GOL Announces Investor Update

SÃO PAULO, Oct. 8, 2019 /PRNewswire/ — GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), Brazil’s premier domestic airline, provides its Investor Update. The information below for the quarter ended in September 2019 is preliminary and unaudited. For comparison purposes, third quarter 2018 results were adjusted in accordance with IFRS 16.

Overall Commentary¹

GOL expects an EBITDA margin for the quarter of 29% to 31%¹, an increase in relation to the quarter ended in September 2018 (18.9%²).
Passenger unit revenue (PRASK) for the third quarter is expected to be up approximately 20% year over year. For the quarter ended in September, GOL expects unit revenue (RASK) to increase approximately 19%.
Non-fuel unit costs (CASK ex-fuel) are expected to increase by approximately 15%^1,3 in relation to the third quarter of the prior year, primarily due to increases in payroll tax rates due to the elimination of the Payroll Tax Relief Program, increased commissions due to increased forward sales, increases in landing and navigation expenses due to a 10% increase in rates, increases in depreciation from six net additional aircraft in the fleet, and costs associated with MAX aircraft delivery delays. Fuel unit costs (CASK fuel) are expected to decrease by approximately 7% year over year, negatively impacted by a 1.3% increase in fuel consumption per flight hour from the delayed delivery of MAX aircraft in the quarter.
GOL’s financial leverage, as measured by the Net Debt⁴/LTM EBITDA ratio, was approximately 2.9x at the end of the September 2019 quarter. The Company amortized R$182 million of debt in the quarter and total liquidity at quarter-end is expected to be at R$4.0 billion, above the R$3.7 billion of the previous quarter.

Preliminary and Unaudited Projection
	September Quarter 2019
EBITDA Margin¹	29% – 31%
EBIT Margin¹	17% – 18%
Ancillary Revenue (cargo and other)	6% of total net revenues
Average fuel price per liter	R$2.90 – R$2.98
Average exchange rate	R$3.97

	September Quarter 2019 vs. September Quarter 2018
Passenger unit revenue (PRASK)	Up ~20%
CASK Ex-fuel^1,3	Up ~15%
Total Demand – RPK	Up ~12.8%
Total Capacity – ASK	Up ~7.6%
Total Capacity – Seats	Up ~7.8%

1. Excluding non-recurring expenses of approximately R$79 million in 3Q19.
2. For comparison purposes, 3Q18 results adjusted in accordance with IFRS 16, unaudited.
3. Excluding net results of approximately R$102 million related to aircraft sales in 3Q18.
4. Excluding perpetual notes.

Investor Relations
ri@voegol.com.br
www.voegol.com.br/ir
+55(11) 2128-4700

About GOL Linhas Aéreas Inteligentes S.A.: Brazil’s largest airline group with three main businesses: passenger transportation, cargo transportation and coalition loyalty program.

SOURCE GOL Linhas Aéreas Inteligentes S.A.

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