GOL Announces Net Income of R$354mm in 2Q09 Operating income totals R$90mm, with a margin of 6.5%

SAO PAULO, Aug. 11 /PRNewswire-FirstCall/ -- GOL Linhas Aereas Inteligentes S.A. (Bovespa: GOLL4 and NYSE: GOL), the largest low-cost and low-fare airline in Latin America, announces today its results for the second quarter of 2009 (2Q09). The following financial and operating information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS) and in Brazilian Reais (R$), and all comparisons are with the second quarter of 2008 (2Q08) and first quarter of 2009 (1Q09).

Operating and Financial Highlights

• GOL’s 2Q09 operating result (EBIT) was positive and totaled R$89.9mm, with an operating margin of 6.5%,versus a operating loss of R$295.3mm and a negative margin of 20.2% in 2Q08 and totaled R$105.1mm with a margin of 6.9% in 1Q09. Despite the second quarter is the less favorable of the year due seasonality, the Company achieved positive operating result for the fourth consecutive quarter.
  

• EBITDAR margin stood at 18.6% (R$258.8mm), versus  a negative 7.8% in 2Q08 (a negative EBITDAR of R$114.4mm) and a positive margin of 23.7% (R$359.3mm) in 1Q09.
  

• GOL posted a 2Q09 net income of R$353.7mm, with a net margin of 25.4%, versus a net loss of R$166.5mm in 2Q08 and net income of R$61.4mm in 1Q09.
  

• Operating costs and expenses totaled R$1,304.1mm in 2Q09, 25.9% down on 2Q08, due to: (i) the operating synergies, thanks to the merger of GOL and VRG’s operations as of 4Q08, especially in the sales & advertising and maintenance, materials & repairs lines, (ii) the reduction in the average jet fuel price, partially offset by the period exchange devaluation. In comparison with 1Q09, operating costs and expenses fell by 7.6%, thanks to the average Dollar devaluation against to the Real of 10.3% and also by the capture of operational synergies.
  

• On June 30, GOL entered into a partnership with Bradesco and Banco do Brasil for the issue and management of co-branded credit cards, enabling the banks to issue credit cards under the SMILES brand. As part of the agreement, GOL will receive around R$255.0mm (R$104mm of which already received in June 2009) from the sales of SMILES miles to the two institutions, the banks’ right to access and use its database and a share in the revenue generated by the cards.
  

• GOL is continuing to restructure its cash and cash equivalents, which totaled R$613.7 mm in 2Q09, 55.5% up on the R$394.6mm recorded in the previous quarter. The Company intends to achieve a balance of at least R$800mm by the end of 2009 and R$1.2 billion by the close of 2010, representing approximately 13% and 19%, respectively, of last-12-month net revenue. The increase was due to a series of initiatives implemented by the Company with this in mind, including the capital increase announced in March 2009 and completed during the second quarter, the debenture issue and the partnership involving the co-branded SMILES cards.
  

• In line with its strategy of combining the renovation of its fleet with the disciplined growth of its seat supply, GOL concluded the following operating agreements and initiatives:
  • Agreement with Boeing to reschedule the delivery of 20 Boeing 737 Next Generation aircraft from between 2010 and 2012 to between 2010 and 2014.
  • Sub-leasing of two 737-800s to a European airline, with return scheduled for October 2009.
  • Replacement of a 767-300 with a 737-800 in April, leaving six wide-body aircraft currently out of commission, two of which are currently under sub-leasing negotiations (sub-lease and wet-lease).
  • Delivery of three 737-800NGs (two of which SFPs) as part of the 737-700 and 737-800 fleet standardization, which aims to replace all remaining 737-300s in 2009.
    

• As a result of the above,  GOL closed the quarter with an operational fleet of 110 operational aircraft and a total fleet of 124 aircraft comparing to 107 and 120 in 1Q09, respectively. The Company estimates to reach the end of 2009 with 108 aircraft in its operating fleet.
  

• During the quarter, GOL signed two important code share agreements, the first with AirFrance-KLM in April and the second with American Airlines in July. The agreements are part of GOL’s strategy of seeking partnerships with the most important airlines in the long-haul segment, thereby generating more value for its clients, who can use their SMILES miles to travel to the most varied destinations around the world, while at the same time encouraging clients of the partner companies to fly with GOL.
  

• In April, GOL strengthened its e-commerce platform by introducing car rental and insurance sales with GOL ticket purchase, creating new opportunities of sales and ancillary revenue.
  

• Also in April, the Company launched Gollog Express, a new GOLLOG product line designed to meet growing demand in the express cargo market, offering door-to-door deliveries with previously defined deadlines. Express delivery services are currently experiencing the largest growth rates in the cargo transport segment.