 Tax rate difference on results of offshore subsidiaries (207,565) 201,043 (106,533) Non-deductible expenses, net (61,219) 161,815 (65,718) Exchange rate change on foreign investments (101,329) (173,964) (20,225) Interest on shareholders’ equity 8,212 6,998 4,817 Extemporaneous tax credit 31,942 - Deferred tax assets (liabilities) net recognized 252,567 (653,343) 291,002 Use of tax credits in non-recurring installment Payments - (3,892) 227,690 Total income tax (209,607) (297,128) 307,213 Income taxes Current (178,621) (52,139) (239,846) Deferred (30,986) (244,989) 547,059 Total income (loss) taxes (209,607) (297,128) 307,213 |
13. Advance to suppliers and _2
13. Advance to suppliers and third parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Advance to Suppliers and Third Parties [abstract] | |
Schedule of advance to suppliers and third parties | 2019 2018 Oceanair Advance 192,715 - Advance to National Suppliers 95,596 17,373 Advance to International Suppliers 25,316 5,648 Advance for Materials and Repairs 48,930 32,111 Total 362,557 55,132 Adjustment to Present Value of Advance to Suppliers (10,604) - Provision for Loss of Advance to Oceanair (161,228) - Total Advance to Suppliers 190,725 55,132 Current 142,338 55,132 Non-current 48,387 - |
14. Deposits (Tables)
14. Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits from customers [abstract] | |
Schedule of deposits | 2019 2018 Judicial Deposits 841,746 726,491 Maintenance Deposits 830,282 647,057 Deposits in Guarantee for Leases Agreements 296,327 238,747 Total 1,968,355 1,612,295 |
15. Investments (Tables)
15. Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DisclosureOfSeasonalityTextBlock | |
Schedule of investees and the changes in the investments balance | The investment information is shown below: Trip Relevant investment information on December 31, 2019 Capital stock 1,318 Interest 60.00% Total equity 2,103 Adjusted equity (a) 1,254 Net income for the year 129 Net income for the year attributable to the company’s interest 77 Trip Net Points Relevant investment information on December 31, 2018 Total number of shares - 130,492,408 Capital stock 1,318 75,351 Interest 60.0% 25.4% Total equity 1,962 (20,758) Adjusted equity (a) 1,177 - Net Income for the year 644 (3,613) Net Income for the year attributable to the company’s interest 387 - (a) Adjusted shareholders' equity corresponds to the percentage of total shareholders' equity net of unrealized profits. |
Schedule of disposal of equity interest | 15.2. Changes in Investments Trip Balances on December 31, 2018 1,177 Equity Method Results 77 Balances on December 31, 2019 1,254 Trip Changes in Investments Balances on December 31, 2017 1,333 Equity Method Results 387 Dividends and Interest on Shareholders’ Equity (543) Balances on December 31, 2018 1,177 |
16. Property, plant and equip_2
16. Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of composition of property, plant and equipment | Weighted average rate (p.a.) 2018 Adoption IFRS 16 (3) Additions Disposals (6) Transfers (5) 2019 Flight equipment Cost Aircraft - ROU (1) 673,675 - - (13,419) - 660,256 Aircraft - ROU with no purchase option - 2,821,509 914,532 (161,811) (12,250) 3,561,980 Spare parts and engines 1,583,865 - 191,219 (8,579) (2,210) 1,764,295 Spare parts and engines - ROU - 71,327 39,569 (919) - 109,977 Aircraft and engine overhauling 2,443,747 - 887,177 (246,901) - 3,084,023 Tools 44,121 - 7,599 (553) 2,287 53,454 4,745,408 2,892,836 2,040,096 (432,182) (12,173) 9,233,985 Depreciation Aircraft - ROU with purchase option 5.76% (222,240) - (17,612) 13,419 - (226,433) Aircraft - ROU with no purchase option 24.90% - - (760,482) 41,105 - (719,377) Spare parts and engines 7.15% (590,239) - (120,173) 3,638 393 (706,381) Spare parts and engines - ROU 33.29% - - (26,745) - - (26,745) Aircraft and engine overhauling 40.19% (1,275,298) - (677,092) 234,838 - (1,717,552) Tools 10.00% (21,153) - (3,566) 338 (331) (24,712) (2,108,930) - (1,605,670) 293,338 62 (3,421,200) Total, net - flight equipment 2,636,478 2,892,836 434,426 (138,844) (12,111) 5,812,785 Property, plant and equipment in use Cost Vehicles 11,513 - 1,428 (1,260) - 11,681 Machinery and equipment 59,404 - 4,073 (386) - 63,091 Furniture and fixtures 30,698 - 2,601 (316) - 32,983 Computers and peripherals 40,813 - 6,510 (1,591) - 45,732 Computers and peripherals - ROU - 20,619 1,373 - - 21,992 Communication equipment 2,692 - 70 (214) - 2,548 Safety equipment 856 - - - - 856 Leasehold improvements - CMA (4) 107,637 - - - - 107,637 Leasehold improvements 60,115 - 973 - 10,086 71,174 Third-party real Estate - ROU - 20,801 1,553 - - 22,354 Construction in progress 15,443 - 12,549 - (10,086) 17,906 329,171 41,420 31,130 (3,767) - 397,954 Depreciation Vehicles 20.00% (9,609) - (649) 967 - (9,291) Machinery and equipment 10.00% (41,619) - (4,131) 313 - (45,437) Furniture and fixtures 10.00% (18,188) - (2,016) 296 - (19,908) Computers and peripherals 20.00% (31,314) - (3,424) 1,548 - (33,190) Computers and peripherals - ROU 36.59% - - (7,682) - - (7,682) Communication equipment 10.00% (2,089) - (154) 162 - (2,081) Safety equipment 10.00% (533) - (82) - - (615) Leasehold improvements – CMA (4) 10.43% (91,395) - (11,280) - - (102,675) Leasehold improvements 22.09% (29,354) - (9,685) - - (39,039) Third party real estate - ROU 32.18% - - (7,156) - - (7,156) (224,101) - (46,259) 3,286 - (267,074) Total, net - property, plant and equipment in use 105,070 41,420 (15,129) (481) - 130,880 Impairment losses (2) - (48,839) - - 7,120 - (41,719) Total 2,692,709 2,934,256 419,297 (132,205) (12,111) 5,901,946 Advances for property, plant and equipment - 125,348 - 79,343 (48,536) - 156,155 Total property, plant and equipment 2,818,057 2,934,256 498,640 (180,741) (12,111) 6,058,101 Weighted average rate (p.a.) 2017 Additions Disposals (6) Transfers (5) 2018 Flight equipment Cost Aircraft - ROU (1) 2,000,866 - (1,327,191) - 673,675 Spare parts and engines 1,345,161 242,655 (3,951) - 1,583,865 Aircraft and engine overhauling 1,807,133 759,483 (122,869) - 2,443,747 Tools 36,199 8,078 (156) - 44,121 5,189,359 1,010,216 (1,454,167) - 4,745,408 Depreciation Aircraft - ROU with purchase option 5.76% (649,430) (44,578) 471,768 - (222,240) Spare parts and engines 6.91% (494,684) (128,169) 32,610 4 (590,239) Aircraft and engine overhauling 30.47% (941,372) (441,771) 107,845 - (1,275,298) Tools 10.00% (18,125) (3,107) 83 (4) (21,153) (2,103,611) (617,625) 612,306 - (2,108,930) Total, net - flight equipment 3,085,748 392,591 (841,861) - 2,636,478 Property, plant and equipment in use Cost Vehicles 10,548 1,177 (212) - 11,513 Machinery and equipment 57,834 1,958 (388) - 59,404 Furniture and fixtures 28,148 2,963 (413) - 30,698 Computers and peripherals 39,458 4,406 (3,051) - 40,813 Communication equipment 2,617 86 (11) - 2,692 Safety equipment 843 13 - - 856 Leasehold improvements – CMA (4) 107,127 436 - 74 107,637 Leasehold improvements 34,645 654 - 24,816 60,115 Third-party real estate - ROU 33,503 6,830 - (24,890) 15,443 314,723 18,523 (4,075) - 329,171 Depreciation Vehicles 20.00% (9,100) (612) 103 - (9,609) Machinery and equipment 10.00% (37,792) (4,189) 362 - (41,619) Furniture and fixtures 10.00% (16,639) (1,918) 369 - (18,188) Computers and peripherals 20.00% (30,464) (3,870) 3.020 - (31,314) Communication equipment 10.00% (1,915) (181) 7 - (2,089) Safety equipment 10.00% (437) (96) - - (533) Leasehold improvements – CMA (4) 10.43% (80,209) (11,186) - - (91,395) Leasehold improvements 19.06% (20,792) (8,562) - - (29,354) (197,348) (30,614) 3,861 - (224,101) Total, net - property, plant and equipment in use 117,374 (12,090) (214) - 105,070 Impairment losses (2) - (26,076) (22,763) - - (48,839) Total 3,177,046 357,738 (842,075) - 2,692,709 Advances for property, plant and equipment - 18,720 277,419 (166,762) (4,029) 125,348 Total property, plant and equipment 3,195,766 635,157 (1,008,837) (4,029) 2,818,057 (1) ROU - right of use (2) Refers to provisions for impairment losses for rotable items, classified under “Spare Parts and Engines”, recorded by the Company in order to present its assets according to the actual capacity for the generation of economic benefits. (3) Effect related to IFRS 16 adoption, as disclosed in Note 4.26.1. (4) CMA - Maintenance Center - Confins/MG (5) Transfer from other GAC credits. (6) The amounts are composed of sales and write-offs. |
17. Intangible assets (Tables)
17. Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets [absract] | |
Schedule of breakdown of and changes in intangible assets | The breakdown of and changes in intangible assets are as follows: Weighted Average Rate (p.a.) 2018 Additions Write-offs 2019 Cost Goodwill - 542,302 - - 542,302 Slots - 1,038,900 - - 1,038,900 Software - 528,426 75,845 (24,901) 579,370 Other - 10,000 - - 10,000 Total Cost 2,119,628 75,845 (24,901) 2,170,572 Amortization Software 23.93% (339,995) (74,053) 24,318 (389,730) Other 20.00% (2,167) (2,000) - (4,167) Total Amortization (342,162) (76,053) 24,318 (393,897) Net Intangible Assets 1,777,466 (208) (583) 1,776,675 Weighted Average Rate (p.a.) 2017 Additions Write-offs 2018 Cost Goodwill - 542,302 - - 542,302 Slots - 1,038,900 - - 1,038,900 Software - 456,282 82,079 (9,935) 528,426 Other - 10,000 - - 10,000 Total Cost 2,047,484 82,079 (9,935) 2,119,628 Amortization Software 22.09% (300,032) (49,898) 9,935 (339,995) Other 20.00% (167) (2,000) - (2,167) Total Amortization (300,199) (51,898) 9,935 (342,162) Net Intangible Assets 1,747,285 30,181 - 1,777,466 |
Schedule of allocation of goodwill | The Company allocates goodwill to two cash-generating units: GLA and Smiles, and airport operating rights are fully allocated to GLA’s cash-generating unit, as shown below: Goodwill GLA Goodwill Smiles Airport operation rights December 31,2019 Intangible assets – book values 325,381 216,921 1,038,900 Intangible assets - book value - UGC 3,615,949 161,669 3.615,949 Intangible assets - value in use 26,543,428 6,061,994 21,373,789 Intangible assets - discount rate 12.20% 12.07% 12.85% Intangible assets - perpetuity growth rate 3.55% 3.55% 3.53% December 31,2018 Intangible assets – book values 325,381 216,921 1,038,900 Intangible assets - book value - UGC (275,500) 602,740 1,038,900 Intangible assets - value in use 23,058,697 7,005,622 15,158,551 Intangible assets - discount rate 14.91% 16.95% 13.94% Intangible assets - perpetuity growth rate 3.50% 3.50% 3.50% |
18. Loans and financing (Tables
18. Loans and financing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans And Financing [abstract] | |
Schedule of breakdown of and changes in short and long-term debt | The breakdown of and changes in short and long-term indebtedness are as follows: 2018 2019 Maturity Interest rate p.a. Current Non-current Total Funding Unrealized gain and loss from ESN (*) Payments Interest accrued Interest Paid Exchange rate variation Cost amortization Current Non-current Total In R$: Debentures VII (a) 09/2021 120% of DI rate 288,991 577,981 866,972 - - (295,834) 52,596 (52,475) - 7,466 289,423 289,302 578,725 In US$: Term loan (b) 08/2020 6.70% 25,255 1,147,196 1,172,451 - - - 76,927 (76,612) 47,688 9,146 1,229,600 - 1,229,600 Import financing (c) 11/2020 5.32% 503,869 - 503,869 164,234 - (27,399) 33,666 (33,743) 23,352 - 663,979 - 663,979 Senior bonus IV (d) 01/2022 9.24% 13,640 352,205 365,845 - - (50,320) 27,762 (28,013) 9,050 1,045 12,102 313,267 325,369 ESN (*) (e) 07/2024 3.75% - - - 1,638,011 (40,717) - 93,826 (14,748) 104,231 2,366 29,443 1,753,526 1,782,969 Credit line - engine Maintenance (f) 09/2024 2.75% 173,422 189,888 363,310 500,199 - (403,039) 14,160 (15,570) 7,578 9,204 198,363 277,479 475,842 Senior bonus VIII (g) 01/2025 7.09% 72,658 2,439,492 2,512,150 - - - 177,539 (166,894) 92,708 8,556 75,587 2,548,472 2,624,059 Loan with guarantee of engines (h) 12/2026 5.16% 13,051 120,557 133,608 56,452 - (16,945) 11,398 (11,394) 9,285 144 31,727 150,821 182,548 Perpetual notes (i) - 8.75% 12,320 513,282 525,602 - - - 45,880 (44,557) 19,825 - 12,815 533,935 546.750 Total 1,103,206 5,340,601 6,443,807 2,358,896 (40,717) (793,537) 533,754 (444,006) 313,717 37,927 2,543,039 5,866,802 8,409,841 (a) Issuance of 88,750 debentures by the subsidiary GLA on October 22, 2018, for the purpose of early full settlement of Debentures VII. (c) Credit lines with private banks used to finance the import of spare parts and aeronautical equipment. Maturities will occur throughout 2019. The interest rates negotiated are Libor 3m + 4.40% p.a. and Libor 1m + 3.25% p.a. (d) Issuance of Senior Bonus IV by the subsidiary Gol Finance on September 24, 2014, with the purpose to fund the partial repurchase of Senior Bonuses I and II. (e) Issuance of Exchangeable Senior Notes ("ESN") by the subsidiary Gol Finance in March, April and July 2019, totaling US$425 million, maturing in 2024, which will bear a nominal interest of 3.75% per annum. (f) Issuance of 3 series of Guaranteed Notes to finance engine maintenance. (g) Issuance of Senior Bonds VII by the subsidiary Gol Finance on July 7, 2016, resulting from the private exchange offer of Senior Bonds I, II, III, IV and Perpetual Bonds. In the year ended on December 31, 2018, the financing was settled in advance (further details were disclosed in the financial statement for the year ended on December 31, 2018). (h) Loans with a guarantee of 5 engines in total, made on June 28, 2018. The contracted rates vary between Libor 6m + 2.35% p.a. up to Libor 6m + 4.25% p.a. (i) Issuance of Perpetual Bonds by the subsidiary Gol Finance on April 5, 2006 to finance the acquisition of aircraft. |
Schedule of funding | Funding under this operation for the fiscal year ended on December 31, 2019 is as follows: Amount in US$ thousand Date Nominal issue Premium Cost assigned to the indebtedness component Cost assigned to the derivative component Capped call Net funding 03/26/2019 300,000 - (12,179) (6,533) (26,190) 255,098 04/17/2019 45,000 - (3,862) (1,463) (3,929) 35,746 07/17/2019 80,000 16,000 (2,123) (2,247) (9,680) 81,950 425,000 16,000 (18,164) (10,243) (39,799) 372,794 Amount in R$ Date Nominal issue Premium Cost assigned to the indebtedness component Cost assigned to the derivative component Capped call Net funding 03/26/2016 1,169,010 - (47,067) (25,248) (101,214) 995,481 04/17/2019 177,539 - (14,870) (5,760) (15,499) 141,410 07/17/2019 301,192 60,194 (7,987) (8,453) (36,444) 308,502 1,647,741 60,194 (69,924) (39,461) (153,157) 1,445,393 |
Schedule of import financing | The funding operations are as follows: Transaction Principal amount Interest date (US$) (R$) rate (p.a.) New Issuances 01/24/2019 6,454 24,409 6.57% 02/04/2019 5,924 21,777 6.52% 02/21/2019 7,069 26,576 6.46% 04/18/2019 7,045 27,737 4.98% 07/05/2019 4,334 16,560 5.93% 08/20/2019 3,396 13,729 4.37% 11/19/2019 7,172 30,466 4.46% 12/18/2019 735 2,980 5.74% 42,129 164,234 |
Schedule of new credit lines obtained | The funding operations are as follows: Transaction Principal amount Costs Interest date (US$) (R$) (US$) (R$) rate (p.a.) 02/15/2019 10,219 37,969 319 1,185 Libor 3m+0.75% p.a. 05/10/2019 10,219 40,444 289 1,143 Libor 3m+0.70% p.a. 08/30/2019 25,722 106,659 922 3,818 Libor 3m+0.60% p.a. 10/07/2019 54,784 226,724 340 1,408 Libor 3m+2.25% p.a. 12/06/2019 24,525 98,852 718 2,895 Libor 3m+0.55% p.a. 125,469 510,648 2,588 10,449 |
Schedule of funding with a guarantee obtained | In the fiscal year ended on December 31, 2019, the Company, through its subsidiary GLA, obtained funding with a guarantee of the Company’s own engines. The funding operations are as follows: Transaction Principal Amount Costs Interest Date (US$) (R$) (US$) Date (US$) 01/22/2019 11,700 43,129 154 580 Libor 3m+0.75% p.a. 04/24/2019 1,161 4,603 - - Libor 1m+3.25% p.a. 06/13/2019 1,161 4,463 - - Libor 1m+3.25% p.a. 09/30/2019 1,161 4,837 - - Libor 1m+3.25% p.a. 15,183 57,032 154 580 |
Schedule of long term loan and financing | On December 31, 2019, the maturities of loans and financing recorded in non-current liabilities are as follows: 2021 2022 2023 2024 2024 onwards Without maturity date Total In R$: Debentures VII 289,302 - - - - - 289,302 In US$: Credit line - engine maintenance 95,574 17,747 17,747 146,411 - - 277,479 Senior notes IV - 313,267 - - - - 313,267 ESN - - - 1,753,526 - - 1,753,526 Senior notes VIII - - - - 2,548,472 - 2,548,472 Loan with guarantee of engines 18,377 19,052 19,769 20,522 73,101 - 150,821 Perpetual notes - - - - - 533,935 533,935 Total 403,253 350,066 37,516 1,920,459 2,621,573 533,935 5,866,802 |
Schedule of fair value of debt | The fair value of indebtedness as of December 31, 2019 is as follows: Book value Fair Value Senior Notes and Perpetual Notes 3,496,178 3,746,016 Term Loan 1,229,600 1,235,697 ESN 1,782,969 2,021,414 Debentures 578,725 591.666 Other 1,322,369 1,322,369 Total 8,409,841 8,917,162 |
19. Leases (Tables)
19. Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [abstract] | |
Schedule of leases | 2018 2019 Weighted average rate (p.a.) Current Non-current Total IFRS adoption 16 (1) Additions Write-offs Contractual amendment Payments Payment (escrow deposit) Payment (maintenance reserve) Interest accrued Interest payment Exchange rate variation Current non-current Total In R$: Leases without purchase option 12.92% - - - 49,975 2,925 - - (18,085) - - 9,992 - - 21,781 23,026 44,807 Total - - - 49,975 2,925 - - (18,085) - - 9,992 - - 21,781 23,026 44,807 In US$: Leases with purchase option 3.75% 120,118 520,542 640,660 - - 137 - (113,362) - - 22,931 (23,304) 21,768 128,936 419,894 548,830 Leases Without purchase Option 8.55% - - - 5,540,621 954,101 (7,676) (275,921) (1,437,957) (476) (6,498) 469,621 - 223,328 1,253,995 4,205,148 5,459,143 Operation leases - 135,799 135,686 271,485 (219,728) - - - (48,273) - - - - (3,484) - - - Total 255,917 656,228 912,145 5,320,893 954,101 (7,539) (275,921) (1,599,592) (476) (6,498) 492,552 (23,304) 241,612 1,382,931 4,625,042 6,007,973 Total leases 255,917 656,228 912,145 5,370,868 957,026 (7,539) (275,921) (1,617,677) (476) (6,498) 502,544 (23,304) 241,612 1,404,712 4,648,068 6,052,780 (1) Effects related to the adoption of IFRS 16 “Leases” as disclosed in Note 4.26.1. |
Schedule of future payments of financial lease agreements | The future payments of leases liabilities agreements are detailed as follows: Without Purchase Option With Purchase option 2019 2019 2018 2019 - - 140,307 2020 1,691,357 148,613 140,080 2021 1,324,403 148,744 139,852 2022 1,125,060 207,654 139,624 2023 904,627 72,801 69,985 2024 Thereafter 1,938,987 16,830 65,776 Total Minimum Leases Payments 6,984,434 594,642 695,624 Less Total Interest (1,480,484) (45,812) (54,964) Present Value of Minimum Leases Payments 5,503,950 548,830 640,660 Less Current Portion (1,275,776) (128,936) (120,118) Non-current Portion 4,228,174 419,894 520,542 |
20. Suppliers (Tables)
20. Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Suppliers Abstract | |
Schedule of suppliers | 2019 2018 Local Currency 833,781 826,641 Foreign Currency 462,636 697,311 Total 1,296,417 1,523,952 Current 1,286,275 1,403,815 Non-current 10,142 120,137 |
22. Taxes payable (Tables)
22. Taxes payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes payable [absract] | |
Schedule of taxes payable | 2019 2018 PIS and COFINS 39,133 43,237 Installment Payments - PRT and PERT 2,117 23,858 Withholding Income Tax on Salaries 54,649 34,883 ICMS 424 46,952 IRPJ and CSLL Payable 9,496 8,991 Other 10,788 8,440 Total 116,607 166,361 Current 116,523 111,702 Non-current 84 54,659 |
24. Provisions (Tables)
24. Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Provisions [abstract] | |
Schedule of provisions | Post-employment benefit Aircraft and engine return (a) Legal proceedings (b) Total Balances on December 31, 2018 - 652,134 247,460 899,594 Post-employment benefit at beginning of the year 46,496 - - 46,496 Additional provisions recognized 45,952 357,206 195,465 598,623 Provisions used - (166,287) (151,304) (317,591) Adjustment to present value 4,312 - - 4,312 Foreign exchange rate variation, net - 26,025 (403) 25,622 Balances on December 31, 2019 96,760 869,078 291,218 1,257,056 As of December 31, 2019 Current - 203,816 - 203,816 Non-current 96,760 665,262 291,218 1,053,240 Total 96,760 869,078 291,218 1,257,056 As of December 31, 2018 Current - 70,396 - 70,396 Non-current - 581,738 247,460 829,198 Total - 652,134 247,460 899,594 (a) The additional provisions recognized for the return of aircraft and engines also include the effects of adjustment to present value. (b) The provisions consider write-offs due to the revaluation of the estimate and settled proceedings. |
Schedule of changes in actuarial assets and liabilities related to the post-employment benefit | The changes in actuarial assets and liabilities related to the post-employment benefit, prepared based on an actuarial report (see note 4.17), are presented below: 2019 Actuarial liabilities at beginning of the year 46.496 Current service cost recognized in income 4.910 Cost of interests recognized in income 4.311 Sponsor contributions (2) Effect of changing financial assumptions (discount rate reduction) 34.305 Effect of plan experience 6.740 Actuarial liabilities at the end of the year 96,760 Actuarial assumptions Weighted average of assumptions to determine the defined benefit obligation Nominal discount rate 7.23% Long-term estimated inflation rate 3.50% HCCTR - medical inflation rate 6.86% Mortality table AT-2000 with improvement of 10% Weighted average of assumptions to determine the cost (revenue) of the defined benefit Nominal discount rate 9.93% Long-term estimated inflation rate 4.00% HCCTR - medical inflation rate 7.38% Mortality table AT-2000 with improvement of 10% |
Schedule of provisions related to civil and labor suits | The Company’s Management believes that the provision for tax, civil and labor risks, created in accordance with CVM Resolution 594/09, is sufficient to cover possible losses from administrative and legal proceedings, as shown below: Probable loss Possible loss 2019 2018 2019 2018 Civil 78,119 64,005 62,473 61,942 Labor 210,699 181,556 237,253 183,506 Taxes 2,400 1,899 586,812 548,136 Total 291,218 247,460 886,538 793,584 |
25. Shareholders' equity (Table
25. Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity (deficit) | |
Schedule of shares | The shareholding structure is as follows: 2019 2018 Common Preferred Total Common Preferred Total Fundo Volluto 100.00% - 23.00% 100.00% - 23.42% Mobi FIA - 37.59% 28.94% 48.85% 37.41% Delta Air Lines, Inc. - - - - 12.29% 9.41% AirFrance - KLM - 1.55% 1.19% - 1.58% 1.21% Other - 2.23% 1.73% - 1.03% 0.79% Free Float - 58.63% 45.14% - 36.25% 27.76% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% |
26. Earnings (loss) per share (
26. Earnings (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings (loss) per share [absract] | |
Schedule of earnings (loss) per share | However, due to the losses ascertained in the year ended on December 31, 2019, these instruments issued by company have no dilutive effect and therefore were not included in the total quantity of outstanding shares to calculate diluted losses per share. 2019 2018 2017 Common Preferred Total Common Preferred Total Common Preferred Total Numerator Net income (loss) for the year Attributable to equity holders of the parent (27,269) (90,004) (117,273) (254,828) (830,565) (1,085,393) 7,708 11,084 18,792 Denominator Weighted average number of outstanding shares (in thousands) 2,863,683 270,053 2,863,683 266,676 4,891,350 204,664 Effect of dilution from stock options - - - - - 2,614 Adjusted weighted average number of outstanding shares and diluted presumed conversions (in thousands) 2,863,683 270,053 2,863,683 266,676 4,891,350 207,278 Basic loss per share in Brazilian RS (0.010) (0.333) (0.089) (3.115) 0.002 0.054 Diluted loss per share (0.010) (0.333) (0.089) (3.115) 0.002 0.053 |
27. Share-based payments (Table
27. Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock Option Plan [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of stock options plan | As of December 31, 2019 the position of granted options is as set forth below: Grant Year Grant date Total options granted Number of options outstanding Exercise price of the option (in reais) Fair Value at grant date (in reais) Estimated volatility of share price Expected dividend yield Risk-free return rate Average remaining maturity (in years) (a) 2010 02/02/2010 2,774,640 245,007 20.65 16.81 77.95% 2.73% 8.65% 0.1 2011 12/20/2010 2,722,444 484,009 27.83 16.07 (b) 44.55% 0.47% 10.25% 0.8 2012 10/19/2012 778,912 205,716 12.81 5.32 (c) 52.25% 2.26% 9.00% 2.7 2013 05/13/2013 802,296 220,413 12.76 6.54 (d) 46.91% 2.00% 7.50% 3.3 2014 08/12/2014 653,130 197,661 11.31 7.98 (e) 52.66% 3.27% 11.00% 4.5 2015 08/11/2015 1,930,844 601,793 9.35 3.37 (f) 55.57% 5.06% 13.25% 5.5 2016 06/30/2016 5,742,732 3,172,111 2.62 1.24 (g) 98.20% 6.59% 14.25% 6.4 2017 08/08/2017 947,767 548,604 8.44 7.91 (h) 80.62% 1.17% 11.25% 7.6 2018 05/24/2018 718,764 478,935 20.18 12.68 (i) 55.58% 0.60% 6.50% 8.4 2019 12/11/2019 1,749,223 1,506,606 25.40 12.10 (j) 61.98% 3.17% 9.00% 9.3 Total 12/31/2019 18,820,752 7,660,855 (a) In April 2010, a complementary grant of 101,894 shares was approved, referring to the 2010 plan. (b) Fair value calculated by the average of R$16.92, R$16.11 and R$15.17 for the respective vesting periods (2011, 2012 and 2013). (c) Fair value calculated by the average of R$6.04, R$5.35 and R$4.56 for the respective vesting periods (2012, 2013 and 2014). (d) Fair value calculated by the average of R$7.34, R$6.58 and R$5.71 for the respective vesting periods (2013, 2014 and 2015). (e) Fair value calculated by the average of R$8.20, R$7.89 and R$7.85 for the respective vesting periods (2014, 2015 and 2016). (f) Fair value calculated by the average of R$3.61, R$3.30 and R$3.19 for the respective vesting periods (2015, 2016 and 2017). (g) On July 27, 2016, 900,000 shares were granted in addition to the 2016 plan. The fair value was calculated by the average of R$1.29, R$1.21 and R$1.22 for the respective vesting periods (2017, 2018 and 2019). (h) Fair value calculated by the average of R$8.12, R$7.88 and R$7.72 for the respective vesting periods (2017, 2018 and 2019). (i) Fair value calculated by the average of R$13.26, R$12.67 and R$12.11 for the respective vesting periods (2018, 2019 and 2020). (j) Fair value calculated by the average of R$12.90, R$12.32 and R$11.65 for the respective vesting periods (2019, 2020 and 2021). |
Schedule of movement in the stock options outstanding | The movement of stock options during the year ended on December 31, 2019 is shown below: Number of stock options Weighted average exercise price Outstanding options on December 31, 2018 7,820,512 9.19 Options granted 2,732,163 25.40 Conversion of restricted shares to call options 3,372,183 2.62 Options exercised (5,804,249) 5.23 Options canceled and adjustments in estimated prescribed rights (459,754) 27.54 Outstanding options on December 31, 2019 7,660,855 7.11 Number of options exercisable as of: December 31, 2018 7,065,174 8.01 December 31, 2019 5,939,631 8.42 |
Restricted Shares Plan [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of stock options plan | As of December 31, 2019 the position of restricted shares is as set forth below: Grant year Approval date Total Shares granted Total vested shares Average fair value at grant date 2016 06/30/2016 4,007,081 - 2.62 2017 08/08/2017 1,538,213 1,010,249 8.44 2018 05/24/2018 773,463 523,747 20.18 Total 12/31/2019 6,318,757 1,533,996 |
Schedule of movement in the stock options outstanding | The movement of total restricted shares during the year ended on December 31, 2019 is shown below: Total restricted shares Restricted shares outstanding as of December 31, 2018 4,865,741 Conversion of restricted shares to call options (3,372,183) Restricted shares transferred to the employee (283,483) Restricted shares cancelled and adjustments in estimated expired rights 323,921 Restricted shares outstanding as of December 31, 2019 1,533,996 |
Smiles S.A. ("Smiles") [Member] | Stock Option Plan [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of stock options plan | As of December 31, 2019 the position of granted options is as set forth below: Grant Year Date of approval Total options granted Number of options outstanding Exercise price of the option (in reais) Average fair value at grant date Estimated volatility of share price Expected dividend yield Risk-Free return rate Average remaining maturity (in years) 2013 08/08/2013 1,058,043 - 21.7 4.25 (a) 36.35% 6.96% 7.40% 3.5 2014 04/02/2014 1,150,000 - 5.58 4.90 (b) 33.25% 10.67% 9.90% 4.0 2018 07/31/2018 1,300,000 975,000 48.82 8.93 (c) 41.28% 9.90% 6.39% 8.6 Total 12/31/2019 3,508,043 975,000 (a) Average fair value in reais calculated for the 2013 stock option plan of R$4.84 and R$4.20 for the 2013 and 2014 vesting periods; and, R$3.73 for the 2015 and 2016 vesting periods. (b) Average fair value in reais calculated for the 2014 stock option plan of R$4.35, R$4.63, R$4.90, R$5.15 and R$5.37 for the 2014, 2015, 2016, 2017 and 2018 vesting periods. (c) Average fair value in reais calculated for the 2018 stock option plan of R$8.17, R$8.63, R$9.14, and R$9.77 for the 2019, 2020, 2021 and 2022 vesting periods. |
Schedule of movement in the stock options outstanding | The movement of stock options during the year ended on December 31, 2019 is shown below: Number of Stock Options Weighted Average Exercise Price Outstanding Options on December 31, 2018 1,077,053 50.16 Adjustments in Estimated Prescribed Rights 48.947 26.21 Options Exercised (151,000) 5.58 Outstanding Options on December 31, 2019 975,000 48.82 |
28. Transactions with related_2
28. Transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of remuneration of key management personnel | 2019 2018 2017 Salaries, wages and benefits 69,609 75,979 57,838 Related taxes and charges 15,813 11,062 6,019 Share-based payments 8,880 10,234 11,219 Total 94,302 97,275 75,076 2019 2018 Number of Executives Board of directors 8 9 Statutory executive officers 4 5 Non-statutory executive officers 22 26 Fiscal council 3 3 Other governance committees 7 7 Total 44 50 |
29. Revenue (Tables)
29. Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net revenue | |
Schedule of detail of revenues | 2019 2018 2017 Passenger transportation (*) 13,461,470 11,148,292 10,027,414 Cargo transportation 411,054 400,959 354,561 Mileage program 446,871 446,448 554,380 Other revenue 113,253 95,681 109,045 Gross revenue 14,432,648 12,091,380 11,045,400 Related tax (567,944) (680,026) (716,366) Net revenue 13,864,704 11,411,354 10,329,034 (*) Of the total amount, the total of R$583,242 for the year ended on December 31, 2019 is made up of the revenue from non-attendance of passengers, rescheduling, ticket cancellation (R$479,136 for the year ended December 31, 2018). |
Schedule of detail of revenues by geographical location | Revenue by geographical location is as follows: 2019 % 2018 % 2017 % Domestic 11,965,181 86.3 9,729,498 85.3 8,798,002 85.2 International 1,899,523 13.7 1,681,856 14.7 1,531,032 14.8 Net Revenue 13,864,704 100.0 11,411,354 100.0 10,329,034 100.0 |
30. Financial income (expenses)
30. Financial income (expenses) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial income (expenses) [absract] | |
Schedule of detail of Financial income (expenses) | 2019 2018 2017 Financial Income Gain on Derivatives 84,862 17,838 35,053 Gains from Financial Investments 225,535 161,223 119,863 Inflation Indexation 42,967 78,169 14,208 (-) Taxes on Financial Income (a) (26,818) (20,372) (24,393) Unrealized Gains - Conversion Right - ESN 16,148 - - Interest Income 7,451 - - Other 39,418 22,870 68,715 Total Financial Income 389,563 259,728 213,446 Financial Expenses Loss with Derivatives (86,990) (51,674) (40,770) Derivative Losses - Capped Call (23,229) - Unrealized Loss - Conversion Right (778,557) (710,787) (727,285) Bank Charges and Expenses (73,171) (75,673) (61,711) Exchange Offer Costs - (53,952) (53,041) Losses from Financial Investments (111,679) (33,999) (44,263) Interest on Leases (b) (488,278) - - Other (186,361) (135,004) (123,391) Total Financial Expenses (1,748,265) (1,061,089) (1,050,461) Foreign Exchange Rate Change, Net (385,092) (1,081,197) (81,744) Total (1,743,794) (1,882,558) (918,759) (a) Relates to taxes on financial income (PIS and COFINS), according to Decree 8426 of April 1, 2015. (b) Amount related to present value adjustments of the right of use from the initial adoption of IFRS 16. For further information, see Note 4.26.1. |
31. Segments (Tables)
31. Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segments [absract] | |
Schedule of operating segment | 31.1. Assets and liabilities of the operating segments 2019 Flight transportation Smiles loyalty program Total reportable segments Eliminations Total Assets Current 3,243,363 2,763,448 6,006,811 (1,079,434) 4,927,377 Non-current 10,888,299 121,135 11,009,434 (638,365) 10,371,069 Total Assets 14,131,662 2,884,583 17,016,245 (1,717,799) 15,298,446 Liabilities Current 9,941,112 1,321,534 11,262,646 (900,046) 10,362,600 Non-current 11,867,062 357,714 12,224,776 (183,513) 12,041,263 Total equity (deficit) (7,676,512) 1,205,335 (6,471,177) (634,240) (7,105,417) Total liabilities and equity (deficit) 14,131,662 2,884,583 17,016,245 (1,717,799) 15,298,446 2018 Flight transportation Smiles loyalty program Total reportable segments Eliminations Total Assets Current 2,216,168 2,365,789 4,581,957 (1,271,122) 3,310,835 Non-current 7,373,864 269,339 7,643,203 (575,772) 7,067,431 Total Assets 9,590,032 2,635,128 12,225,160 (1,846,894) 10,378,266 Liabilities Current 7,012,120 1,347,684 8,359,804 (1,159,248) 7,200,556 Non-current 7,563,287 273,214 7,836,501 (153,440) 7,683,061 Total equity (deficit) (4,985,375) 1,014,230 (3,971,145) (534,206) (4,505,351) Total liabilities and equity (deficit) 9,590,032 2,635,128 12,225,160 (1,846,894) 10,378,266 31.2. Results of the operating segments 2019 Flight transportation Smiles loyalty Total reportable segments Eliminations Total consolidated program (b) Net revenue Passenger (a) 12,592,018 - 12,592,018 485,725 13,077,743 Cargo and other (a) 463,651 - 463,651 (38,563) 425,088 Mileage - 1,051,124 1,051,124 (689,251) 361,873 Gross profit 13,055,669 1,051,124 14,106,793 (242,089) 13,864,704 Operating costs and expenses Salaries, wages and benefits (2,270,009) (91,259) (2,361,268) - (2,361,268) Aircraft fuel (4,047,344) - (4,047,344) - (4,047,344) Aircraft rent - - - - - Sales and marketing (587,445) (82,947) (670,392) - (670,392) Landing fees (759,774) - (759,774) - (759,774) Aircraft, traffic and mileage servicing (766,483) (128,590) (895,073) 187,681 (707,392) Maintenance, materials and repairs (569,229) - (569,229) - (569,229) Depreciation and amortization (1,701,115) (26,868) (1,727,983) 1 (1,727,982) Passenger costs (578,744) - (578,744) - (578,744) Other operating income (expenses), net (354,302) 44,384 (309,918) 1 (309,917) Total operating expenses (11,634,445) (285,280) (11,919,725) 187,683 (11,732,042) Equity pick up method 294,976 (2,530) 292,446 (292,369) 77 Income before financial income (expense), exchange (variation) and income taxes 1,716,200 763,314 2,479,514 (346,775) 2,132,739 Financial results Financial income 636,554 125,455 762,009 (372,446) 389,563 Financial expenses (2,116,438) (4,273) (2,120,711) 372,446 (1,748,265) Total financial results (1,778,170) 121,182 (1,358,702) - (1,358,702) Income before exchange rate variation, net 236,316 884,496 1,120,812 (346,775) 774,037 Exchange rate change, net 390,454 4,669 (385,785) 693 (385,092) Income (loss) before income taxes (154,138) 889,165 735,027 (346,082) 388,945 Income and social contribution taxes 36,865 (271,156) (234,291) 24,684 (209,607) Net income for the year (117,273) 618,009 500,736 (321,398) 179,338 Attributable to equity holders of the parent (117,273) 321,398 204,125 (321,398) (117,273) Attributable to non-controlling interests of Smiles - 296,611 296,611 - 296,611 (a) Eliminations are related to transactions between GLA and Smiles Fidelidade. (b) Amounts include Smiles S.A. and Smiles Fidelidade. 2018 Flight transportation Smiles loyalty program (b) Eliminations Consolidated Net revenue Passenger (a) 10,199,092 - 10,199,092 434,396 10,633,488 Cargo and other (a) 422,432 - 422,432 (12,799) 409,633 Mileage program - 987,444 987,444 (619,211) 368,233 Total net revenue 10,621,524 987,444 11,608,968 (197,614) 11,411,354 Operating costs and expenses Salaries, wages and benefits (1,821,521) (82,331) (1,903,852) - (1,903,852) Aircraft fuel (3,867,673) - (3,867,673) - (3,867,673) Aircraft rent (1,112,837) - (1,112,837) - (1,112,837) Sales and marketing (507,721) (74,256) (581,977) - (581,977) Landing fees (743,362) - (743,362) - (743,362) Aircraft, traffic and mileage servicing (661,260) (107,489) (768,749) 154,981 (613,768) Maintenance, materials and repairs (570,333) - (570,333) - (570,333) Depreciation and amortization (651,158) (17,358) (668,516) - (668,516) Passenger service expenses (474,117) - (474,117) - (474,117) Other operating income, net 483,699 35,959 519,658 4,998 524,656 Total operating costs and expenses (9,926,283) (245,475) (10,171,758) 159,979 (10,011,779) Equity pick up method 315,721 - 315,721 (315,334) 387 Income before financial income (expense), exchange (variation) and income taxes 1,010,962 741,969 1,752,931 (352,969) 1,399,962 Financial results Financial income 166,348 220,628 386,976 (127,248) 259,728 Financial expenses (1,185,889) (2,326) (1,188,215) 127,126 (1,061,089) Total financial results (1,019,541) 218,302 (801,239) (122) (801,361) Income before the exchange rate variation, net (8,579) 960,271 951,692 (353,091) 598,601 Exchange rate change, net (1,084,543) 3,223 (1,081,320) 123 (1,081,197) Income (loss) before income taxes (1,093,122) 963,494 (129,628) (352,968) (482,596) Income taxes 7,729 (317,652) (309,923) 12,795 (297,128) Net income (loss) for the year (1,085,393) 645,842 (439,551) (340,173) (779,724) Attributable to equity holders of the parent (1,085,393) 340,173 (745,220) (340,173) (1,085,393) Attributable to non-controlling Interests of Smiles - 305,669 305,669 - 305,669 (a) Eliminations are related to transactions between GLA and Smiles Fidelidade. (b) Amounts include Smiles S.A. and Smiles Fidelidade. 2017 Flight transportation Smiles loyalty program (b) Total reportable segments Eliminations Consolidated Net revenue Passenger (a) 9,165,936 - 9,165,936 398,105 9,564,041 Cargo and other (a) 388,548 - 388,548 (40,159) 348,389 Mileage program - 899,576 899,576 (482,972) 416,604 Total net revenue 9,554,484 899,576 10,454,060 (125,026) 10,329,034 Operating costs and expenses Salaries, wages and benefits (1,654,388) (53,723) (1,708,111) - (1,708,111) Aircraft fuel (2,887,737) - (2,887,737) - (2,887,737) Aircraft rent (939,744) - (939,744) - (939,744) Sales and marketing (518,025) (69,917) (587,942) (2,872) (590,814) Landing fees (664,170) - (664,170) - (664,170) Aircraft, traffic and mileage servicing (649,498) (86,132) (735,630) 107,490 (628,140) Maintenance, materials and repairs (368,719) - (368,719) - (368,719) Depreciation and amortization (491,806) (13,619) (505,425) - (505,425) Passenger service expenses (437,045) - (437,045) - (437,045) Other operating income, net (591,087) (26,385) (617,472) 7,162 (610,310) Total operating costs and expenses (9,202,219) (249,776) (9,451,995) 111,780 (9,340,215) Equity pick up method 395,245 - 395,245 (394,701) 544 Income before financial income (expense), exchange (variation) and income taxes 747,510 649,800 1,397,310 (407,947) 989,363 Financial results Financial income 184,448 205,431 389,879 (176,433) 213,446 Financial expenses (1,225,315) (2,201) (1,227,516) 177,055 (1,050,461) Total financial results (1,040,867) 203,230 (837,637) 622 (837,015) Income before the exchange rate variation, net (293,357) 853,030 559,673 (407,325) 152,348 Exchange rate change, net (78,462) (3,284) (81,746) 2 (81,744) Income (loss) before income taxes (371,819) 849,746 477,927 (407,323) 70,604 Income taxes 390,611 (89,131) 301,480 5,733 307,213 Net income (loss) for the year 18,792 760,615 779,407 (401,590) 377,817 Attributable to equity holders of the parent 18,792 401,590 420,382 (401,590) 18,792 Attributable to non-controlling Interests of Smiles - 359,025 359,025 - 359,025 (a) Eliminations are related to transactions between GLA and Smiles Fidelidade. (b) Amounts include Smiles S.A. and Smiles Fidelidade. |
32. Commitments (Tables)
32. Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments [absract] | |
Schedule of approximate amount of firm orders | On December 31, 2019, the Company had 129 firm orders for aircraft acquisitions with Boeing. These aircraft acquisition commitments include estimates for contractual price increases during the construction phase. 2019 2018 2020 - 1,791,661 2021 3,201,198 5,046,966 2022 3,690,205 7,883,277 2023 4,103,490 8,766,165 2024 thereafter 18,606,054 39,747,570 Total 29,600,947 63,235,639 |
Schedule of advances for aircraft acquisition | Of the total commitments presented above, the Company should disburse R$9,245,057 (corresponding to US$2,293,660 on the balance date) as advances for aircraft acquisition, according to the financial flow below: 2019 2018 2019 - 283,579 2020 1,169,967 816,766 2021 1,152,456 1,072,048 2022 1,300,668 1,250,361 2023 1,366,345 1,313,497 2024 Thereafter 4,255,621 4,091,021 Total 9,245,057 8,827,272 |
33. Financial instruments and_2
33. Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial instruments and risk management [absract] | |
Schedule of classification of financial instruments at fair value | The accounting classifications of the Company’s consolidated financial instruments on December 31, 2019 and 2018 are as follows: Measured at fair value through profit or loss Amortized cost (c) 2019 2018 2019 2018 Assets Cash and cash equivalents 5,505 307,538 1,639,920 518,649 Short-term investments 953,762 478,364 - - Restricted cash 444,306 822,132 - - Derivative assets 147,469 - - - Trade receivables - - 1,229,530 853,328 Deposits (a) - - 1,126,609 885,804 Other assets - - 140,006 478,628 Liabilities Loans and financing (b) 626,557 - 7,783,284 6,443,807 Suppliers - - 1,296,417 1,523,952 Suppliers - forfeiting - - 554,467 365,696 Derivatives 20,350 409,662 - - Leases - - 6,052,780 912,145 Other liabilities - - 164,709 147,239 (a) Excludes judicial deposits, as described in Note 14. (b) The amount on December 31, 2019, classified as measured at fair value through profit or loss, is related to the derivative contracted through Exchange Senior Notes. For further information, see Note 18.1.1. (c) Items classified as amortized cost refer to credits, indebtedness with private institutions which, in any early settlement, there are no substantial alterations in relation to the values recorded, except the amounts related to Perpetual Notes and Senior Notes, as disclosed in Note 18. The fair values approximate the book values, according to the short-term maturity period of these assets and liabilities. |
Schedule of derivative financial instruments | The Company’s derivative financial instruments were recorded in the following balance sheet items: Derivatives Non-derivative Fuel Interest rate risk Foreign currency risk Capped call ESN (**) Revenue hedge Total Fair value variations: Derivative rights (obligations) on December 31, 2017 40,647 (34,457) - - - - 6,190 Net gains (losses) recognized in profit or loss (a) (25,280) (4,488) 9,272 - - - (20,496) Net (losses) recognized in OCI (349,252) (37,719) - - - - (386,971) Settlements payments (received) during the year (29,383) 30,270 (9,272) - - - (8,385) Derivative assets (liabilities) at 2018 (363,268) (46,394) - - - - (409,662) Fair value variations: Derivative rights (obligations) on December 31, 2018 (363,268) (46,394) - - - - (409,662) Gains (losses) recognized in profit or loss - - 1,207 (23,229) 16,148 - (5,874) Gains (losses) recognized as exchange variation - - - 13,946 (43,575) - (29,629) Gains (losses) recognized in other comprehensive income (loss) 299,910 (205,383) - - - - 94,527 Settlements (payments received) During the year 43,008 251,777 2,293 153,252 (599,130) - (148,800) Derivative assets (liabilities) at 2019 (20,350) - 3,500 143,969 (626,557) - (499,438) Changes in other Comprehensive income (loss) Balances on December 31, 2017 35,505 (114,821) - - - - (79,316) Fair Value adjustments during the year (275,583) (37,719) - - - - (313,302) Time value of options (73,669) - - - - - (73,669) Net reversal to profit or loss (64,955) 31,220 - - - - (33,735) Balances on December 31, 2018 (378,702) (121,320) - - - - (500,022) Fair Value adjustments during the year 299,910 (205,383) - - - - 94,527 Adjustments of hedge accounting of revenue - - - - - (188,267) (188,267) Net reversal to profit or loss 25,549 15,339 - - - 22,831 63,719 Balances in 2019 (53,243) (311,364) - - - (165,436) (530,043) Effect on profit or loss (25,549) (15,339) 1,207 (9,282) (27,427) 165,436 89,045 Classification of effects on income 2019 Net revenue (18,806) Aircraft fuel - operating costs (28,892) Leases - interest expenses (8,662) Unrealized losses with conversion right -ESN - interest expenses 16,148 Derivative losses - capped call - interest expenses (23,229) Derivative gains and losses - interest expenses (300,414) Foreign exchange rate change, net 452,900 Total 89,045 |
Schedule of reclassification to profit or loss | Cash flow hedges are scheduled for realization and, therefore, reclassification to expense according to the following periods: 2020 2021 2022 2023 2024 onwards Interest Derivatives (9,924) (19,417) (25,304) (25,591) (214,437) Revenue Derivatives (38,504) (37,091) (35,888) (35,442) (18,511) Fuel Derivatives (35,513) (17,730) - - - Expected Realization (*) (83,941) (74,238) (61,192) (61,033) (232,948) (*) Negative values represent losses. |
Schedule of foreign currency exposure | The Company’s foreign currency exposure is summarized below: 2019 2018 Assets Cash, equivalents, short-term investments and restricted cash 1,035,802 963,973 Trade receivables 202,363 148,538 Recoverable taxes 5,312 - Deposits 1,126,609 885,804 Derivative assets 147,469 - Other assets - 352,437 Total assets 2,517,555 2,350,752 Liabilities Loans and financing (7,831,116) (5,576,835) Leases - (640,660) Foreign currency suppliers (462,636) (903,287) Derivatives (20,350) (409,662) Operating leases (6,007,973) (271,485) Total liabilities (14,322,075) (7,801,929) Exchange Exposure (11,804,517) (5,451,177) Commitments not recorded in the statements of financial position Future commitments resulting from operating leases (*) - (7,135,784) Future commitments resulting from firm aircraft orders (29,600,647) (63,235,639) Total (29,600,647) (70,371,423) Total foreign currency exposure - R$ (35,356,555) (75,822,600) Total foreign currency exposure - US$ (8,771,815) (19,568,133) Exchange rate (R$/US$) 4.0307 3.8748 (*) On January 1, 2019, due to the initial adoption of IFRS 16, the obligations corresponding to the operating leases were recognized in the Company’s statements of financial position, as per Note 4.1.1, as well as the corresponding right of use associated with this obligation. |
Schedule of financial liability | The maturity schedules of the Company’s financial liabilities on December 31, 2019, and 2018 are as follows: Carrying amount Less than 6 months 6 to 12 months 1 to 5 years More than 5 years Total Loans and financing current / non-current 8,409,841 1,112,414 1,724,940 7,519,263 1,890,448 12,247,065 Leases 6,052,780 1,257,430 1,018,266 5,862,268 967,404 9,105,368 Suppliers 1,296,406 1,286,264 - 10,142 - 1,296,406 Suppliers - forfeiting 554,567 554,467 - - - 554,467 Derivatives 20,350 9,080 - 11,270 - 20,350 On December 31, 2019 4,219,655 2,743,206 13,402,943 2,857,852 23,223,656 Loans and financing current / non-current 6,443,807 901,588 438,386 3,692,463 4,394,544 9,426,981 Leases 912,145 227,985 227,879 1,452,842 8,965 1,917,671 Suppliers 1,523,952 1,403,793 22 120,137 - 1,523,952 Suppliers - forfeiting 365,696 365,696 - - - 365,696 Derivatives 409,662 95,773 99,671 214,218 - 409,662 On December 31, 2018 2,994,835 765,958 5,479,660 4,403,509 13,643,962 |
Schedule of foreign currency risk | The table below shows the sensitivity analysis and the effect on profit or loss of exchange rate fluctuations in the exposure on December 31, 2019: Exchange rate Effect on profit or loss Derivative Net Liabilities exposed to the risk of appreciation of the U.S. dollar 4.0307 11,804,517 21,500 Dollar Depreciation (-50%) 2.0154 (5,902,259) (10,750) Dollar Depreciation (-25%) 3.0230 (2,951,129) (5,375) Dollar Appreciation (+25%) 5.0384 2,951,129 5,375 Dollar Appreciation (+50%) 6.0461 5,902,259 10,750 |
Schedule of fuel risk | The probable scenarios used by the Company are the market curves at the close of December 31, 2019, for derivatives that hedge the fuel price risk, both for derivatives that protect the fuel price risk and for derivatives that protect the Libor interest rate risk. The table below shows the sensitivity analysis in U.S. dollars of the fluctuations in jet fuel barrel prices: Fuel US$/bbl (WTI) US$/bbl (WTI) Decline in Prices/Barrel (-50%) 28.42 (942,142) Decline in Prices/Barrel (-25%) 42.62 (557,695) Increase in Prices/Barrel (+25%) 71.04 345,830 Increase in Prices/Barrel (+50%) 85.25 826,924 |
Schedule of fluctuations in interest rates | The amounts show the impacts on profit or loss according to the scenarios presented below: Short-term investments net of financial indebtedness (a) Risk Increase in the CDI rate Decrease in the Libor rate Reference rates 4.40% 1.91% Exposure amount (probable scenario) (b) (1,183,581) 1,206,135 Remote favorable scenario (-50%) 23,412 (11,733) Possible favorable scenario (-25%) 11,706 (5,866) Possible adverse scenario (+25%) (11,706) 5,866 Remote adverse scenario (+50%) (23,412) 11,733 (a) Total invested and raised in the financial market at the CDI rate and Libor interest rate. (b) Book balances recorded as of December 31, 2019. |
Schedule of classifications of the valuation method | The following table shows a summary of the financial instruments measured at fair value of the Company and its subsidiaries, including their related classifications of the valuation method, on December 31, 2019 and December 31, 2018: 2019 2018 Fair value level Book value Fair value Book value Fair value Cash and cash equivalents Level 1 5,505 5,505 - - Cash and cash equivalents Level 2 - - 307,538 307,538 Short-term investments Level 1 953,762 953,762 21,100 21,100 Short-term investments Level 2 - - 457.264 457.264 Restricted cash Level 2 444,306 444,306 822,132 822,132 Derivative assets Level 2 147,469 147,469 - - Fair value adjustment of derivatives Level 2 (626,557) (626,557) - - Derivatives liabilities Level 2 (20,350) (20,350) (409,662) (409,662) |
Schedule of capital management | The table below shows the Company’s financial leverage as of December 31, 2019 and 2018: 2019 2018 Total Loans and Financing 8,409,841 6,443,807 Total Leases to Pay 6,052,780 912,145 (-) Cash and Cash Equivalents (1,645,425) (826,187) (-) Financial Investments (953,762) (478,364) (-) Restricted Cash (444,306) (822,132) A – Net indebtedness 11,419,128 5,229,269 B – Total Negative Shareholders’ Equity (7,105,417) (4,505,351) C = (B + A) – Total Capital 4,313,711 723,918 |
34. Non-cash Transactions (Tabl
34. Non-cash Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncash Transactions Tables Abstract | |
Schedule of non-cash transactions | 2019 2018 2017 Initial adoption - IFRS 16 (property, plant and equipment / accumulated loss / minority interest) 2,436,333 - - Share-based compensation (capital / share-based compensation) (31,222) - - Unrealized results from derivatives (derivative obligations / equity valuation adjustment) 30,021 - - Effects of changes in equity interest (capital reserves / minority interest) (649) - - Actuarial losses from post-employment benefits (actuarial liabilities / equity valuation adjustment / accumulated losses) 87,541 - - Interest on shareholders’ equity to be distributed, net of taxes - (8,672) (49,602) Dividends 238,359 (58,632) - Deposits in guarantee for leases agreements - - 10,307 Write-off of leases agreements - (805,081) (15,334) Provision for aircraft return - 147,548 - Acquisition of property, plant and equipment through financing (fixed assets / loans and financing) 164,234 193,506 63,066 Guarantee deposits (deposits / leases payable) (476) - - Maintenance reserve (deposits / leases payable) (6,498) - - Right to use flight equipment (fixed assets / leases payable) 957,026 - - |
35. Liabilities from financin_2
35. Liabilities from financing activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Changes in liabilities arising from financing activities [abstract] | |
Schedule of changes in liabilities arising from financing activities | The changes in the liabilities of the Company’s financing activities are shown below for the years ended December 31, 2019 and 2018: 2019 Non-cash changes Adjustment to profit Opening balance Net cash flows (used in) from financing activities Net cash flows from operating activities Property, plant and equipment acquisition through financing and lease Maintenance reserve Escrow deposit Initial adoption adjustment – IFRS 16 Gains (losses) recognized in other comprehensive income (loss) Exchange rate variation, net Interest accrued and cost amortization Write-offs and Contractual amendment Other results Closing balance Short and long-term debt 6,443,807 1,401,125 (444,006) 164,234 - - - - 313,717 571,681 - (40,717) 8,409,841 Leases 912,145 (1,617,677) (23,304) 957,026 (6,498) (476) 5,370,868 - 241,612 502,544 (283,460) - 6,052,780 Derivatives 409,662 (407,322) (43.008) - - - - (94,527) (13,946) - - 22,022 (127,119) 2018 Non-cash changes Exchange rate variation, net Opening balance Cash flow Income for the year Property, plant and equipment acquisition through financing Disposal property, plant and equipment Dividends provisioned through the subsidiary Smiles Provision for interest on loans Treasury shares sold Gains on change in investment Interest payments and loan cost Other Closing balance Short and long-term debt 7,105,667 (536,888) - 193,506 (805,081) - 565,854 - 1,043,117 (481,708) - 7,084,467 Other liabilities 143,473 (219,493) - - - 238,879 - - - - - (15,620) 147,239 Non-controlling interests from Smiles 412,013 875 305,669 - - (239,877) - - 561 - - 820 480,061 Treasury shares (4,168) (15,929) - - - - - 19,971 - - - - (126) Shares to be issued - 2,818 - - - - - - - - - - 2,818 Capital stock 2,927,184 15,428 - - - - - - - - - - 2,942,612 2017 Non-cash changes Opening balance Cash flow Income for the year Property, plant and equipment acquisition through financing Interest payments and loan cost Exchange rate variation, net Provision for interest on loans Other Closing balance Short and long-term debt 6,379,220 612,396 - 63,066 (505,105) 68,895 502,529 (15,334) 7,105,667 Non-controlling interests from Smiles 293,247 (238,669) 359,025 - - - - (1,590) 412,013 Capital stock 2,924,492 2,169 - - - - - 523 2,927,184 |
36. Insurance coverage (Tables)
36. Insurance coverage (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Insurance [abstract] | |
Schedule of insurance coverage by nature | On December 31, 2019, the most relevant insurance coverage, by nature, considering the aircraft fleet in relation to the maximum reimbursable amounts indicated in U.S. dollars, together with the insurance coverage of the subsidiary Smiles, are as follows: In thousands of R$ In thousands of US$ GLA Warranty - Hull/War 342,610 85,000 Civil Liability per Event/Aircraft (a) 3,023,025 750,000 Inventories (local) (b) 1,007,675 250,000 Smiles Rent Guarantee (Cond. Rio Negro - Alphaville) 1,318 - D&O Liability Insurance 100,000 - Fire (Property Insurance Cond. Rio Negro - Alphaville) 12,747 - (a) In accordance with the agreed amount for each aircraft up to the maximum limit indicated. (b) Values per incident and annual aggregate. |
37. Subsequent events (Tables)
37. Subsequent events (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Schedule of adjustments and reclassifications accounted for in the subsequent period | Below is presented a table summarizing the adjustments and reclassifications recorded in the subsequent period of these financial statements, as well as the details on each of these items and additional disclosures in the text below: Consolidated Adjustments Provision for cancellation of mileage exchange (22,271) De-recognition of the cash flow hedge – fuel (291,925) De-recognition of the cash flow hedge – revenues in US$ (290,346) Reclassifications Taxes to recover in the short- and long-term 61,020 |
1. Operating Context (Details)
1. Operating Context (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
GAC Inc. ("GAC") [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | GAC | |||
Date of Incorporation | Mar. 23, 2006 | |||
Location | Cayman Islands | |||
Principal Activity | Aircraft Acquisition | |||
Type of control | Direct | |||
Ownership equity interest | 100.00% | 100.00% | ||
Gol Finance Inc. [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | Gol Finance Inc. | |||
Date of Incorporation | Mar. 16, 2006 | |||
Location | Cayman Islands | |||
Principal Activity | Fund-Raising | |||
Type of control | Direct | |||
Ownership equity interest | 100.00% | 100.00% | ||
Gol LuxCo S.A. ("Gol LuxCo") (Gol Finance) [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | Gol Finance | |||
Date of Incorporation | Jun. 21, 2013 | |||
Location | Luxembourg | |||
Principal Activity | Fund-Raising | |||
Type of control | Direct | |||
Ownership equity interest | 100.00% | 100.00% | ||
Gol Linhas Aereas S.A. ("GLA") [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | GLA | |||
Date of Incorporation | Apr. 9, 2007 | |||
Location | Brazil | |||
Principal Activity | Flight Transportation | |||
Type of control | Direct | |||
Ownership equity interest | 100.00% | 100.00% | ||
Airfim [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | AirFim | |||
Date of Incorporation | Nov. 7, 2003 | |||
Location | Brazil | |||
Principal Activity | Investment Fund | |||
Type of control | Indirect | |||
Ownership equity interest | 100.00% | 100.00% | ||
Sul America Gol Max [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | Sul America Gol Max | |||
Date of Incorporation | Mar. 14, 2014 | |||
Location | Brazil | |||
Principal Activity | Investment Fund | |||
Type of control | Indirect | |||
Ownership equity interest | 100.00% | |||
Smiles S.A. ("Smiles") [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | Smiles Fidelidade | |||
Date of Incorporation | Aug. 1, 2011 | |||
Location | Brazil | |||
Principal Activity | Loyalty Program | |||
Type of control | Direct | |||
Ownership equity interest | 52.60% | 52.70% | ||
Smiles Viagens [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | Smiles Viagens | |||
Date of Incorporation | Aug. 10, 2017 | |||
Location | Brazil | |||
Principal Activity | Tourism Agency | |||
Type of control | Indirect | |||
Ownership equity interest | 52.60% | 52.70% | ||
Smiles Fidelidade Argentina [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | [1] | Smiles Fidelidade Argentina | ||
Date of Incorporation | [1] | Nov. 7, 2018 | ||
Location | [1] | Argentina | ||
Principal Activity | [1] | Loyalty Program | ||
Type of control | [1] | Indirect | ||
Ownership equity interest | 52.60% | [1] | 52.70% | |
Smiles Viagens Argentina [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | [1] | Smiles Viagens Argentina | ||
Date of Incorporation | [1] | Nov. 20, 2018 | ||
Location | [1] | Argentina | ||
Principal Activity | [1] | Tourism Agency | ||
Type of control | [1] | Indirect | ||
Ownership equity interest | 52.60% | [1] | 52.70% | |
Fundo Sorriso [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | Fundo Sorriso | |||
Date of Incorporation | Jul. 14, 2014 | |||
Location | Brazil | |||
Principal Activity | Investment Fund | |||
Type of control | Indirect | |||
Ownership equity interest | 52.60% | 52.70% | ||
Netpoints Fidelidade S.A [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | [2] | Netpoints | ||
Date of Incorporation | [2] | Nov. 8, 2013 | ||
Location | [2] | Brazil | ||
Principal Activity | [2] | Loyalty Program | ||
Type of control | [2] | Indirect | ||
Ownership equity interest | [2] | 25.40% | ||
SCP Trip [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Name of entity | SCP Trip | |||
Date of Incorporation | Apr. 27, 2012 | |||
Location | Brazil | |||
Principal Activity | Flight Magazine | |||
Type of control | Indirect | |||
Ownership equity interest | 60.00% | 60.00% | ||
[1] | Companies with functional currency in Argentine pesos. | |||
[2] | On February 1, 2019, the subsidiary Smiles Fidelidade sold its equity interest in the affiliate for the total amount of R$914, recognized in consolidated statements of operations under "Other operating income" |
1. Operating Context (Details N
1. Operating Context (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Consolidated deficit | R$ 7676671 | R$ 4985412 | |
Net working capital | (5,435,223) | (3,889,721) | |
Debt instruments issued | 500 | ||
Leases liability | 130 | ||
Increasing cash and cash equivalents | 370 | ||
Brazilian Tax Authorities [Member] | |||
Disclosure of subsidiaries [line items] | |||
Fines and improvements compliance program | 12,000 | R$ 12000 | |
Additional fines and improvements compliance program | R$ 4200 | R$ 4200 | |
Initial Adoption of IFRS 16 [Member] | Lease [Member] | |||
Disclosure of subsidiaries [line items] | |||
Consolidated deficit | R$ 2436334 | ||
Gol Linhas Aereas Inteligentes S.A [Member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage on total revenue | 0.40% |
4. Summary of significant acc_4
4. Summary of significant accounting practices (Details) | 12 Months Ended | |
Dec. 31, 2019R$ / $R$ / $ | Dec. 31, 2018R$ / $R$ / $ | |
Summary of Significant Accounting Practices [Line Items] | ||
Final Rate | 4.0307 | |
ARS | ||
Summary of Significant Accounting Practices [Line Items] | ||
Final Rate | 0.0673 | 0.1028 |
Average rate | 0.0686 | 0.1026 |
USD | ||
Summary of Significant Accounting Practices [Line Items] | ||
Final Rate | 4.0307 | 3.8748 |
Average rate | 4.1102 | 3.8841 |
4. Summary of significant acc_5
4. Summary of significant accounting practices (Details 1) - IFRS 16 Leases [Member] R$ in Thousands | Dec. 31, 2019BRL (R$) | |
Summary of Significant Accounting Practices [Line Items] | ||
Assets | R$ 2934256 | |
Liabilities | 5,370,868 | |
Equity | (2,436,334) | [1] |
Operating Leases [Member] | ||
Summary of Significant Accounting Practices [Line Items] | ||
Assets | [2] | |
Liabilities | (219,728) | [2] |
Equity | 219,728 | [1],[2] |
Right Of Use - Aircraft Agreements [Member] | ||
Summary of Significant Accounting Practices [Line Items] | ||
Assets | 2,892,836 | |
Liabilities | 5,540,621 | |
Equity | (2,647,785) | [1] |
Right Of Use - Non Aircraft Agreements [Member] | ||
Summary of Significant Accounting Practices [Line Items] | ||
Assets | 41,420 | |
Liabilities | 49,975 | |
Equity | (8,555) | [1] |
Deferred Tax - Smiles [Member] | ||
Summary of Significant Accounting Practices [Line Items] | ||
Assets | [3] | |
Liabilities | [3] | |
Equity | R$ 278 | [1],[3] |
[1] | Diference between assets and liabilities due to the adoption of the Standard through the simplified retrospective method and USD>BRL translation rate for aircraft and engine agreements (asset by historical exchange rate change and liability by the exchange rate change on the adoption date). | |
[2] | Refers to operating lease installments renegotiated during 2016. | |
[3] | Deferred income tax effects arising from the initial adoption of IFRS 16 recorded in the Smiles subsidiary. |
4. Summary of significant acc_6
4. Summary of significant accounting practices (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current | ||
Short and long-term indebtedness | R$ 1103206 | |
Leases | R$ 1404712 | 255,917 |
Operating Leases | 4,648,068 | |
Non-current | ||
Short and long-term indebtedness | 5,340,601 | |
Leases to Pay | R$ 4648068 | 656,228 |
Operating Leases | ||
As Previously Disclosed [Member] | ||
Current | ||
Short and long-term indebtedness | 1,223,324 | |
Leases | ||
Operating Leases | 135,799 | |
Non-current | ||
Short and long-term indebtedness | 5,861,143 | |
Leases to Pay | ||
Operating Leases | 135,686 | |
Reclassification [Member] | ||
Current | ||
Short and long-term indebtedness | (120,118) | |
Leases | 255,917 | |
Operating Leases | (135,799) | |
Non-current | ||
Short and long-term indebtedness | (520,542) | |
Leases to Pay | 656,228 | |
Operating Leases | R$ 135686 |
4. Summary of significant acc_7
4. Summary of significant accounting practices (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Practices [Line Items] | ||
Taxable income | 30.00% | |
Suppliers - Forfaiting | R$ 554467 | R$ 365696 |
Other comprehensive income | R$ 165436 | |
Description of hedge instruments | Hedge instrument: 50 lease agreements linked to US$ | |
Revenue | R$ 903102 | |
Restricted Shares, grant date | 3 years | |
Lease term | 12 months | |
Minimum [Member] | ||
Summary of Significant Accounting Practices [Line Items] | ||
Historically earned revenues | 80.00% | |
Minimum [Member] | ||
Summary of Significant Accounting Practices [Line Items] | ||
Historically earned revenues | 85.00% | |
IRPJ [Member] | ||
Summary of Significant Accounting Practices [Line Items] | ||
Applicable tax rate | 10.00% | |
CSLL [Member] | ||
Summary of Significant Accounting Practices [Line Items] | ||
Applicable tax rate | 9.00% | |
Additional Applying Tax [Member] | ||
Summary of Significant Accounting Practices [Line Items] | ||
Applicable tax rate | 15.00% |
6. Cash and cash equivalents (D
6. Cash and cash equivalents (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents [abstract] | ||||
Cash and bank deposits | R$ 418447 | R$ 157970 | ||
Cash equivalents | 1,226,978 | 668,217 | ||
Total | R$ 1645425 | R$ 826187 | R$ 1026862 | R$ 562207 |
6. Cash and cash equivalents _2
6. Cash and cash equivalents (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | R$ 1226978 | R$ 668217 |
Local currency [Member] | ||
Disclosure of Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | 519,861 | 382,357 |
Foreign currency [Member] | ||
Disclosure of Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | 707,117 | 285,860 |
Automatic deposits [Member] | Local currency [Member] | ||
Disclosure of Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | R$ 5505 | |
Average annual depreciation rate | 29.40% | |
Private bonds and deposits with banks [Member] | Local currency [Member] | ||
Disclosure of Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | R$ 514356 | 74,819 |
Average annual depreciation rate | 90.40% | |
Private bonds and deposits with banks [Member] | Foreign currency [Member] | ||
Disclosure of Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | R$ 707117 | 285,860 |
Average annual depreciation rate | 2.00% | |
Government bonds [Member] | Local currency [Member] | ||
Disclosure of Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | 39 | |
Investments funds [Member] | Local currency [Member] | ||
Disclosure of Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | R$ 307499 |
7. Short-term investments (Deta
7. Short-term investments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Short Term Investments [Line Items] | ||
Short-term investments | R$ 953762 | R$ 478364 |
Local currency [Member] | ||
Disclosure of Short Term Investments [Line Items] | ||
Short-term investments | 919,400 | 386,349 |
Foreign currency [Member] | ||
Disclosure of Short Term Investments [Line Items] | ||
Short-term investments | 34,362 | 92,015 |
Investment funds [Member] | Local currency [Member] | ||
Disclosure of Short Term Investments [Line Items] | ||
Short-term investments | R$ 862868 | 365,249 |
Weighted average rate equivalent | 100.20% | |
Investment funds [Member] | Foreign currency [Member] | ||
Disclosure of Short Term Investments [Line Items] | ||
Short-term investments | R$ 2965 | |
Government bonds [Member] | Local currency [Member] | ||
Disclosure of Short Term Investments [Line Items] | ||
Short-term investments | R$ 56532 | 21,100 |
Weighted average rate equivalent | 104.20% | |
Government bonds [Member] | Foreign currency [Member] | ||
Disclosure of Short Term Investments [Line Items] | ||
Short-term investments | R$ 29684 | |
Weighted average rate equivalent | 1.80% | |
Deposits with banks [Member] | Foreign currency [Member] | ||
Disclosure of Short Term Investments [Line Items] | ||
Short-term investments | R$ 1713 | R$ 92015 |
Weighted average rate equivalent | 3.00% |
8. Restricted cash (Details)
8. Restricted cash (Details) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | |
Disclosure of Restricted Cash [Line Items] | ||
Restricted cash and cash equivalents | R$ 444306 | R$ 822132 |
Current | 304,920 | 133,391 |
Non-current | 139,386 | 688,741 |
Local currency [Member] | ||
Disclosure of Restricted Cash [Line Items] | ||
Restricted cash and cash equivalents | 369,875 | 388,828 |
Local currency [Member] | Escrow deposits [Member] | ||
Disclosure of Restricted Cash [Line Items] | ||
Restricted cash and cash equivalents | R$ 85351 | 72,089 |
Weighted Average Profitability | 0.962 | |
Local currency [Member] | Escrow deposits - leases [Member] | ||
Disclosure of Restricted Cash [Line Items] | ||
Restricted cash and cash equivalents | R$ 136438 | 102,880 |
Weighted Average Profitability | 0.985 | |
Local currency [Member] | Other deposits [Member] | ||
Disclosure of Restricted Cash [Line Items] | ||
Restricted cash and cash equivalents | R$ 9922 | 113,465 |
Weighted Average Profitability | 0.664 | |
Local currency [Member] | Deposits in guarantee of letter of credit [Member] | ||
Disclosure of Restricted Cash [Line Items] | ||
Restricted cash and cash equivalents | R$ 138164 | 100,394 |
Weighted Average Profitability | 0.976 | |
Foreign currency [Member] | ||
Disclosure of Restricted Cash [Line Items] | ||
Restricted cash and cash equivalents | R$ 74431 | 433,304 |
Foreign currency [Member] | Escrow deposits for hedge margin [Member] | ||
Disclosure of Restricted Cash [Line Items] | ||
Restricted cash and cash equivalents | R$ 74431 | R$ 433304 |
Weighted Average Profitability | 0.016 |
9. Trade receivables (Details)
9. Trade receivables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | R$ 1246482 | R$ 864612 |
Allowance for expected loss on trade receivables accounts | (16,952) | (11,284) |
Total Trade Receivables | 1,229,530 | 853,328 |
Domestic customers [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 1,044,119 | 716,074 |
Domestic customers [Member] | Airline partners companies [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 291 | 3,243 |
Domestic customers [Member] | Credit card administrators [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 740,967 | 393,557 |
Domestic customers [Member] | Travel agencies [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 253,494 | 226,627 |
Domestic customers [Member] | Cargo agencies [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 33,677 | 40,431 |
Domestic customers [Member] | Other [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 15,690 | 52,216 |
Foreign customers [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 202,363 | 148,538 |
Foreign customers [Member] | Airline partners companies [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 30,740 | 23,294 |
Foreign customers [Member] | Credit card administrators [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 121,844 | 97,488 |
Foreign customers [Member] | Travel agencies [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 36,845 | 21,005 |
Foreign customers [Member] | Cargo agencies [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | 1,384 | 1,378 |
Foreign customers [Member] | Other [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Gross trade receivables | R$ 11550 | R$ 5373 |
9. Trade receivables (Details 1
9. Trade receivables (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | R$ 1229530 | R$ 853328 |
Overdue [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 81,867 | 54,331 |
Overdue 181 to 360 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 421 | 9,863 |
Overdue 91 to 180 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 3,009 | 11,173 |
Overdue 61 to 90 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 3,986 | 2,672 |
Overdue 31 to 60 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 23,290 | 4,726 |
Overdue Until 30 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 47,959 | 13,167 |
Current [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 1,147,663 | 798,997 |
Current Above 360 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 1,499 | 268 |
Current 181 to 360 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 76,902 | 36,801 |
Current 91 to 180 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 187,883 | 83,128 |
Current 61 to 90 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 100,478 | 49,696 |
Current 31 to 60 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 213,334 | 101,226 |
Current Until 30 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | 567,567 | 527,878 |
Overdue above 360 days [Member] | ||
Disclosure of Trade Receivables [Line Items] | ||
Trade receivables | R$ 3202 | R$ 12730 |
9. Trade Receivables (Details 2
9. Trade Receivables (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trade receivables doubtful accounts [Roll Forward] | ||
Balance at the beginning of the year | R$ 11284 | R$ 38681 |
Initial adoption adjustment - IFRS 9 | 2,593 | |
Adjusted balance at the beginning of the year | (11,284) | (36,088) |
Exclusions and reversals | (13,499) | 9,789 |
Write-off | 7,831 | 15,015 |
Balances at the end of the year | R$ 16952 | R$ 11284 |
10. Inventories (Details)
10. Inventories (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [absract] | ||
Consumables | R$ 14274 | R$ 14848 |
Parts and maintenance materials | 184,939 | 165,293 |
Total | R$ 199213 | R$ 180141 |
10. Inventories (Details 1)
10. Inventories (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Provision for obsolete inventory [Roll Forward] | ||
Balances at the beginning of the year | R$ 12808 | R$ 12509 |
Addition | (2,168) | (5,023) |
Write-off | 674 | 4,724 |
Balances at the end of the year | R$ 14302 | R$ 12808 |
11. Recoverable taxes (Details)
11. Recoverable taxes (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes payable [absract] | |||
IRPJ and CSLL prepayments | R$ 195864 | R$ 268428 | |
Withholding income tax | 3,969 | 4,744 | |
PIS and COFINS to recover | [1] | 273,152 | 163,921 |
Value added tax (VAT) abroad | 4,650 | 5,649 | |
Other | 6,181 | 13,927 | |
Total | 483,816 | 456,669 | |
Current | 309,674 | 360,796 | |
Non-current | R$ 174142 | R$ 95873 | |
[1] | During the year, the subsidiaries Smiles Fidelidade and GLA accounted for PIS and COFINS untimely tax credits related to the last 5 years, totaling R$49,518 and R$91,066, respectively. The amounts of R$17,300 related to credits in 2019 and R$99,605 related to credits recorded in 2018 were realized against tax obligations until the reporting date of these financial statements. |
11. Recoverable taxes (Details
11. Recoverable taxes (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Taxes payable [absract] | ||
PIS and COFINS | R$ 49518 | R$ 91066 |
Related to credits offset | R$ 17300 | R$ 99605 |
12. Deferred taxes (Details)
12. Deferred taxes (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - assets at beginnig | R$ 73822 |
Statement of operations | 35,656 |
Accumulated profits | |
Exchange Rate change | (56) |
Reclassification | (49,613) |
Total deferred taxes - assets at ending | 59,809 |
Total deferred taxes - liabilities at beginnig | 227,290 |
Unrealized | (66,642) |
Accumulated Profits | 278 |
Exchange Rate Change | |
Reclassification | 49,613 |
Total deferred taxes - liabilities at ending | 244,041 |
Total effect deferred taxes - income, Statement of operations | 32,694 |
Total effect deferred taxes - income, Reclassification | (30,986) |
Allowance for expenses loss on trade receivables and other credits [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - assets at beginnig | 196 |
Statement of operations | 1,762 |
Accumulated profits | |
Exchange Rate change | |
Reclassification | |
Total deferred taxes - assets at ending | 1,958 |
Total deferred taxes - liabilities at beginnig | |
Unrealized | |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | |
Provision for legal proceedings and tax liabilities [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - assets at beginnig | 916 |
Statement of operations | (220) |
Accumulated profits | |
Exchange Rate change | |
Reclassification | |
Total deferred taxes - assets at ending | 696 |
Total deferred taxes - liabilities at beginnig | 93,221 |
Unrealized | (2,170) |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | 91,051 |
Unrealized Intercompany Profits [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - assets at beginnig | 49,613 |
Statement of operations | |
Accumulated profits | |
Exchange Rate change | |
Reclassification | (49,613) |
Total deferred taxes - assets at ending | |
Total deferred taxes - liabilities at beginnig | |
Unrealized | 18,498 |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | 49,613 |
Total deferred taxes - liabilities at ending | |
Allowance for expenses loss on trade receivables and other credits [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | 72,649 |
Unrealized | (15,911) |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | 56,738 |
Breakage Provision [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | (172,869) |
Unrealized | (23,337) |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | (196,206) |
Provision for losses on other credits [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | 143,350 |
Unrealized | |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | 143,350 |
Provisions For Aircrafts Redelivery [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | 62,642 |
Unrealized | 83,597 |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | 146,239 |
Derivative Transactions [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | 5,335 |
Unrealized | (47,489) |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | (42,154) |
Slots [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | (353,226) |
Unrealized | |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | (353,226) |
Depreciation Of Engines and Parts For Aircraft Maintenance [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | (174,129) |
Unrealized | (9,848) |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | (183,977) |
Goodwill [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | (127,659) |
Unrealized | |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | (127,659) |
Aircraft Leases and Other [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | 30,956 |
Unrealized | 33,145 |
Accumulated Profits | 278 |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | 64,379 |
Other [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - liabilities at beginnig | 113,038 |
Unrealized | (23,725) |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | 89,313 |
Controlled subsidiary GLA and Smiles [Member] | Income Tax losses carry forward [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - assets at beginnig | 16,983 |
Statement of operations | 25,868 |
Accumulated profits | |
Exchange Rate change | (56) |
Reclassification | |
Total deferred taxes - assets at ending | 42,795 |
Total deferred taxes - liabilities at beginnig | 58,384 |
Unrealized | (58,384) |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending | |
Controlled subsidiary GLA and Smiles [Member] | Negative basis Of social contribution [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total deferred taxes - assets at beginnig | 6,114 |
Statement of operations | 8,246 |
Accumulated profits | |
Exchange Rate change | |
Reclassification | |
Total deferred taxes - assets at ending | 14,360 |
Total deferred taxes - liabilities at beginnig | 21,018 |
Unrealized | (21,018) |
Accumulated Profits | |
Exchange Rate Change | |
Reclassification | |
Total deferred taxes - liabilities at ending |
12. Deferred taxes (Details 1)
12. Deferred taxes (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
DeferredTaxesLineItems [Line Items] | ||
Accumulated income tax losses | R$ 159559 | R$ 170418 |
Negative basis of social contribution | 159,559 | 170,418 |
Deferred tax assets | 54,250 | 57,942 |
Gol Linhas Aereas S.A. ("GLA") [Member] | ||
DeferredTaxesLineItems [Line Items] | ||
Accumulated income tax losses | 5,017,227 | 5,631,209 |
Negative basis of social contribution | 5,017,227 | 5,631,209 |
Deferred tax assets | 1,705,857 | R$ 1914611 |
Smiles Fidelidade Argentina [Member] | ||
DeferredTaxesLineItems [Line Items] | ||
Accumulated income tax losses | 8,343 | |
Negative basis of social contribution | ||
Deferred tax assets | R$ 2905 |
12. Deferred taxes (Details 2)
12. Deferred taxes (Details 2) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
DeferredTaxesLineItems [Line Items] | |
Total | R$ 54250 |
2020 [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total | 4,768 |
2021 [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total | 8,375 |
2022 [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total | 7,473 |
2023 [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total | 8,332 |
2024 [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total | 9,471 |
2025 to 2029 [Member] | |
DeferredTaxesLineItems [Line Items] | |
Total | R$ 15831 |
12. Deferred taxes (Details 3)
12. Deferred taxes (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Taxes [abstract] | |||
Income (loss) before income taxes | R$ 388945 | R$ 482596 | R$ 70604 |
Combined tax rate | 34.00% | 34.00% | 34.00% |
Income at the statutory tax rate | R$ 132241 | R$ 164083 | R$ 24005 |
Adjustments to calculate the effective tax rate: | |||
Equity method investees | 26 | 132 | 185 |
Tax rate difference on results of offshore subsidiaries | (207,565) | 201,043 | (106,533) |
Non-deductible expenses, net | (61,219) | 161,815 | (65,718) |
Exchange rate change on foreign investments | (101,329) | (173,964) | (20,225) |
Interest on shareholders' equity | 8,212 | 6,998 | 4,817 |
Extemporaneous tax credit | 31,942 | ||
Deferred tax assets (liabilities) net recognized | 252,567 | (653,343) | 291,002 |
Use of tax credits in non-recurring installment Payments | (3,892) | 227,690 | |
Total income tax | (209,607) | (297,128) | 307,213 |
Income taxes | |||
Current | (178,621) | (52,139) | (239,846) |
Deferred | (30,986) | (244,989) | 547,059 |
Total income (loss) taxes | R$ 209607 | R$ 297128 | R$ 307213 |
12. Deferred taxes (Details Nar
12. Deferred taxes (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
DeferredTaxesLineItems [Line Items] | ||
Total tax credits | R$ 56903 | |
Deferred tax assets | 59,809 | R$ 73822 |
Negative basis Of social contribution [Member] | ||
DeferredTaxesLineItems [Line Items] | ||
Total tax credits | 2,653 | |
Temporary differences [Member] | ||
DeferredTaxesLineItems [Line Items] | ||
Total tax credits | 54,250 | |
Gol Linhas Aereas S.A. ("GLA") [Member] | Negative basis Of social contribution [Member] | ||
DeferredTaxesLineItems [Line Items] | ||
Total tax credits | 1,705,857 | |
Smiles Fidelidade Argentina [Member] | ||
DeferredTaxesLineItems [Line Items] | ||
Deferred tax assets | R$ 2905 | |
Deferred tax assets realized period | 36 months |
13. Advance to suppliers and _3
13. Advance to suppliers and third parties (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Advance to Suppliers and Third Parties [abstract] | ||
Oceanair advance | R$ 192715 | |
Advance to national suppliers | 95,596 | 17,373 |
Advance to international suppliers | 25,316 | 5,648 |
Advance for materials and repairs | 48,930 | 32,111 |
Total | 362,557 | 55,132 |
Adjustment to present value of advance to suppliers | (10,604) | |
Provision for loss of advance to oceanair | (161,228) | |
Total advance to suppliers | 190,725 | 55,132 |
Current | 142,338 | 55,132 |
Non-current | R$ 48387 |
13. Advance to suppliers and _4
13. Advance to suppliers and third parties (Details Narrative) - BRL (R$) R$ in Thousands | Apr. 05, 2019 | Apr. 03, 2019 |
Oceanair Linhas Aereas S.A. [Member] | ||
AdvanceToSuppliersAndThirdPartiesLineItems [Line Items] | ||
Loans granted | R$ 31487 | |
Elliott [Member] | ||
AdvanceToSuppliersAndThirdPartiesLineItems [Line Items] | ||
Granted an advance | R$ 161228 |
14. Deposits (Details)
14. Deposits (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits from customers [abstract] | ||
Judicial deposits | R$ 841746 | R$ 726491 |
Maintenance deposits | 830,282 | 647,057 |
Deposits in guarantee for leases agreements | 296,327 | 238,747 |
Total | R$ 1968355 | R$ 1612295 |
14. Deposits (Details Narrative
14. Deposits (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Deposits [Line Items] | ||
Percentage of lawsuit filed by the National Union of Airline Companies (SNEA) | 72.00% | |
Deposit of landing fees by Department of Airspace Control (DECEA) | R$ 239929 | R$ 153128 |
Maintenance guarantee | 213,449 | 249,080 |
Maintenance reserve | 616,833 | 397,977 |
Legal Proceedings Contingent Liability [Member] | ||
Disclosure of Deposits [Line Items] | ||
Blocked amounts under judicial deposits | 115,390 | 113,979 |
Third Party Claim Contingent Liability [Member] | ||
Disclosure of Deposits [Line Items] | ||
Blocked amounts under judicial deposits | R$ 107510 | R$ 76415 |
15. Investments (Details)
15. Investments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Netpoints Fidelidade S.A [Member] | |||
Relevant investment information measured under equity pick up method: | |||
Total number of shares | 130,492,408 | ||
Capital stock | R$ 75351 | ||
Interest | 25.40% | ||
Total equity | R$ 20758 | ||
Adjusted equity | [1] | ||
Net income for the year | (3,613) | ||
Net income for the period attributable to the company's interest | |||
SCP Trip [Member] | |||
Relevant investment information measured under equity pick up method: | |||
Total number of shares | |||
Capital stock | R$ 1318 | R$ 1318 | |
Interest | 60.00% | 60.00% | |
Total equity | R$ 2103 | R$ 1962 | |
Adjusted equity | [1] | 1,254 | 1,177 |
Net income for the year | 129 | 644 | |
Net income for the period attributable to the company's interest | R$ 77 | R$ 387 | |
[1] | Adjusted shareholders' equity corresponds to the percentage of total shareholders' equity net of unrealized profits. |
15. Investments (Details 1)
15. Investments (Details 1) - SCP Trip [Member] - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Changes in investments [Roll Forward] | ||||
Balances on December 31, 2017 | R$ 1177 | [1] | R$ 1333 | |
Equity method results | 77 | 387 | ||
Dividends and interest on shareholders' equity | (543) | |||
Balances on December 31, 2018 | R$ 1254 | R$ 1177 | [1] | |
[1] | Adjusted shareholders' equity corresponds to the percentage of total shareholders' equity net of unrealized profits. |
16. Property, plant and equip_3
16. Property, plant and equipment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | R$ 6058101 | R$ 2818057 | R$ 3195766 | |||
Adoption IFRS 16 | [1] | 2,934,256 | ||||
Additions | 498,640 | 635,157 | ||||
Disposals | [2] | (180,741) | (1,008,837) | |||
Transfers | [3] | (12,111) | (4,029) | |||
Property plant and equipment in use [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | R$ 130880 | 105,070 | 117,374 | |||
Adoption IFRS 16 | [1] | 41,420 | ||||
Additions | (15,129) | (12,090) | ||||
Disposals | [2] | (481) | (214) | |||
Spare Parts and Engines [[Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 7.15% | |||||
Aircraft - ROU with Purchase Option [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 5.76% | |||||
Aircraft - ROU with no Purchase Option [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 24.90% | |||||
Spare Parts And Engines - ROU [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 33.29% | |||||
Aircraft and engine overhauling [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 40.19% | |||||
Tools [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 10.00% | |||||
Flight equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | R$ 5812785 | 2,636,478 | 3,085,748 | |||
Adoption IFRS 16 | [1] | 2,892,836 | ||||
Additions | 434,426 | 392,591 | ||||
Disposals | [2] | (138,844) | (841,861) | |||
Transfers | (12,111) | [3] | 0 | |||
Advances For Acquisition Of Property, Plant And Equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 156,155 | 125,348 | 18,720 | |||
Additions | 79,343 | 277,419 | ||||
Disposals | [2] | R$ 48536 | (166,762) | |||
Transfers | [3] | (4,029) | ||||
Total Property Plant And Equipment In Use [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 269270900.00% | |||||
Property, plant and equipment | 5,901,946 | 3,177,046 | ||||
Impairment Losses | R$ 2934256 | |||||
Adoption IFRS 16 | 419,297 | |||||
Additions | (132,205) | 357,738 | ||||
Disposals | [2] | (842,075) | ||||
Transfers | [3] | (12,111) | ||||
Impairment Losses [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | (41,719) | (48,839) | [4] | (26,076) | [4] | |
Additions | [4] | (22,763) | ||||
Disposals | [2],[4] | 7,120 | ||||
Cost [Member] | Property plant and equipment in use [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 397,954 | 329,171 | 314,723 | |||
Adoption IFRS 16 | [1] | 41,420 | ||||
Additions | 31,130 | 18,523 | ||||
Disposals | [2] | (3,767) | (4,075) | |||
Cost [Member] | Spare Parts and Engines [[Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 1,764,295 | 1,583,865 | ||||
Additions | 191,219 | |||||
Disposals | [2] | (8,579) | ||||
Transfers | [3] | (2,210) | ||||
Cost [Member] | Aircraft - ROU with Purchase Option [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 660,256 | 673,675 | [5] | 2,000,866 | ||
Disposals | [2] | (13,419) | (1,327,191) | |||
Cost [Member] | Aircraft - ROU with no Purchase Option [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 3,561,980 | |||||
Adoption IFRS 16 | [1] | 2,821,509 | ||||
Additions | 914,532 | |||||
Disposals | [2] | (161,811) | ||||
Transfers | [3] | (12,250) | ||||
Cost [Member] | Spare Parts And Engines - ROU [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 109,977 | |||||
Adoption IFRS 16 | [1] | 71,327 | ||||
Additions | 39,569 | |||||
Disposals | [2] | (919) | ||||
Cost [Member] | Aircraft and engine overhauling [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 3,084,023 | 2,443,747 | 1,807,133 | |||
Additions | 887,177 | 759,483 | ||||
Disposals | [2] | (246,901) | (122,869) | |||
Cost [Member] | Tools [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 53,454 | 44,121 | 36,199 | |||
Additions | 7,599 | 8,078 | ||||
Disposals | [2] | (553) | (156) | |||
Transfers | [3] | 2,287 | ||||
Cost [Member] | Flight equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 9,233,985 | 4,745,408 | 5,189,359 | |||
Adoption IFRS 16 | [1] | 2,892,836 | ||||
Additions | 2,040,096 | 1,010,216 | ||||
Disposals | [2] | (432,182) | (1,454,167) | |||
Transfers | [3] | (12,173) | ||||
Cost [Member] | Spare Parts and Engines [[Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 1,345,161 | |||||
Additions | 242,655 | |||||
Disposals | [2] | (3,951) | ||||
Cost [Member] | Vehicles [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 11,681 | 11,513 | 10,548 | |||
Additions | 1,428 | 1,177 | ||||
Disposals | [2] | (1,260) | (212) | |||
Cost [Member] | Machinery and equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 63,091 | 59,404 | 57,834 | |||
Additions | 4,073 | 1,958 | ||||
Disposals | [2] | (386) | (388) | |||
Cost [Member] | Furniture and fixtures [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 32,983 | 30,698 | 28,148 | |||
Additions | 2,601 | 2,963 | ||||
Disposals | [2] | (316) | (413) | |||
Cost [Member] | Computers and peripherals - Own [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 45,732 | 40,813 | 39,458 | |||
Additions | 6,510 | 4,406 | ||||
Disposals | [2] | (1,591) | (3,051) | |||
Cost [Member] | Computers And Peripherals - ROU [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 21,992 | |||||
Adoption IFRS 16 | [1] | 20,619 | ||||
Additions | 1,373 | |||||
Cost [Member] | Communication equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 2,548 | 2,692 | 2,617 | |||
Additions | 70 | 86 | ||||
Disposals | [2] | (214) | (11) | |||
Cost [Member] | Safety equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 856 | 856 | 843 | |||
Additions | 13 | |||||
Cost [Member] | Improvement On Third Party Property - CMA [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 107,637 | 107,637 | ||||
Cost [Member] | Leasehold improvements [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 71,174 | 60,115 | 34,645 | |||
Additions | 973 | 654 | ||||
Transfers | [3] | 10,086 | 24,816 | |||
Cost [Member] | Third-party real Estate - ROU [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 22,354 | 33,503 | ||||
Adoption IFRS 16 | [1] | 20,801 | ||||
Additions | 1,553 | 6,830 | ||||
Transfers | [3] | (24,890) | ||||
Cost [Member] | Construction in progress [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | 17,906 | 15,443 | ||||
Additions | 12,549 | |||||
Transfers | [3] | (10,086) | ||||
Cost [Member] | Leasehold Improvements - CMA [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | [6] | 107,127 | ||||
Additions | [6] | 436 | ||||
Transfers | [3] | 74 | ||||
Depreciation [Member] | Property plant and equipment in use [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | (267,074) | (224,101) | (197,348) | |||
Additions | (46,259) | (30,614) | ||||
Disposals | [2] | 3,286 | R$ 3861 | |||
Depreciation [Member] | Aircraft - ROU with Purchase Option [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 5.76% | |||||
Property, plant and equipment | (226,433) | (222,240) | R$ 649430 | |||
Additions | (17,612) | (44,578) | ||||
Disposals | [2] | 13,419 | R$ 471768 | |||
Depreciation [Member] | Aircraft - ROU with no Purchase Option [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | (719,377) | |||||
Additions | (760,482) | |||||
Disposals | [2] | 41,105 | ||||
Depreciation [Member] | Spare Parts And Engines - ROU [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | (26,745) | |||||
Additions | (26,745) | |||||
Depreciation [Member] | Aircraft and engine overhauling [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 30.47% | |||||
Property, plant and equipment | (1,717,552) | (1,275,298) | R$ 941372 | |||
Additions | (677,092) | (441,771) | ||||
Disposals | [2] | 234,838 | R$ 107845 | |||
Depreciation [Member] | Tools [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 10.00% | |||||
Property, plant and equipment | (24,712) | (21,153) | R$ 18125 | |||
Additions | (3,566) | (3,107) | ||||
Disposals | [2] | 338 | 83 | |||
Transfers | [3] | (331) | (4) | |||
Depreciation [Member] | Flight equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Property, plant and equipment | (3,421,200) | (2,108,930) | (2,103,611) | |||
Additions | (1,605,670) | (617,625) | ||||
Disposals | [2] | 293,338 | 612,306 | |||
Transfers | [3] | 62 | R$ 0 | |||
Depreciation [Member] | Spare Parts and Engines [[Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 6.91% | |||||
Property, plant and equipment | R$ 706381 | (590,239) | R$ 494684 | |||
Additions | (120,173) | (128,169) | ||||
Disposals | [2] | 3,638 | 32,610 | |||
Transfers | [3] | R$ 393 | 4 | |||
Depreciation [Member] | Vehicles [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 20.00% | 20.00% | ||||
Property, plant and equipment | R$ 9291 | R$ 9609 | (9,100) | |||
Additions | (649) | (612) | ||||
Disposals | [2] | R$ 967 | 103 | |||
Depreciation [Member] | Machinery and equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 10.00% | 10.00% | ||||
Property, plant and equipment | R$ 45437 | R$ 41619 | (37,792) | |||
Additions | (4,131) | (4,189) | ||||
Disposals | [2] | R$ 313 | 362 | |||
Depreciation [Member] | Furniture and fixtures [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 10.00% | 10.00% | ||||
Property, plant and equipment | R$ 19908 | R$ 18188 | (16,639) | |||
Additions | (2,016) | (1,918) | ||||
Disposals | [2] | R$ 296 | 369 | |||
Depreciation [Member] | Computers and peripherals - Own [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 20.00% | 20.00% | ||||
Property, plant and equipment | R$ 33190 | R$ 31314 | (30,464) | |||
Additions | (3,424) | (3,870) | ||||
Disposals | [2] | 1,548 | 3,020 | |||
Depreciation [Member] | Computers And Peripherals - ROU [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 36.59% | |||||
Property, plant and equipment | R$ 7682 | |||||
Additions | R$ 7682 | |||||
Depreciation [Member] | Communication equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 10.00% | 10.00% | ||||
Property, plant and equipment | R$ 2081 | R$ 2089 | (1,915) | |||
Additions | (154) | (181) | ||||
Disposals | [2] | R$ 162 | 7 | |||
Depreciation [Member] | Safety equipment [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 10.00% | 10.00% | ||||
Property, plant and equipment | R$ 615 | R$ 533 | (437) | |||
Additions | R$ 82 | (96) | ||||
Depreciation [Member] | Leasehold improvements [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 22.09% | 19.06% | ||||
Property, plant and equipment | R$ 39039 | R$ 29354 | (20,792) | |||
Additions | (9,685) | (8,562) | ||||
Depreciation [Member] | Third-party real Estate - ROU [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 32.18% | |||||
Property, plant and equipment | R$ 7156 | |||||
Additions | R$ 7156 | |||||
Depreciation [Member] | Leasehold Improvements - CMA [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Average annual depreciation rate | 10.43% | 10.43% | ||||
Property, plant and equipment | [6] | R$ 102675 | R$ 91395 | (80,209) | ||
Additions | [6] | R$ 11280 | R$ 11186 | |||
[1] | Effect related to IFRS 16 adoption, as disclosed in Note 4.26.1. | |||||
[2] | The amounts are composed of sales and write-offs. | |||||
[3] | Transfer from other GAC credits. | |||||
[4] | Refers to provisions for impairment losses for rotable items, classified under ''Spare Parts and Engines'', recorded by the Company in order to present its assets according to the actual capacity for the generation of economic benefits. | |||||
[5] | ROU - Right of Use. | |||||
[6] | CMA - Maintenance Center - Confins/MG |
17. Intangible assets (Details)
17. Intangible assets (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | R$ 1776675 | R$ 1777466 |
Additions | (208) | 30,181 |
Write-offs | (583) | |
Balance as of end of period | 1,776,675 | |
Other [Member] | ||
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | 10,000 | 10,000 |
Balance as of end of period | 10,000 | |
Software [Member] | ||
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | 579,370 | 456,282 |
Balance as of end of period | 579,370 | |
Goodwill [Member] | ||
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | 542,302 | 542,302 |
Balance as of end of period | 542,302 | |
Slots [Member] | ||
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | 1,038,900 | 1,038,900 |
Balance as of end of period | 1,038,900 | |
Amortization [Member] | ||
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | (393,897) | (342,162) |
Additions | (76,053) | (51,898) |
Write-offs | 24,318 | 9,935 |
Balance as of end of period | (393,897) | |
Amortization [Member] | Other [Member] | ||
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | (4,167) | (2,167) |
Additions | R$ 2000 | (2,000) |
Balance as of end of period | R$ 4167 | |
Average annual depreciation rate | 20.00% | 20.00% |
Amortization [Member] | Software [Member] | ||
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | R$ 389730 | R$ 300032 |
Additions | (74,053) | (49,898) |
Write-offs | R$ 24318 | 9,935 |
Balance as of end of period | R$ 389730 | |
Average annual depreciation rate | 23.93% | 22.09% |
Cost [Member] | ||
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | R$ 2170572 | |
Additions | 75,845 | R$ 82079 |
Write-offs | (24,901) | (9,935) |
Balance as of end of period | 2,170,572 | |
Cost [Member] | Software [Member] | ||
Intangible Assets And Goodwill [Roll Forward] | ||
Balance as of beginning of period | 528,426 | 456,282 |
Additions | 75,845 | 82,079 |
Write-offs | (24,901) | (9,935) |
Balance as of end of period | R$ 579370 | R$ 528426 |
17. Intangible assets (Details
17. Intangible assets (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Member] | Gol Linhas Aereas S.A. ("GLA") [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets - book values | R$ 325381 | R$ 325381 |
Intangible assets - book value - UGC | 3,615,949 | (275,500) |
Intangible assets - value in use | R$ 26543428 | R$ 23058697 |
Intangible assets - discount rate | 12.20% | 14.91% |
Intangible assets - perpetuity growth rate | 3.55% | 3.50% |
Goodwill [Member] | Smiles S.A. ("Smiles") [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets - book values | R$ 216921 | R$ 216921 |
Intangible assets - book value - UGC | 161,669 | 602,740 |
Intangible assets - value in use | R$ 6061994 | R$ 7005622 |
Intangible assets - discount rate | 12.07% | 16.95% |
Intangible assets - perpetuity growth rate | 3.55% | 3.50% |
Airport Operation Rights [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets - book values | R$ 1038900 | R$ 1038900 |
Intangible assets - book value - UGC | 3,615,949 | 1,038,900 |
Intangible assets - value in use | R$ 21373789 | R$ 15158551 |
Intangible assets - discount rate | 12.85% | 13.94% |
Intangible assets - perpetuity growth rate | 3.53% | 3.50% |
18. Loans and Financing (Detail
18. Loans and Financing (Details) R$ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Disclosure of detailed information about borrowings [line items] | ||||||
Noncurrent | R$ | R$ 5866802 | R$ 5340601 | ||||
USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt | $ 6,443,807 | |||||
Funding | $ 2,358,896 | |||||
Unrealized gain and loss from ESN | (40,717) | |||||
Debentures VII [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt | R$ | [1] | R$ 866972 | ||||
Funding | R$ | [1] | |||||
Unrealized gain and loss from ESN | R$ | [1] | |||||
Term Loan [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt | [2] | 1,172,451 | ||||
Funding | [2] | |||||
Unrealized gain and loss from ESN | [2] | |||||
Import Financing [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt | [3] | 503,869 | ||||
Funding | [3] | 164,234 | ||||
Unrealized gain and loss from ESN | [3] | |||||
Senior Notes IV [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt | [4] | 365,845 | ||||
Funding | [4] | |||||
Unrealized gain and loss from ESN | [4] | |||||
Exchangeable Senior Notes Derivatives [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [5] | 07/2024 | ||||
Current | [5] | |||||
Noncurrent | [5] | |||||
Total debt | [5] | |||||
Funding | [5] | 1,638,011 | ||||
Unrealized gain and loss from ESN | [5] | (40,717) | ||||
Credit Line - Engine Maintenance [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt | [6] | 363,310 | ||||
Funding | 500,199 | |||||
Unrealized gain and loss from ESN | [6] | |||||
Senior Notes VIII [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt | [7] | 2,512,150 | ||||
Funding | [7] | |||||
Unrealized gain and loss from ESN | [7] | |||||
Loan With Guarantee Of Engines [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt | [8] | 133,608 | ||||
Funding | [8] | 56,452 | ||||
Unrealized gain and loss from ESN | [8] | |||||
Perpetual Notes [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt | [9] | 525,602 | ||||
Funding | [9] | |||||
Unrealized gain and loss from ESN | [9] | |||||
Local Currency Short-term Borrowings [Member] | Debentures VII [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [1] | 09/2021 | ||||
Interest rate p.a. | [1] | 120% da DI rate | ||||
Current | R$ | [1] | R$ 288991 | ||||
Payments | R$ | [1] | (295,834) | ||||
Interest | R$ | [1] | 52,596 | ||||
Interest paid | R$ | [1] | (52,475) | ||||
Exchange rate change | R$ | [1] | |||||
Local Currency Long-term Borrowings [Member] | Debentures VII [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [1] | 09/2021 | ||||
Interest rate p.a. | [1] | 120% da DI rate | ||||
Noncurrent | R$ | [1] | R$ 577981 | ||||
Payments | R$ | [1] | 7,466 | ||||
Interest | R$ | [1] | 289,423 | ||||
Interest paid | R$ | [1] | 289,302 | ||||
Exchange rate change | R$ | [1] | R$ 578725 | ||||
Foreign Currency Long-term Borrowings [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Noncurrent | 5,340,601 | |||||
Payments | 37,927 | |||||
Interest | $ 2,543,039 | |||||
Interest paid | 5,866,802 | |||||
Exchange rate change | 8,409,841 | |||||
Foreign Currency Long-term Borrowings [Member] | Term Loan [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [2] | 08/2020 | ||||
Interest rate p.a. | [2] | 6.70% p.a. | ||||
Noncurrent | [2] | 1,147,196 | ||||
Payments | [2] | 9,146 | ||||
Interest | [2] | 1,229,600 | ||||
Interest paid | [2] | |||||
Exchange rate change | [2] | 1,229,600 | ||||
Foreign Currency Long-term Borrowings [Member] | Import Financing [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Noncurrent | [3] | |||||
Payments | [3] | |||||
Interest | [3] | 663,979 | ||||
Interest paid | [3] | |||||
Exchange rate change | [3] | 663,979 | ||||
Foreign Currency Long-term Borrowings [Member] | Senior Notes IV [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [4] | 01/2022 | ||||
Interest rate p.a. | [4] | 9.24% p.a. | ||||
Noncurrent | [4] | 352,205 | ||||
Payments | [4] | 1,045 | ||||
Interest | [4] | 12,102 | ||||
Interest paid | [4] | 313,267 | ||||
Exchange rate change | [4] | 325,369 | ||||
Foreign Currency Long-term Borrowings [Member] | Exchangeable Senior Notes Derivatives [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Payments | [5] | 2,366 | ||||
Interest | [5] | 29,443 | ||||
Interest paid | [5] | 1,753,526 | ||||
Exchange rate change | [5] | 1,782,969 | ||||
Foreign Currency Long-term Borrowings [Member] | Credit Line - Engine Maintenance [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [6] | 09/2024 | ||||
Interest rate p.a. | [6] | 2.75% | ||||
Noncurrent | [6] | 189,888 | ||||
Payments | [6] | 9,204 | ||||
Interest | [6] | 198,363 | ||||
Interest paid | [6] | 277,479 | ||||
Exchange rate change | [6] | 475,842 | ||||
Foreign Currency Long-term Borrowings [Member] | Senior Notes VIII [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [7] | 01/2025 | ||||
Interest rate p.a. | [7] | 7.09% | ||||
Noncurrent | [7] | 2,439,492 | ||||
Payments | [7] | 8,556 | ||||
Interest | [7] | 75,587 | ||||
Interest paid | [7] | 2,548,472 | ||||
Exchange rate change | [7] | 2,624,059 | ||||
Foreign Currency Long-term Borrowings [Member] | Loan With Guarantee Of Engines [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [8] | 12/2026 | ||||
Interest rate p.a. | [8] | 5.16% | ||||
Noncurrent | [8] | 120,557 | ||||
Payments | [8] | 144 | ||||
Interest | [8] | 31,727 | ||||
Interest paid | [8] | 150,821 | ||||
Exchange rate change | [8] | 182,548 | ||||
Foreign Currency Long-term Borrowings [Member] | Perpetual Notes [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate p.a. | [9] | 8.75% p.a. | ||||
Noncurrent | [9] | 513,282 | ||||
Payments | [9] | |||||
Interest | [9] | 12,815 | ||||
Interest paid | [9] | 533,935 | ||||
Exchange rate change | [9] | 546,750 | ||||
Foreign Currency Short-term Borrowings [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 1,103,206 | |||||
Payments | (793,537) | |||||
Interest | 533,754 | |||||
Interest paid | (444,006) | |||||
Exchange rate change | 313,717 | |||||
Foreign Currency Short-term Borrowings [Member] | Term Loan [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [2] | 08/2020 | ||||
Interest rate p.a. | [2] | 6.70% p.a. | ||||
Current | [2] | 25,255 | ||||
Payments | [2] | |||||
Interest | [2] | 76,927 | ||||
Interest paid | [2] | (76,612) | ||||
Exchange rate change | [2] | 47,688 | ||||
Foreign Currency Short-term Borrowings [Member] | Import Financing [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [3] | 11/2020 | ||||
Interest rate p.a. | [3] | 5.32% | ||||
Current | [3] | 503,869 | ||||
Payments | [3] | (27,399) | ||||
Interest | [3] | 33,666 | ||||
Interest paid | [3] | (33,743) | ||||
Exchange rate change | [3] | 23,352 | ||||
Foreign Currency Short-term Borrowings [Member] | Senior Notes IV [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [4] | 01/2022 | ||||
Interest rate p.a. | [4] | 9.24% p.a. | ||||
Current | [4] | 13,640 | ||||
Payments | [4] | (50,320) | ||||
Interest | [4] | 27,762 | ||||
Interest paid | [4] | (28,013) | ||||
Exchange rate change | [4] | 9,050 | ||||
Foreign Currency Short-term Borrowings [Member] | Exchangeable Senior Notes Derivatives [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Payments | [5] | |||||
Interest | [5] | 93,826 | ||||
Interest paid | [5] | (14,748) | ||||
Exchange rate change | [5] | 104,231 | ||||
Foreign Currency Short-term Borrowings [Member] | Credit Line - Engine Maintenance [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [6] | 09/2024 | ||||
Interest rate p.a. | [6] | 2.75% | ||||
Current | [6] | 173,422 | ||||
Payments | [6] | (403,039) | ||||
Interest | [6] | 14,160 | ||||
Interest paid | [6] | (15,570) | ||||
Exchange rate change | [6] | 7,578 | ||||
Foreign Currency Short-term Borrowings [Member] | Senior Notes VIII [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [7] | 01/2025 | ||||
Interest rate p.a. | [7] | 7.09% | ||||
Current | [7] | 72,658 | ||||
Payments | [7] | |||||
Interest | [7] | 177,539 | ||||
Interest paid | [7] | (166,894) | ||||
Exchange rate change | [7] | 92,708 | ||||
Foreign Currency Short-term Borrowings [Member] | Loan With Guarantee Of Engines [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity of the contract | [8] | 12/2026 | ||||
Interest rate p.a. | [8] | 5.16% | ||||
Current | [8] | $ 13,053 | ||||
Payments | [8] | (16,945) | ||||
Interest | [8] | 11,398 | ||||
Interest paid | [8] | (11,394) | ||||
Exchange rate change | [8] | 9,285 | ||||
Foreign Currency Short-term Borrowings [Member] | Perpetual Notes [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate p.a. | [9] | 8.75% | ||||
Current | R$ | [9] | R$ 12320 | ||||
Payments | [9] | |||||
Interest | [9] | $ 45,880 | ||||
Interest paid | [9] | (44,557) | ||||
Exchange rate change | [9] | $ 19,825 | ||||
[1] | Issuance of 88,750 debentures by the subsidiary GLA on October 22, 2018, for the purpose of early full settlement of Debentures VII. | |||||
[2] | Issuance of a Term Loan by the subsidiary Gol Finance on August 31, 2016 to finance the acquisition of aircraft and bank financing, with a personal guarantee from Delta Airlines. | |||||
[3] | Credit lines with private banks used to finance the import of spare parts and aeronautical equipment. Maturities will occur throughout 2019. The interest rates negotiated are Libor 3m + 4.40% p.a. and Libor 1m + 3.25% p.a. | |||||
[4] | Issuance of Senior Bonus IV by the subsidiary Gol Finance on September 24, 2014, with the purpose to fund the partial repurchase of Senior Bonuses I and II. | |||||
[5] | Issuance of Exchangeable Senior Notes ("ESN") by the subsidiary Gol Finance in March, April and July 2019, totaling US$425 million, maturing in 2024, which will bear a nominal interest of 3.75% per annum. | |||||
[6] | Issuance of 3 series of Guaranteed Notes to finance engine maintenance. | |||||
[7] | Issuance of Senior Bonds VII by the subsidiary Gol Finance on July 7, 2016, resulting from the private exchange offer of Senior Bonds I, II, III, IV and Perpetual Bonds. In the year ended on December 31, 2018, the financing was settled in advance (further details were disclosed in the financial statement for the year ended on December 31, 2018). | |||||
[8] | Loans with a guarantee of 5 engines in total, made on June 28, 2018. The contracted rates vary between Libor 6m + 2.35% p.a. up to Libor 6m + 4.25% p.a. | |||||
[9] | Issuance of Perpetual Bonds by the subsidiary Gol Finance on April 5, 2006 to finance the acquisition of aircraft. |
18. Loans and Financing (Deta_2
18. Loans and Financing (Details 1) - 12 months ended Dec. 31, 2019 R$ in Thousands, $ in Thousands | BRL (R$) | USD ($) | USD ($) |
Exchangeable Senior Notes ("ESN") On March 26, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Indebtedness | 03/26/2016 | 03/26/2016 | |
Nominal issue | R$ | R$ 1169010 | ||
Goodwill | R$ | |||
Cost assigned to the indebtedness component | R$ | (47,067) | ||
Cost assigned to the derivative component | R$ | (25,248) | ||
Capped call | R$ | (101,214) | ||
Net funding | R$ | R$ 995481 | ||
Exchangeable Senior Notes ("ESN") On March 26, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Indebtedness | 03/26/2019 | 03/26/2019 | |
Nominal issue | $ | $ 300,000 | ||
Goodwill | $ | |||
Cost assigned to the indebtedness component | $ | $ (12,179) | ||
Cost assigned to the derivative component | $ | (6,533) | ||
Capped call | $ | (26,190) | ||
Net funding | $ | $ 255,098 | ||
Exchangeable Senior Notes ("ESN") On April 17, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Indebtedness | 04/17/2019 | 04/17/2019 | |
Nominal issue | R$ | R$ 177539 | ||
Goodwill | R$ | |||
Cost assigned to the indebtedness component | R$ | (14,870) | ||
Cost assigned to the derivative component | R$ | (5,760) | ||
Capped call | R$ | (15,499) | ||
Net funding | R$ | R$ 141410 | ||
Exchangeable Senior Notes ("ESN") On April 17, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Indebtedness | 04/17/2019 | 04/17/2019 | |
Nominal issue | $ | 45,000 | ||
Goodwill | $ | |||
Cost assigned to the indebtedness component | $ | $ (3,862) | ||
Cost assigned to the derivative component | $ | (1,463) | ||
Capped call | $ | (3,929) | ||
Net funding | $ | $ 35,746 | ||
Exchangeable Senior Notes ("ESN") On July 17, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Indebtedness | 07/17/2019 | 07/17/2019 | |
Nominal issue | R$ | R$ 301192 | ||
Goodwill | R$ | 60,194 | ||
Cost assigned to the indebtedness component | R$ | (7,987) | ||
Cost assigned to the derivative component | R$ | (8,453) | ||
Capped call | R$ | (36,444) | ||
Net funding | R$ | R$ 308502 | ||
Exchangeable Senior Notes ("ESN") On July 17, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Indebtedness | 07/17/2019 | 07/17/2019 | |
Nominal issue | $ | 80,000 | ||
Goodwill | $ | 16,000 | ||
Cost assigned to the indebtedness component | $ | $ (2,123) | ||
Cost assigned to the derivative component | $ | (2,247) | ||
Capped call | $ | (9,680) | ||
Net funding | $ | 81,950 | ||
Exchangeable Senior Notes Derivatives [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal issue | R$ | R$ 1647741 | ||
Goodwill | R$ | 60,194 | ||
Cost assigned to the indebtedness component | R$ | (69,924) | ||
Cost assigned to the derivative component | R$ | (39,461) | ||
Capped call | R$ | (153,157) | ||
Net funding | R$ | R$ 1445393 | ||
Exchangeable Senior Notes Derivatives [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal issue | $ | 425,000 | ||
Goodwill | $ | $ 16,000 | ||
Cost assigned to the indebtedness component | $ | (18,164) | ||
Cost assigned to the derivative component | $ | (10,243) | ||
Capped call | $ | (39,799) | ||
Net funding | $ | $ 372,794 |
18. Loans and financing (Deta_3
18. Loans and financing (Details 2) - 12 months ended Dec. 31, 2019 - Gol Linhas Aereas S.A. ("GLA") [Member] R$ in Thousands, $ in Thousands | BRL (R$) | USD ($) |
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | R$ | R$ 510648 | |
USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | $ 125,469 | |
Import Financing On January 24, 2019 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction date | 01/24/2019 | |
Principal amount | R$ | R$ 24409 | |
Interest rate (p.a.) | 6.57% | |
Import Financing On January 24, 2019 [Member] | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | 6,454 | |
Import Financing On February 4, 2019 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction date | 02/04/2019 | |
Principal amount | R$ | R$ 21777 | |
Interest rate (p.a.) | 6.52% | |
Import Financing On February 4, 2019 [Member] | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | 5,924 | |
Import Financing On February 21, 2019 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction date | 02/21/2019 | |
Principal amount | R$ | R$ 26576 | |
Interest rate (p.a.) | 6.46% | |
Import Financing On February 21, 2019 [Member] | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | 7,069 | |
Import Financing On April 18, 2019 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction date | 04/18/2019 | |
Principal amount | R$ | R$ 27737 | |
Interest rate (p.a.) | 4.98% | |
Import Financing On April 18, 2019 [Member] | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | 7,045 | |
Import Financing On July 5, 2019 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction date | 07/05/2019 | |
Principal amount | R$ | R$ 16560 | |
Interest rate (p.a.) | 5.93% | |
Import Financing On July 5, 2019 [Member] | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | 4,334 | |
Import Financing On August 20, 2019 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction date | 08/20/2019 | |
Principal amount | R$ | R$ 13729 | |
Interest rate (p.a.) | 4.37% | |
Import Financing On August 20, 2019 [Member] | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | 3,396 | |
Import Financing On November, 19, 2019 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction date | 11/19/2019 | |
Principal amount | R$ | R$ 30466 | |
Interest rate (p.a.) | 4.46% | |
Import Financing On November, 19, 2019 [Member] | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | 7,172 | |
Import Financing On December, 18, 2019 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Transaction date | 12/18/2019 | |
Principal amount | R$ | R$ 2980 | |
Interest rate (p.a.) | 5.74% | |
Import Financing On December, 18, 2019 [Member] | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | 735 | |
Import Financing [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | R$ | R$ 164234 | |
Import Financing [Member] | USD | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ | $ 42,129 |
18. Loans and financing (Deta_4
18. Loans and financing (Details 3) - 12 months ended Dec. 31, 2019 - Gol Linhas Aereas S.A. ("GLA") [Member] R$ in Thousands, $ in Thousands | BRL (R$) | USD ($) | USD ($) |
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | R$ | R$ 510648 | ||
Cost | R$ | R$ 10449 | ||
USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | $ 125,469 | ||
Cost | $ | $ 2,588 | ||
Credit Line - Engine Maintenance On February 15, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction date | 02/15/2019 | 02/15/2019 | |
Principal amount | R$ | R$ 37969 | ||
Cost | R$ | R$ 1185 | ||
Interest rate (p.a.) | Libor 3m+0.75% p.a. | Libor 3m+0.75% p.a. | |
Credit Line - Engine Maintenance On February 15, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | 10,219 | ||
Cost | $ | $ 319 | ||
Credit Line - Engine Maintenance On May 10, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction date | 05/10/2019 | 05/10/2019 | |
Principal amount | R$ | R$ 40444 | ||
Cost | R$ | R$ 1143 | ||
Interest rate (p.a.) | Libor 3m+0.70% p.a. | Libor 3m+0.70% p.a. | |
Credit Line - Engine Maintenance On May 10, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | 10,219 | ||
Cost | $ | $ 289 | ||
Credit Line - Engine Maintenance On August 30, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction date | 08/30/2019 | 08/30/2019 | |
Principal amount | R$ | R$ 106659 | ||
Cost | R$ | R$ 3818 | ||
Interest rate (p.a.) | Libor 3m+0.60% p.a. | Libor 3m+0.60% p.a. | |
Credit Line - Engine Maintenance On August 30, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | 25,722 | ||
Cost | $ | $ 922 | ||
Credit Line - Engine Maintenance On October 7, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction date | 10/07/2019 | 10/07/2019 | |
Principal amount | R$ | R$ 226724 | ||
Cost | R$ | R$ 1408 | ||
Interest rate (p.a.) | Libor 3m+2.25% p.a. | Libor 3m+2.25% p.a. | |
Credit Line - Engine Maintenance On October 7, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | 54,784 | ||
Cost | $ | $ 340 | ||
Credit Line - Engine Maintenance On December 6, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction date | 12/06/2019 | 12/06/2019 | |
Principal amount | R$ | R$ 98852 | ||
Cost | R$ | R$ 2895 | ||
Interest rate (p.a.) | Libor 3m+0.55% p.a. | Libor 3m+0.55% p.a. | |
Credit Line - Engine Maintenance On December 6, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | $ 24,525 | ||
Cost | $ | $ 718 |
18. Loans and financing (Deta_5
18. Loans and financing (Details 4) - 12 months ended Dec. 31, 2019 - Gol Linhas Aereas S.A. ("GLA") [Member] R$ in Thousands, $ in Thousands | BRL (R$) | USD ($) | USD ($) |
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | R$ | R$ 510648 | ||
Cost | R$ | R$ 10449 | ||
USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | $ 125,469 | ||
Cost | $ | $ 2,588 | ||
Loan with Guarantee of Engines On January 22, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction date | 01/22/2019 | 01/22/2019 | |
Principal amount | R$ | R$ 43129 | ||
Cost | R$ | R$ 580 | ||
Interest rate (p.a.) | Libor 3m+0.75% p.a. | Libor 3m+0.75% p.a. | |
Loan with Guarantee of Engines On January 22, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | 11,700 | ||
Cost | $ | $ 154 | ||
Loan with Guarantee of Engines On April 24, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction date | 04/24/2019 | 04/24/2019 | |
Principal amount | R$ | R$ 4603 | ||
Cost | R$ | |||
Interest rate (p.a.) | Libor 1m+3.25% p.a. | Libor 1m+3.25% p.a. | |
Loan with Guarantee of Engines On April 24, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | 1,161 | ||
Cost | $ | |||
Loan with Guarantee of Engines On June 13, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction date | 06/13/2019 | 06/13/2019 | |
Principal amount | R$ | R$ 4463 | ||
Cost | R$ | |||
Interest rate (p.a.) | Libor 1m+3.25% p.a. | Libor 1m+3.25% p.a. | |
Loan with Guarantee of Engines On June 13, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | 1,161 | ||
Cost | $ | |||
Loan with Guarantee of Engines On September 30, 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction date | 09/30/2019 | 09/30/2019 | |
Principal amount | R$ | R$ 4837 | ||
Cost | R$ | |||
Interest rate (p.a.) | Libor 1m+3.25% p.a. | Libor 1m+3.25% p.a. | |
Loan with Guarantee of Engines On September 30, 2019 [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | 1,161 | ||
Cost | $ | |||
Loan with Guarantee of Engines [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | R$ | R$ 57032 | ||
Cost | R$ | R$ 580 | ||
Loan with Guarantee of Engines [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount | $ | $ 15,183 | ||
Cost | $ | $ 154 |
18. Loans and Financing (Deta_6
18. Loans and Financing (Details 5) R$ in Thousands, $ in Thousands | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2018BRL (R$) |
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | R$ 2543039 | R$ 1103206 | |
2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | 1,920,459 | ||
Without Maturity Date [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | 533,935 | ||
2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | 403,253 | ||
2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | 350,066 | ||
2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | 37,516 | ||
2024 and Thereafter [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | 2,621,573 | ||
Local Currency Long-term Borrowings [Member] | Debentures VII [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | 289,302 | ||
Local Currency Long-term Borrowings [Member] | Debentures VII [Member] | 2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | 289,302 | ||
Local Currency Long-term Borrowings [Member] | Debentures VII [Member] | 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | |||
Local Currency Long-term Borrowings [Member] | Debentures VII [Member] | 2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | |||
Local Currency Long-term Borrowings [Member] | Debentures VII [Member] | 2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | |||
Local Currency Long-term Borrowings [Member] | Debentures VII [Member] | 2024 and Thereafter [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | |||
Local Currency Long-term Borrowings [Member] | Debentures VII [Member] | Without Maturity Date [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | |||
Foreign Currency Long-term Borrowings [Member] | Credit Line - Engine Maintenance [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | $ 277,479 | ||
Foreign Currency Long-term Borrowings [Member] | Credit Line - Engine Maintenance [Member] | USD | 2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 95,574 | ||
Foreign Currency Long-term Borrowings [Member] | Credit Line - Engine Maintenance [Member] | USD | 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 17,747 | ||
Foreign Currency Long-term Borrowings [Member] | Credit Line - Engine Maintenance [Member] | USD | 2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 17,747 | ||
Foreign Currency Long-term Borrowings [Member] | Credit Line - Engine Maintenance [Member] | USD | 2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 146,411 | ||
Foreign Currency Long-term Borrowings [Member] | Credit Line - Engine Maintenance [Member] | USD | 2024 and Thereafter [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Credit Line - Engine Maintenance [Member] | USD | Without Maturity Date [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Loan With Guarantee Of Engines [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 150,821 | ||
Foreign Currency Long-term Borrowings [Member] | Loan With Guarantee Of Engines [Member] | USD | 2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 18,377 | ||
Foreign Currency Long-term Borrowings [Member] | Loan With Guarantee Of Engines [Member] | USD | 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 19,052 | ||
Foreign Currency Long-term Borrowings [Member] | Loan With Guarantee Of Engines [Member] | USD | 2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 19,769 | ||
Foreign Currency Long-term Borrowings [Member] | Loan With Guarantee Of Engines [Member] | USD | 2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 20,522 | ||
Foreign Currency Long-term Borrowings [Member] | Loan With Guarantee Of Engines [Member] | USD | 2024 and Thereafter [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 73,101 | ||
Foreign Currency Long-term Borrowings [Member] | Loan With Guarantee Of Engines [Member] | USD | Without Maturity Date [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes IV [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 313,267 | ||
Foreign Currency Long-term Borrowings [Member] | Senior Notes IV [Member] | USD | 2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes IV [Member] | USD | 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 313,267 | ||
Foreign Currency Long-term Borrowings [Member] | Senior Notes IV [Member] | USD | 2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes IV [Member] | USD | 2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes IV [Member] | USD | 2024 and Thereafter [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes IV [Member] | USD | Without Maturity Date [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Perpetual Notes [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 533,935 | ||
Foreign Currency Long-term Borrowings [Member] | Perpetual Notes [Member] | USD | 2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Perpetual Notes [Member] | USD | 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Perpetual Notes [Member] | USD | 2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Perpetual Notes [Member] | USD | 2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Perpetual Notes [Member] | USD | 2024 and Thereafter [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Perpetual Notes [Member] | USD | Without Maturity Date [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 533,935 | ||
Foreign Currency Long-term Borrowings [Member] | Exchangeable Senior Notes Derivatives [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 1,753,526 | ||
Foreign Currency Long-term Borrowings [Member] | Exchangeable Senior Notes Derivatives [Member] | USD | 2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Exchangeable Senior Notes Derivatives [Member] | USD | 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Exchangeable Senior Notes Derivatives [Member] | USD | 2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Exchangeable Senior Notes Derivatives [Member] | USD | 2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | 1,753,526 | ||
Foreign Currency Long-term Borrowings [Member] | Exchangeable Senior Notes Derivatives [Member] | USD | 2024 and Thereafter [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | R$ | |||
Foreign Currency Long-term Borrowings [Member] | Exchangeable Senior Notes Derivatives [Member] | USD | Without Maturity Date [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes VIII [Member] | USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 2,548,472 | ||
Foreign Currency Long-term Borrowings [Member] | Senior Notes VIII [Member] | USD | 2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes VIII [Member] | USD | 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes VIII [Member] | USD | 2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes VIII [Member] | USD | 2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | |||
Foreign Currency Long-term Borrowings [Member] | Senior Notes VIII [Member] | USD | 2024 and Thereafter [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing | 2,548,472 | ||
Foreign Currency Long-term Borrowings [Member] | Senior Notes VIII [Member] | USD | Without Maturity Date [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans and financing |
18. Loans and financing (Deta_7
18. Loans and financing (Details 6) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about borrowings [line items] | |
Book value | R$ 8409841 |
Fair value | 8,917,162 |
Senior Notes and Perpetual Notes [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Book value | 3,496,178 |
Fair value | 3,746,016 |
Term Loan [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Book value | 1,229,600 |
Fair value | 1,235,697 |
Exchangeable Senior Notes Derivatives [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Book value | 1,782,969 |
Fair value | 2,021,414 |
Debentures [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Book value | 578,725 |
Fair value | 591,666 |
Other [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Book value | 1,322,369 |
Fair value | R$ 1322369 |
18. Loans and financing (Deta_8
18. Loans and financing (Details Narrative) $ / shares in Units, R$ in Thousands, $ in Thousands | Oct. 22, 2018shares | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2019USD ($)$ / shares |
Disclosure of detailed information about borrowings [line items] | ||||||
Total debt issuance costs | R$ | R$ 143119 | R$ 83684 | ||||
Debenture issue related cost | R$ | R$ 523 | |||||
Gol Linhas Aereas S.A. ("GLA") [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Issuance of debentures | shares | 88,750 | |||||
Exchangeable Senior Notes Derivatives [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Derivatives liabilities | R$ | R$ 626557 | |||||
Exchangeable Senior Notes Derivatives [Member] | American Depositary Shares [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of capped call premium | 85.00% | 85.00% | ||||
Exchangeable Senior Notes Derivatives [Member] | USD | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Debentures issued | $ | $ 425,000 | |||||
Percentage of exchange premium | 35.00% | 35.00% | ||||
Exchangeable Senior Notes Derivatives [Member] | USD | American Depositary Shares [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Debt maturity | 2024 | |||||
Interest rate p.a. | 3.75% | |||||
Exchange rate | 49.3827 | 49.3827 | ||||
Initial exchange price | $ / shares | $ 20.25 | |||||
Offering price | $ / shares | 15 | |||||
Capped call price | $ / shares | $ 27.75 | |||||
Notes principal amount | $ | $ 1,000 |
19. Leases (Details)
19. Leases (Details) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Current right of use leases at beginning | R$ 255917 | |
Non current right of use leases at beginning | 656,228 | |
Total right of use leases at beginning | 912,145 | |
IFRS adoption | 5,370,868 | [1] |
Additions | 957,026 | |
Write-offs | (7,539) | |
Contractual amendment | (275,921) | |
Payments | (1,617,677) | |
Payment (escrow deposit) | (476) | |
Payment (maintenance reserve) | (6,498) | |
Interest accrued | 502,544 | |
Interest payment | (23,304) | |
Exchange rate change | 241,612 | |
Current right of use leases at ending | 1,404,712 | |
Non current right of use leases at ending | 4,648,068 | |
Total right of use leases at ending | R$ 6052780 | |
Lease Without Purchase Option [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Weighted average rate (p.a.) | 12.92% | |
Current right of use leases at beginning | ||
Total right of use leases at beginning | ||
IFRS adoption | 49,975 | [1] |
Additions | 2,925 | |
Write-offs | ||
Contractual amendment | ||
Payments | (18,085) | |
Payment (escrow deposit) | ||
Payment (maintenance reserve) | ||
Interest accrued | 9,992 | |
Interest payment | ||
Exchange rate change | ||
Current right of use leases at ending | 21,781 | |
Non current right of use leases at ending | 23,026 | |
Total right of use leases at ending | R$ 44807 | |
Lease Without Purchase Option [Member] | USD | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Weighted average rate (p.a.) | 8.55% | |
Current right of use leases at beginning | ||
Non current right of use leases at beginning | ||
Total right of use leases at beginning | ||
IFRS adoption | 5,540,621 | [1] |
Additions | 954,101 | |
Write-offs | (7,676) | |
Contractual amendment | (275,921) | |
Payments | (1,437,957) | |
Payment (escrow deposit) | (476) | |
Payment (maintenance reserve) | (6,498) | |
Interest accrued | 469,621 | |
Interest payment | ||
Exchange rate change | 223,328 | |
Current right of use leases at ending | 1,253,995 | |
Non current right of use leases at ending | 4,205,148 | |
Total right of use leases at ending | 5,459,143 | |
Total [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Current right of use leases at beginning | ||
Total right of use leases at beginning | ||
IFRS adoption | 49,975 | [1] |
Additions | 2,925 | |
Write-offs | ||
Contractual amendment | ||
Payments | (18,085) | |
Payment (escrow deposit) | ||
Payment (maintenance reserve) | ||
Interest accrued | 9,992 | |
Interest payment | ||
Exchange rate change | ||
Current right of use leases at ending | 21,781 | |
Non current right of use leases at ending | 23,026 | |
Total right of use leases at ending | 44,807 | |
Total [Member] | USD | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Current right of use leases at beginning | 255,917 | |
Non current right of use leases at beginning | 656,228 | |
Total right of use leases at beginning | 912,145 | |
IFRS adoption | 5,320,893 | [1] |
Additions | 954,101 | |
Write-offs | (7,539) | |
Contractual amendment | (275,921) | |
Payments | (1,599,592) | |
Payment (escrow deposit) | (476) | |
Payment (maintenance reserve) | (6,498) | |
Interest accrued | 492,552 | |
Interest payment | (23,304) | |
Exchange rate change | 241,612 | |
Current right of use leases at ending | 1,382,931 | |
Non current right of use leases at ending | 4,625,042 | |
Total right of use leases at ending | R$ 6007973 | |
Lease With Purchase Option [Member] | USD | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Weighted average rate (p.a.) | 3.75% | |
Current right of use leases at beginning | R$ 120118 | |
Non current right of use leases at beginning | 520,542 | |
Total right of use leases at beginning | 640,660 | |
IFRS adoption | [1] | |
Additions | ||
Write-offs | 137 | |
Contractual amendment | ||
Payments | (113,362) | |
Payment (escrow deposit) | ||
Payment (maintenance reserve) | ||
Interest accrued | 22,931 | |
Interest payment | (23,304) | |
Exchange rate change | 21,768 | |
Current right of use leases at ending | 128,936 | |
Non current right of use leases at ending | 419,894 | |
Total right of use leases at ending | R$ 548830 | |
Operation lease [Member] | USD | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Weighted average rate (p.a.) | ||
Current right of use leases at beginning | R$ 135799 | |
Non current right of use leases at beginning | 135,686 | |
Total right of use leases at beginning | 271,485 | |
IFRS adoption | (219,728) | [1] |
Additions | ||
Write-offs | ||
Contractual amendment | ||
Payments | (48,273) | |
Payment (escrow deposit) | ||
Payment (maintenance reserve) | ||
Interest accrued | ||
Interest payment | ||
Exchange rate change | (3,484) | |
Current right of use leases at ending | ||
Non current right of use leases at ending | ||
Total right of use leases at ending | ||
[1] | Effects related to the adoption of IFRS 16 "Leases" as disclosed in Note 4.26.1. |
19. Leases (Details 1)
19. Leases (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | R$ 695624 | |
Less total interest | (54,964) | |
Present value of minimum lease payments | 640,660 | |
Less current portion | (120,118) | |
Noncurrent portion | 520,542 | |
2019 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 140,307 | |
2020 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 140,080 | |
2021 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 139,852 | |
2022 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 139,624 | |
2023 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 69,985 | |
2024 Thereafter [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | R$ 65776 | |
Lease Without Purchase Option [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | R$ 6984434 | |
Less total interest | (1,480,484) | |
Present value of minimum lease payments | 5,503,950 | |
Less current portion | (1,275,776) | |
Noncurrent portion | 4,228,174 | |
Lease Without Purchase Option [Member] | 2019 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | ||
Lease Without Purchase Option [Member] | 2020 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 1,691,357 | |
Lease Without Purchase Option [Member] | 2021 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 1,324,403 | |
Lease Without Purchase Option [Member] | 2022 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 1,125,060 | |
Lease Without Purchase Option [Member] | 2023 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 904,627 | |
Lease Without Purchase Option [Member] | 2024 Thereafter [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 1,938,987 | |
Lease With Purchase Option [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 594,642 | |
Less total interest | (45,812) | |
Present value of minimum lease payments | 548,830 | |
Less current portion | (128,936) | |
Noncurrent portion | 419,894 | |
Lease With Purchase Option [Member] | 2019 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | ||
Lease With Purchase Option [Member] | 2020 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 148,613 | |
Lease With Purchase Option [Member] | 2021 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 148,744 | |
Lease With Purchase Option [Member] | 2022 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 207,654 | |
Lease With Purchase Option [Member] | 2023 [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | 72,801 | |
Lease With Purchase Option [Member] | 2024 Thereafter [Member] | ||
DisclosureOfLeasesLineItems [Line Items] | ||
Total minimum lease payments | R$ 16830 |
19. Lease (Details Narrative)
19. Lease (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [abstract] | ||
Discount rate | 8.15% | |
Net gain from aircraft sale leaseback | R$ 7924 |
20. Suppliers (Details)
20. Suppliers (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
SuppliersLineItems [Line Items] | ||
Total | R$ 1296417 | R$ 1523952 |
Current | 1,286,275 | 1,403,815 |
Noncurrent | 10,142 | 120,137 |
Local currency [Member] | ||
SuppliersLineItems [Line Items] | ||
Total | 833,781 | 959,791 |
Foreign currency [Member] | ||
SuppliersLineItems [Line Items] | ||
Total | R$ 462636 | R$ 564161 |
20. Suppliers (Details Narrativ
20. Suppliers (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Suppliers Abstract | ||
Balance to be paid to related parties | R$ 1822 | R$ 1107 |
21. Suppliers - forfeiting (Det
21. Suppliers - forfeiting (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Suppliers - Forfeiting | |||
Suppliers - forfeiting | R$ 554467 | R$ 365696 | R$ 78416 |
22. Taxes payable (Details)
22. Taxes payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Taxes payable [absract] | ||
PIS and COFINS | R$ 39133 | R$ 43237 |
Installment payments - PRT and PERT | 2,117 | 23,858 |
Withholding income tax on salaries | 54,649 | 34,883 |
ICMS | 424 | 46,952 |
IRPJ and CSLL payable | 9,496 | 8,991 |
Other | 10,788 | 8,440 |
Total | 116,607 | 166,361 |
Current | 116,523 | 111,702 |
Non-current | R$ 84 | R$ 54659 |
23. Air traffic liability (Deta
23. Air traffic liability (Details Narrative) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019BRL (R$)Ticket | Dec. 31, 2018BRL (R$)Ticket | |
Advances from ticket sales [absract] | ||
Advances from ticket sales | R$ 1966148 | R$ 1673987 |
Unused tickets sales | Ticket | 6,239,179 | 5,804,941 |
Average period | 59 days | 57 days |
Net of breakage | R$ 415688 | R$ 359123 |
24. Provisions (Details)
24. Provisions (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Reconciliation of changes in other provisions [Roll Forward] | ||||
Balance as of beginning of period | R$ 899594 | |||
Post-employment benefit at beginning of the year | 46,496 | |||
Additional provisions recognized | 598,623 | |||
Utilized provisions | (317,591) | |||
Adjustment to present value | 4,312 | |||
Foreign exchange rate variation, net | 25,622 | |||
Balance as of end of period | 1,257,056 | |||
Current | R$ 203816 | R$ 70396 | ||
Non-current | 1,053,240 | 829,198 | ||
Total | 1,257,056 | 1,257,056 | 899,594 | |
Provisions for Post-Employment Benefit [Member] | ||||
Reconciliation of changes in other provisions [Roll Forward] | ||||
Balance as of beginning of period | ||||
Post-employment benefit at beginning of the year | 46,496 | |||
Additional provisions recognized | 45,952 | |||
Utilized provisions | ||||
Adjustment to present value | 4,312 | |||
Foreign exchange rate variation, net | ||||
Balance as of end of period | 96,760 | |||
Current | ||||
Non-current | 96,760 | |||
Total | 96,760 | |||
Provisions for Aircraft & Engine Return [Member] | ||||
Reconciliation of changes in other provisions [Roll Forward] | ||||
Balance as of beginning of period | [1] | 652,134 | ||
Post-employment benefit at beginning of the year | [1] | |||
Additional provisions recognized | 357,206 | |||
Utilized provisions | [1] | (166,287) | ||
Adjustment to present value | [1] | |||
Foreign exchange rate variation, net | [1] | 26,025 | ||
Balance as of end of period | [1] | 869,078 | ||
Current | [1] | 203,816 | 70,396 | |
Non-current | [1] | 665,262 | 581,738 | |
Total | [1] | 869,078 | 869,078 | 652,134 |
Provisions for Legal Proceedings [Member] | ||||
Reconciliation of changes in other provisions [Roll Forward] | ||||
Balance as of beginning of period | [2] | 247,460 | ||
Post-employment benefit at beginning of the year | [2] | |||
Additional provisions recognized | [2] | 195,465 | ||
Utilized provisions | [2] | (151,304) | ||
Adjustment to present value | [2] | |||
Foreign exchange rate variation, net | [2] | (403) | ||
Balance as of end of period | [2] | 291,218 | ||
Current | [3] | |||
Non-current | [3] | 291,218 | 247,460 | |
Total | [2] | R$ 291218 | R$ 291218 | R$ 247460 |
[1] | The additional provisions recognized for aircraft and engine return also include present value adjustment effects. | |||
[2] | The provisions consider write-offs due to the revaluation of the estimate and settled proceedings. | |||
[3] | The provisions recorded include write-offs due to the revision of estimates and processes settled. |
24. Provisions (Details 1)
24. Provisions (Details 1) - Post employment benefit [Member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of defined benefit plans [line items] | |
Actuarial liabilities at beginning of the year | R$ 46496 |
Current service cost recognized in income | 4,910 |
Cost of interests recognized in income | 4,311 |
Sponsor contributions | (2) |
Effect of changing financial assumptions | 34,305 |
Effect of plan experience | 6,740 |
Actuarial liabilities at the end of the year | R$ 96760 |
Nominal discount rate | 7.23% |
Long-term estimated inflation rate | 3.50% |
HCCTR - medical inflation rate | 6.86% |
Mortality table | AT-2000 with improvement of 10% |
Nominal discount rate | 9.93% |
Long-term estimated inflation rate | 4.00% |
HCCTR - medical inflation rate | 7.38% |
Mortality Table | AT-2000 with improvement of 10% |
24. Provisions (Details 2)
24. Provisions (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Provisions [Line Items] | ||
Probable loss in provisions | R$ 291218 | R$ 247460 |
Possible loss in provisions | 886,538 | 793,584 |
Civil Lawsuits [Member] | ||
Disclosure of Provisions [Line Items] | ||
Probable loss in provisions | 78,119 | 64,005 |
Possible loss in provisions | 62,473 | 61,942 |
Labor [Member] | ||
Disclosure of Provisions [Line Items] | ||
Probable loss in provisions | 210,699 | 181,556 |
Possible loss in provisions | 237,253 | 183,506 |
Taxes [Member] | ||
Disclosure of Provisions [Line Items] | ||
Probable loss in provisions | 2,400 | 1,899 |
Possible loss in provisions | R$ 586812 | R$ 548136 |
24. Provisions (Details Narrati
24. Provisions (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Provisions [Line Items] | ||
Additional financial effect of claims | R$ 586812 | R$ 548136 |
Estimated financial effect of claims, total | 93,545 | 101,050 |
Customs penalty | 64,923 | 49,078 |
Tax on services | 24,809 | 22,927 |
BSSF Air Holdings [Member] | ||
Disclosure of Provisions [Line Items] | ||
Goodwill | 110,741 | 107,579 |
Gol Linhas Aereas S.A. ("GLA") [Member] | ||
Disclosure of Provisions [Line Items] | ||
Goodwill | 86,998 | 83,704 |
Additional financial effect of claims | R$ 82301 | 65,679 |
Additional non-incidence percenatge imports | 1.00% | |
Smiles S.A. ("Smiles") [Member] | ||
Disclosure of Provisions [Line Items] | ||
Estimated financial effect of claims | R$ 123495 | R$ 118119 |
25. Shareholders' equity (Detai
25. Shareholders' equity (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Percentage of shares held | 100.00% | 100.00% |
Preferred Share [Member] | ||
Percentage of shares held | 100.00% | 100.00% |
Ordinary Shares [member] | ||
Percentage of shares held | 100.00% | 100.00% |
Free Float [Member] | ||
Percentage of shares held | 45.14% | 27.76% |
Free Float [Member] | Preferred Share [Member] | ||
Percentage of shares held | 58.63% | 36.25% |
Free Float [Member] | Ordinary Shares [member] | ||
Percentage of shares held | ||
Other related parties [member] | ||
Percentage of shares held | 1.73% | 0.79% |
Other related parties [member] | Preferred Share [Member] | ||
Percentage of shares held | 2.23% | 1.03% |
Other related parties [member] | Ordinary Shares [member] | ||
Percentage of shares held | ||
Air France - KLM [Member] | ||
Percentage of shares held | 1.19% | 1.21% |
Air France - KLM [Member] | Preferred Share [Member] | ||
Percentage of shares held | 1.55% | 1.58% |
Air France - KLM [Member] | Ordinary Shares [member] | ||
Percentage of shares held | ||
Delta Air Lines Inc. [Member] | ||
Percentage of shares held | 9.41% | |
Delta Air Lines Inc. [Member] | Preferred Share [Member] | ||
Percentage of shares held | 12.29% | |
Delta Air Lines Inc. [Member] | Ordinary Shares [member] | ||
Percentage of shares held | ||
Mobi FIA [Member] | ||
Percentage of shares held | 28.94% | 37.41% |
Mobi FIA [Member] | Preferred Share [Member] | ||
Percentage of shares held | 37.59% | 48.85% |
Mobi FIA [Member] | Ordinary Shares [member] | ||
Percentage of shares held | ||
Fundo Volluto [Member] | ||
Percentage of shares held | 23.00% | 23.42% |
Fundo Volluto [Member] | Preferred Share [Member] | ||
Percentage of shares held | ||
Fundo Volluto [Member] | Ordinary Shares [member] | ||
Percentage of shares held | 100.00% | 100.00% |
25. Shareholders' Equity (Det_2
25. Shareholders' Equity (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Thousands | Oct. 30, 2019 | Jul. 31, 2019 | Apr. 26, 2019 | Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 27, 2019 |
Number of shares issued | 3,137,364,724 | 3,131,226,450 | ||||||
Authorized capital stock | R$ 6000000 | |||||||
Preferred stock shares subscribed amount | R$ 60165 | R$ 300 | R$ 512 | R$ 584 | R$ 4589 | |||
Preferred stock shares subscribed shares | 5,391,373 | 84,477 | 140,896 | 521,528 | 186,109 | |||
Share issuance costs | R$ 523 | |||||||
Amount of treasury shares granted for restricted stock plan | R$ 102543 | |||||||
Treasury shares | R$ 102543 | R$ 126 | ||||||
Market value of treasury shares | R$ 33.84 | |||||||
Subscribed capital fully paid-up | R$ 3163796 | R$ 3098230 | ||||||
Treasury shares [Member] | ||||||||
Number of shares issued | 6,390 | |||||||
Common Share [Member] | ||||||||
Number of shares issued | 2,863,682,710 | 2,863,682,710 | ||||||
Preferred Shares [Member] | ||||||||
Number of shares issued | 273,682,014 | 267,543,740 |
26. Earnings (loss) per share_2
26. Earnings (loss) per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator | |||
Net income (loss) for the year Attributable to equity holders of the parent | R$ 117273 | R$ 1085393 | R$ 18792 |
Common Share [Member] | |||
Numerator | |||
Net income (loss) for the year Attributable to equity holders of the parent | R$ 27269 | R$ 254828 | R$ 7708 |
Denominator | |||
Weighted average number of outstanding shares | 2,863,683 | 2,863,683 | 4,891,350 |
Effects of dilution from stock options | |||
Adjusted weighted average number of outstanding shares and diluted presumed conversions | 2,863,683 | 2,863,683 | 4,891,350 |
Basic earnings (loss) per share (in R$ per shares) | R$ 0.010 | R$ 0.089 | R$ 0.002 |
Diluted earnings (loss) per share (in R$ per shares) | R$ 0.010 | R$ 0.089 | R$ 0.002 |
Preferred Share [Member] | |||
Numerator | |||
Net income (loss) for the year Attributable to equity holders of the parent | R$ 90004 | R$ 830565 | R$ 11084 |
Denominator | |||
Weighted average number of outstanding shares | 270,053 | 266,676 | 204,664 |
Effects of dilution from stock options | 2,614 | ||
Adjusted weighted average number of outstanding shares and diluted presumed conversions | 270,053 | 266,676 | 207,278 |
Basic earnings (loss) per share (in R$ per shares) | R$ 0.333 | R$ 3.115 | R$ 0.054 |
Diluted earnings (loss) per share (in R$ per shares) | R$ 0.333 | R$ 3.115 | R$ 0.053 |
27. Share-based payments (Detai
27. Share-based payments (Details) | 12 Months Ended | |
Dec. 31, 2019sharesYearR$ / shares | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Approval Date | Dec. 31, 2019 | |
Total options granted | 18,820,752 | |
Number of options outstanding | 7,660,855 | |
Restricted Shares Plan One [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2016 | |
Approval Date | Jun. 30, 2016 | |
Restricted Shares Plan Two [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2017 | |
Approval Date | Aug. 8, 2017 | |
Restricted Shares Plan Three [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2018 | |
Approval Date | May 24, 2018 | |
Stock Option Plan [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total options granted | 2,732,163 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 25.40 | |
Smiles S.A. ("Smiles") [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Approval Date | Dec. 31, 2019 | |
Total options granted | 3,508,043 | |
Exercise Prices R$ 20.65 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2010 | [1] |
Approval Date | Feb. 2, 2010 | [1] |
Total options granted | 2,774,640 | [1] |
Number of options outstanding | 245,007 | [1] |
Exercise price of the option (in Reais) | R$ / shares | R$ 20.65 | [1] |
Fair value at grant date (in Reais) | R$ / shares | R$ 16.81 | [1] |
Estimate volatility of share price | 77.95% | [1] |
Expected dividend yield | 2.73% | [1] |
Risk-free return rate | 8.65% | [1] |
Average remaining maturity (in years) | Year | 0.1 | [1] |
Exercise Prices R$ 27.83 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2011 | |
Approval Date | Dec. 20, 2010 | |
Total options granted | 2,722,444 | |
Number of options outstanding | 484,009 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 27.83 | |
Fair value at grant date (in Reais) | R$ / shares | R$ 16.07 | [2] |
Estimate volatility of share price | 44.55% | |
Expected dividend yield | 0.47% | |
Risk-free return rate | 10.25% | |
Average remaining maturity (in years) | Year | 0.8 | |
Exercise Prices R$ 12.81 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2012 | |
Approval Date | Oct. 19, 2012 | |
Total options granted | 778,912 | |
Number of options outstanding | 205,716 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 12.81 | |
Fair value at grant date (in Reais) | R$ / shares | R$ 5.32 | [3] |
Estimate volatility of share price | 52.25% | |
Expected dividend yield | 2.26% | |
Risk-free return rate | 9.00% | |
Average remaining maturity (in years) | Year | 2.7 | |
Exercise Prices R$ 12.76 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2013 | |
Approval Date | May 13, 2013 | |
Total options granted | 802,296 | |
Number of options outstanding | 220,413 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 12.76 | |
Fair value at grant date (in Reais) | R$ / shares | R$ 6.54 | [4] |
Estimate volatility of share price | 46.91% | |
Expected dividend yield | 2.00% | |
Risk-free return rate | 7.50% | |
Average remaining maturity (in years) | Year | 3.3 | |
Exercise Prices R$ 11.31 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2014 | |
Approval Date | Aug. 12, 2014 | |
Total options granted | 653,130 | |
Number of options outstanding | 197,661 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 11.31 | |
Fair value at grant date (in Reais) | R$ / shares | R$ 7.98 | [5] |
Estimate volatility of share price | 52.66% | |
Expected dividend yield | 3.27% | |
Risk-free return rate | 11.00% | |
Average remaining maturity (in years) | Year | 4.5 | |
Exercise Prices R$ 9.35 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2015 | |
Approval Date | Aug. 11, 2015 | |
Total options granted | 1,930,844 | |
Number of options outstanding | 601,793 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 9.35 | |
Fair value at grant date (in Reais) | R$ / shares | R$ 3.37 | [6] |
Estimate volatility of share price | 55.57% | |
Expected dividend yield | 5.06% | |
Risk-free return rate | 13.25% | |
Average remaining maturity (in years) | Year | 5.5 | |
Exercise Prices R$ 2.62 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2016 | |
Approval Date | Jun. 30, 2016 | |
Total options granted | 5,742,732 | |
Number of options outstanding | 3,172,111 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 2.62 | |
Fair value at grant date (in Reais) | R$ / shares | R$ 1.24 | [7] |
Estimate volatility of share price | 98.20% | |
Expected dividend yield | 6.59% | |
Risk-free return rate | 14.25% | |
Average remaining maturity (in years) | Year | 6.4 | |
Exercise Prices R$ 8.44 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2017 | |
Approval Date | Aug. 8, 2017 | |
Total options granted | 947,767 | |
Number of options outstanding | 548,604 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 8.44 | |
Fair value at grant date (in Reais) | R$ / shares | R$ 7.91 | [8] |
Estimate volatility of share price | 80.62% | |
Expected dividend yield | 1.17% | |
Risk-free return rate | 11.25% | |
Average remaining maturity (in years) | Year | 7.6 | |
Exercise Prices R$ 20.18 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2018 | |
Approval Date | May 24, 2018 | |
Total options granted | 718,764 | |
Number of options outstanding | 478,935 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 20.18 | |
Fair value at grant date (in Reais) | R$ / shares | R$ 12.68 | [9] |
Estimate volatility of share price | 55.58% | |
Expected dividend yield | 0.60% | |
Risk-free return rate | 6.50% | |
Average remaining maturity (in years) | Year | 8.4 | |
Exercise Prices R$ 25.40 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant Year | 2019 | |
Approval Date | Dec. 11, 2019 | |
Total options granted | 1,749,223 | |
Number of options outstanding | 1,506,606 | |
Exercise price of the option (in Reais) | R$ / shares | R$ 25.40 | |
Fair value at grant date (in Reais) | R$ / shares | R$ 12.10 | [10] |
Estimate volatility of share price | 61.98% | |
Expected dividend yield | 3.17% | |
Risk-free return rate | 9.00% | |
Average remaining maturity (in years) | Year | 9.3 | |
[1] | In April 2010, a complementary grant of 101,894 shares was approved, referring to the 2010 plan. | |
[2] | Fair value calculated by the average of R$16.92, R$16.11 and R$15.17 for the respective vesting periods (2011, 2012 and 2013). | |
[3] | Fair value calculated by the average of R$6.04, R$5.35 and R$4.56 for the respective vesting periods (2012, 2013 and 2014). | |
[4] | Fair value calculated by the average of R$7.34, R$6.58 and R$5.71 for the respective vesting periods (2013, 2014 and 2015). | |
[5] | Fair value calculated by the average of R$8.20, R$7.89 and R$7.85 for the respective vesting periods (2014, 2015 and 2016). | |
[6] | Fair value calculated by the average of R$3.61, R$3.30 and R$3.19 for the respective vesting periods (2015, 2016 and 2017). | |
[7] | On July 27, 2016, 900,000 shares were granted in addition to the 2016 plan. The fair value was calculated by the average of R$1.29, R$1.21 and R$1.22 for the respective vesting periods (2017, 2018 and 2019). | |
[8] | Fair value calculated by the average of R$8.12, R$7.88 and R$7.72 for the respective vesting periods (2017, 2018 and 2019). | |
[9] | Fair value calculated by the average of R$13.26, R$12.67 and R$12.11 for the respective vesting periods (2018, 2019 and 2020). | |
[10] | Fair value calculated by the average of R$12.90, R$12.32 and R$11.65 for the respective vesting periods (2019, 2020 and 2021). |
27. Share-based payments (Det_2
27. Share-based payments (Details 1) | 12 Months Ended |
Dec. 31, 2019sharesR$ / shares | |
Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options granted | 18,820,752 |
Smiles S.A. ("Smiles") [Member] | |
Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options granted | 3,508,043 |
Options outstanding at ending | 975,000 |
Stock Option Plan [Member] | |
Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at beginning | 7,820,512 |
Number of options exercisable at beginnig | 7,065,174 |
Options granted | 2,732,163 |
Conversion of restricted shares to call options | 3,372,183 |
Options exercised | (5,804,249) |
Options canceled and adjustments in estimated prescribed rights | (459,754) |
Options outstanding at ending | 7,660,855 |
Number of options exercisable at ending | 5,939,631 |
Share-based Payment Award, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding at beginning | R$ / shares | R$ 9.19 |
Number of options exercisable at beginning | R$ / shares | 8.01 |
Options granted | R$ / shares | 25.40 |
Conversion of restricted shares to call options | R$ / shares | 2.62 |
Options exercised | R$ / shares | 5.23 |
Options canceled and adjustments in estimated prescribed rights | R$ / shares | 27.54 |
Options outstanding at ending | R$ / shares | 7.11 |
Number of options exercisable at ending | R$ / shares | R$ 8.42 |
Stock Option Plan [Member] | Smiles S.A. ("Smiles") [Member] | |
Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at beginning | 1,077,053 |
Options exercised | 151,000 |
Options outstanding at ending | 975,000 |
Share-based Payment Award, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding at beginning | R$ / shares | R$ 50.16 |
Options exercised | R$ / shares | 5.58 |
Options outstanding at ending | R$ / shares | R$ 48.82 |
27. Share-based payments (Det_3
27. Share-based payments (Details 2) | 12 Months Ended |
Dec. 31, 2019sharesR$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Approval date | Dec. 31, 2019 |
Restricted Shares Plan One [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grant year | 2016 |
Approval date | Jun. 30, 2016 |
Total shares granted | 4,007,081 |
Total vested shares | |
Average fair value at grant date | R$ / shares | R$ 2.62 |
Restricted Shares Plan Two [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grant year | 2017 |
Approval date | Aug. 8, 2017 |
Total shares granted | 1,538,213 |
Total vested shares | 1,010,249 |
Average fair value at grant date | R$ / shares | R$ 8.44 |
Restricted Shares Plan Three [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grant year | 2018 |
Approval date | May 24, 2018 |
Total shares granted | 773,463 |
Total vested shares | 523,747 |
Average fair value at grant date | R$ / shares | R$ 20.18 |
Restricted Shares Plan [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Approval date | Dec. 31, 2019 |
Total shares granted | 6,318,757 |
Total vested shares | 1,533,996 |
27. Share-based payments (Det_4
27. Share-based payments (Details 3) - Restricted Shares Plan [Member] | 12 Months Ended |
Dec. 31, 2019shares | |
Restricted shares [Roll forward] | |
Restricted shares outstanding as beginning | 4,865,741 |
Conversion of restricted shares to call options | (3,372,183) |
Restricted shares transferred to the employee | (283,483) |
Restricted shares cancelled and adjustments in estimated expired rights | 323,921 |
Restricted shares outstanding as ending | 1,533,996 |
27. Share-based payments (Det_5
27. Share-based payments (Details 4) | 12 Months Ended | |
Dec. 31, 2019sharesYearR$ / shares | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Date of the board meeting | Dec. 31, 2019 | |
Total options granted | 18,820,752 | |
Smiles S.A. ("Smiles") [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Date of the board meeting | Dec. 31, 2019 | |
Total options granted | 3,508,043 | |
Number of options outstanding | 975,000 | |
Exercise Prices R$ 4.25 [Member] | Smiles S.A. ("Smiles") [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Year of grant | 2013 | |
Date of the board meeting | Aug. 8, 2013 | |
Total options granted | 1,058,043 | |
Number of options outstanding | ||
Exercise price of the option (in reais) | R$ / shares | R$ 21.7 | |
The fair value of the option at grant date (in reais) | R$ / shares | R$ 4.25 | [1] |
Estimate volatility of share price | 36.35% | |
Expected dividend yield | 6.96% | |
Risk-free return rate | 7.40% | |
Average remaining maturity | Year | 3.5 | |
Exercise Prices R$ 4.90 [Member] | Smiles S.A. ("Smiles") [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Year of grant | 2014 | |
Date of the board meeting | Feb. 4, 2014 | |
Total options granted | 1,150,000 | |
Number of options outstanding | ||
Exercise price of the option (in reais) | R$ / shares | R$ 5.58 | |
The fair value of the option at grant date (in reais) | R$ / shares | R$ 4.90 | [2] |
Estimate volatility of share price | 33.25% | |
Expected dividend yield | 10.67% | |
Risk-free return rate | 9.90% | |
Average remaining maturity | Year | 4 | |
Exercise Prices R$ 8.93 [Member] | Smiles S.A. ("Smiles") [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Year of grant | 2018 | |
Date of the board meeting | Jul. 31, 2018 | |
Total options granted | 1,300,000 | |
Number of options outstanding | 975,000 | |
Exercise price of the option (in reais) | R$ / shares | R$ 48.82 | |
The fair value of the option at grant date (in reais) | R$ / shares | R$ 8.93 | [3] |
Estimate volatility of share price | 41.28% | |
Expected dividend yield | 9.90% | |
Risk-free return rate | 6.39% | |
Average remaining maturity | Year | 8.6 | |
[1] | Average fair value in reais calculated for the 2013 stock option plan of R$4.84 and R$4.20 for the 2013 and 2014 vesting periods; and, R$3.73 for the 2015 and 2016 vesting periods. | |
[2] | Average fair value in reais calculated for the 2014 stock option plan of R$4.35, R$4.63, R$4.90, R$5.15 and R$5.37 for the 2014, 2015, 2016, 2017 and 2018 vesting periods. | |
[3] | Average fair value in reais calculated for the 2018 stock option plan of R$8.17, R$8.63, R$9.14, and R$9.77 for the 2019, 2020, 2021 and 2022 vesting periods. |
27. Share-based payments (Det_6
27. Share-based payments (Details 5) | 12 Months Ended |
Dec. 31, 2019sharesR$ / shares | |
Stock Option Plan [Member] | |
Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at beginning | 7,820,512 |
Options exercised | 5,804,249 |
Options outstanding at ending | 7,660,855 |
Share-based Payment Award, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding at beginning | R$ / shares | R$ 9.19 |
Options exercised | R$ / shares | 5.23 |
Options outstanding at ending | R$ / shares | R$ 7.11 |
Smiles S.A. ("Smiles") [Member] | |
Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at ending | 975,000 |
Smiles S.A. ("Smiles") [Member] | Stock Option Plan [Member] | |
Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at beginning | 1,077,053 |
Adjustments in estimated prescribed rights | 48,947 |
Options exercised | (151,000) |
Options outstanding at ending | 975,000 |
Share-based Payment Award, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding at beginning | R$ / shares | R$ 50.16 |
Adjustments in estimated prescribed rights | R$ / shares | 26.21 |
Options exercised | R$ / shares | 5.58 |
Options outstanding at ending | R$ / shares | R$ 48.82 |
27. Share-based payments (Det_7
27. Share-based payments (Details Narrative) R$ / shares in Units, R$ in Thousands | Jul. 27, 2016shares | Dec. 31, 2022R$ / shares | Dec. 31, 2021R$ / shares | Dec. 31, 2020R$ / shares | Dec. 31, 2019BRL (R$)sharesR$ / shares | Dec. 31, 2018BRL (R$)R$ / sharesshares | Dec. 31, 2017BRL (R$)R$ / shares | Dec. 31, 2016R$ / shares | Dec. 31, 2015R$ / shares | Dec. 31, 2014R$ / shares | Dec. 31, 2013R$ / shares | Dec. 31, 2012R$ / shares | Dec. 31, 2011R$ / shares | Dec. 31, 2010shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Equity share-based payments | R$ | R$ 18572 | R$ 12148 | ||||||||||||
Stock Option Plan [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Period of stock options exercised | shares | 10 | |||||||||||||
Stock option plans expenses | R$ | R$ 40735 | 7,476 | 5,413 | |||||||||||
Restricted Shares Plan [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Stock option plans expenses | R$ | R$ 5315 | R$ 9615 | R$ 9028 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Share Price One | R$ 36.80 | R$ 25.10 | ||||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Share Based Compensation Vesting Tranche One [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Vesting percentage | 20.00% | |||||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Share Based Compensation Vesting Tranche Three [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Vesting percentage | 50.00% | |||||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Share Based Compensation Vesting Tranche Two [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Vesting percentage | 30.00% | |||||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 2.62 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Number of additional share grant | shares | 900,000 | |||||||||||||
Weighted average value at grant date | R$ 1.22 | 1.21 | R$ 1.29 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 25.40 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | R$ 11.65 | R$ 12.32 | 12.90 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 20.18 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | 12.11 | 12.67 | 13.26 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 8.44 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | R$ 7.72 | R$ 7.88 | 8.12 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 9.35 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | 3.19 | R$ 3.30 | R$ 3.61 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 11.31 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | 7.85 | 7.89 | R$ 8.20 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 12.76 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | 5.71 | 6.58 | R$ 7.34 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 12.81 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | 4.56 | 5.35 | R$ 6.04 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 27.83 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | 15.17 | R$ 16.11 | R$ 16.92 | |||||||||||
Gol Linhas Aereas Inteligentes S.A [Member] | Stock Option Plan [Member] | Exercise Prices R$ 20.65 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Number of additional share grant | shares | 101,894 | |||||||||||||
Smiles S.A. ("Smiles") [Member] | Stock Option Plan [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Period of stock options exercised | shares | 10 | |||||||||||||
Balance of obligation for granted additional bonuses | R$ | R$ 6079 | R$ 6899 | ||||||||||||
Number of shares for balance of obligation | shares | 120,586 | 7,450 | ||||||||||||
Share Price One | R$ 39.27 | R$ 43.77 | ||||||||||||
Smiles S.A. ("Smiles") [Member] | Stock Option Plan [Member] | Share Based Compensation Vesting Tranche One [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Vesting percentage | 20.00% | |||||||||||||
Smiles S.A. ("Smiles") [Member] | Stock Option Plan [Member] | Share Based Compensation Vesting Tranche Three [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Vesting percentage | 50.00% | |||||||||||||
Smiles S.A. ("Smiles") [Member] | Stock Option Plan [Member] | Share Based Compensation Vesting Tranche Two [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Vesting percentage | 30.00% | |||||||||||||
Smiles S.A. ("Smiles") [Member] | Stock Option Plan [Member] | Exercise Prices R$ 8.93 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | R$ 9.77 | R$ 9.14 | R$ 8.63 | R$ 8.17 | ||||||||||
Smiles S.A. ("Smiles") [Member] | Stock Option Plan [Member] | Exercise Prices R$ 4.90 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | R$ 5.37 | R$ 5.15 | 4.90 | 4.63 | 4.35 | |||||||||
Smiles S.A. ("Smiles") [Member] | Stock Option Plan [Member] | Exercise Prices R$ 4.25 [Member] | ||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Weighted average value at grant date | R$ 3.73 | R$ 3.73 | R$ 4.20 | R$ 4.84 |
28. Transactions with related_3
28. Transactions with related parties (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Salaries,wages and benefits | R$ 2361268 | R$ 1903852 | R$ 1708111 |
Share-based payments | 40,725 | 18,572 | 14,849 |
Key Management Personnel [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Salaries,wages and benefits | 69,609 | 75,979 | 57,838 |
Related taxes and charges | 15,813 | 11,062 | 6,019 |
Share-based payments | 8,880 | 10,234 | 11,219 |
Total | R$ 94302 | R$ 97275 | R$ 75076 |
28. Transactions with related_4
28. Transactions with related parties (Details 1) - Number | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [line items] | ||
Number of executives | 44 | 50 |
Board of Directors [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of executives | 8 | 9 |
Statutory Executive Officers [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of executives | 4 | 5 |
Non-Statutory Executive Officers [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of executives | 22 | 26 |
Fiscal Council [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of executives | 3 | 3 |
Other Governance Committees [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of executives | 7 | 7 |
28. Transactions with related_5
28. Transactions with related parties (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 10, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [line items] | |||
Expense related to services | R$ 10560 | R$ 12237 | |
Current liabilities | 10,362,600 | 7,200,556 | |
Other Liabilities [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Deferred revenue | 0 | 8,565 | |
Air France - KLM [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Expenses with component maintenance | 284,691 | 151,936 | |
Delta Air Lines Inc. [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Interest | 0.30% | ||
Suppliers [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Payable to related companies | 1,822 | 504 | |
Current liabilities | R$ 142241 | R$ 170673 |
29. Revenue (Details)
29. Revenue (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net revenue | |||
Passenger transportation | R$ 13461470 | R$ 11148292 | R$ 10027414 |
Cargo transportation | 411,054 | 400,959 | 354,561 |
Mileage program | 446,871 | 446,448 | 554,380 |
Other revenue | 113,253 | 95,681 | 109,045 |
Gross revenue | 14,432,648 | 12,091,380 | 11,045,400 |
Related tax | (567,944) | (680,026) | (716,366) |
Net revenue | R$ 13864704 | R$ 11411354 | R$ 10329034 |
29. Revenue (Details 1)
29. Revenue (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Revenue [Line Items] | |||
Revenue ratio | 100.00% | 100.00% | 100.00% |
Net revenue | R$ 13864704 | R$ 11411354 | R$ 10329034 |
International [Member] | |||
Disclosure of Revenue [Line Items] | |||
Revenue ratio | 13.70% | 14.70% | 14.80% |
Net revenue | R$ 1899523 | R$ 1681856 | R$ 1531032 |
Domestic [Member] | |||
Disclosure of Revenue [Line Items] | |||
Revenue ratio | 86.30% | 85.30% | 85.20% |
Net revenue | R$ 11965181 | R$ 9729498 | R$ 8798002 |
29. Revenue (Details Narrative)
29. Revenue (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenue | ||
Revenues from unused passenger tickets, reissued tickets and cancellation of flight tickets | R$ 583242 | R$ 479136 |
30. Financial income (Details)
30. Financial income (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financial income | ||||
Gain on derivatives | R$ 84862 | R$ 17838 | R$ 35053 | |
Gains from financial investments | 225,535 | 161,223 | 119,863 | |
Inflation indexation | 42,967 | 78,169 | 14,208 | |
Taxes on financial income | [1] | (26,818) | (20,372) | (24,393) |
Unrealized gains - conversion right - ESN | 16,148 | |||
Interest income | 7,451 | |||
Other | 39,418 | 22,870 | 68,715 | |
Total financial income | 389,563 | 259,728 | 213,446 | |
Financial expenses | ||||
Loss with derivatives | (86,990) | (51,674) | (40,770) | |
Derivative losses - capped call | (23,229) | |||
Unrealized loss - conversion right | (778,557) | (710,787) | (727,285) | |
Bank charges and expenses | (73,171) | (75,673) | (61,711) | |
Exchange offer costs | (53,952) | (53,041) | ||
Losses from financial investments | (111,679) | (33,999) | (44,263) | |
Interest on Leases | [2] | (488,278) | ||
Other | (186,361) | (135,004) | (123,391) | |
Total financial expenses | (1,748,265) | (1,061,089) | (1,050,461) | |
Foreign exchange rate change, net | (385,092) | (1,081,197) | (81,744) | |
Total | R$ 1743794 | R$ 1882558 | R$ 918759 | |
[1] | Relates to taxes on financial income (PIS and COFINS), according to Decree 8426 of April 1, 2015. | |||
[2] | Amount related to present value adjustments of the right of use from the initial adoption of IFRS 16. For further information, see Note 4.26.1. |
31. Segments (Details)
31. Segments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Current | R$ 4927377 | R$ 3310835 | ||
Non-current | 10,371,069 | 7,067,431 | ||
Total assets | 15,298,446 | 10,378,266 | ||
Liabilities | ||||
Current | 10,362,600 | 7,200,556 | ||
Non-current | 12,041,263 | 7,683,061 | ||
Total equity (deficit) | (7,105,417) | (4,505,351) | R$ 3088521 | R$ 3375934 |
Total liabilities and equity (deficit) | 15,298,446 | 10,378,266 | ||
Flight Transportation [Member] | ||||
Assets | ||||
Current | 3,243,363 | 2,216,168 | ||
Non-current | 10,888,299 | 7,373,864 | ||
Total assets | 14,131,662 | 9,590,032 | ||
Liabilities | ||||
Current | 9,941,112 | 7,012,120 | ||
Non-current | 11,867,062 | 7,563,287 | ||
Total equity (deficit) | (7,676,512) | (4,985,375) | ||
Total liabilities and equity (deficit) | 14,131,662 | 9,590,032 | ||
Smiles Loyalty Program [Member] | ||||
Assets | ||||
Current | 2,763,448 | 2,365,789 | ||
Non-current | 121,135 | 269,339 | ||
Total assets | 2,884,583 | 2,635,128 | ||
Liabilities | ||||
Current | 1,321,534 | 1,347,684 | ||
Non-current | 357,714 | 273,214 | ||
Total equity (deficit) | 1,205,335 | 1,014,230 | ||
Total liabilities and equity (deficit) | 2,884,583 | 2,635,128 | ||
Total Reportable Segments [Member] | ||||
Assets | ||||
Current | 6,006,811 | 4,581,957 | ||
Non-current | 11,009,434 | 7,643,203 | ||
Total assets | 17,016,245 | 12,225,160 | ||
Liabilities | ||||
Current | 11,262,646 | 8,359,804 | ||
Non-current | 12,224,776 | 7,836,501 | ||
Total equity (deficit) | (6,471,177) | (3,971,145) | ||
Total liabilities and equity (deficit) | 17,016,245 | 12,225,160 | ||
Eliminations [Member] | ||||
Assets | ||||
Current | (1,079,434) | (1,271,122) | ||
Non-current | (638,365) | (575,772) | ||
Total assets | (1,717,799) | (1,846,894) | ||
Liabilities | ||||
Current | (900,046) | (1,159,248) | ||
Non-current | (183,513) | (153,440) | ||
Total equity (deficit) | (634,240) | (534,206) | ||
Total liabilities and equity (deficit) | R$ 1717799 | R$ 1846894 |
31. Segments (Details 1)
31. Segments (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net revenue | ||||
Passenger | [1] | R$ 13077743 | R$ 10633488 | R$ 9564041 |
Cargo and Other | [1] | 425,088 | 409,633 | 348,389 |
Mileage program | 361,873 | 368,233 | 416,604 | |
Gross Profit | 13,864,704 | 11,411,354 | 10,329,034 | |
Operating costs and expenses | ||||
Salaries, wages and benefits | (2,361,268) | (1,903,852) | (1,708,111) | |
Aircraft fuel | (4,047,344) | (3,867,673) | (2,887,737) | |
Aircraft rent | (1,112,837) | (939,744) | ||
Sales and marketing | (670,392) | (581,977) | (590,814) | |
Landing fees | (759,774) | (743,362) | (664,170) | |
Aircraft, traffic and mileage servicing | (707,392) | (613,768) | (628,140) | |
Maintenance, materials and repairs | (569,229) | (570,333) | (368,719) | |
Depreciation and amortization | (1,727,982) | (668,516) | (505,425) | |
Passenger costs | (578,744) | (474,117) | (437,045) | |
Other operating expenses | (309,917) | 524,656 | (610,310) | |
Total Operating Expenses | (11,732,042) | (10,011,779) | (9,340,215) | |
Equity pick up method | 77 | 387 | 544 | |
Income before financial income (expense), exchange (variation) and income taxes | 2,132,739 | 1,399,962 | 989,363 | |
Financial results | ||||
Financial income | 389,563 | 259,728 | 213,446 | |
Financial expenses | (1,748,265) | (1,061,089) | (1,050,461) | |
Total financial results | (1,358,702) | (801,361) | (837,015) | |
Income before exchange rate variation, net | 774,037 | 598,601 | 152,348 | |
Exchange rate change, net | (385,092) | (1,081,197) | (81,744) | |
Income (loss) before income taxes | 388,945 | (482,596) | 70,604 | |
Income Taxes | (297,128) | 307,213 | ||
Income and social contribution taxes | (209,607) | |||
Net income (loss) for the year | 179,338 | (779,724) | 377,817 | |
Attributable to equity holders of the parent | (117,273) | (1,085,393) | 18,792 | |
Attributable to non-controlling interests of Smiles | 296,611 | 305,669 | 359,025 | |
Flight Transportation [Member] | ||||
Net revenue | ||||
Passenger | [1] | 12,592,018 | 10,199,092 | 9,165,936 |
Cargo and Other | [1] | 463,651 | 422,432 | 388,548 |
Mileage program | ||||
Gross Profit | 13,055,669 | 10,621,524 | 9,554,484 | |
Operating costs and expenses | ||||
Salaries, wages and benefits | (2,270,009) | (1,821,521) | (1,654,388) | |
Aircraft fuel | (4,047,344) | (3,867,673) | (2,887,737) | |
Aircraft rent | (1,112,837) | (939,744) | ||
Sales and marketing | (587,445) | (507,721) | (518,025) | |
Landing fees | (759,774) | (743,362) | (664,170) | |
Aircraft, traffic and mileage servicing | (766,483) | (661,260) | (649,498) | |
Maintenance, materials and repairs | (569,229) | (570,333) | (368,719) | |
Depreciation and amortization | (1,701,115) | (651,158) | (491,806) | |
Passenger costs | (578,744) | (474,117) | (437,045) | |
Other operating expenses | (354,302) | 483,699 | (591,087) | |
Total Operating Expenses | (11,634,445) | (9,926,283) | (9,202,219) | |
Equity pick up method | 294,976 | 315,721 | 395,245 | |
Income before financial income (expense), exchange (variation) and income taxes | 1,716,200 | 1,010,962 | 747,510 | |
Financial results | ||||
Financial income | 636,554 | 166,348 | 184,448 | |
Financial expenses | (2,116,438) | (1,185,889) | (1,225,315) | |
Total financial results | (1,778,170) | (1,019,541) | (1,040,867) | |
Income before exchange rate variation, net | 236,316 | (8,579) | (293,357) | |
Exchange rate change, net | 390,454 | (1,084,543) | (78,462) | |
Income (loss) before income taxes | (154,138) | (1,093,122) | (371,819) | |
Income Taxes | 7,729 | 390,611 | ||
Income and social contribution taxes | 36,865 | |||
Net income (loss) for the year | (117,273) | (1,085,393) | 18,792 | |
Attributable to equity holders of the parent | (117,273) | (1,085,393) | 18,792 | |
Attributable to non-controlling interests of Smiles | ||||
Smiles Loyalty Program [Member] | ||||
Net revenue | ||||
Passenger | [1],[2] | |||
Cargo and Other | [1],[2] | |||
Mileage program | [2] | 1,051,124 | 987,444 | 899,576 |
Gross Profit | [2] | 1,051,124 | 987,444 | 899,576 |
Operating costs and expenses | ||||
Salaries, wages and benefits | [2] | (91,259) | (82,331) | (53,723) |
Aircraft fuel | [2] | |||
Aircraft rent | [2] | |||
Sales and marketing | [2] | (82,947) | (74,256) | (69,917) |
Landing fees | [2] | |||
Aircraft, traffic and mileage servicing | [2] | (128,590) | (107,489) | (86,132) |
Maintenance, materials and repairs | [2] | |||
Depreciation and amortization | [2] | (26,868) | (17,358) | (13,619) |
Passenger costs | [2] | |||
Other operating expenses | [2] | 44,384 | 35,959 | (26,385) |
Total Operating Expenses | [2] | (285,280) | (245,475) | (249,776) |
Equity pick up method | [2] | (2,530) | ||
Income before financial income (expense), exchange (variation) and income taxes | [2] | 763,314 | 741,969 | 649,800 |
Financial results | ||||
Financial income | [2] | 125,455 | 220,628 | 205,431 |
Financial expenses | [2] | (4,273) | (2,326) | (2,201) |
Total financial results | [2] | 121,182 | 218,302 | 203,230 |
Income before exchange rate variation, net | [2] | 884,496 | 960,271 | 853,030 |
Exchange rate change, net | [2] | 4,669 | 3,223 | (3,284) |
Income (loss) before income taxes | [2] | 889,165 | 963,494 | 849,746 |
Income Taxes | [2] | (317,652) | (89,131) | |
Income and social contribution taxes | [2] | (271,156) | ||
Net income (loss) for the year | [2] | 618,009 | 645,842 | 760,615 |
Attributable to equity holders of the parent | [2] | 321,398 | 340,173 | 401,590 |
Attributable to non-controlling interests of Smiles | [2] | 296,611 | 305,669 | 359,025 |
Total Reportable Segments [Member] | ||||
Net revenue | ||||
Passenger | [1] | 12,592,018 | 10,199,092 | 9,165,936 |
Cargo and Other | [1] | 463,651 | 422,432 | 388,548 |
Mileage program | 1,051,124 | 987,444 | 899,576 | |
Gross Profit | 14,106,793 | 11,608,968 | 10,454,060 | |
Operating costs and expenses | ||||
Salaries, wages and benefits | (2,361,268) | (1,903,852) | (1,708,111) | |
Aircraft fuel | (4,047,344) | (3,867,673) | (2,887,737) | |
Aircraft rent | (1,112,837) | (939,744) | ||
Sales and marketing | (670,392) | (581,977) | (587,942) | |
Landing fees | (759,774) | (743,362) | (664,170) | |
Aircraft, traffic and mileage servicing | (895,073) | (768,749) | (735,630) | |
Maintenance, materials and repairs | (569,229) | (570,333) | (368,719) | |
Depreciation and amortization | (1,727,983) | (668,516) | (505,425) | |
Passenger costs | (578,744) | (474,117) | (437,045) | |
Other operating expenses | (309,918) | 519,658 | (617,472) | |
Total Operating Expenses | (11,919,725) | (10,171,758) | (9,451,995) | |
Equity pick up method | 292,446 | 315,721 | 395,245 | |
Income before financial income (expense), exchange (variation) and income taxes | 2,479,514 | 1,752,931 | 1,397,310 | |
Financial results | ||||
Financial income | 762,009 | 386,976 | 389,879 | |
Financial expenses | (2,120,711) | (1,188,215) | (1,227,516) | |
Total financial results | (1,358,702) | (801,239) | (837,637) | |
Income before exchange rate variation, net | 1,120,812 | 951,692 | 559,673 | |
Exchange rate change, net | (385,785) | (1,081,320) | (81,746) | |
Income (loss) before income taxes | 735,027 | (129,628) | 477,927 | |
Income Taxes | (309,923) | 301,480 | ||
Income and social contribution taxes | (234,291) | |||
Net income (loss) for the year | 500,736 | (439,551) | 779,407 | |
Attributable to equity holders of the parent | 204,125 | (745,220) | 420,382 | |
Attributable to non-controlling interests of Smiles | 296,611 | 305,669 | 359,025 | |
Eliminations [Member] | ||||
Net revenue | ||||
Passenger | [1] | 485,725 | 434,396 | 398,105 |
Cargo and Other | [1] | (38,563) | (12,799) | (40,159) |
Mileage program | (689,251) | (619,211) | (482,972) | |
Gross Profit | (242,089) | (197,614) | (125,026) | |
Operating costs and expenses | ||||
Salaries, wages and benefits | ||||
Aircraft fuel | ||||
Aircraft rent | ||||
Sales and marketing | (2,872) | |||
Landing fees | ||||
Aircraft, traffic and mileage servicing | 187,681 | 154,981 | 107,490 | |
Maintenance, materials and repairs | ||||
Depreciation and amortization | 1 | |||
Passenger costs | ||||
Other operating expenses | 1 | 4,998 | 7,162 | |
Total Operating Expenses | 187,683 | 159,979 | 111,780 | |
Equity pick up method | (292,369) | (315,334) | (394,701) | |
Income before financial income (expense), exchange (variation) and income taxes | (346,775) | (352,969) | (407,947) | |
Financial results | ||||
Financial income | (372,446) | (127,248) | (176,433) | |
Financial expenses | 372,446 | 127,126 | 177,055 | |
Total financial results | (122) | 622 | ||
Income before exchange rate variation, net | (346,775) | (353,091) | (407,325) | |
Exchange rate change, net | 693 | 123 | 2 | |
Income (loss) before income taxes | (346,082) | (352,968) | (407,323) | |
Income Taxes | 12,795 | 5,733 | ||
Income and social contribution taxes | 24,684 | |||
Net income (loss) for the year | (321,398) | (340,173) | (401,590) | |
Attributable to equity holders of the parent | (321,398) | (340,173) | R$ 401590 | |
Attributable to non-controlling interests of Smiles | ||||
[1] | Eliminations are related to transactions between GLA and Smiles Fidelidade. | |||
[2] | Amounts include Smiles S.A. and Smiles Fidelidade. |
31. Segments (Details Narrative
31. Segments (Details Narrative) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Smiles Loyalty Program [Member] | |
Disclosure of operating segments [line items] | |
Capital expenditures per business segments | R$ 33836 |
Flight Transportation [Member] | |
Disclosure of operating segments [line items] | |
Capital expenditures per business segments | R$ 914579 |
32. Commitments (Details)
32. Commitments (Details) - Business Combinations [Member] - Aircraft [Member] - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Commitments [Line Items] | ||
Future commitments resulting from firm aircraft orders | R$ 63235639 | |
Future commitments resulting from operating lease | R$ 9245057 | 8,827,272 |
2019 [Member] | ||
Disclosure of Commitments [Line Items] | ||
Future commitments resulting from firm aircraft orders | ||
Future commitments resulting from operating lease | 283,579 | |
2020 [Member] | ||
Disclosure of Commitments [Line Items] | ||
Future commitments resulting from firm aircraft orders | 1,791,661 | |
Future commitments resulting from operating lease | 1,169,967 | 816,766 |
2021 [Member] | ||
Disclosure of Commitments [Line Items] | ||
Future commitments resulting from firm aircraft orders | 3,201,198 | 5,046,966 |
Future commitments resulting from operating lease | 1,152,456 | 1,072,048 |
2022 [Member] | ||
Disclosure of Commitments [Line Items] | ||
Future commitments resulting from firm aircraft orders | 3,690,205 | 7,883,277 |
Future commitments resulting from operating lease | 1,300,668 | 1,250,361 |
2023 [Member] | ||
Disclosure of Commitments [Line Items] | ||
Future commitments resulting from firm aircraft orders | 4,103,490 | 8,766,165 |
Future commitments resulting from operating lease | 1,366,345 | 1,313,497 |
2024 Thereafter [Member] | ||
Disclosure of Commitments [Line Items] | ||
Future commitments resulting from firm aircraft orders | 18,606,054 | 39,747,570 |
Future commitments resulting from operating lease | R$ 4255621 | R$ 4091021 |
32. Commitments (Details Narrat
32. Commitments (Details Narrative) - Aircraft [Member] R$ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019BRL (R$)AircraftsFirm | Dec. 31, 2019USD ($)AircraftsFirm | Dec. 31, 2018BRL (R$)Aircrafts | |
Disclosure of Commitments [Line Items] | |||
Percentage of aircraft total cost | 85.00% | 85.00% | |
Number of aircrafts commercial leases | 126 | 126 | 110 |
Number of aircrafts commercial leases purchase option | 11 | 11 | 10 |
Number of aircrafts fleet leased | 137 | 137 | 121 |
Business Combinations [Member] | |||
Disclosure of Commitments [Line Items] | |||
Number of firm orders | Firm | 129 | 129 | |
Future commitments resulting from firm aircraft orders | R$ | R$ 63235639 | ||
Future commitments resulting from operating lease | R$ | R$ 9245057 | R$ 8827272 | |
Business Combinations [Member] | USD | |||
Disclosure of Commitments [Line Items] | |||
Future commitments resulting from operating lease | $ | $ 2,293,660 |
33. Financial instruments and_3
33. Financial instruments and risk management (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Assets | ||||||||
Cash and cash equivalents | R$ 1645425 | R$ 826187 | R$ 1026862 | R$ 562207 | ||||
Restricted cash | 444,306 | 822,132 | ||||||
Liabilities | ||||||||
Loans and financing | 500 | |||||||
Suppliers - forfeiting | 554,467 | 365,696 | 78,416 | |||||
Leases | 4,648,068 | |||||||
Amortized Cost [Member] | ||||||||
Assets | ||||||||
Cash and cash equivalents | 1,639,920 | [1] | 518,649 | [1] | 592,567 | [2],[3] | ||
Trade receivables | 1,229,530 | [1] | 853,328 | [1] | 936,478 | [2] | ||
Deposits | 1,126,609 | [1],[4] | 885,804 | [1],[4] | 655,244 | [2],[5] | ||
Other assets | 140,006 | [2] | 478,628 | [1] | ||||
Liabilities | ||||||||
Loans and financing | [2],[6] | 7,783,284 | 6,443,807 | |||||
Suppliers | 1,296,417 | [1] | 1,523,952 | [1] | 1,471,150 | [2] | ||
Suppliers - forfeiting | 554,467 | [1] | 365,696 | [1] | 78,416 | [2] | ||
Leases | 6,052,780 | [1] | 912,145 | [1] | 139,110 | [2] | ||
Other labilities | 164,709 | [2] | 147,239 | [1] | ||||
Fair Value [Member] | ||||||||
Assets | ||||||||
Cash and cash equivalents | 5,505 | 307,538 | 434,295 | [3] | ||||
Short-term Investments | 953,762 | 478,364 | 955,589 | [3] | ||||
Restricted cash | 444,306 | 822,132 | 268,047 | |||||
Derivative assets | 147,469 | 40,647 | ||||||
Liabilities | ||||||||
Loans and financing | 626,557 | |||||||
Derivatives | R$ 20350 | R$ 409662 | R$ 34457 | |||||
[1] | Items classified as amortized cost refer to credits, indebtedness with private institutions which, in any early settlement, there are no substantial alterations in relation to the values recorded, except the amounts related to Perpetual Notes and Senior Notes, as disclosed in Note 18. The fair values approximate the book values, according to the short-term maturity period of these assets and liabilities. | |||||||
[2] | Items classified as amortized cost refer to credits, debt with private institutions which, in any early settlement, there are no substantial alterations in relation to the values recorded, except the amounts related to Perpetual Notes and Senior Notes, as disclosed in Note 16. The fair values approximate the book values, according to the short-term maturity period of these assets and liabilities. | |||||||
[3] | The Company manages its financial investments to pay its short-term operational expenses. | |||||||
[4] | Excludes judicial deposits, as described in Note 14. | |||||||
[5] | Excludes judicial deposits, described in Note 11. | |||||||
[6] | The amount on December 31, 2019, classified as measured at fair value through profit or loss, is related to the derivative contracted through Exchange Senior Notes. For further information, see Note 18.1.1. |
33. Financial instruments and_4
33. Financial instruments and risk management (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair value variations: | |||
Gains (losses) recognized in profit or loss | R$ 89045 | ||
Gains (losses) recognized in other comprehensive income (loss) | (71,066) | R$ 420706 | R$ 67913 |
Current liabilities | 9,080 | 195,444 | |
Noncurrent liabilities | 11,270 | 214,218 | |
Movement of other comprehensive income (loss) | |||
Balances as of ending | 165,436 | ||
Recognized in operating income | (1,748,265) | (1,061,089) | (1,050,461) |
Aircraft Fuel - Operating Costs [Member] | |||
Movement of assets and liabilities | |||
Derivative assets (liabilities) as of beginning | (363,268) | 40,647 | |
Fair value variations: | |||
Gains (losses) recognized in profit or loss | (28,892) | (25,280) | |
Gains (losses) recognized as exchange variation | |||
Gains (losses) recognized in other comprehensive income (loss) | 299,910 | (349,252) | |
Settlements payments (received) during the year | 43,008 | (29,383) | |
Derivative assets (liabilities) as of ending | (20,350) | (363,268) | 40,647 |
Movement of other comprehensive income (loss) | |||
Balances as of beginning | (378,702) | 35,505 | |
Fair value adjustments during the year | 299,910 | (275,583) | |
Adjustments of Hedge Accounting of Revenue | |||
Time value of options | (73,669) | ||
Net reversal to profit or loss | 25,549 | (64,955) | |
Balances as of ending | (53,243) | (378,702) | 35,505 |
Effect on Profit or Loss | (25,549) | ||
Interest Rate Risk Derivative Contracts [Member] | |||
Movement of assets and liabilities | |||
Derivative assets (liabilities) as of beginning | (46,394) | (34,457) | |
Fair value variations: | |||
Gains (losses) recognized in profit or loss | (4,488) | ||
Gains (losses) recognized as exchange variation | |||
Gains (losses) recognized in other comprehensive income (loss) | (205,383) | (37,719) | |
Settlements payments (received) during the year | 251,777 | 30,270 | |
Derivative assets (liabilities) as of ending | (46,394) | (34,457) | |
Movement of other comprehensive income (loss) | |||
Balances as of beginning | (121,320) | (114,821) | |
Fair value adjustments during the year | (205,383) | (37,719) | |
Time value of options | |||
Net reversal to profit or loss | 15,339 | 31,220 | |
Balances as of ending | (311,364) | (121,320) | (114,821) |
Effect on Profit or Loss | (15,339) | ||
Foreign Currency Risk Derivatives [Member] | |||
Movement of assets and liabilities | |||
Derivative assets (liabilities) as of beginning | |||
Fair value variations: | |||
Gains (losses) recognized in profit or loss | 1,207 | 9,272 | |
Gains (losses) recognized as exchange variation | |||
Gains (losses) recognized in other comprehensive income (loss) | |||
Settlements payments (received) during the year | 2,293 | (9,272) | |
Derivative assets (liabilities) as of ending | 3,500 | ||
Movement of other comprehensive income (loss) | |||
Balances as of beginning | |||
Fair value adjustments during the year | |||
Adjustments of Hedge Accounting of Revenue | |||
Net reversal to profit or loss | |||
Balances as of ending | |||
Effect on Profit or Loss | 1,207 | ||
Derivative Losses Capped Call - Interest Expenses [Member] | |||
Movement of assets and liabilities | |||
Derivative assets (liabilities) as of beginning | |||
Fair value variations: | |||
Gains (losses) recognized in profit or loss | (23,229) | ||
Gains (losses) recognized as exchange variation | 13,946 | ||
Gains (losses) recognized in other comprehensive income (loss) | |||
Settlements payments (received) during the year | 153,252 | ||
Derivative assets (liabilities) as of ending | 143,969 | ||
Movement of other comprehensive income (loss) | |||
Balances as of beginning | |||
Fair value adjustments during the year | |||
Adjustments of Hedge Accounting of Revenue | |||
Net reversal to profit or loss | |||
Balances as of ending | |||
Effect on Profit or Loss | (9,282) | ||
Exchangeable Senior Notes Derivatives [Member] | |||
Movement of assets and liabilities | |||
Derivative assets (liabilities) as of beginning | |||
Fair value variations: | |||
Gains (losses) recognized in profit or loss | 16,148 | ||
Gains (losses) recognized as exchange variation | (43,575) | ||
Gains (losses) recognized in other comprehensive income (loss) | |||
Settlements payments (received) during the year | (599,130) | ||
Derivative assets (liabilities) as of ending | (626,557) | ||
Movement of other comprehensive income (loss) | |||
Balances as of beginning | |||
Fair value adjustments during the year | |||
Adjustments of Hedge Accounting of Revenue | |||
Net reversal to profit or loss | |||
Balances as of ending | |||
Effect on Profit or Loss | (27,427) | ||
Revenue Hedge Non-Derivative [Member] | |||
Movement of assets and liabilities | |||
Derivative assets (liabilities) as of beginning | |||
Fair value variations: | |||
Gains (losses) recognized in profit or loss | |||
Gains (losses) recognized as exchange variation | |||
Gains (losses) recognized in other comprehensive income (loss) | |||
Settlements payments (received) during the year | |||
Derivative assets (liabilities) as of ending | |||
Movement of other comprehensive income (loss) | |||
Balances as of beginning | |||
Fair value adjustments during the year | |||
Adjustments of Hedge Accounting of Revenue | (188,267) | ||
Net reversal to profit or loss | 22,831 | ||
Balances as of ending | (165,436) | ||
Effect on Profit or Loss | 165,436 | ||
Total Derivative Financial Instruments [Member] | |||
Movement of assets and liabilities | |||
Derivative assets (liabilities) as of beginning | (409,662) | 6,190 | |
Fair value variations: | |||
Gains (losses) recognized in profit or loss | (5,874) | (20,496) | |
Gains (losses) recognized as exchange variation | (29,629) | ||
Gains (losses) recognized in other comprehensive income (loss) | 94,527 | (386,971) | |
Settlements payments (received) during the year | (148,800) | (8,385) | |
Derivative assets (liabilities) as of ending | (499,438) | (409,662) | 6,190 |
Movement of other comprehensive income (loss) | |||
Balances as of beginning | (500,022) | (79,316) | |
Fair value adjustments during the year | 94,527 | (313,302) | |
Adjustments of Hedge Accounting of Revenue | (188,267) | ||
Time value of options | (73,669) | ||
Net reversal to profit or loss | 63,719 | (33,735) | |
Balances as of ending | (530,043) | R$ 500022 | R$ 79316 |
Effect on Profit or Loss | 89,045 | ||
Net Revenue [Member] | |||
Fair value variations: | |||
Gains (losses) recognized in profit or loss | (18,806) | ||
Lease - Interest Expenses [Member] | |||
Fair value variations: | |||
Gains (losses) recognized in profit or loss | (8,662) | ||
Unrealized Loosses With Conversion Right - ESN - Interest Expenses [Member] | |||
Fair value variations: | |||
Gains (losses) recognized in profit or loss | 16,148 | ||
Derivative Gains and Losses - Interest Expenses [Member] | |||
Fair value variations: | |||
Gains (losses) recognized in profit or loss | (300,414) | ||
Foreign Exchange Rate Change, Net [Member] | |||
Fair value variations: | |||
Gains (losses) recognized in profit or loss | R$ 452900 |
33. Financial instruments and_5
33. Financial instruments and risk management (Details 2) - Cash Flow Hedges [Member] R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | ||
Disclosure of detailed information about financial instruments [line items] | ||
2020 | R$ 83941 | [1] |
2021 | (74,238) | [1] |
2022 | (61,192) | [1] |
2023 | (61,033) | [1] |
2024 onwards | (232,948) | [1] |
Revenue Derivatives [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
2020 | (38,504) | |
2021 | (37,091) | |
2022 | (35,888) | |
2023 | (35,442) | |
2024 onwards | (18,511) | |
Aircraft Fuel - Operating Costs [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
2020 | (35,513) | |
2021 | (17,730) | |
Interest Rate Wwap Contract [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
2020 | (9,924) | |
2021 | (19,417) | |
2022 | (25,304) | |
2023 | (25,591) | |
2024 onwards | R$ 214437 | |
[1] | Negative values represent losses. |
33. Financial instruments and_6
33. Financial instruments and risk management (Details 3) R$ in Thousands, $ in Thousands | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | |
Assets | |||||
Recoverable taxes | R$ 174142 | R$ 95873 | |||
Deposits | 1,968,355 | 1,612,295 | |||
Total assets | 15,298,446 | 10,378,266 | |||
Liabilities | |||||
Loans and financing | 2,543,039 | 1,103,206 | |||
Suppliers | 1,286,275 | 1,403,815 | |||
Foreign Exchange Rate Risk [Member] | |||||
Assets | |||||
Cash, equivalents, short-term investments and restricted cash | 1,035,802 | 963,973 | |||
Trade receivables | 202,363 | 148,538 | |||
Recoverable taxes | 5,312 | ||||
Deposits | 1,126,609 | 885,804 | |||
Derivative assets | 147,469 | ||||
Other assets | 352,437 | ||||
Total assets | 2,517,555 | 2,350,752 | |||
Liabilities | |||||
Loans and financing | (7,831,116) | (5,576,835) | |||
Leases | (640,660) | ||||
Suppliers | (462,636) | (903,287) | |||
Derivatives | (20,350) | (409,662) | |||
Operating leases | (6,007,973) | (271,485) | |||
Total liabilities | (14,322,075) | (7,801,929) | |||
Foreign currency exposure | (11,804,517) | (5,451,177) | |||
Commitments not recorded in the statements of financial position | |||||
Future commitments resulting from operating leases | (7,135,784) | [1] | |||
Future commitments resulting from firm aircraft orders | (29,600,647) | (63,235,639) | |||
Total | (29,600,647) | (70,371,423) | |||
Total foreign currency exposure - R$ | R$ 35356555 | R$ 75822600 | |||
Exchange rate (R$/US$) | 4.0307 | 4.0307 | 3.8748 | 3.8748 | |
Foreign Exchange Rate Risk [Member] | USD | |||||
Commitments not recorded in the statements of financial position | |||||
Total foreign currency exposure - R$ | $ | $ (8,771,815) | $ (19,568,133) | |||
[1] | On January 1, 2019, due to the initial adoption of IFRS 16, the obligations corresponding to the operating leases were recognized in the Company's balance sheet, as per Note 4.1.1, as well as the corresponding right of use associated with this obligation. |
33. Financial instruments and_7
33. Financial instruments and risk management (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | |||
Loans and financing current / non-current | R$ 2543039 | R$ 1103206 | |
Suppliers - Forfeiting | 554,467 | 365,696 | R$ 78416 |
Liquidity Risk [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans and financing current / non-current | 12,247,065 | 9,426,981 | |
leases | 9,105,368 | 1,917,671 | |
Suppliers | 1,296,406 | 1,523,952 | |
Suppliers - Forfeiting | 554,467 | 365,696 | |
Derivatives | 20,350 | 409,662 | |
Liquidity risk | 23,223,656 | 13,643,962 | |
Liquidity Risk [Member] | Current [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans and financing current / non-current | 1,112,414 | 901,588 | |
leases | 1,257,430 | 227,985 | |
Suppliers | 1,286,264 | 1,403,793 | |
Suppliers - Forfeiting | 554,467 | 365,696 | |
Derivatives | 9,080 | 95,773 | |
Liquidity risk | 4,219,655 | 2,994,835 | |
Liquidity Risk [Member] | 1 to 5 Years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans and financing current / non-current | 7,519,263 | 3,692,463 | |
leases | 5,862,268 | 1,452,842 | |
Suppliers | 10,142 | 120,137 | |
Derivatives | 11,270 | 214,218 | |
Liquidity risk | 13,402,943 | 5,479,660 | |
Liquidity Risk [Member] | 6 to 12 Months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans and financing current / non-current | 1,724,940 | 438,386 | |
leases | 1,018,266 | 227,879 | |
Suppliers | 22 | ||
Derivatives | 99,671 | ||
Liquidity risk | 2,743,206 | 765,958 | |
Liquidity Risk [Member] | 2024 Thereafter [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans and financing current / non-current | 1,890,448 | 4,394,544 | |
leases | 967,404 | 8,965 | |
Liquidity risk | 2,857,852 | 4,403,509 | |
Liquidity Risk [Member] | Carrying Amount [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans and financing current / non-current | 8,409,841 | 6,443,807 | |
leases | 6,052,780 | 912,145 | |
Suppliers | 1,296,406 | 1,523,952 | |
Suppliers - Forfeiting | 554,567 | 365,696 | |
Derivatives | 20,350 | 409,662 | |
Liquidity risk | |||
Foreign Exchange Rate Risk [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans and financing current / non-current | (7,831,116) | (5,576,835) | |
leases | (6,007,973) | (271,485) | |
Derivatives | R$ 20350 | R$ 409662 |
33. Financial instruments and_8
33. Financial instruments and risk management (Details 5) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | |
Foreign Exchange Rate Risk [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative | R$ 20350 | R$ 409662 |
Liquidity Risk [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative | R$ 20350 | R$ 409662 |
Foreign Currency Risk Derivatives [Member] | Foreign Exchange Rate Risk [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Exchange rate | 4.0307 | |
Effect on profit or loss | R$ 11804517 | |
Derivative | R$ 21500 | |
Foreign Currency Risk Derivatives [Member] | Foreign Exchange Rate Risk [Member] | Dollar Depreciation (-25%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Exchange rate | 3.0230 | |
Effect on profit or loss | R$ 2951129 | |
Derivative | R$ 5375 | |
Foreign Currency Risk Derivatives [Member] | Foreign Exchange Rate Risk [Member] | Dollar Appreciation (+25%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Exchange rate | 5.0384 | |
Effect on profit or loss | R$ 2951129 | |
Derivative | R$ 5375 | |
Foreign Currency Risk Derivatives [Member] | Foreign Exchange Rate Risk [Member] | Dollar Appreciation (+50%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Exchange rate | 6.0461 | |
Effect on profit or loss | R$ 5902259 | |
Derivative | R$ 10750 | |
Foreign Currency Risk Derivatives [Member] | Foreign Exchange Rate Risk [Member] | Dollar Depreciation (-50%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Exchange rate | 2.0154 | |
Effect on profit or loss | R$ 5902259 | |
Derivative | R$ 10750 |
33. Financial instruments and_9
33. Financial instruments and risk management (Details 6) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Aircraft Fuel - Operating Costs [Member] | Fuel Risk [Member] | Decline In Prices/Barrel (-50%) [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 28.42 |
Total exposure | R$ 942142 |
Aircraft Fuel - Operating Costs [Member] | Fuel Risk [Member] | Decline In Prices/Barrel (-25%) [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 42.62 |
Total exposure | R$ 557695 |
Aircraft Fuel - Operating Costs [Member] | Fuel Risk [Member] | Increase In Prices/Barrel (+25%) [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 71.04 |
Total exposure | R$ 345830 |
Aircraft Fuel - Operating Costs [Member] | Fuel Risk [Member] | Increase In Prices/Barrel (+50%) [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 85.25 |
Total exposure | R$ 826924 |
Foreign Currency Risk Derivatives [Member] | Foreign Exchange Rate Risk [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 4.0307 |
Total exposure | R$ 11804517 |
33. Financial instruments an_10
33. Financial instruments and risk management (Details 7) - Interest Rate Risk [Member] R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | [1] | |
Short-Term Investments Net of Financial Debt [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk | Increase in the CDI rate | |
Reference rates | 4.40% | |
Exposure amount (probable scenario) | R$ 1183581 | [2] |
Short-Term Investments Net of Financial Debt [Member] | Remote Favorable Scenario (-50%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Possible adverse scenario | 23,412 | |
Short-Term Investments Net of Financial Debt [Member] | Possible Favorable Scenario (-25%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Possible adverse scenario | 11,706 | |
Short-Term Investments Net of Financial Debt [Member] | Possible Adverse Scenario (+25%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Possible adverse scenario | (11,706) | |
Short-Term Investments Net of Financial Debt [Member] | Remote Adverse Scenario (+50%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Possible adverse scenario | R$ 23412 | |
Short And Long Term Debt Net Of Short Term Investments [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk | Decrease in the Libor rate | |
Reference rates | 1.91% | |
Exposure amount (probable scenario) | R$ 1206135 | [2] |
Short And Long Term Debt Net Of Short Term Investments [Member] | Remote Favorable Scenario (-50%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Possible adverse scenario | (11,733) | |
Short And Long Term Debt Net Of Short Term Investments [Member] | Possible Favorable Scenario (-25%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Possible adverse scenario | (5,866) | |
Short And Long Term Debt Net Of Short Term Investments [Member] | Possible Adverse Scenario (+25%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Possible adverse scenario | 5,866 | |
Short And Long Term Debt Net Of Short Term Investments [Member] | Remote Adverse Scenario (+50%) [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Possible adverse scenario | R$ 11733 | |
[1] | Total invested and raised in the financial market at the CDI rate and Libor interest rate. | |
[2] | Book balances recorded as of December 31, 2019. |
33. Financial instruments an_11
33. Financial instruments and risk management (Details 8) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | R$ 1645425 | R$ 826187 | R$ 1026862 | R$ 562207 |
Restricted cash | 444,306 | 822,132 | ||
Level 1 [Member] | Book Value [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | 5,505 | |||
Short-term investments | 953,762 | 21,100 | ||
Level 1 [Member] | Fair Value | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | 5,505 | |||
Short-term investments | 953,762 | 21,100 | ||
Level 2 [Member] | Book Value [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | 307,538 | |||
Short-term investments | 457,264 | |||
Restricted cash | 444,306 | 822,132 | ||
Derivative assets | 147,469 | |||
Fair value adjustment of derivatives | (626,557) | |||
Derivatives liabilities | (20,350) | (409,662) | ||
Level 2 [Member] | Fair Value | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | 307,538 | |||
Short-term investments | 457,264 | |||
Restricted cash | 444,306 | 822,132 | ||
Derivative assets | 147,469 | |||
Fair value adjustment of derivatives | (626,557) | |||
Derivatives liabilities | R$ 20350 | R$ 409662 |
33. Financial instruments an_12
33. Financial instruments and risk management (Details 9) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | R$ 1645425 | R$ 826187 | R$ 1026862 | R$ 562207 |
Restricted cash | (444,306) | (822,132) | ||
Total negative shareholders' equity | (7,105,417) | (4,505,351) | R$ 3088521 | R$ 3375934 |
Capital Management [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total loans and financing | 8,409,841 | 6,443,807 | ||
Total leases to pay | 6,052,780 | 912,145 | ||
Cash and cash equivalents | (1,645,425) | (826,187) | ||
Financial investments | (953,762) | (478,364) | ||
Restricted cash | (444,306) | (822,132) | ||
Net indebtedness | 11,419,128 | 5,229,269 | ||
Total negative shareholders' equity | (7,105,417) | (4,505,351) | ||
Total capital | R$ 4313711 | R$ 723918 |
33. Financial instruments an_13
33. Financial instruments and risk management (Details Narrative) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019BRL (R$)R$ / $R$ / $ | Dec. 31, 2018BRL (R$)R$ / $R$ / $ | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | ||||
Closing exchange rate | 4.0307 | |||
Percentage of consumption of hedging | 16.60% | 68.20% | ||
Average price of hedging per barrel | R$ 65 | |||
Gains (losses) Recognized in Profit or Loss | R$ 89045 | |||
USD | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Closing exchange rate | R$ / $ | 4.0307 | 3.8748 | ||
ARS | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Closing exchange rate | R$ / $ | 0.0673 | 0.1028 | ||
Interest Rate Risk [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on hedge transaction | R$ 15339 | R$ 35708 | ||
Foreign Exchange Rate Risk [Member] | USD | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Closing exchange rate | 1 | |||
Derivative Losses Capped Call - Interest Expenses [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gains (losses) Recognized in Profit or Loss | R$ 23229 | |||
Foreign Currency Risk Derivatives [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on hedge transaction | 1,207 | 9,272 | ||
Gains (losses) Recognized in Profit or Loss | 1,207 | 9,272 | ||
Aircraft Fuel - Operating Costs [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on hedge transaction | 25,549 | 39,675 | ||
Gains (losses) Recognized in Profit or Loss | R$ 28892 | R$ 25280 | ||
Description of derivative contract consumption | On December 31, 2019, the Company, through its subsidiary GLA, has oil derivative contracts for protection equivalent to 68.2% of 12-month consumption, protection equivalent to 41.7% of 24-month consumption. |
34. Non-cash Transactions (Deta
34. Non-cash Transactions (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-cash Transactions [abstract] | |||
Initial adoption - IFRS 16 (property, plant and equipment / accumulated loss / minority interest) | R$ 2436333 | ||
Share-based compensation (capital / share-based compensation) | (31,222) | ||
Unrealized results from derivatives (derivative obligations / equity valuation adjustment) | 30,021 | ||
Effects of changes in equity interest (capital reserves / minority interest) | (649) | ||
Actuarial losses from post-employment benefits (actuarial liabilities / equity valuation adjustment / accumulated losses) | 87,541 | ||
Interest on shareholders' equity to be distributed, net of taxes | (8,672) | (49,602) | |
Dividends | 238,359 | (58,632) | |
Deposits in guarantee for leases agreements | 10,307 | ||
Write-off of leases agreements | (805,081) | (15,334) | |
Provision for aircraft return | 147,548 | ||
Acquisition of property, plant and equipment through financing (fixed assets / loans and financing) | 164,234 | 193,506 | 63,066 |
Guarantee deposits (deposits / leases payable) | (476) | ||
Maintenance reserve (deposits / leases payable) | 569,229 | 570,333 | 368,719 |
Right to use flight equipment (fixed assets / leases payable) | R$ 957026 |
35. Liabilities from Financin_3
35. Liabilities from Financing Activities (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net cash flows (used in) from financing activities | R$ 892173 | R$ 753189 | R$ 359673 |
Net cash flows from operating activities | 2,461,076 | 2,081,869 | 672,753 |
Income for the year | 296,611 | 305,669 | 359,025 |
Non-Cash Changers | |||
Dividends provisioned through the subsidiary Smiles | 238,359 | (58,632) | |
Treasury shares [Member] | |||
Opening balance | (126) | (4,168) | |
Cash flow | (15,929) | ||
Income for the year | |||
Non-Cash Changers | |||
Property, plant and equipment acquisition through financing | |||
Disposal property, plant and equipment | |||
Dividends provisioned through the subsidiary Smiles | |||
Provision for interest on loans | |||
Adjustment to profit | |||
Exchange rate variation net | |||
Treasury shares sold | 19,971 | ||
Gains on change in investment | |||
Interest payments and loan cost | |||
Other | |||
Closing balance | (126) | (4,168) | |
Shares To Be Issued [Member] | |||
Opening balance | 2,818 | ||
Cash flow | 2,818 | ||
Income for the year | |||
Non-Cash Changers | |||
Property, plant and equipment acquisition through financing | |||
Disposal property, plant and equipment | |||
Dividends provisioned through the subsidiary Smiles | |||
Provision for interest on loans | |||
Adjustment to profit | |||
Exchange rate variation net | |||
Treasury shares sold | |||
Gains on change in investment | |||
Interest payments and loan cost | |||
Other | |||
Closing balance | 2,818 | ||
Capital Stock [Member] | |||
Opening balance | 2,942,612 | 2,927,184 | 2,924,492 |
Cash flow | 15,428 | 2,169 | |
Income for the year | |||
Non-Cash Changers | |||
Property, plant and equipment acquisition through financing | |||
Disposal property, plant and equipment | |||
Dividends provisioned through the subsidiary Smiles | |||
Provision for interest on loans | |||
Adjustment to profit | |||
Exchange rate variation net | |||
Treasury shares sold | |||
Gains on change in investment | |||
Interest payments and loan cost | |||
Other | 523 | ||
Closing balance | 2,942,612 | 2,927,184 | |
Short And Long-Term Indebtedness [Member] | |||
Opening balance | 6,443,807 | 7,105,667 | 6,379,220 |
Net cash flows (used in) from financing activities | 1,401,125 | ||
Net cash flows from operating activities | (444,006) | ||
Cash flow | (536,888) | 612,396 | |
Income for the year | |||
Non-Cash Changers | |||
Property, plant and equipment acquisition through financing | 164,234 | 193,506 | 63,066 |
Disposal property, plant and equipment | (805,081) | ||
Dividends provisioned through the subsidiary Smiles | |||
Provision for interest on loans | 565,854 | 502,529 | |
Maintenance reserve | |||
Escrow deposit | |||
Initial adoption adjustment - IFRS 16 | |||
Gains (losses) recognized in other comprehensive income (loss) | |||
Adjustment to profit | |||
Exchange rate variation net | 313,717 | 1,043,117 | 68,895 |
Interest accrued and cost amortization | 571,681 | ||
Write-offs and Contractual amendment | |||
Other results | (40,717) | ||
Treasury shares sold | |||
Interest payments and loan cost | (481,708) | (505,105) | |
Other | (15,334) | ||
Closing balance | 8,409,841 | 6,443,807 | 7,105,667 |
Leases [Member] | |||
Opening balance | 912,145 | ||
Net cash flows (used in) from financing activities | (1,617,677) | ||
Net cash flows from operating activities | (23,304) | ||
Non-Cash Changers | |||
Property, plant and equipment acquisition through financing | 957,026 | ||
Maintenance reserve | (6,498) | ||
Escrow deposit | (476) | ||
Initial adoption adjustment - IFRS 16 | 5,370,868 | ||
Gains (losses) recognized in other comprehensive income (loss) | |||
Adjustment to profit | |||
Exchange rate variation net | 241,612 | ||
Interest accrued and cost amortization | 502,544 | ||
Write-offs and Contractual amendment | (283,460) | ||
Other results | |||
Closing balance | 6,052,780 | 912,145 | |
Derivatives [Member] | |||
Opening balance | 409,662 | ||
Net cash flows (used in) from financing activities | (407,322) | ||
Net cash flows from operating activities | (43,008) | ||
Non-Cash Changers | |||
Maintenance reserve | |||
Escrow deposit | |||
Initial adoption adjustment - IFRS 16 | |||
Gains (losses) recognized in other comprehensive income (loss) | (94,527) | ||
Adjustment to profit | |||
Exchange rate variation net | (13,946) | ||
Interest accrued and cost amortization | |||
Write-offs and Contractual amendment | |||
Other results | |||
Other | 22,022 | ||
Closing balance | (127,119) | 409,662 | |
Other Liabilities [Member] | |||
Opening balance | 147,239 | 143,473 | |
Cash flow | (219,493) | ||
Income for the year | |||
Non-Cash Changers | |||
Property, plant and equipment acquisition through financing | |||
Disposal property, plant and equipment | |||
Dividends provisioned through the subsidiary Smiles | 238,879 | ||
Provision for interest on loans | |||
Adjustment to profit | |||
Exchange rate variation net | |||
Treasury shares sold | |||
Gains on change in investment | |||
Interest payments and loan cost | |||
Other | (15,620) | ||
Closing balance | 147,239 | 143,473 | |
Non-controlling Interests from Smiles [Member] | |||
Opening balance | R$ 480061 | 412,013 | 293,247 |
Cash flow | 875 | (238,669) | |
Income for the year | 305,669 | 359,025 | |
Non-Cash Changers | |||
Property, plant and equipment acquisition through financing | |||
Disposal property, plant and equipment | |||
Dividends provisioned through the subsidiary Smiles | (239,877) | ||
Provision for interest on loans | |||
Adjustment to profit | |||
Exchange rate variation net | |||
Treasury shares sold | |||
Gains on change in investment | 561 | ||
Interest payments and loan cost | |||
Other | 820 | (1,590) | |
Closing balance | R$ 480061 | R$ 412013 |
36. Insurance Coverage (Details
36. Insurance Coverage (Details) R$ in Thousands, $ in Thousands | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2018BRL (R$) | |
Smiles S.A. ("Smiles") [Member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | R$ 123495 | R$ 118119 | ||
Civil Liability Per Event/Aircraft [Member] | Gol Linhas Aereas S.A. ("GLA") [Member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | [1] | 3,023,025 | ||
Civil Liability Per Event/Aircraft [Member] | Gol Linhas Aereas S.A. ("GLA") [Member] | USD | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | $ | [1] | $ 750,000 | ||
Warranty - Hull/War [Member] | Gol Linhas Aereas S.A. ("GLA") [Member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | 342,610 | |||
Warranty - Hull/War [Member] | Gol Linhas Aereas S.A. ("GLA") [Member] | USD | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | $ | 85,000 | |||
Inventories (local) [Member] | Gol Linhas Aereas S.A. ("GLA") [Member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | [2] | 1,007,675 | ||
Inventories (local) [Member] | Gol Linhas Aereas S.A. ("GLA") [Member] | USD | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | $ | [2] | $ 250,000 | ||
Rent Guarantee (Cond. Rio Negro - Alphaville) [Member] | Smiles S.A. ("Smiles") [Member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | 1,318 | |||
D&O liability Insurance [Member] | Smiles S.A. ("Smiles") [Member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | 100,000 | |||
Fire (Property Insurance Cond. Rio Negro - Alphaville) [Member] | Smiles S.A. ("Smiles") [Member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Maximum reimbursable amounts | R$ 12747 | |||
[1] | In accordance with the agreed amount for each aircraft up to the maximum limit indicated. | |||
[2] | Values per incident and annual aggregate. |
36. Insurance coverage (Detai_2
36. Insurance coverage (Details Narrative) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Gol Linhas Aereas S.A. ("GLA") [Member] | Brazil, Brazil Real | |
Disclosure of types of insurance contracts [line items] | |
Exceeding limit amount of insurance policies | R$ 1000000 |
37. Subsequent events (Details)
37. Subsequent events (Details) - 3 months ended Mar. 31, 2020 - Events After Reporting Period [Member] R$ in Thousands, $ in Thousands | BRL (R$) | USD ($) |
Adjustments | ||
Provision for cancellation of mileage exchange | R$ 22271 | |
De-recognition of the cash flow hedge - fuel | (291,925) | |
Reclassifications | ||
Taxes to recover in the short - and long-term | R$ 61020 | |
USD | ||
Adjustments | ||
De-recognition of the cash flow hedge - revenues in US$ | $ | $ (290,346) |
37. Subsequent events (Details
37. Subsequent events (Details Narrative) R$ in Thousands | Apr. 02, 2020BRL (R$) | Mar. 24, 2020 | Mar. 16, 2020 | Feb. 21, 2020 | Feb. 11, 2020BRL (R$)Number | Jun. 30, 2020 | Apr. 30, 2020 | Mar. 31, 2020BRL (R$) | Mar. 31, 2020BRL (R$) | Dec. 31, 2020 | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) |
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Current assets | R$ 4927377 | R$ 3310835 | |||||||||||
Advances for acquisition of property, plant and equipment | R$ 6058101 | R$ 2818057 | R$ 3195766 | ||||||||||
Events After Reporting Period [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Loans and financing | R$ 148000 | R$ 148000 | |||||||||||
Maturity | maturing in March 2020 to March 2022 | ||||||||||||
Adjustment of operations - essential network | adjusted our network again from 750 to 50 essential daily flights between the São Paulo International Airport, located in the city of Guarulhos, and all 26 state capitals and Brasília (“Essential Network”). | GOL started to reduce its capacity by 50% to 60% in the domestic market, and by 90% to 95% in the international market | operating an average of 120 daily flights | ||||||||||
Description of variable costs | all Brazilian capitals and the federal district, which corresponded to a reduction of 93% in domestic flights, and a temporary interruption in all international flights | ||||||||||||
Description of personnel expenses | a planned reduction of approximately 50% in payroll expenses and relevant charges, particularly with reduction of working hours and, consequently, a reduction of 35% in salaries of air service and ground service workers; negotiation to reduce the working hours of our crew by 50%; 40% reduction in the compensation of our officers; adoption of unpaid leave (LNR) by approximately 5.4 thousand employees (approximately 34% of our total staff), with these adoptions signed until March 31, 2020; | ||||||||||||
Description of provisional measure | reducing the salaries of employees by 50%, the compensation of officers by 60%, and adopting the suspension of labor agreements of around 800 employees, in addition to the 5,400 employees previously mentioned | ||||||||||||
Description of aircraft and engines lease | postponement of payments for a period of 3 to 6 months, which should enable us to retain funds of approximately R$452.4 million | ||||||||||||
Other expenses and revenues | R$ 447000 | ||||||||||||
Provision for cancellations | R$ 22271 | R$ 22271 | |||||||||||
Equity valuation adjustment, derivative losses | 291,925 | ||||||||||||
Equity valuation adjustment, exchange variation expenses | R$ 290346 | ||||||||||||
Downtime status of Boeing 737 MAX | (a) compensation for losses incurred since the stoppage of aircraft operations, to date, and as a result of the non-delivery of aircraft, as set forth in the purchase agreements; (b) reduction in the number of firm orders by 34 aircraft to 95 in total; (c) the flexibility to additionally the number of 35 aircraft; and (d) the flexibility to convert the existing orders for other Max-models. | ||||||||||||
Advances for acquisition of property, plant and equipment | 136,962 | R$ 136962 | |||||||||||
Amount recorded in income statement | 309,980 | ||||||||||||
Amount received | R$ 446942 | ||||||||||||
Invested in future acquisition of new aircraft | 1,901,306 | 1,901,306 | |||||||||||
Events After Reporting Period [Member] | Receivables [member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Current assets | 446,942 | 446,942 | |||||||||||
Events After Reporting Period [Member] | Exchange Variation [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Amount recorded in income statement | 63,041 | ||||||||||||
Events After Reporting Period [Member] | Other Income and Expenses [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Amount recorded in income statement | 193,503 | ||||||||||||
Events After Reporting Period [Member] | Creditors [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Short-term obligations | R$ 233081 | R$ 233081 | |||||||||||
Events After Reporting Period [Member] | BRAZIL | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
GDP rate | 5.00% | ||||||||||||
Events After Reporting Period [Member] | 8.875% Senior Notes Due On 2022 [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Funds use redeem debt | R$ 330000 | ||||||||||||
Events After Reporting Period [Member] | 8.87% Senior Notes Due On 2022 [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Redemption date | Mar. 23, 2020 | ||||||||||||
Redeemed note percentage | 102.219% | ||||||||||||
Events After Reporting Period [Member] | Aircraft [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Number of aircraft sale | Number | 11 | ||||||||||||
Reduce net debt | R$ 500000 | ||||||||||||
Reducing in financial lease debt | 130,000 | ||||||||||||
Cash liquidity | R$ 370000 | ||||||||||||
Events After Reporting Period [Member] | Aircraft [Member] | 8.875% Senior Notes Due On 2022 [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Interest rate | 8.875% | ||||||||||||
Maturity | maturing in 2022 |