GOL announces Investor Update

PR Newswire

SÃO PAULO, July 5, 2018

SÃO PAULO, July 5, 2018 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. GOL, Brazil's #1 airline, provides its Investor Update. The information below for the quarter ended in June 2018 is preliminary and unaudited.

Overall Commentary¹

The second calendar quarter is low season in the Brazilian domestic passenger air transportation market and to promote a proper supply-demand balance GOL reduced its domestic supply by 11% compared to the March quarter.
GOL expects an operating margin for the quarter ended in June of 1.0%-1.5%, flat in relation to the quarter ended in June 2017 (1.0%). Operating cash flow in the June quarter is expected to be R$500-550 million.
Passenger unit revenue (PRASK)² for the second quarter is expected to be up 7.5%-8.0% year over year, as GOL's capacity discipline and revenue management strategies continue to benefit results. For the quarter ended in June, GOL expects unit revenue (RASK) to increase 6.0%-6.5%.
Non-fuel unit costs (CASK ex-fuel), are expected to reduce by approximately 2.0% in relation to the second quarter 2017.
GOL expects its financial leverage, as measured by the Net Debt³/LTM EBITDA ratio, to be approximately 2.9x at the end of the June 2018 quarter. Total liquidity at the end of the quarter is expected to be at R$3.0 billion, versus R$3.1 billion at the end of the previous quarter.

Preliminary and Unaudited Projection
EBITDA Margin EBIT Margin Ancillary Revenue (cargo and other)⁴ Aircraft Rent Average fuel price per liter Average exchange rate Passenger unit revenue (PRASK)² CASK Ex-fuel Total Capacity – ASK Total Capacity – Seats	June Quarter 2018 8.0% - 8.5% 1.0% - 1.5% 5.0% - 5.5% of total net revenues ~ R$270 million R$2.79 - R$2.83 R$3.61 June Quarter 2018 vs. June Quarter 2017 Up 7.5% - 8.0% Down ~2.0% Up ~2% Up ~2%
1. 2Q17 results were adjusted in accordance with IFRS 15.
2. Considering the application of IFRS 15, 2Q17 PRASK was R$19.29 cents.
3. Excluding perpetual notes.
4. Considering the application of IFRS 15, 2Q17 Ancillary Revenue was 6.7% of total net revenues.

Investor Relations

ri@voegol.com.br

www.voegol.com.br/ir

+55(11) 2128-4700

About GOL Linhas Aéreas Inteligentes S.A.

GOL serves more than 30 million passengers annually. With Brazil's largest network, GOL offers customers more than 700 daily flights to 66 destinations in 10 countries in South America and the Caribbean. GOLLOG is a leading cargo transportation and logistics business serving more than 3,400 Brazilian municipalities and, through partners, more than 200 international destinations in 95 countries. SMILES is one of the largest coalition loyalty programs in Latin America, with over 13 million registered participants, allowing clients to accumulate miles and redeem tickets for more than 700 locations worldwide. Headquartered in São Paulo, GOL has a team of more than 15,000 highly skilled aviation professionals and operates a fleet of 120 Boeing 737 aircraft, with a further 120 Boeing 737 MAX on order, delivering Brazil's top on-time performance and an industry leading 17 year safety record. GOL has invested billions of Reais in facilities, products and services and technology to enhance the customer experience in the air and on the ground. GOL's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, visit www.voegol.com.br/ir.

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SOURCE GOL Linhas Aéreas Inteligentes S.A.

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GOL announces Investor Update

GOL announces Investor Update

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