GOL announces R$110.5m net income for 1Q11

GOL Linhas Aéreas Inteligentes has reported its results for the first quarter of 2011 (1Q11).

For the first quarter, GOL had certain one-off entries with no cash impact totalling R$ 120 million. The company implemented a new revenue accounting and ticket control system which led to alterations in the balance of the company’s advance ticket sales. To permit an adequate analysis of the quarterly results, as well as comparisons with previous quarters, the company has presented the results on an adjusted basis and does not include the one-off entries.

Adjusted net income for 1Q11 amounted to R$110.5 million, with a net margin of 5.8%. The one-off entries with non-cash effect of approximately R$120 million, when included, result in a net income of R$31.9 million, with a net margin of 1.7%.

The increase in 1Q11 adjusted net income, compared to the R$23.9 million and margin of 1.4% reported in 1Q10 was due to higher gains of foreign exchange rate variation between the periods. The operating result was consistent with the fact that revenue and costs recorded similar upturns.

Adjusted net revenue totalled R$1,895.7 million, up 9.6% over the R$1,729.8 million recorded in 1Q10. Adjusted operating income (EBIT) came to R$193.1 million, with a margin of 10.2%, 0.9 pp down year-on-year. This result was chiefly due to the increase in the aircraft fuel and salaries, wages and benefits costs. This increase was partially offset by gains in operational efficiency due to the high aircraft utilisation rate (13.3 block hours in 1Q11 versus 13.0 block hours in 1Q10).

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