SAO PAULO, Brazil, March 20 /PRNewswire-FirstCall/ -- GOL Linhas Aereas Inteligentes S.A. (Bovespa: GOLL4 and NYSE: GOL), Brazil's low-cost airline, announces today its preliminary, unaudited results for the fourth quarter of 2008 (4Q08). The following financial and operating information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS) and in Brazilian Reais (R$), and all comparisons are with the fourth quarter of 2007 (4Q07).
OPERATING AND FINANCIAL HIGHLIGHTS
-- Net revenue totaled R$1,548.6mm in 4Q08, up 5.2% over 4Q07's R$1,427.7mm revenue, primarily due to 6.1% higher net passenger revenue. The Company transported 6.1mm passengers during the quarter. Ancillary revenue (cargo and others) fell 5.6% year-over-year to R$108.3mm in 4Q08 from R$114.7mm in the same period of 2007.
-- Consolidated revenue passenger kilometers (RPKs) fell 14.3%, from 6,567mm in 4Q07 to 5,629mm in 4Q08, while available seat kilometers (ASKs) fell 2.5% from 9,705mm to 9,461mm in 4Q08. As a result, average load factor decreased 8.2 percentage points from 4Q07 to 59.5%; breakeven load factor stood at 57.4%, 13.9 percentage points lower than 4Q07.
-- Yields increased 23.7% to 25.59 cents (R$), while RASK increased 7.9% to 16.37 cents (R$) as compared to 15.17 cents (R$) 4Q07, primarily due to the integration of GOL and VARIG in October 2008.
-- Operating costs per available seat-kilometer (CASK) totaled 15.80 cents (R$), a 1.2% decrease from 4Q07's 15.99 cents (R$), mainly due to a reduction in the WTI oil price and the new network positioning focused on canceling all intercontinental flights due to their low efficiency. CASK, excluding fuel expenses (CASK ex-fuel), increased 3.1%, reaching 10.68 cents (R$) in the quarter versus 10.36 cents (R$) in 4Q07. CASK ex-fuel increased mainly due to higher marketing and sales expenses per ASK, depreciation, currency devaluation and a non-recurring increase with spare parts inventory expenses and aircraft returns (approximately R$58mm).
-- GOL's consolidated operating income was R$53.9mm in the quarter, compared to 4Q07's operating loss of R$78.2mm; the Company's 4Q08 operating margin was 3.5%.
Operating Highlights 4Q08 4Q07 % Var.
-- GOL began to offer an integrated network, with approximately 800 daily flights to 59 destinations in Brazil and South America, the most comprehensive route network in South America.
-- During the quarter, the Company took delivery of two Boeing 737-700 NGs and one Boeing 737-800 NG and returned one 737-300, closing 2008 with 106 operational aircraft and a total fleet of 115 aircraft. Another important milestone was the consolidation of the GOL and VARIG route networks, which eliminated flight overlap and maximized profits from the Congonhas slots, as well as strategically repositioning the VARIG brand.
-- In October 2008, the Company introduced a series of initiatives that provided new competitive advantages to the business, including the extension of the SMILES program to all GOL passengers and the launch of the Comfort class on medium-haul international flights.
-- GOL announced interline agreements with American Airlines and AirFrance/KLM, increasing its number of flight feeder channels, at a low cost, through the ample distribution networks of its partner companies both in Brazil and abroad. Integrating route networks generates additional revenue while increasing passenger numbers and load factors on GOL flights. Interline agreements could also develop into more solid business relationships with our airline partners, via code share agreements or other programs.
-- GOL posted a 4Q08 net loss of R$687.1mm, mainly attributed to the non- cash impact of negative exchange variation on foreign-currency assets and liabilities, totaling R$501.9mm. Losses per share and ADS in the quarter, were R$3.42 and US$1.50, respectively.
-- On February 2, 2009, GOL announced the appointment of Leonardo Pereira as its new CFO and IRO. Pereira has executive experience and a high record of accomplishment, leading M&A, financial restructurings and share issues and arranging long-term financings.
-- On February 4, 2009, the Board of Directors approved continuing the Stock Option plan through 2009 and the number of options (925,800) to be granted to participants, which will be submitted for approval at the Company's next Annual Shareholders' Meeting. The decision increases the number of options granted to 1.2mm in the last three years, or 0.6% of total shares. The purpose of the Company's stock option plan is to align shareholder and top management interests.
-- The Company closed the quarter with a free float of 25.1%; 4Q08 daily trading volume averaged US$5.9mm (R$13.5mm). In 4Q08, GOL shares and ADSs had an average weighted number of shares/ADS of 200,726 versus 202,299 in the same period of 2007, representing a reduction of 0.8%.
