Operating Performance Analysis of Gol and Ryanair Airlines (original) (raw)

This paper aimed to identify the main differences in the operating revenue and expense management of two airline companies: the Brazilian one, Gol (Gol Linhas Aéreas Inteligentes S.A.) and the Irish one, Ryanair (Ryanair Holdings plc). Even though both companies have a low-cost profile, Gol has been suffering in applying this strategy, while Ryanair has been growing year after year. To carry this paper out, financial statements from 2012 to 2016 were used, applying an approach of decomposition of return on investment and expenses regarding fuel and wages. While Gol is used to presenting operating loss, Ryanair stands out due to recurring profits and high occupancy rates. The results showed that Gol can raise, per seat/km, a much higher revenue volume than Ryanair, nevertheless, its operating expenses per seat/km are even higher, burning up all the revenue and generating operating loss. The analysis carried out evinces the main causes of such differences in the results of both companies.