GOL Consolidates Fleet Renewal and Revenue Grows by 14.1%

SAO PAULO, Aug. 9 /PRNewswire-FirstCall/ -- GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL and BM&FBOVESPA: GOLL4), (S&P/Fitch: BB-/BB-, Moody's: Ba3), the largest low-cost and low-fare airline in Latin America, announces today its results for the second quarter of 2010 (2Q10). The following financial and operating information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS) and in Brazilian Reais (R$), and all comparisons are with the second quarter of 2009 (2Q09) and the first quarter of 2010 (1Q10).

Highlights

• GOL's net revenue totaled R$1,590.9mm in 2Q10, 14.1% above the R$1,394.0mm recorded in 2Q09, mainly driven by the 16.6% year-over-year increase in passenger traffic on its route network.
• Operating costs and expenses came to R$1,533.6mm, 0.3% increase on 1Q10 and 17.6% up on 2Q09, primarily due to maintenance expenses of around R$37mm associated with the renovation of the fleet.
• Operating income (EBIT) stood at R$57.3mm, 36.3% down on 2Q09, and 70.1% versus 1Q10, with a margin of 3.6%, chiefly due to maintenance expenses. In relation to 1Q10, EBIT fell by 70.1% and the operating margin narrowed by 7.5 p.p.
• In April 2010, the Company announced a new code-share agreement with Delta Air Lines, which allows passengers to accumulate miles on all flights operated by the two companies.
• During the second quarter, GOL announced two new Caribbean destinations: Bridgetown, on the island of Barbados, and Saint Maarten, in the Netherlands Antilles, being the only Brazilian carrier to fly to these destinations.
• At the beginning of June, GOL became an effective member of IATA (International Air Transport Association).
• GOL ended the quarter with a leverage ratio (Adjusted Gross Debt / EBITDAR) of 5.5x, versus 6.6x in 2Q09 and 5.6x in 1Q10.
• Total cash closed the quarter at R$1,589.3mm, representing approximately 25% of net revenue in the last 12 months. This is the new minimum level for the cash/net revenue ratio, as per the Company's strategic plan for the coming years.
• On July 12, the Company issued US$300mm in senior notes maturing in 2020, with a yield of 9.5% and a 9.25% coupon, secured by GOL and its subsidiary VRG Linhas Aereas S.A.
  • "IR Global Rankings 2010": GOL won in the "Best Corporate Governance Practices" and "Best IR Website" categories; and
  • "IR Magazine Awards Brazil 2010": GOL won the award on the "Most Progress in Investor Relations" category among those companies with the highest market capitalization in the country.

To access the 2Q10 Earnings Release, please visit the website www.voegol.com.br/ir

SOURCE GOL Linhas Aereas Inteligentes S.A.