São Paulo, August 15, 2016 – GOL Linhas Aéreas Inteligentes S.A. (“GLAI”), (BM&FBOVESPA: GOLL4 and NYSE: GOL), (S&P: CCC, Fitch: CC and Moody’s: Caa3), Brazil’s largest air transportation and travel services group, with annual revenues of R$10 billion, announces today its consolidated results for the second quarter of 2016. All information is presented in accordance with International Financial Reporting Standards (IFRS) and in Brazilian Reais (R$), and all comparisons are with the second quarter of 2015 unless otherwise stated.

Quarter highlights
| GOL’s capacity measured by ASK in the domestic and international markets decreased by 8.9% and 12.2%, respectively, resulting in an overall GOL system reduction of 9.3% in the second quarter of 2016 compared to the same period in 2015.
| Demand for the Company’s seats in the domestic market measured by RPK fell by 11.2% and 10.6% in the international market. The overall GOL system decrease was 11.2%.
| In 2Q16, GOL’s total load factor fell by 1.6 percentage points, to 75.2%. The domestic market load factor was 76.0%, a reduction of 2.0 percentage points, and the load factor in the international market was 69.3%, an increase of 1.1 percentage points compared to the same period in 2015.
| The Company’s net revenue totaled R$2.1 billion in 2Q16, a decrease of 2.0% from 2Q15. Net revenue for the last twelve months was R$10 billion.
| Ancillary and cargo revenues reached R$297.8 million in 2Q16, up 4.8% represented 14.3% of total net revenue. In the last twelve months, ancillary and cargo revenues totaled R$1.2 billion.
| With 14.1% devaluation of the Real against the US Dollar in the period, Brazilian inflation of around 9%, and the ASK reduction of 9.3%, year-over-year CASK excluding fuel expenses and non-recurring events increase of 15.7% in the second quarter.
| The non-recurring losses on the early return of aircraft under finance lease contracts were R$21.8 million in the quarter.
| Operating losses on a recurring basis (recurring EBIT) in 2Q16 were R$149.6 million – representing a margin of -7.2%. The EBITDA loss was R$39.5 million, representing a margin of -1.9%, and EBITDAR was R$247.0 million, representing a margin of 11.8%. Including the non-recurring event early return costs of aircraft under finance leases, the EBIT loss was R$171.4 million, representing a margin of -8.2%, the EBITDA loss was R$61.3 million, representing a margin of -2.9%, and EBITDAR was R$225.3 million, representing a margin of 10.8%.
| The appreciation of the Real against the US Dollar generated an accounting gain of R$778.8 million, and Net income was R$309.5 million in the second quarter.
| Financial leverage (adjusted gross debt/EBITDAR) was 8.4x at quarter-end, compared to 9.4x at the end of the first quarter of 2016, impacted by the Real’s 9.8% appreciation over 1Q16.
| The Company renegotiated the amortization schedule of its Debentures with Brazilian banks totaling R$1.025 billion and received waivers of financial covenants on June 30, 2016. The new amortization schedule postpones R$225 million from 2016 and 2017 to 2019 at the same interest cost.
| GOL concluded in July 2016, a private exchange offer for its USD unsecured bonds, reducing GOL’s total debt by U.S.$101.8 million (R$326.8 million) and providing an annual cash interest expense savings of approximately U.S.$9.3 million.

Message from Management
GOL’s second quarter results reflect the Company’s right-sizing to current Brazilian economic and airline industry conditions and to improve liquidity.

In the period, which is seasonally the weakest in the year, GOL had net revenue of R$2.1 billion, 2.0% lower than in the same period of 2015. The recurring operating loss in the second quarter of 2016 was R$149.6 million, with an operating margin of minus 7.2% – an improvement of 5.1 percentage points versus same period last year. Non-recurring losses resulting from the restructuring of our fleet were R$21.8 million.

The restructuring plan begun in 2015 completed the following initiatives: (i) the exchange of USD-denominated unsecured debt that reduced GOL’s debt by US$101.8 million and generated annual interest savings of US$9.3 million (ii) the renegotiation of debentures with Brazilian banks, postponing R$225 million in 2016 and 2017 amortizations to 2019, and (iii) the renegotiation of leased aircraft, with 7 aircraft already returned.

We finished the quarter in the final stage of negotiations to accelerate the return of 15 additional aircraft under operating leases, which will permit GOL to operate 122 aircraft at year-end end 2016, compared to 144 at the end of 2015.

Based on our values Servir (‘To Serve’) and Inteligência (‘Intelligence’), the new flight network launched on May 1, 2016 brings a greater convenience to our customers.

At Congonhas, the main domestic airport in São Paulo, we adjusted service to provide the best options to key business markets, becoming the leader in number of destinations (at 33) and seat availability to the North and Northeast regions of Brazil, by swapping off-peak short-haul flights to leisure markets, enhancing fleet usage through a longer stage length (+41% YoY at Congonhas and +14.2% overall) and generating a lower CASK due to increased cost dilution.

At the two airports in Rio de Janeiro, the second largest market in Brazil, Santos Dumont (domestic airport) and Galeão (domestic and international airport), we have combined with our strategic partners Air France/ KLM and Delta, to become the most comprehensive network for domestic and international passengers, as we now have the largest number of non-stop flights departing from Rio: 8 international and 25 domestic. For domestic passengers, we have adapted flight times for corporate passengers and created a hub of connections, providing better options between the Southern and Northern regions of Brazil.

At the end of May we began a new route between Recife and Montevideo. Recife is our first base in the Northeast with non-stop flights to the Uruguayan capital, which already has non-stop flights from Guarulhos- São Paulo and Rio de Janeiro.

We maintained our leadership in the number of passengers transported in the domestic market in 1H16 with more than 15 million clients – according to the ANAC (Brazilian Civil Aviation Agency), as well as in the number of tickets issued to corporate customers. It is noteworthy that for the first time in a semester we lead in sales volume to the corporate segment. According to data from the Brazilian Association of Corporate Travel

Agencies (ABRACORP), our sales volume share reached 30.1% and in number of tickets our share was 32.3% for the first six months of the year.

In recognition of our efforts to enhance customer experience, we received for the third time the CIC Brasil 2016 Award, awarded by Cliente SA magazine, in the category “Best Customer Experience Project”, receiving a gold medal for “Integrated Cell: Ensuring the best flying experience”.

The US Federal Aviation Administration (FAA) approved GOL to perform “C-Check” Heavy Check maintenance procedures on our aircraft at our Aircraft Maintenance Center (CMA). With this certification, we can now provide lease return checks and maintenance services to our leased aircraft, opening opportunities for costs savings.

At the end of July we announced the election of Richard Lark to the position of Executive Vice-President, CFO and IRO, replacing Edmar Lopes, who held these positions since 2012 and will assume new responsibilities within the Group.

In compliance with the Group’s corporate governance practices, Richard stepped out of his position as an independent Director and financial expert on the Statutory Audit Committee. André Jánszky and Anna Luiza Constantino have been appointed Directors on the Board.

The completion of our comprehensive restructuring plan will make us even stronger, more competitive and better prepared to create shareholder value and provide an increasingly superior flight experience for our customers.

We would like to thank our employees for their dedication, commitment and engagement. They spare no efforts to take GOL to an even higher level of service quality. We would also like to thank our shareholders and stakeholders for their support and trust.

Paulo Sérgio Kakinoff
CEO of GOL Linhas Aéreas Inteligentes S.A.