PR Newswire | Nov 4, 2020 08:04AM EST

11/04 07:04 CST

GOL Announces Investor Update SAO PAULO, Nov. 4, 2020

SAO PAULO, Nov. 4, 2020 /PRNewswire/ -- GOL Linhas Areas 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.

GOL's current capacity planning scenario assumes 100% growth in 4Q20 compared to 3Q20. In October 2020, the Company operated approximately 376 daily flights (53% from the same period in 2019), reaching peaks of 500 daily flights, serving 95% of the market. By the end of December 2020, GOL expects to re-establish the domestic market operated in the pre-pandemic period, which represents about 80% of the total capacity in 2019. The Company expects to end December with an average of 94 aircraft operating in the network, representing more than 75% of the operating fleet in the same period last year, maintaining a consistent load factor of approximately 80% in the quarter.

In 4Q20, the Company estimates an average operating fleet of 92 aircraft, which will represent 78% of the average fleet operated in the same quarter last year. Revenue for the quarter ended December 2020 is expected to increase approximately 130% compared to the quarter ended September 2020. Total expenses in 4Q20 are expected to decrease by approximately 16% compared to 4Q19, due to initiatives to reduce costs, lower capacity and fuel consumption.

GOL expects around R$2.4 billion in liquidity and R$13.1 billion in adjusted net debt at quarter end 4Q20. Several important initiatives are relevant to ensure that GOL maintains liquidity at the levels expected for the end of 4Q20.

With the objective of assisting investors and analysts in understanding how GOL is approaching its short-term planning, the Company is also sharing these metrics for the 1Q21:

Metrics 3Q20A4Q20E 1Q21E

Brazil Quarterly GDP Growth^1 (%) +5.4%+3.7% +3.0% Domestic Routes Served (average) 122 ~146 ~167 % of 2019 75% 90% 85% Average Operating Fleet 63 ~92 ~102 % of 2019 55% 78% 92% ASK (in million) 4,000~8,000~9,400 % of 2019 30% 60% 76% Load Factor (%) ~80% ~80% ~78%

Net Operating Revenues (R$ BN) 1.0 ~2.3 ~2.4 % of 2019 26% 60% 66% Capex (R$ MM) 110 ~180 ~290 Net Cash Burn (R$/day) 0 ~3 ~2

Total Liquidity^2 (R$ BN) 2.2 ~2.4 ~2.5 Net Debt^3 (R$ BN) 14.1 ~13.1 ~13.1 Net Debt / LTM EBITDA Ratio^3,4 (x)4x ~6x ~8x

(1) Sequential; Source: Brazilian Central Bank.

(2) Cash and cash equivalents, restricted cash, accounts receivable,securities and receivables.

(3) Excluding perpetual bonds and exchangeable notes.

(4) Pro-forma, excluding non-operating expenses and depreciation.

About GOL Linhas Areas 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 Sao Paulo, GOL has a team of approximately 15,000 highly skilled aviation professionals and operates a fleet of 129 Boeing 737 aircraft, delivering Brazil's top on-time performance and an industry leading 19-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.

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SOURCE GOL Linhas Areas Inteligentes S.A.