GOL Reduces Unitary Costs and Achieves Operating Income of R$191.4mm, with a Margin of 11.1% in the Quarter

SAO PAULO, May 6 /PRNewswire-FirstCall/ -- GOL Linhas Aereas Inteligentes S.A. (Bovespa: GOLL4 andNYSE: GOL), the largest low-cost and low-fare airline in Latin America, announces today its results for the first quarter of 2010 (1Q10).

Highlights

• GOL's operating income (EBIT) jumped by 82.1% year-over-year, to R$191.4mm, accompanied by a margin of 11.1%, 4.1 p.p. wider than in 1Q09 (6.9%) and 3.7 p.p. up on 4Q09 (7.4%). The result reflected growing demand on the domestic and international markets and the expansion of GOL's competitive advantages.

• Higher aircraft utilization in the quarter was the main driver to the RASK and CASK spread expansion of 55.7% to 1.71 cents (R$), in 1Q10 when compared to the 1.10 cents (R$) posted in 1Q09 and 52.3% more than the 1.13 cents (R$) registered in 4Q09.

• EBITDAR totaled R$405.0mm in 1Q10, with a margin of 23.4%,  12.7% up on the R$359.3mm recorded in 1Q09 (margin of 23.7%) and 39.6% higher than the R$290.1mm reported in the previous quarter.

• The total cash (comprised of cash, cash equivalents and short-term investments) closed the quarter at R$1,496.1mm, 3.8% more than at the end of 2009 and a massive 279.1% higher than in 1Q09. The total cash represented 24.0% of net revenue in the last 12 months.

• GOL improved all its financial ratios compared to 1Q09, including the following highlights:

• Gross adjusted debt to EBITDAR (LTM) decreased 43.7% to 5.8x in 1Q10, compared to  11.6x in 1Q09 and is 9.4%, versus 6.4x in 4Q09.
• EBITDA to interest expenses (LTM), jumped 360.0% to 2.3x in 1Q10 versus 0.5x in 1Q09 and 21.1%, compared to 1.9x in 4T09.
• Total cash to short-term debt, rose 258.8% to 2.7x in 1Q10 compared to 0.7x in 1Q09 and 9.0% higher versus 2.4x recorded in 4Q09.

• GOL signed a new code-share agreement with Delta Air Lines, expanding its international distribution channels, which are an important driver of traffic on GOL's own route network.

• The Company inaugurated two new destinations in the quarter: Sao Paulo – Bauru, on the domestic market, and Rio de Janeiro and Sao Paulo to Punta Cana (Dominican Republic) via Caracas (Venezuela), on the international market.

• Continuing with its plan to make things easier for its clients and offer them new opportunities,  at the end of March GOL reformulated its fare categories and simplified their structure, always focusing on meeting client needs.

• In March 2010, the Company announced a dividend distribution followed immediately by a capital increase in the amount equivalent to the declared dividends.

To access the full version of the 1Q10 Earnings Results, please access our website: www.voegol.com.br\ir

SOURCE GOL Linhas Aereas Inteligentes S.A.