GOL announces Investor Update

Rhea-AI Summary

GOL Linhas Aéreas, Brazil's largest domestic airline, provided a preliminary investor update for 2Q21. The airline anticipates a 40% reduction in capacity compared to 1Q21 due to pandemic-related restrictions, projecting a 35% decline in revenue versus 1Q21. GOL plans to operate 63 aircraft, which is 377% higher than 2Q20. Liquidity is expected at R$4.2 billion with R$14.8 billion in adjusted net debt. Key metrics indicate a decrease in passenger revenue and profitability, with net cash burn stable at R$160 million daily.

Positive

• Operating 63 aircraft, a 377% increase from 2Q20
• Expected liquidity of R$4.2 billion by end of 2Q21
• Revenue from other sources (cargo, loyalty) expected to contribute 15% of total revenues

Negative

• Projected 35% revenue decrease compared to 1Q21
• Capacity reduced by 40% in response to demand drop
• Net debt expected to reach R$14.8 billion, with a net debt to EBITDA ratio of ~11x

SÃO PAULO, April 29, 2021 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), ("GOL" or "Company"), Brazil's largest domestic airline, provides an Investor Update. All information is presented in Brazilian Reais (R$). The information below is preliminary and unaudited.

Historically, the 2nd quarter of the year is a transition period to low season demand and due to the worsening of the pandemic and the increase in restrictions of circulation imposed by states, GOL's current capacity planning scenario assumes a 40% reduction in 2Q21 compared to 1Q21. To adapt operating costs to current levels of sales and demand, GOL will operate 63 aircraft in its network, which will represent 70% of the average fleet operated at the end of 4Q20 and 377% or 3.8x higher compared to the same quarter of 2020. Revenue for the quarter ended June 2021 is expected to decrease approximately 35% compared to the quarter ended March 2021.

GOL expects to end 2Q21 with R$4.2 billion in liquidity and R$14.8 billion in adjusted net debt. Several important initiatives are relevant to ensure that the Company maintains liquidity at the levels expected for the end of 2Q21.

With the objective of assisting investors and analysts in understanding how GOL is approaching its short-term planning, the Company is also sharing the metrics below:

Metrics	2Q21E Preliminary
Brazil Quarterly GDP Variation¹ (%) Domestic Routes Served (average) / % of 2Q20 Average Operating Fleet / % of 2Q20 Load Factor (%)	-2.5% ~114 / ~223% ~63 / ~377% ~79%
Net Operating Revenues (R$ BN) / % of 2Q20 Other Revenue (cargo, loyalty, other) EBITDA Margin² EBIT Margin² CAPEX (R$ MM) Net Cash Burn (R$/day) Average fuel price per liter Average exchange rate Gross Global Scope 1 emissions (000 m t CO2) Total Fuel Consumed (1,000 liters per RPK) Greenhouse Gas Emissions/Flight Hour (t CO2)	~1.0 / ~290% 15% of revenues 11% to 13% -1% to +1% ~160 Neutral R$3.20 - R$3.30 R$5.40 – R$ 5.50 ~314.6 ~30.0 ~7.4
Total Liquidity3 (R$ BN) Net Debt4 (R$ BN) Net Debt / LTM EBITDA Ratio4,5 (x)	~4.2 ~14.8 ~11x
Passenger unit revenue (PRASK) Operating CASK Ex-fuel² RPK - Domestic & Total vs. 2Q20 ASK – Domestic & Total vs. 2Q20 Seats – Domestic & Total vs. 2Q20	Down ~15% Down ~27% Up ~340% Up ~330% Up ~540%
(1) Sequential; Source: Brazilian Central Bank. (2) Excluding non-operating expenses and depreciation related to fleet idleness and personnel-related costs of approximately R$950 million in 2Q21 and R$918 million in 2Q20. (3) Cash and cash equivalents, restricted cash, accounts receivables and deposits (does not include unencumbered assets). (4) Excluding perpetual bonds and exchangeable notes. (5) Pro-forma, excluding non-operating expenses and depreciation.

Investor Relations
ri@voegol.com.br 
www.voegol.com.br/ir 
+55(11) 2128-4700

Media Relations
Becky Nye, Montieth & Company
bnye@montiethco.com 
+1 646 864 3517

About GOL Linhas Aéreas Inteligentes S.A.
GOL serves more than 36 million passengers annually. With Brazil's largest network, GOL offers customers more than 750 daily flights to over 100 destinations in Brazil and in South America, the Caribbean and the United States. GOLLOG's cargo transportation and logistics business serves more than 3,400 Brazilian municipalities and more than 200 international destinations in 95 countries. SMILES allows over 16 million registered clients to accumulate miles and redeem tickets to more than 700 destinations worldwide on the GOL partner network. Headquartered in São Paulo, GOL has a team of approximately 14,000 highly skilled aviation professionals and operates a fleet of 127 Boeing 737 aircraft, delivering Brazil's top on-time performance and an industry leading 20-year safety record. GOL has invested billions of Reais in facilities, products and services and technology to enhance the customer experience in the air and on the ground. GOL's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, visit www.voegol.com.br/ir.

Disclaimer
The information contained in this press release has not been subject to any independent audit or review and contains "forward-looking" statements, estimates and projections that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements other than statements of historical fact contained in this press release including, without limitation, those regarding GOL's future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets in which GOL operates or is seeking to operate, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "will", "may", "project", "estimate", "anticipate", "predict", "seek", "should" or similar words or expressions, are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties, contingencies and other factors, many of which are beyond GOL's control, that may cause actual results, performance or events to differ materially from those expressed or implied in these statements. These forward-looking statements are based on numerous assumptions regarding GOL's present and future business strategies and the environment in which GOL will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as at the date on which they are made. None of GOL or any of its affiliates, officers, directors, employees and agents undertakes any duty or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. None of GOL or any of its affiliates, officers, directors, employees, professional advisors and agents make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Although GOL believes that the estimates and projections in these forward-looking statements are reasonable, they may prove materially incorrect and actual results may materially differ. As a result, you should not rely on these forward-looking statements.

Non-GAAP Measures
To be consistent with industry practice, GOL discloses so-called non-GAAP financial measures which are not recognized under IFRS or U.S. GAAP, including "Net Debt", "Adjusted Net Debt", "total liquidity" and "EBITDA". The Company's management believes that disclosure of non-GAAP measures provides useful information to investors, financial analysts and the public in their review of its operating performance and their comparison of its operating performance to the operating performance of other companies in the same industry and other industries. However, these non-GAAP items do not have standardized meanings and may not be directly comparable to similarly-titled items adopted by other companies. Potential investors should not rely on information not recognized under IFRS as a substitute for the GAAP measures of earnings or liquidity in making an investment decision.

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SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What are GOL's revenue projections for 2Q21?

GOL expects a 35% decrease in revenue compared to 1Q21.

What is GOL's capacity planning for 2Q21?

The company anticipates a 40% reduction in capacity compared to 1Q21.

How many aircraft will GOL operate in 2Q21?

GOL plans to operate 63 aircraft in its network.

What is GOL's liquidity status for 2Q21?

GOL expects to end 2Q21 with R$4.2 billion in liquidity.

What is the expected net debt for GOL by the end of 2Q21?

GOL's adjusted net debt is projected to be R$14.8 billion.