SAO PAULO, Aug. 2, 2018 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. GOL, Brazil's #1 airline, announces its consolidated results for the second quarter 2018 (2Q18). All information is presented in accordance with IFRS.

Financial and Operational Highlights:

• Significantly improved operating indicators: RPKs increased by 2.5% to 8.3 billion in 2Q18, mainly due to a 4.1% increase in the number of transported passengers. As a result of strong passenger demand and GOL's continued focus on revenue management, the Company was able to achieve (i) an average yield per passenger of 25.74 cents (R$), an increase of 7.6% compared to 2Q17, (ii) an average load factor 78.1%, an increase of 0.2 p.p. compared to 2Q17, and (iii) on-time performance of 93.6% in 2Q18 according to Infraero.
• Strong revenue growth: the combination of higher demand and optimized pricing resulted in net revenue for the quarter of R$2.4 billion, an increase of 9.0% compared to 2Q17. Net RASK was 22.05 cents (R$) in 2Q18, an increase of 6.7% over 2Q17. Net PRASK increased 8.0% over 2Q17, reaching 20.11 cents (R$). Average fare increased by 6.0% from R$268 to R$284. GOL's 2018 net revenue guidance is approximately R$11.5 billion.
• Controlled cost environment: due to higher jet fuel prices, total CASK in 2Q18 increased 5.9% to 21.66 cents (R$) relative to 2Q17. On an ex-fuel basis, CASK fell by 1.4%. GOL remains the cost leader in South America for the 17th consecutive year.
• Continued margin expansion: While the average price of jet fuel increased by 12.6% in 2Q18 over 1Q18, the combination of stronger pricing, higher demand, and R$36 million of operating results in hedging, permitted GOL's EBIT margin to expand to 1.8% in 2Q18, the highest second quarter indicator since 2010 and a 0.8 p.p. improvement over 2Q17. Operating income (EBIT) in 2Q18 was R$42.8 million, an increase of 92.7% compared to 2Q17 (R$22.2 million). EBITDA margin was 8.8% in 2Q18, a growth of 2.3 p.p. q-o-q. EBITDAR margin was 20.3% in 2Q18, an increase of 2.6 p.p. q-o-q over 2Q17. GOL's 2018 EBIT margin guidance is approximately 11%.
• Balance sheet strengthening: While the Real depreciated 16.0% against the U.S. dollar in 2Q18 (end of period) causing a net exchange and monetary variation loss of R$1.0 billion, net debt (excluding perpetual bonds) to LTM EBITDA was 2.9x as of June 30, 2018, up versus March 31, 2018 (2.5x) and improving versus a year-ago metrics (4.2x). In 2Q18, the Company redeemed its Senior Notes due 2023 for R$80.7 million. Total liquidity, including cash, financial investments, restricted cash and accounts receivable, totaled R$3.0 billion, flat in comparison to March 31, 2018 and an increase by R$1.3 billion versus a year ago. The combination of GOL's operational cash flow generation of R$588.7 million in the quarter and improved cash liquidity increased the Company's financial flexibility.

"We expect to continually drive our operational efficiency and capacity rationalization. In June, we took delivery of our first 737 MAX 8 aircraft, which enable GOL to serve Brazil's large addressable market of passengers traveling between Midwest/Northeast Brazil and the State of Florida," commented Paulo Kakinoff, CEO.

Access to 2Q18 earnings release, management videos, presentation and full financials already available on: www.voegol.com.br/ir

2Q18 Earnings Call: August 2, 2018, 11:00 a.m. (US EDT), Phone: +1 (412) 317-5453, Code: GOL

About GOL Linhas Aéreas Inteligentes S.A. (www.voegol.com.br): Brazil's largest airline group with three main businesses: passenger transportation, cargo transportation and coalition loyalty program.

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SOURCE GOL Linhas Aéreas Inteligentes S.A.