Conference call connection details

1Q19 Earnings Calls     Tuesday, April 30th, 2019

Live Webcast (www.voegol.com.br/ir)

In 1Q19, Brazil’s premiere airline achieves a 30% EBITDA margin

and records net revenues of R$3.2 billion

EPS and EPADS reached R$0.17 and US$0.09, respectively¹

São Paulo, April 30, 2019 - GOL Linhas Aéreas Inteligentes S.A. (“GOL” or “Company”), (NYSE: GOL and B3: GOLL4), Brazil’s premier domestic airline, announces its consolidated results for the first quarter of 2019 (1Q19). All information is presented in accordance with IFRS, in Brazilian Reais (R$) and all comparisons are with the first quarter of 2018 (1Q18), unless otherwise stated.

Summary

Improved operating indicators: RPKs increased by 6.4%, totaling 10.6 billion in 1Q19, driven by 7% growth in the number of transported passengers; ASK growth remained constrained at 5%. As a result of strong passenger demand, GOL’s revenue management, and GOL’s consistent operational excellence, the Company was able to achieve (i) an average yield per passenger of 28.55 cents (R$), an increase of 1.9% compared to 1Q18; (ii) an average load factor of 81.5%, an increase of 1.1 p.p. quarter-over-quarter; and (iii) on-time performance of 87.1% in 1Q19 according to Infraero’s methodology and data from major airports in Brazil.

Strong revenue growth: the combination of higher demand and optimized pricing resulted in a net revenue for the quarter of R$3.2 billion, the highest ever recorded by the Company, and an increase of 8.3% compared to 1Q18. Net RASK was 24.63 cents (R$) in 1Q19, an increase of 3.2% over 1Q18. Net PRASK increased 3.3% over 1Q18, reaching 23.27 cents (R$). Average fare increased by 1.3% from R$335 to R$339. GOL’s 2019 net revenue guidance is approximately R$13 billion.

Cost environment: unit costs (CASK), excluding non-recurring expenses increased by 4.7% to 20.44 cents (R$). On an ex-fuel basis and excluding non-recurring expenses CASK increased 3.2%, due to (i) a 16.2% average depreciation of the Real against the US dollar that impacted maintenance, landing fees and international services costs; (ii) the termination of the federal payroll tax relief, which increased the INSS payroll tax rate from 0% to 20%; and (iii) a higher number of transported passengers and higher costs from reimbursement of tickets and accommodation costs (mainly related to the grounding of the MAX-8 fleet). Growth in CASK ex-fuel, excluding non-recurring expenses, remained constrained at 3.2%, totaling 12.80 cents (R$). GOL remains the unit cost leader in South America for the 18th consecutive year.

Solid margins: due to its strong cost control, and management of capacity and yields, the Company achieved a positive operating result for the 11^th consecutive quarter, despite a 16.2% average depreciation of the Real against the US dollar and a 9.3% increase in price of jet fuel. The combination of stronger pricing and higher demand permitted GOL to achieve an EBIT margin of 17%. Operating income (EBIT) in 1Q19 was R$546.2 million, an increase of 1.3% compared to 1Q18 (R$539.1 million). EBITDA margin was 29.6% in 1Q19, increase of 1.9 p.p. q-o-q. GOL’s 2019 EBIT margin and EBITDA margin guidance is approximately 18% and 28%, respectively.

Balance sheet strengthening: the Real depreciated 17.2% (end of period) against the U.S. dollar causing net exchange and monetary variation losses of R$90.7 million. Net debt (excluding perpetual bonds) to LTM EBITDA was 3.3x as of March 31, 2019. During the quarter, GOL amortized R$147.9 million of its 7th issue of debentures. Total liquidity, including cash, financial investments, restricted cash and accounts receivable, was R$3.5 billion, R$549.7 million higher in comparison to December 31, 2018 and an increase of R$421.5 million versus a year ago. Restricted cash was R$469.3 million in 1Q19, 42.9% lower than the R$822.1 million registered in 4Q18. The combination of GOL’s operational cash flow generation of R$253.6 million in the quarter and higher cash liquidity increased the Company’s financial flexibility.

Guidance: GOL’s 2019 and 2020 guidance is on page 16 of this document.

¹(excluding exchange gains and losses).

Management’s Comments on Results

The recovery in the Brazilian economy, increasing consumer confidence index, the stabilization in interest rates and inflation have strengthened the corporate travel environment, while GOL’s operational excellence helped strengthen its share of corporate passengers to 37.8%, according to ABRACORP. The Company’s focus on Customer experience and satisfaction, and excellence in services, has consolidated GOL as the preferred carrier in Brazil, with a market share of 36.4% in the domestic market, according to ANAC.

The Company’s positive view for 2019 is reinforced by recent changes in the Brazilian regulatory environment: the reduction of the ICMS (Value Added) tax on jet fuel in several Brazilian states and governmental actions that promote industry modernization. These factors are beneficial for GOL’s businesses and align the Brazilian industry regulation with international best practices. “Our consolidated business model allows us to be well positioned for growth in demand combined with disciplined capacity and dynamic yield management”, explained Paulo Kakinoff, CEO.

GOL recently expanded its domestic network with the announcement of six new regional routes and the establishment of new regional strategic partnerships. GOL will begin service to the cities of Cascavel, Passo Fundo, Vitória da Conquista and Sinop, in the States of Paraná, Rio Grande do Sul, Bahia and Mato Grosso, respectively, and the cities of Franca and Barretos, in the State of São Paulo, now with direct connections to the city of São Paulo. The Company’s new regional strategic partnerships have expanded connectivity in Brazil’s North and Mid-West regions with 21 new destinations for GOL’s Customers.

“We are pleased to announce the expansion of our domestic network. The new destinations will strengthen our competitive position in the State of São Paulo. The initiative adopted by the São Paulo State Government to reduce the ICMS tax rate on jet fuel from 25% to 12% and our new regional strategic partnerships are essential for the expansion of our services, allowing GOL to serve new markets starting on the second semester of 2019”, stated Kakinoff.

GOL also continues focused on the international market expansion, however, with flexibility in our flight network that allows us to adapt to environments with high volatility. Aligned with its number one principle - Safety - the Company was one of the first airlines in the world to ground the 737 MAX-8 prior to receiving any request from a regulatory body.

Since the beginning of its MAX-8 operations in June 2018, GOL operated 2,933 flights, totaling over 12,700 hours, offering absolute safety to Customers. “The MAX-8 will be one of the pillars of our international expansion strategy, reinforcing GOL’s competitive advantage at the lowest costs and offering the best operational efficiency in the Brazilian airline industry. The Company has confidence in the MAX-8 aircraft and has the flexibility to extend the scheduled return of 737 NGs, if necessary. Boeing implemented a comprehensive and multidisciplinary plan to update the MAX-8 and, in a short time frame, our Customers will be able to benefit again from the technology and comfort offered by this aircraft”, stated Kakinoff. During this period impacted by the grounding of the MAX-8, GOL is operating flights from its international hubs in Brasília and Fortaleza to the United States with its NG aircraft.

“The engagement of our 15,000 employees throughout Brazil and overseas led GOL to two important achievements this quarter: (i) recognition as the only Brazilian airline ranked amongst the top 25 companies that Brazilians want to work for, according to the survey conducted by the “Você S/A” magazine and the Institute of Management Foundation (FIA); and (ii) recognition as Top Companies 2019 by Linkedin, as one of the 25 companies that young people dream to build a career at”, said Paulo Kakinoff.

Despite the 16.2% depreciation of the Brazilian real against the US dollar, and cost pressures from the 9.3% increase in the price of jet fuel, GOL recorded positive EBIT for the 11th consecutive quarter. The Company has hedged approximately 62% of its fuel consumption for the remainder of 2019 at an average cost of US$60.

The Company continued its focus on the strengthening of its capital structure, including the amortization of R$147.9 million of its 7th issuance of debentures and the tender offer for 15% of its 2022 Senior Notes. In addition, GOL recently carried out an innovative offering of US$300 million of Exchangeable Senior Notes maturing in 2024. The issuance bears an interest rate of 3.75% per year, reducing the Company’s average interest expense by 50 bps., and an effective conversion price of US$27.75 per ADS, representing a premium of 85% of the market price at the time of issuance. After the exercise of the green shoe option for this transaction, GOL issued another US$45 million in April 2019, increasing the total amount of the Exchangeable Senior Notes due 2024 to US$345 million. “This was the lowest coupon achieved in GOL’s history, which provides evidence of investor confidence in our credit profile and capital structure, and the potential performance and liquidity of our shares”, stated Richard Lark, CFO. In addition, in March 2019, Moody's upgraded GOL’s credit rating to B1, with stable outlook.

“The actions undertaken this quarter improved our liquidity, reduced the weighted average cost of debt and extended the average maturity. The market continues to recognize our credit improvement and is very comfortable with GOL’s risk, as a result of the plan that the Company has implemented over the last few years”, concluded Richard Lark.

Operating and Financial Indicators

1. Source: Brazilian Central Bank; 2. Source: Bloomberg; 3. Fuel expenses excluding hedge results and PIS/COFINS credits/liters consumed;   4. Average operating fleet excluding aircraft in sub-leasing and MRO. 5. Excluding non-recurring expenses. *1Q18 results have been restated based on IFRS 16, unaudited. Certain calculations may not match with the information in the quarterly financials due to rounding.

Domestic market – GOL

GOL’s domestic supply increased by 2.2%, and demand increased by 4.6% in 1Q19. As a result, the Company’s domestic load factor reached 82.5%, an increase of 1.8 p.p. when compared to 1Q18. GOL transported 8.4 million domestic passengers in the quarter, an increase of 8.4%, when compared with the same period in 2018. The Company is the leader in transported passengers in Brazil’s domestic airline market.

International market - GOL

GOL’s international supply increased by 23.0%, and international demand increased 18.5% in 1Q19 compared to 1Q18. The Company’s international load factor in 1Q19 was 76.0%, a reduction of 2.9 p.p. as new routes continued to mature. During the quarter, GOL transported 0.6 million passengers in the international market, a decrease of 2.4% when compared to the first quarter of 2018.

Volume of Departures and Total seats - GOL

The total volume of GOL departures was 63,771, a decrease of 1.1% in 1Q19 over 1Q18. The total number of seats available to the market was 11.1 million in the first quarter of 2019, increase of 3.2% quarter-over-quarter.

PRASK, Yield and RASK

Net PRASK increased by 3.3% in the quarter when compared to 1Q18, reaching 23.27 cents (R$), driven by a growth in net passenger revenue of 8.4% in the quarter. GOL’s Net RASK was 24.63 cents (R$) in 1Q19, an increase of 3.2% over 1Q18. Net yield increased by 1.9% in 1Q19 over 1Q18, reaching 28.55 cents (R$), principally a consequence of a 1.3% increase in GOL’s average fare.

Income statement in IFRS (R$ MM)

1. Including non-recurring expenses; 2. Excluding effects of stock options and warrants related to exchangeable bond issuances.   *1Q18 results have been restated based on IFRS 16, unaudited. Certain calculations may not match with the information in the quarterly financials due to rounding.

Net revenue

Net revenue in 1Q19 was R$3.2 billion, an increase of 8.3% when compared to 1Q18, mainly due to an increase in the passenger revenues in domestic market and baggage allowance revenues quarter-over-quarter, with RPKs increasing by 6.4%, to 10,625 million in 1Q19. Cargo revenues and other ancillary revenues represented R$177.3 million in 1Q19, 7.2% increase compared to 1Q18.

GOL’s load factor increased by 1.1 p.p. to 81.5% in the quarter, as demand expanded faster than ASK growth. Average fares increased by 1.3%, from R$335 to R$339, driving 1.9% increase in yield.

Operating expenses

CASK increased by 4.7% (excluding non-recurring expenses), from 19.52 cents (R$) in 1Q18 to 20.44 cents (R$), primarily due to a 9.3% increase in the price per liter of jet fuel and a 16.2% depreciation of the Real against the US Dollar. CASK ex-fuel increased 3.2% (excluding non-recurring expenses), mainly due to the termination of the payroll tax relief program, higher depreciation per ASK driven by capitalized maintenance on aircraft components (including engines) and an increase in comparable fleet considering seven new aircraft (four net incremental adds), in addition to higher passenger expenses resulting from the grounding of our 737 MAX-8 fleet.

Breakeven load factor (excluding non-recurring expenses) increased by 1.8 p.p., reaching 67.6% vs. 65.6% in 1Q18, primarily due to operating expense growth in the quarter. The breakdown of the Company’s operating costs and expenses is as follows:

1. Excluding non-recurring expenses. *1Q18 results have been restated based on IFRS 16, unaudited. Certain calculations may not match with the information in the quarterly financials due to rounding.

Aircraft fuel costs per ASK increased by 7.2% compared to 1Q18 to 7.63 cents (R$), mainly due to 9.3% increase in the fuel price per liter.

Salaries, wages and benefits per ASK increased by 13.0% to 4.40 cents (R$) over 1Q18, primarily due to the end of Payroll Tax Relief Program.

Sales and marketing per ASK decreased 0.4% in relation to 1Q18, to 1.02 cent (R$), impacted by incentives directly associated to the increase in revenue, offset by lower advertising costs in 1Q19.

Landing fees per ASK decreased 0.1% compared to 1Q18 to 1.51 cent (R$).

Passenger costs per ASK increased 21.0% to 1.17 cent (R$), due to increased reimbursement of tickets and accommodation costs mostly related to the MAX-8 grounding, and higher ramp service costs.

Services per ASK costs increased 9.4% in relation to 1Q18, to 1.15 cent (R$), mainly due to the significant exchange rate variation impact on international services.

Maintenance materials and repairs per ASK decreased from 0.89 cent (R$) in 1Q18 to 0.34 cent (R$) in 1Q19, due to higher capitalization of rotables and components (including engines) repairs, aligned to the execution of fleet renewal plan.

Depreciation and amortization per ASK increased 35.7% to 3.11 cents (R$), mainly due to the increased capitalized maintenance on the main components of aircraft (including engines) and an increase of depreciation based on the 7 new aircraft (4 net additions) that were incorporated into the fleet.

Other expenses per ASK increased 53.8% in relation to 1Q18, mainly due to comparison base affected by R$81.9 million in gains on aircraft sales which occurred in the year-ago quarter.

Operating result

Operating income (EBIT), excluding non-recurring expenses, was R$546.2 million, an increase of 1.3% compared to the same period in 2018. 1Q19 operating margin was 17.0%, decrease of 1.2 p.p. in relation to 1Q18. On a per available seat-kilometer basis, EBIT (excluding non-recurring expenses) was 4.19 cents (R$) in 1Q19, compared to 4.34 cents (R$) in 1Q18.

EBITDA (excluding non-recurring expenses) totaled R$951.8 million, increase of 15.5% over 1Q18. EBITDA margin was 29.6%, 1.9 p.p. higher than 1Q18. The impact of the increase in RASK of 0.76 cent (R$) and the increase in CASK ex-depreciation of 0.91 cent (R$) resulted in an EBITDA per available seat-kilometer of 7.30 cents (R$) in 1Q19, increase of 0.67 cent (R$) compared to 1Q18.

1. Excluding non-recurring expenses. *1Q18 results have been restated based on IFRS 16, unaudited. Certain calculations may not match due to rounding.

1. Excluding non-recurring expenses. *1Q18 results have been restated based on IFRS 16, unaudited.  Certain calculations may not match due to rounding.

*In accordance with CVM Instruction 527, the Company presents the reconciliation of EBIT and EBITDA, whereby: EBIT = net income (loss) plus income and social contribution taxes and net financial result; and EBITDA = net income (loss) plus income and social contribution taxes, net financial result, and depreciation and amortization. *1Q18 results have been restated based on IFRS 16, unaudited.  Certain variationcalculations in this report may not match due to rounding

Net financial result

Net financial expense was R$401.1 million, an increase of R$79.5 million compared to 1Q18. Due to the appreciation of the USD in the period, interest expense increased by R$11.3 million versus 1Q18, to R$176.4 million. Derivatives net results were R$1.7 million higher than 1Q18. Exchange and monetary resulted in losses R$90.7 million in 1Q19, compared to losses of R$40.2 million in the same period of 2018.

|   Interest expense totaled R$176.4 million in 1Q19, an increase of 6.8% over 1Q18, mainly due to increased expenses on foreign currency debt obligations from the appreciation of the U.S dollar versus the Brazilian Real in the period.

|   Gains from financial investments totaled R$20.6 million in 1Q19, mainly due to gains on financial investments and investments funds.

|   Net exchange and monetary variation totaled losses of R$90.7 million in 1Q19, due to the 0.6% depreciation of the Brazilian Real vs. US Dollar (final exchange rate for the period), from R$3.87 per dollar as of December 31, 2018 to R$3.90 per dollar as of March 31, 2019.

|   Net result of derivatives was R$21.1 million in 1Q19, in comparison to a result of R$19.4 million in 1Q18, mainly due to the recognition of gains on derivatives related to the Exchangeable Senior Notes.

|   Net result of derivatives was R$21.1 million in 1Q19, in comparison to a result of R$19.4 million in 1Q18, mainly due to the recognition of gains on derivatives related to the Exchangeable Senior Notes. The Company recognized gains of R$49.4 million in 1Q19, related to market-to-market adjustment of the embedded derivative of the Exchangeable Senior Notes.

|   Other financial expenses totaled R$175.6 million in 1Q19, in comparison to a R$168.6 million in 1Q18.

Hedge results

The Company uses hedge accounting for some of its derivative instruments. In 1Q19, GOL registered a net gain of R$9.0 million from hedge operations, a R$21.1 million gains of which was accounted for in the Company’s financial results and R$12.1 million recorded in operating losses.

|   Fuel: fuel hedge operations made through derivative contracts tied to WTI resulted in an operating loss of R$10.3 million and hedge loss of R$7.9 million in financial results in 1Q19.

|   Interest: swap operations to protect the cash flow of future contracted leases, the installments of which are exposed to the volatility of the Libor rate until receiving aircraft, resulted in losses of R$4.9 million in 1Q19.

|   Exchange Rate: The Company recognized an exchange rate hedge gain of R$2.0 million in 1Q19.

Income taxes

Consolidated income tax in the first quarter of 2019 represented an expense of R$69.9 million, compared to an income tax expense of R$65.6 million in 1Q18.

The Company has significant tax assets.  On July 1, 2017, Smiles S.A merged into Smiles Fidelidade S.A and, based on financial projections, recognized an income tax benefit totaling R$161.5 million. GLA has tax credits on net loss carryforwards of approximately R$1.7 billion. The Company (GLAI) has tax credits of R$57.1 million, of which R$55.4 million are related to tax loss carry forwards and R$1.7 million related to temporary differences, with realization supported by GOL’s long-term plan. 

Operating Subsidiary - Smiles Fidelidade S.A.

Net revenue in 1Q19 decreased by 2.6% to R$240.6 million, compared to R$247.1 million in 1Q18, due to the decrease in redemption and breakage revenue. Operating income was R$165.7 million and operating margin was 68.9%, a decrease of 5.6 p.p. versus the year-ago period. Total net income was R$141.9 million.  The following table is a summary of the results of GOL’s Smiles subsidiary:

Net income and Earnings per Share (EPS)

In 1Q19, the Company reported net loss after minority interests of R$32.3 million, compared to net income of R$142.3 million during 1Q18. The 1Q19 result was impacted by the negative exchange and monetary variation of R$90.7 million, compared to a 1Q18 negative exchange rate and monetary variation of R$40.2 million.

*1Q18 results have been restated based on IFRS 16, unaudited.

Earnings per share were negative R$0.09 in 1Q19 versus positive R$0.41in the first quarter of 2018. The number of shares used for calculation was 350,025,670 in 1Q19 and 348,378,641 in 1Q18, using an equivalency of 35 common shares per preferred share.

Earnings per ADS were negative US$0.05 in 1Q19 compared to positive US$0.25 in the first quarter of 2018. The weighted average number of ADSs was 175.0 million in 1Q19 and 174.2 million in 1Q18, according to the current ratio of the number of preferred shares per ADS (2:1), set in November/17.

Cash Flow

As of March 31, 2019, total liquidity (cash and cash equivalents, cash investments, restricted cash, and accounts receivable) totaled R$3.5 billion, an increase of R$549.7 million when compared to December 31, 2018 and R$421.5 million higher than the same date of the previous year.

Operating activities generated R$253.6 million in 1Q19, mainly due to operating income and actions that improved working capital.

Investment activities consumed a net R$122.8 million in the quarter, mainly due to capitalized engine maintenance of aircraft totaling R$96.4 million. Net cash flow was positive by R$130.8 million for the quarter.

Financing activities in 1Q19 generated R$418.8 million, mainly due to the issuance of the Exchangeable Senior Notes 2024, totaling US$300 million, partially offset by the amortization of the Company’s 7th issue of debentures in the amount of R$147.9 million and R$354.9 million of financial lease payments in 1Q19.

1-     Some items reclassified for clearer presentation.
2-     Includes in 4Q18 part of the restricted cash with deposit in guarantee of hedge margin.
3-     Net Income (Loss) after adjusting Non-Cash Items + cash flow from operating activities + cash flow from investing activities.

Fleet

At the end of 1Q19, GOL’s total fleet was 122 Boeing 737 aircraft comprised of 115 NGs and 7 MAXs. At the end of 1Q18, GOL’s total fleet was 118 Boeing 737-NG aircraft, with 117 aircraft in operation and one aircraft sub-leased to another airline.

The average age of the Company’s fleet was 9.6 years at the end of 1Q19. On March 31, 2019, the Company had 129 firm orders for Boeing 737 MAXs, comprised of 99 737 MAX-8s and 30 737 MAX-10s.

* Considers aircraft list price.

Liquidity and Indebtedness

As of March 31, 2019, the Company registered total liquidity (total cash, including cash and cash equivalents, financial investments, restricted cash and accounts receivable) of R$3.5 billion, an increase of R$421.5 million versus a year ago. GOL finalized liability management initiatives during the first quarter of 2019, among them: (i) repurchase of 15% of its bond due in 2022, (ii) amortization of R$147.9 million of the 7th issue of debentures, (iii) the issuance of Exchangeable Notes due in 2024. Accounts receivable, consisting mostly of ticket sales via credit card and accounts receivable from travel agencies, totaled R$824.7 million.

In March 2019, GOL's credit rating was upgraded to B1 by Moody's.

1 - Debt (excluding perpetual notes) / *1Q18 results have been restated based on IFRS 16, unaudited. Certain calculations may not match with the information in the quarterly financials due to rounding.

Loans and financing

GOL improved its liquidity levels, as well as its cost of debt, during 1Q19 despite the 17.2% (end of period) dollar appreciation in the quarter. The Company registered total loans and financings as of March 31, 2019 of R$13.7 billion (including rent payment), an increase of 7.9% versus 4Q18. The net debt/LTM EBITDA ratio (excluding perpetual notes) increased to 3.3x at the end of the period, compared to 3.2x of December 31, 2018. The average maturity of the Company's long-term debt in 1Q19, excluding finance leases and perpetual notes, was 3.8 years. GOL’s average interest rate was stable in 7.68% for local-currency debt, and was reduced to 6.27% for the Dollar-dominated debt, compared to 6.79% in 4Q18.

Financial Debt amortization schedule - 1Q19 (R$ MM)¹

(1)    As of March 31, 2019, not reflecting the issuance of additional US$45 million in Senior Notes due 2024 in April 2019.

Environmental, Social and Governance (“ESG”) Information

GOL is reporting material ESG information of interest to investors according to the Sustainability Accounting Standards Board (SASB) standard for the airline industry. The Company takes steps to address the emission of greenhouse gases (GHGs) from its flights and GOL empowers and inspires its customers and crewmembers to offset GHG emissions when they fly. In providing ESG information, GOL intends to encourage a stable, green, transparent marketplace.

The Company continuously looks for ways to become more fuel efficient and embrace efficient technologies. For example, in July 2018, GOL announced a new contract for the acquisition of 15 additional MAX-8 jets, growing its total MAX orders to 135 jets, and the conversion of 30 current MAX-8 orders to 737 MAX-10 jets. This reflects the strategy of reducing operating costs by operating a standardized fleet and cutting fuel burn and the resulting emissions. The 737 MAX-8 consumes 15% less fuel than the 737-800 NG aircraft.

Recently adopted accounting standards – IFRS 16

      In January 2016, the International Accounting Standards Board ("IASB") issued the accounting pronouncement "IFRS 16 - Leases" adopted in Brazil under CPC 06 (R2). The new standard came into effect for annual periods beginning on January 1, 2019.                                                          

      For reference, find below the Company’s quarterly periods income statement for the year of 2018, unaudited, in accordance with IFRS 16:

Outlook

(1) Gross revenue of cargo, loyalty, buy-on-board and other ancillary revenues; (2) Excluding currency gains and losses; (3) Source: average of analyst estimates reported on Bloomberg; (4) Excluding perpetual bonds. (5) Includes stock option exercises that may be issued from the stock option program and related to Exchangeable Senior Notes.

GOL has hedged approximately 62% of its fuel consumption for the remainder of 2019, at an average cost of US$60.

*1Q18 results have been restated based on IFRS 16, unaudited; Breakdown of costs with different methodology in relation to that reported in 1Q18; Certain calculations may not match with the information in the quarterly financials due to rounding.

*The figures for March 2019 are presented in IFRS16 and for ​​December 2018 in IFRS15.