GOL's operating profit increased 97% to R$504 million in 1Q18. Operating margin of 17% is the highest in the last 12 years

SÃO PAULO, May 9, 2018 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), Brazil's #1 airline, announces its consolidated results for the first quarter 2018 (1Q18). All information is presented in accordance with IFRS.

Financial and Operational Highlights:

• Significantly improved operating indicators: for the quarter, RPKs increased by 4.5% (from 9.6 billion in 1Q17 to 10.0 billion in 1Q18), mainly due to a 1.8% increase in the number of transported passengers. Strong demand allowed GOL to continue driving revenue management; average yield per passenger increased by 10.3% in the quarter compared to 1Q17, reaching 28.02 cents (R$). Supply growth was measured, with ASKs increasing 3.3% compared to 1Q17 (driven by a 0.7% increase in take-offs and a 3.6% stage-length expansion). As a result, the average load factor in 1Q18 grew 0.8 pp compared to 1Q17, reaching 80.4%. GOL remained the industry leader in on-time performance, with 93.7% of flights on-time in 1Q18 according to Infraero.

• Strong revenue growth: the combination of higher demand and optimized pricing resulted in net revenue for the quarter of R$3.0 billion, an increase of 14.4% compared to 1Q17. Net RASK was 23.87 cents (R$) in 1Q18, an increase 10.7% over 1Q17. Net PRASK increased 11.5% over 1Q17, reaching 22.53 cents (R$). Average fare increased by 13.1% from R$296 to R$335. GOL's 2018 guidance is for net revenues of approximately R$11 billion.

• Controlled cost environment: total CASK in 1Q18 was 19.80 cents (R$), 1.9% higher than in 1Q17, in spite of a less benign jet fuel environment; on an ex-fuel basis, CASK fell by 4.8%. Excluding gains on aircraft sales CASK ex-fuel increased by 0.2%. 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 7.4% in 1Q18 over 4Q17, the combination of stronger pricing, higher demand, R$19 million of gains on fuel hedging gains, and R$82 million of gains on aircraft sales permitted GOL's EBIT margin to expand to 17.0% in 1Q18, the highest first quarter indicator since 2006 and a 7.1 pp improvement over 1Q17. Operating income (EBIT) in 1Q18 was R$504.3 million, an increase of 97.4% compared to 1Q17. EBITDA margin was 22.1% in 1Q18, a growth of 8.1 pp q-o-q. EBITDAR margin was 30.0% in 1Q18, an increase of 6.7 pp q-o-q over 1Q17. GOL's 2018 guidance is for an EBIT margin of approximately 11%.

• Balance sheet strengthening: net debt (excluding perpetual bonds) to LTM EBITDA was 2.5x as of March 31, 2018, improving versus the year-end (3.0x) and year-ago metrics (5.2x). Total liquidity, including cash, financial investments, restricted cash and accounts receivable, totaled R$3.1 billion, an increase of 104.9% versus a year ago.

"We expect to continually drive our efficiency and technology advantages this year, as well as incorporating the new Boeing 737 Max 8s in the second half of 2018," commented Paulo Kakinoff, CEO.

Access to 1Q18 earnings release, management videos, presentation and full financials already available on: www.voegol.com.br/ir

1Q18 Earnings Call: May 9, 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.