GOL reports losses on currency and fuel hedge reductions in 3Q08

Struggling Brazilian LCC, GOL, stated the impact of gains in currency hedges and losses in fuel hedges in 3Q08 will result in an approximate net loss of USD21.4 million in the three months ended 30-Sep-08 (3Q08). The exchange variation on GOL’s net foreign currency liabilities (mainly related to long-term debt, with average term of 7.3 years) will also have a negative non-cash impact of approximately USD100 million in the quarter. GOL was negatively affected by the appreciation of the US dollar by 20% versus the Brazilian Real in 3Q08, equivalent to BRL0.32 (USD0.14). [914 words]

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This report contains the following subheadings:

• Higher-than-expected capacity growth of 12% and load factor of 65% anticipated for 3Q08
• Yield and ex-fuel costs also higher than previous guidance
• Much-needed synergies from corporate restructure to be realised with Anac approval of GTA/VRG merger
• Fleet renewal programme progresses

This report contains the following charts and tables:

• GOL performance guidance: Oct-08
• 2008 GOL Consolidated Guidance
• 2008 quarterly estimated margins
• GOL's current expected fleet growth from 2007 to 2012 (year-end)
• Aircraft Delivery Schedule