GOL: Yield and Load Factor Growth Lead to a 21% Increase in PRASK in October YoY

(BM&FBOVESPA: GOLL4 and NYSE: GOL), (S&P: B, Fitch: B-, Moody’s: B3), the largest low-cost and low-fare airline in Latin America hereby announces its preliminary air traffic figures for October/2013.

PRASK, Yield and Fuel Prices
Net PRASK moved up by 21% in October over the same month last year, and the Company recorded an 8.3% reduction in domestic supply in the same period. This was the 11th month of double-digit growth of this indicator, since November/12.

This growth was the result of GOL’s strategy of attracting more business passengers, who prioritize flexibility, punctuality and competitive fares with flights booked less in advance. In addition, through various sales channels, the company offers competitive rates for all audiences, especially the client who travels for leisure.

Net yield recorded an increase of 14% compared to the same period last year, to between R$22.5 and R$23.0 cents, accompanied by a 4.6 percentage point increase in total load factor, reaching 73.7% from 69.2%. This is the highest load factor recorded in 2013.

The average jet fuel price* moved up by around 3% compared to October/12, due to the depreciation of the Real against the Dollar in August and September, which comprise October’s jet fuel price formation period due to the time gap.

Domestic Market
In October, GOL’s domestic market supply fell by 8.3% over October/12. In the same period, demand declined by 1.8%, while the domestic load factor reached 74.6%, 4.9 percentage points up over the same period last year. PRASK growth outpaced the reduction in supply again.

International Market
International supply climbed by 29.4% over October/12, chiefly due to the flights to Santo Domingo, Miami and Orlando that began at the end of last year. Demand increased by 36.8%, primarily due to these routes, while the international load factor grew by 3.6 percentage points.

This upturn occurred despite the increased representativeness of the flights to Santo Domingo, where around 85% of our seats are available for sale on our 737-800 NG aircraft, which reduces our load factor indicator. In accordance with ANAC’s methodology, the load factor is calculated over the aircraft’s total capacity.