GOL Breaks Record in Demand and Registers Adjusted Net Income of R$110.5mm in 1Q11

SAO PAULO, May 10, 2011 /PRNewswire/ -- GOL Linhas Aereas Inteligentes S.A. (Bovespa: GOLL4 andNYSE: GOL), (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 first quarter of 2011 (1Q11).

Highlights

• 1Q11 Adjusted Net Income, calculated as indicated above, amounted to R$110.5mm in the quarter, with a net margin of 5.8%. The one-off entries with non-cash effect of approximately R$120mm when included, result in a Net Income of R$31.9mm, with a net margin of 1.7%.
• The increase in 1Q11 Adjusted Net Income in the amount of R$110.5mm, compared to the R$23.9mm and margin of 1.4% reported in 1Q10 was due to higher gains of foreign exchange rate variation between the periods. The operating result was consistent with the fact that revenue and costs recorded similar upturns. In 4Q10, net income was R$132.2million, with a margin of 7.1%.
• Adjusted Net Revenue totaled to R$1,895.7mm, 9.6% more than the R$1,729.8mm recorded in 1Q10 and 1.4% up on the R$1,869.8mm posted in 4Q10. The improvement was fueled by the 9.7% and 3.3% upturn in demand, in turn driven by the 18.5% and 11.6% increases compared to 1Q10 and 4Q10, respectively, in ancillary revenues and the competitive fare policy, which generated the Company's best ever first-quarter load factor (73.5%, versus 70.9% in 1Q10 and 71.1% in 4Q10).
• Adjusted Operating Income (EBIT) came to R$193.1mm, with a margin of 10.2%, 0.9 p.p. down year-on-year and 3.8 p.p. less than in 4Q10. This result was chiefly due to the increase in the aircraft fuel and salaries, wages and benefits costs. This increase was partially offset by gains in operational efficiency due to the high aircraft utilization rate (13.3 block hours in 1Q11 versus 13.0 block hours in 1Q10 and 4Q10).
• First-quarter Adjusted EBITDAR stood at R$411.5million, with a margin of 21.7%, being 1.6% above the latter's R$405.0mm in nominal terms posted in 1Q10, but 1.7 p.p. down on the 23.4% margin for the same period, due to the 9,6% upturn in the 1Q11 net revenue. In comparison with the R$475.0mm and margin of 25.4% reported in 4Q10, EBITDAR fell by 13.4%  and the EBITDAR margin by 3.7 p.p. mainly due to the 26.3% decrease in operating result and 3.8 p.p. in EBIT margin between the periods.

To access the 1Q11 Earnings Release visit our website www.voegol.com.br/ir  

IR Contacts
Leonardo Pereira
Rodrigo Alves / Edmar Lopes
Raquel Kim
Gustavo Mendes
Investor Relations
[email protected]
www.voegol.com.br/ri
+55 (11) 2128-4700

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SOURCE GOL Linhas Aereas Inteligentes S.A.