Gol Linhas Aereas Inteligentes S A : 1Q20 ITR*

Individual and Consolidated Quarterly Information - ITR

GOL Linhas Aéreas Inteligentes S.A.

March 31, 2020 with Report on the review of the quarterly information

Gol Linhas Aéreas Inteligentes S.A.

Individual and Consolidated Quarterly Information - ITR March 31, 2020

Contents

Comments on business forecast trends ................................................................... 03

Report of the Statutory Audit Committee ............................................................... 07

Executive officers' statement on the individual and consolidated quarterly information - ITR .. 08

Executive officers' statement on the independent auditor's review report ........................ 09

Independent auditor's review report on the quarterly information .................................. 10

Balance sheets ................................................................................................ 12

Income statements ........................................................................................... 14

Statements of Comprehensive Income .................................................................... 15

Statements of Changes in Shareholders' Equity ......................................................... 16

Statements of Cash Flows ................................................................................... 17

Statements of Value Added ................................................................................. 19

Notes to the individual and consolidated quarterly information - ITR ............................... 20

Management report

We are experienced at navigating in times of stress.

Our flexible fleet model has always been a differentiating strength for GOL, and we were fast to adapt our operations while information on the scale and impact of COVID-19 was still being understood. Our response to the pandemic is focused on three priorities. First, protecting the health and the safety of our Employees and Customers. Second, preserving our financial liquidity to work through this crisis. And third, once activity returns, ensuring we are well-positioned for the successful continuation of our business through a robust plan to return to normal service operations.

The responsible actions we have taken include the temporary halting of almost all flights, lease payment deferrals, capex cuts, delivery deferrals, postponing vendor payments, significant reduction in personnel expenses and cooperation with the Brazilian government.

GOL reports a strong improvement in cash flow margin this quarter, despite the impacts of COVID-19 in the second half of March. The Company has at its disposal over R$7 billion of liquidity sources, equal to the Company's expected revenue through the end of the year. Additionally, GOL's liquidity will be positively impacted by the compensation agreement for the grounding for the Boeing 737 MAX, in which a payment of R$447 million was received in April.

By acting with speed and decisiveness, we have reduced our fixed costs to preserve the jobs of our Employees and the Company's working capital in the short term. This will provide us with the necessary liquidity to weather the storm.

We are effectively managing our business through this crisis. While our current financial situation is sound, as the scale of this challenge became clear in early March, we initiated a rigorous review of our budget to preserve working capital. We aimed at cost containment across the Company through the elimination of non-essential items. GOL estimates it has achieved approximately R$2.4 billion in cost reductions, capex eliminations and payments postponements for 2020.

GOL would like to be celebrating another quarter of exceptional growth, however, it has been hit by an external factor of unimaginable magnitude. The Company moved fast to address this challenge, and thanks each and every one of its Employees for their clear attitude of motivation and engagement with the collective purpose of Being First for Everyone.

GOL is also grateful to the Government of Brazil for the speed of its response in mitigating Brazilian airlines' exposure to the COVID-19 pandemic. GOL further supports the actions to mitigate, at least partially, the impact on passenger transportation services. The Company continues to work with the Brazilian Government to maintain essential flight links between Brazil's capital cities, and to operate rescue and medical flights when requested to do so.

In such extremely challenging circumstances that Brazil and the world are experiencing, the Company recognizes its responsibility to plan for the conscientious use of available resources, taking into account that the Safety of its Customers and Employees is, and always will be, the number one value of GOL.

Operating and Financial Indicators (Unaudited)

Traffic Data - GOL (in Millions)	1Q20	1Q19	% Var.
RPK GOL - Total RPK GOL - Domestic RPK GOL - International ASK GOL - Total ASK GOL - Domestic ASK GOL - International GOL Load Factor - Total GOL Load Factor - Domestic GOL Load Factor - International	9,948	10,625 -6.4% 9,090 -4.7% 1,534 -16.0% 13,039 -4.4% 11,021 -3.1% 2,018 -11.8% 81.5% 82.5% 76.0% -1.7 p.p. -1.4 p.p. -3.7 p.p.
	8,660
	1,288
	12,462
	10,682
	1,780
	79.8%
	81.1%
	72.3%
Operating Data	1Q20	1Q19	% Var.
Revenue Passengers - Pax on Board ('000) Aircraft Utilization (Block Hours/Day) Departures Total Seats ('000) Average Stage Length (km) Fuel Consumption (mm liters) Full-time Employees (at Period End) Average Operating Fleet(6) On-time Departures Flight Completion Passenger Complaints (per 1,000 pax) Lost Baggage (per 1,000 pax)	8,346	8,949 -6.7% 12.8 -5.5% 63,771 -1.3% 11,150 -2.8% 1,156 -1.7% 374 -2.9% 14,994 9.0% 111 2.7% 87.1% 98.2% 5,5 p.p. -0,7 p.p. 1.41 -27.7% 2.25 -1.3%
	12.1
	62,956
	10,834
	1,136
	363
	16,345
	114
	92.6%
	97.5%
	1.02
	2.22
Financial Data	1Q20	1Q19	% Var.
Net YIELD (R$ cents) Net PRASK (R$ cents) Net RASK (R$ cents) CASK (R$ cents)(4)	29.57	28.55 3.6% 23.27 1.4% 24.63 2.6% 20.44 -13.3%
	23.60
	25.26
	17.73
CASK Ex-Fuel (R$ cents)(4)	9.70	12.80	-24.2%
Breakeven Load Factor(4)	55.6%	67.6%	-12.0 p.p.
Average Exchange Rate(1) End of Period Exchange Rate(1) WTI (Average per Barrel. US$)(2) Price per Liter Fuel (R$)(3) Gulf Coast Jet Fuel (Average per Liter, US$)(2)	4.4657	3.7684 18.5% 3.8967 33.4% 54.90 -16.6% 2.75 1,1% 0.49 -24.5%
	5.1987
	45.78
	2.78
	0.37

(1) Source: Brazilian Central Bank; (2) Source: Bloomberg; (3) Fuel expenses excluding hedge results and PIS/COFINS credits/liters consumed; (4) Excluding non-recurring expenses. (5) Average operating fleet excluding aircraft in sub-leasing and MRO. Certain calculations may not match with the financial statements due to rounding.

Domestic market

GOL's domestic supply decreased by 3.1%, and demand reduced 4.7% in comparison to 1Q19, and the load factor reached 81.1%. GOL transported 7.8 million passengers during the quarter, a decrease of 7.1% compared with the same quarter in 2019. The Company is the leader in transporting passengers in the Brazilian market.

International market

GOL's international supply decreased by 11.8%, and international demand decreased by 16.0% in 1Q20 compared to 1Q19. The Company's load factor in 1Q20 was 72.3%, a decrease of 3.7 p.p. During the quarter, GOL transported 0.5 million passengers in the international market, compared to 0.6 million passengers in 1Q19.

Volume of Departures and Total Seats

The total volume of GOL departures was 62,956, a decrease of 1.3% over 1Q19. The total number of seats available to the market was 10.8 million in the first quarter of 2020, a decrease of 2.8% quarter-over-quarter.

PRASK, Yield and RASK

Net PRASK increased by 1.4% in the quarter when compared to 1Q19, reaching 23.60 cents (R$), maintenance of the levels of net passenger revenue and the ASK reduction of 4.4% in the quarter. GOL's net RASK was 25.26 cents (R$) in 1Q20, an increase of 2.6% over 1Q19. Net yield increased by 3.6% over 1Q19, reaching 29.57 cents (R$).

Fleet

At the end of 1Q20, GOL's total fleet was 131 Boeing 737 aircraft, comprised of 124 NGs and seven (7) MAXs (non-operational). At the end of 1Q19, GOL's total fleet was 122 aircraft, of which seven (7) were MAX aircraft. During the quarter, GOL entered a leasing contract for one (1) additional aircraft 737-800 NG aircraft. The average age of the Company's fleet was 10.4 years at the end of 1Q20.

Total Fleet at the End of Period (Unaudited)	1Q20	1Q19	Var.	4Q19	Var.
B737s	131	122 +9		137 -6
B737-7 NG B737-8 NG B737-8 MAX	23 101 7	24 -1 91 +10 7 NM		24 -1 106 -5 7 NM

As of March 31, 2020, the Company had 95 firm orders for the acquisition of Boeing 737 MAX aircraft, of which 73 were orders for 737 MAX-8 and 22 orders were for 737 MAX-10.

As a consequence and in acknowledgment of a longstanding relationship, in March GOL reached and signed an agreement with Boeing to change future orders and associated payment schedules. The terms of the agreement are confidential and provide for (a) compensation that addresses damages resulting from additional non planned costs incurred since the aircraft grounding to date as a result of non-delivery of aircraft as defined per acquisition contracts, (b) a reduction in the number of firm commitments by 34 aircraft to a total of 95 firm orders, and (c) the flexibility to adjust the number of firm commitments by an additional aircraft, and (d) the flexibility to convert the remaining orders to other MAX models. Compensation in the total amount of R$447 million was received by GOL on April 1, 2020. Additionally, dependent upon future events, Company will be entitled to credits with a corresponding present value of R$2.3 billion to be applied in new aircraft acquisitions, which will reduce depreciation and interest expenses.

Fleet Plan (Unaudited)	2020E
Operating Fleet at the End of the Year	122
Aircraft Commitments (R$ MM)	-

2021E

2022E

>2023ETotal

140

-

-26,739.5

26,739.5

In February 2020, GOL signed sale and leaseback agreements on 11 Boeing 737 Next Generation (NG) aircraft. GOL's aircraft transactions demonstrate the consistent market value of Boeing 737 aircraft and the continuous value creation for all of GOL's shareholders.

Glossary of industry terms

•  AIRCRAFT LEASING: an agreement through which a company (the lessor), acquires a resource chosen by its client (the lessee) for subsequent rental to the latter for a determined period.

•  AIRCRAFT UTILIZATION: the average number of hours operated per day by the aircraft.

•  AVAILABLE SEAT KILOMETERS (ASK): the aircraft seating capacity multiplied by the number of kilometers flown.

•  AVAILABLE FREIGHT TONNE KILOMETER (AFTK): cargo capacity in tonnes multiplied by number of kilometers flown.

•  AVERAGE STAGE LENGTH: the average number of kilometers flown per flight.

•  EXCHANGEABLE SENIOR NOTES (ESN): convertible securities.

•  BLOCK HOURS: the time an aircraft is in flight plus taxiing time.

•  BREAKEVEN LOAD FACTOR: the passenger load factor that will result in passenger revenues being equal to operating expenses.

•  BRENT: oil produced in the North Sea, traded on the London Stock Exchange and used as a reference in the European and Asian derivatives markets.

•  CHARTER: a flight operated by an airline outside its normal or regular operations.

•  FREIGHT LOAD FACTOR (FLF): percentage of cargo capacity that is actually utilized (calculated dividing FTK by AFTK)

•  FREIGHT TONNE KILOMETERS (FTK): weight of revenue cargo in tonnes multiplied by number of kilometers flown by such tonnes.

•  LESSOR: the party renting a property or other asset to another party, the lessee.

•  LOAD FACTOR: the percentage of aircraft seating capacity that is actually utilized (calculated by dividing RPK by ASK).

•  LONG-HAUL FLIGHTS: long-distance flights (in GOL's case, flights of more than four hours' duration).

•  OPERATING COST PER AVAILABLE SEAT KILOMETER (CASK): operating expenses divided by the total number of available seat kilometers.

•  OPERATING COST PER AVAILABLE SEAT KILOMETER EX-FUEL (CASK EX-FUEL): operating cost divided by the total number of available seat kilometers excluding fuel expenses.

•  OPERATING REVENUE PER AVAILABLE SEAT KILOMETER (RASK): total operating revenue divided by the total number of available seat kilometers.

•  PASSENGER REVENUE PER AVAILABLE SEAT KILOMETER (PRASK): total passenger revenue divided by the total number of available seat kilometers.

•  PDP: credit for advance payments for aircraft purchases financing.

•  REVENUE PASSENGERS: the total number of passengers on board who have paid more than 25% of the full flight fare.

•  REVENUE PASSENGER KILOMETERS (RPK): the sum of the products of the number of paying passengers on a given flight and the length of the flight.

•  SALE-LEASEBACK: a financial transaction whereby a resource is sold and then leased back, enabling use of the resource without owning it.

•  SLOT: the right of an aircraft to take off or land at a given airport for a determined period of time.

•  SUB-LEASE: an arrangement whereby a lessor in a rent agreement leases the item rented to a fourth party.

•  TOTAL CASH: the sum of cash, financial investments and short and long-term restricted cash.