GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), Brazil's #1 airline, announces its consolidated results for the second quarter (2Q17). All information is presented in accordance with IFRS.

Financial and Operational Highlights:

Net revenue reached R$2.2 billion, an increase of 7.0% compared to 2Q16.

Recurring operating income (EBIT) in 2Q17 was R$37.3 million, an increase of R$186.9 million compared to 2Q16. A recurring operating profit in the second quarter has not been registered since 2010. Recurring EBIT margin increased 8.8 p.p. in relation to 2Q16.

The Company's operating fleet was 106 Boeing 737 aircraft, with a utilization of 11.3 block hours per day.

Auxiliary and cargo revenues increased by 16.7% in 2Q17, reaching R$347.7 million.

Net income in the period was a loss of R$474.6 million, after the Smiles minority interest. This result has an impaaired comparison with 2Q16 (profit of R$252.5 million), as gains from foreign exchange and monetary variation were +R$778.8 million in 2Q16, while in 2Q17 it was a loss of -R$225.7 million. In the quarter, the EPS was -R$1.37 and the EPADS was -US$2.12.

Net cash flow in 2Q17 was R$393.5 million. Cash, cash equivalents, short-term investments and accounts receivable increased to R$1,770.5 million.

The average load factor in 2Q17 increased by 2.7 p.p. compared to 2Q16, reaching 77.9%. The average yield per passenger increased by 4.8% in the quarter.
"We remain committed to responding to the macroeconomic environment with strong discipline in seat supply, growth in load factor, continuous improvement in customer experience and cost reductions to generate improved operating results. In this quarter, seasonally the weakest in the year, we achieved good operational results, with recurring EBIT margin evolving significantly 8.8 p.p. over 2Q16", commented CEO Paulo Kakinoff.

2Q17 Earnings Call: August 9, 2017, 01:30 p.m. (US EDT), Phone: +1 (412) 317-5453, Code: GOL

Access to 2Q17 earnings release, full financials and webcast: www.voegol.com.br/ir