GOL Reports Operating Profit of R$ 61.2mm for 3Q08

GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4), Brazil's low cost airline, today announced preliminary unaudited financial results for the third quarter of 2008 (3Q08). The following financial and operating information, unless otherwise indicated, is presented pursuant to US GAAP and in Brazilian Reais (R$) and comparisons refer to the third quarter of 2007 (3Q07). Additionally, financial statements summary in BR GAAP are made available at the end of this release. As part of the process to transition the Company's financial statements from US GAAP to IFRS (International Financial Reporting Standards), beginning with 3Q08 results, the Company will initially report its consolidated earnings in US GAAP with financial statements reported according to IFRS is expected to be released until December 15, 2008.

IFRS is the most widely accepted accounting standard internationally. Quarterly information does not include the changes in accounting practices provided by Law No. 11,638, as permitted by the Brazilian Securities and Exchange Commission (CVM) in this period of transition.

OPERATING & FINANCIAL HIGHLIGHTS

-- Net revenues reached R$1.8bn, representing growth of 37.2% compared to the same period last year. The Company transported 6.0mm passengers during the quarter, representing growth of 8.7% over 3Q07. Ancillary revenues (cargo and other) increased 55.0% over 3Q07 to R$178.0mm.

-- Consolidated operating income for the quarter was R$61.2mm, representing an operating margin of 3.4%. Consolidated net loss for the quarter was R$294.3mm (US$176.3mm), due to a negative exchange variation of R$261.8mm with no impact on cash and negative net hedging results of R$48.0mm. Consolidated net loss per share (EPS) was R$1.47; net loss per ADS was US$0.88.

-- Consolidated operating costs per ASK (CASK) increased 22.4% from 14.23 cents (R$) in 3Q07 to 17.42 cents (R$) in 3Q08. Non-fuel CASK increased 13.6% to 9.87 cents (R$) due to planned lower aircraft utilization, extraordinary expenses related to aircraft return expenses, lower stage length, and increases in salaries, wages and benefits, sales and marketing and depreciation.

-- On September 30, the Company's total liquidity was R$2.4bn, comprised of: cash, cash equivalents and short-term investments of R$723.8mm, accounts receivable of R$379.2mm, R$621.8mm in deposits with lessors and R$668.3mm deposited with Boeing as advances for aircraft acquisitions.

-- In line with its fleet renewal plan, the Company received four 737- 700NGs and eight 737-800NGs and removed ten 737-300s and eight 767-300s from the operating fleet during the quarter, resulting in a net reduction of eight aircraft in the operating fleet. The Company plans to end 2008 with a consolidated fleet of 104 aircraft, mostly comprised of 737-800 and 737-700 aircraft.

-- Consolidated domestic RPKs decreased 17.7% and ASKs decreased 4.6%, versus 2Q08. Consolidated international revenue passenger kilometers (RPKs) increased 3.4% and ASKs decrease 16.6% versus 2Q08.

-- Consolidated RPKs increased 8.7% from 5,470mm in 3Q07 to 5,944mm in 3Q08 and ASKs increased 10.9% from 8,941mm in 3Q07 to 9,912mm in 3Q08. Consolidated average load factor decreased 1.2 percentage points versus 3Q07 to 60.0%. Consolidated break-even load factor decreased 1.9 percentage points versus 3Q07 to 57.9%.

-- Consolidated passenger yields increased 24.7% to R$27.09 cents, compared to a 57.1% increase in fuel price (WTI) in the same period. RASK increased 23.7% over 3Q07 to 18.04 cents (R$). Average fares were R$275.

-- GOL now offers over 790 daily flights to 59 different destinations in Brazil and South America, the most of any airline group. In 3Q08, GOL added 19 new daily flight frequencies. The Company's low-cost operating structure permits flights to medium-sized cities with lower traffic volumes, allowing GOL to serve various destinations outside of Brazil's main economic centers.

-- On August 31, the Company ceased long-haul services with the last intercontinental flight to Paris, France. Beginning August 31, the Company ceased operating Boeing 767s and now operates only Boeing 737s on its short and medium-haul flights.

-- On September 25, Anac (Brazil's National Civil Aviation Agency) approved the Company's corporate restructuring plan for its subsidiaries GTA and VRG. On September 30, the subsidiaries merged into one airline.

-- On October 19, GOL launched its new integrated route network. The new network compliments the Company's unified structure by eliminating overlapping routes and schedules between GOL and VARIG, which improves flight occupancy levels by allowing the Company to increase offerings in markets where it has consolidated operations while also allowing new connections between previously unlinked cities.

-- On October 16, the Company launched a new "Comfort Class" on VARIG's medium-haul international flights, which provides passengers with a number of important benefits, including a wide variety of meal choices, more legroom between seats, on-demand entertainment during the flight, and many other benefits. The Company has also enhanced its in-flight service on domestic flights.

-- Beginning on October 16, customers flying on both VARIG and GOL are able to accumulate miles through the SMILES frequent flyer program. Beginning November 16, miles can be exchanged for tickets to all destinations served by the Company.

-- On October 23 the Company signed an interline agreement with Germany- based Condor Airlines. Through this partnership, passengers of the European airline can purchase tickets on GOL to Belo Horizonte, Brasilia, Fortaleza, Maceio, Natal, Rio de Janeiro and Sao Paulo.

-- The Company ended the quarter with 25.6% of its shares floating in the market. GOL's shares presented average daily trading volumes of US$19.0mm (R$31.7mm) during 3Q08.

    3Q08 Earnings Results Webcast

    Date:
    Monday, November 17, 2008

    > English
    09:00 a.m. US EST
    12:00 p.m. Brasilia Time
    Phone: +1 (412) 858-4600
    Replay: +1 (412) 317-0088
    Code: GOL

    > Portuguese
    10:30 a.m. US EST
    1:30 p.m. Brasilia Time
    Phone: +55 (11) 2188-0188
    Replay: +55 (11) 2188-0188
    Code: GOL