In 1Q19, Brazil's premiere airline achieves a 30% EBITDA margin and records net revenues of R$3.2 billion

SAO PAULO, April 30, 2019 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company"), (NYSE: GOL and B3: GOLL4), Brazil's premier airline, announces its consolidated results for the first quarter of 2019 (1Q19). All information is presented in accordance with IFRS, in Brazilian Reais (R$) and all comparisons are with the first quarter of 2018 (1Q18), unless otherwise stated.

Financial and Operational Highlights:

Improved operating indicators: RPKs increased by 6.4%, totaling 10.6 billion in 1Q19, driven by 7% growth in the number of transported passengers; ASK growth remained constrained at 5%. As a result of strong passenger demand, GOL's revenue management, and GOL's consistent operational excellence, the Company was able to achieve (i) an average yield per passenger of 28.55 cents (R$), an increase of 1.9% compared to 1Q18; (ii) an average load factor of 81.5%, an increase of 1.1 p.p. quarter-over-quarter; and (iii) on-time performance of 87.1% in 1Q19 according to Infraero's methodology and data from major airports in Brazil.

Strong revenue growth: the combination of higher demand and optimized pricing resulted in a net revenue for the quarter of R$3.2 billion, the highest ever recorded by the Company, and an increase of 8.3% compared to 1Q18. Net RASK was 24.63 cents (R$) in 1Q19, an increase of 3.2% over 1Q18. Net PRASK increased 3.3% over 1Q18, reaching 23.27 cents (R$). Average fare increased by 1.3% from R$335 to R$339. GOL's 2019 net revenue guidance is approximately R$13 billion.

Cost environment: unit costs (CASK), excluding non-recurring expenses increased by 4.7% to 20.44 cents (R$). On an ex-fuel basis and excluding non-recurring expenses CASK increased 3.2%, due to (i) a 16.2% average depreciation of the Real against the US dollar that impacted maintenance, landing fees and international services costs; (ii) the termination of the federal payroll tax relief, which increased the INSS payroll tax rate from 0% to 20%; and (iii) a higher number of transported passengers and higher costs from reimbursement of tickets and accommodation costs (mainly related to the grounding of the MAX-8 fleet). Growth in CASK ex-fuel, excluding non-recurring expenses, remained constrained at 3.2%, totaling 12.80 cents (R$). GOL remains the unit cost leader in South America for the 18th consecutive year.

Solid margins: due to its strong cost control, and management of capacity and yields, the Company achieved a positive operating result for the 11th consecutive quarter, despite a 16.2% average depreciation of the Real against the US dollar and a 9.3% increase in price of jet fuel. The combination of stronger pricing and higher demand permitted GOL to achieve an EBIT margin of 17%. Operating income (EBIT) in 1Q19 was R$546.2 million, an increase of 1.3% compared to 1Q18 (R$539.1 million). EBITDA margin was 29.6% in 1Q19, increase of 1.9 p.p. q-o-q. GOL's 2019 EBIT margin and EBITDA margin guidance is approximately 18% and 28%, respectively.

Balance sheet strengthening: the Real depreciated 17.2% (end of period) against the U.S. dollar causing net exchange and monetary variation losses of R$90.7 million. Net debt (excluding perpetual bonds) to LTM EBITDA was 3.3x as of March 31, 2019. During the quarter, GOL amortized R$147.9 million of its 7th issue of debentures. Total liquidity, including cash, financial investments, restricted cash and accounts receivable, was R$3.5 billion, R$549.7 million higher in comparison to December 31, 2018 and an increase of R$421.5 million versus a year ago. Restricted cash was R$469.3 million in 1Q19, 42.9% lower than the R$822.1 million registered in 4Q18. The combination of GOL's operational cash flow generation of R$253.6 million in the quarter and higher cash liquidity increased the Company's financial flexibility. The combination of GOL's operational cash flow generation of R$253.6 million in the quarter and higher cash liquidity increased the Company's financial flexibility.

Access to earnings release, management videos, presentation and full financials already available on: www.voegol.com.br/ir

1Q19 Earnings Call: April 30, 2019, 11:00 a.m. (US EDT), Phone: [phone], Code: GOL

Investor Relations: [e-mail], [phone]

About GOL Linhas Aéreas Inteligentes S.A. (www.voegol.com.br): Brazil's largest airline group with three main businesses: passenger transportation, cargo transportation and coalition loyalty program.

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SOURCE GOL Linhas Aéreas Inteligentes S.A.

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