GOL records EBITDA of R$947 million with margin increasing 8.1 p.p. to 22.8% in 2Q23

SÃO PAULO, July 27, 2023 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. ("GOL" or "Company") (NYSE: GOL and B3: GOLL4), the largest domestic airline in Brazil, today announced its consolidated results for the second quarter of 2023 (2Q23). While typically the seasonally weakest period of the year, performance in the second quarter confirmed ongoing improvement in operating efficiency and productivity, and positioned the Company to make even further gains as growth in air travel continues.

All information in this release is presented in Reais (R$), in accordance with international accounting standards (IFRS) and with adjusted metrics, made available to enable comparison of this quarter with the same period of the previous year (2Q22). Adjusted (recurring) indicators exclude non-recurring expenses related to the quarter's results and are detailed in the respective tables.

2Q23 HIGHLIGHTS

• GOL delivered highest 2Q revenue (R$4.1 billion) in the Company's history, a 27.9% year over year increase;
• Operating income (EBIT) reached R$537.2 million and margin expanded 11.4 p.p. vs. 2Q22 to 13.0%;
• CASK down 7.9% and CASK-ex fuel stable, compared to 2Q22;
• 7 million passengers transported, a 19.9% increase year over year as corporate demand continues to grow;
• Operating cash flow of R$675.9 million due to higher operating volumes and working capital initiatives;
• Net leverage of 6.7x (5.0x in IFRS16 and 3.5x excluding the SSN due 2028), 1.1x lower than 1Q23 and 2.8x lower than 4Q22.

CEO COMMENTS
Celso Ferrer, Chief Executive Officer, commented: "Thanks to the unparalleled work of our Team of Eagles, we delivered solid operational performance by continuously providing our Customers a great product with best-in-class service. During this winter period, we reached approximately 91% of pre-pandemic capacity and achieved record revenue for any prior second quarter. We also maintained our disciplined approach to cost controls that continued to drive productivity and enabled us to achieve even higher unit revenue (PRASK) of 36.18 cents (R$), an 8.9% increase on year over year basis, through our focus on our revenue management strategies. We continue to prioritize reliability, profitability, and strengthening of our balance sheet."

SUMMARY OF THE SECOND QUARTER 2023 RESULTS (VS. 2Q22)

• The number of Revenue Passenger Kilometers (RPK) increased by 13.4%, while Available Seat Kilometers (ASK) increased by 14.0%;
• Net Revenue increased by 27.9% to R$4.1 billion, reaching a record for the second quarter. Ancillary Revenues, mainly from Smiles and Gollog, increased 72.7% to R$425.6 million;
• Load Factor remained stable at 76.9%. The domestic load factor was 77.3%, a 0.7 pp increase, while the international load factor was 73.1%;
• Aircraft utilization was 10.8 hours per day, 6% higher than the 10.2 hours in 2Q22;
• The number of passengers transported by the Company was 7 million, a year-over-year increase of 19.9%;
• Net Revenue per Available Seat Kilometer (RASK) increased by 12.2% to 40.3 cents (R$);
• Average yield per passenger increased by 9.5%, to a record 47.1 cents (R$) for a second quarter;
• Adjusted Cost Per Available Seat Kilometer (CASK) decreased by 8.4% to 34.89 cents (R$). CASK Fuel decreased by 17.8% to 13.20 cents (R$), due to the 22.2% reduction in jet fuel prices. Adjusted CASK ex-Fuel, decreased by 1.5% to 21.69 cents (R$) in the period;
• EBITDA was R$947.3 million with a margin of 22.8%, while EBIT was R$537.2 million with a margin of 13.0%;
• Net loss was R$415.7 million when excluding the revenue from exchange rate variation of R$0.9 billion;
• Operating cash flow was R$0.6 billion due to higher operating volumes and working capital initiatives;
• Total liquidity (cash and cash equivalents, financial investments, deposits and accounts receivable) was R$4.1 billion on 06/30/2023, a decrease of 8.4% compared to 03/31/2023; and
• The net debt ratio (including 7x annual lease payments and excluding perpetual bonds) over recurring LTM EBITDA was 6.7x on 06/30/2023 (5.0x under IFRS16 and 3.5x excluding the SSN due 2028), a decrease of 1.1x compared to the leverage on 03/31/2023.

FULL EARNINGS RELEASE & PRESENTATION
Access the earnings release, presentation and full financial statements at: www.voegol.com.br/ir

2Q23 Conference Call: July 27, 2023, 10:00 am (New York time; US EDT), broadcast via webcast (https://mzgroup.zoom.us/webinar/register/WN_TzeqLpoIQqqwkCVOwz1Bow#/registration). Investor Relations: ir@voegol.com.br, +55(11) 2128-4700

About GOL Linhas Aéreas Inteligentes S.A. (www.voegol.com.br): The largest airline in Brazil, leader in the corporate and leisure segments. Since it was founded in 2001, the Company has the lowest unit cost in Latin America, thus democratizing air transportation of passengers.

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SOURCE GOL Linhas Aéreas Inteligentes S.A.