GOL Linhas Aéreas Inteligentes S.A. - Investor Update

Brazil - Português

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Jan 08, 2020, 06:58 ET

SÃO PAULO, Jan. 8, 2020 /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 December 2019 is preliminary and unaudited. For comparison purposes, fourth quarter 2018 results were adjusted in accordance with IFRS 16.

Overall Commentary

GOL expects EPS and EPADS for the quarter of approximately R$0.60¹ and US$0.30¹, respectively.
EBITDA margin for the quarter is expected to be 37% to 39%², an increase in relation to the quarter ended in December 2018 (16.3%³).
Passenger unit revenue (PRASK) for the fourth quarter is expected to be up approximately 11% year over year. For the quarter ended in December, GOL expects unit revenue (RASK) to increase approximately 11%.
Non-fuel unit costs (CASK ex-fuel) are expected to decrease by approximately 10%²^,4 in relation to the fourth quarter of the prior year, primarily due to increased productivity (increase in ASKs, aircraft utilization and operating efficiency), partially offset by increased payroll taxes and increased depreciation from fifteen net additional aircraft in the fleet. Fuel unit costs (CASK fuel) are expected to decrease by approximately 21% year-over-year, positively impacted by a 13% decrease in the average fuel price and a 2% reduction in fuel consumption per flight hour.
GOL's financial leverage, as measured by the Net Debt⁵/LTM EBITDA ratio, was approximately 2.7x at the end of the December 2019 quarter. The Company amortized approximately R$100 million of debt in the quarter, and total liquidity at quarter-end is expected to be at R$4.3 billion, above the R$4.0 billion of the previous quarter.

Preliminary and Unaudited Projection

EBITDA Margin²

EBIT Margin²

Other Revenue (cargo, loyalty, other)

Average fuel price per liter

Average exchange rate

Passenger unit revenue (PRASK)

CASK Ex-fuel^2,4

Total Demand – RPK

Total Capacity – ASK

Total Capacity – Seats

December Quarter 2019

37% - 39%

26% - 27%

6% of total net revenues

R$2.80 - R$2.86

R$4.12

December Quarter 2019

vs. December Quarter 2018

Up ~11%

Down ~10%

Up ~6%

Up ~9%

1.	Excluding gains and losses on currency and Exchangeable Senior Notes.
2.	Excluding non-recurring expenses of approximately R$209 million in 4Q19.
3.	For comparison purposes, 4Q18 results adjusted in accordance with IFRS 16, unaudited.
4.	Excluding net results of approximately R$632 million related to aircraft sales in 4Q18.
5.	Excluding perpetual notes.

Investor Relations
[email protected]
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.

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