GOL announces expansion of operating margin to 10% in 3Q16

SÃO PAULO, Nov. 6, 2016 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GLAI"), (BM&FBOVESPA: GOLL4 and NYSE: GOL), (S&P: CCC, Fitch: CC and Moody's: Caa3), Brazil's largest air transportation and travel services group, with operation in passenger transportation, cargo transportation and coalition loyalty programs, announces today its consolidated results for the third quarter of 2016. All information is presented in accordance with International Financial Reporting Standards (IFRS) and in Brazilian Reais (R$), and all comparisons are with the third quarter of 2015 unless otherwise stated.

Quarter highlights

• In 3Q16, GOL's capacity in the domestic and international markets, measured by ASK, reduced by 4.3% and 21.4%, respectively, over the same period in 2015, producing an overall GOL system reduction of 6.7%.
• In the same period, demand for the Company's seats, measured by RPK, decreased by 2.9% in the domestic market and 21.1% in the international market. In the overall GOL system, the decrease was 5.3%.
• In 3Q16, GOL's total load factor increased by 1.2 percentage point over 3Q15, reaching 79.8%. The domestic market increase was 1.2 percentage point to 80.4%, while the international load factor climbed by 0.3 percentage points to 74.6%.
• The Company recorded third-quarter net revenue of R$2.4 billion, 3.5% down in the annual comparison. Net revenue in the last twelve months was R$9.9 billion.
• Ancillary and cargo revenues decreased by 1.5% over 3Q16 to R$302.1 million, representing 12.6% of total net revenue. In the last twelve months, ancillary and cargo revenues totaled R$1.2 billion.
• Third-quarter CASK, excluding fuel expenses and non-recurring events, recorded a year-over-year decline of 2.1%.
• Non-recurring gains from the anticipated return of aircraft under finance lease contracts were R$13.6 million in 3Q16.
• The operating result (EBIT) was R$232.6 million in 3Q16, with a margin of 9.7%. EBITDA was R$333.4 million, with a margin of 13.9%, and EBITDAR was R$599.5 million, with a margin of 25.0%. The margin improvement was due to the capacity management, which drove an increase in yield, stronger currency and cost control.
• Net income was R$65.9 million in the third quarter and R$1.1 billion year-to-date, versus respective losses of R$2.1 billion and R$3.2 billion in the same periods last year. EPS was R$0.19 in 3Q16 and R$3.26 in 9M16.
• Financial leverage (adjusted gross debt/EBITDAR) ended the quarter at 7.2x, versus 8.4x at June 30, 2016.

For further information visit www.voegol.com.br/ir

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SOURCE GOL Linhas Aereas Inteligentes S.A.