GOL Maintains Leadership Position and Resumes CASK Reduction with the Return of the 737 MAX to Opera

All information is presented in Brazilian reais (R$), according to both International Financial Reporting Standards (IFRS) and adjusted metrics, and is made available to enable comparability of this quarter with the same period last year. Such adjusted metrics exclude expenses related to the portion of the non-operating fleet that GOL grounded this quarter and are detailed in the table showing "operating expenses". Comparisons are made to the fourth quarter of 2019 (4Q19), unless otherwise specified.

"As the most challenging year in the history of commercial aviation comes to a close, we continue to be focused on managing the impacts of the Covid-19 pandemic on our business with determination, clarity and confidence," said Paulo Kakinoff, CEO. "The GOL business model is the main differential for us in overcoming the challenges this crisis has posed to airlines. Our single-type fleet operating model, low-cost structure with more variable components and dominant position in Brazil's high-density traffic hubs enable us to rapidly expand and contract routes to meet fluctuations in demand, while maintaining discipline in capacity and profitability. We believe that the current market conditions, while difficult, are temporary, and that demand will continue to recover as the vaccine roll-out progresses in Brazil. We reiterate our confidence that GOL will emerge stronger and even more resilient as markets normalize."

In December, the Company was the first airline worldwide to fly the Boeing 737-MAX aircraft after it was grounded for 20 months, following effective approval of the regulatory agencies - FAA and ANAC - through a rigorous and complete recertification process that ensured the highest levels of reliability and operational safety. This state-of-the-art aircraft is a core pillar of GOL's strategy for further strengthening its sustainability as a business, through the continuous improvement of environmental, social and governance metrics. The 737 MAX aircraft promotes a 16% reduction in carbon emissions and consumes 15% less fuel than 737 NG, while also enabling the Company to manage its network more effectively and fly longer distances. According to MSCI, using its ESG Rating Scorecard, GOL is rated as one of the most sustainable and carbon efficient airlines in the world, reaching carbon emission rates up to 20% below its industry peers.

"GOL recognizes the importance and need for environmental, social and governance policies to ensure the perpetuity of the business, creating value for the entire community," said Celso Ferrer, Vice president of Operations. "We have set out a Sustainability Policy to guide the establishment environmental, social and governance programs and strategies in line with the Sustainability Accounting Standards Board ("SASB") standard for the airline industry."

Summary of 4Q20 Results

• Revenue Passenger-Kilometers (RPK) decreased 42% compared to the same period in 2019, totaling 6.2 billion. RPK almost doubled compared to 3Q20;
• Available Seat Kilometers (ASK) reduced 42% compared to 4Q19, while it increased 93% over 3Q20;
• GOL transported 5.2 million Customers in the quarter, a 46% year-on-year decline. In relation to 3Q20, the Company registered a 100% increase;
• Net revenues totaled R$1.9 billion, decreasing 50% from 4Q19, while expanding 94% over 3Q20. Monthly revenues went from R$574 million in October to R$784 million in December, a growth of 37% within 4Q20. Other revenues (mainly cargo and loyalty) amounted to R$172 million, equivalent to 9.1% of total revenues. In 2020, net revenue reached R$6.4 billion, lower than the R$13.9 billion registered in 2019;
• Net Revenue per Available Seat Kilometer (RASK) was 24.57 cents (R$), 14.4% lower than in 4Q19, and 0.6% higher than in 3Q20. Net Passenger Revenue per Available Seat Kilometer (PRASK) was 22.34 cents (R$), a 17% reduction over 4Q19 and an increase of 1.5% in comparison to 3Q20;
• Adjusted EBITDA totaled R$558.5 million and adjusted EBIT was R$346.8 million, reflecting our rational and responsible management of supply based on demand. In 2020, adjusted EBITDA and adjusted EBIT were R$2.5 billion and R$1.6 billion, respectively; and
• The net loss after minority interest was R$862 million, excluding exchange and monetary variations, non-recurring net expenses, gains related to Exchangeable Notes and capped calls unrealized results. In 2020, net loss after minority interest was R$2.3 billion, while in 2019 GOL achieved net income of R$0.7 billion.