GOL Records Net Revenue of R$1.8 Billion

GOL Linhas Aereas Inteligentes S.A., the largest low-cost and low-fare airline in Latin America, announces today its results for the third quarter of 2010 (3Q10). 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 third quarter of 2009 (3Q09) and the second quarter of 2010 (2Q10).

GOL’s net revenue totaled R$1,788.9mm in 3Q10, 19.5 percent above the R$1,496.7mm recorded in 3Q09 and 12.5 percent up on the R$1,590.9mm posted in 2Q10, driven by higher demand, in turn fueled by dynamic fare management, which made flying more affordable for Brazil’s emerging middle class.

Operating income (EBIT) stood at R$187.2mm, 88.9 percent up year-on-year and 226.9 percent more than in the previous quarter, with a margin of 10.5 percent, a 3.9 p.p. improvement over the 6.6 percent registered in 3Q09 and 6.9 p.p. above the 3.6 percent posted in 2Q10. This result reflects the upturn in demand in the domestic and international markets and the Company’s continuous focus on reducing its operating costs.

Third-quarter EBITDAR came to R$380.8mm (21.3 percent margin), 27.5 percent up on the R$298.7mm recorded in 3Q09 (margin of 20.0 percent), and 38.9 percent above the R$274.2mm reported in 2Q10 (margin of 17.2 percent).

Total cash ended the quarter at R$1,767.7mm, an 11.2 percent increase over 2Q10, and a massive 166.7 percent up on 3Q09, and equivalent to 26.3 percent of LTM net revenue, having already achieved its initial 2010 target of at least 25 percent of net revenue.