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GOL Linhas Aereas Inteligentes SA

GOL Airlines first quarter net profit declines due to rising costs

Rogerio Jelmayer  May 07, 2010

SAO PAULO - Brazilian no-frills airline GOL Linhas Aereas Inteligentes SA's profit declined in the first quarter due to an increase in costs in the period.

Earlier Thursday, GOL reported a first-quarter net profit of 23.9 million Brazilian reals ($13.3 million), down from BRL61.4 million a year earlier.

"The reduction was due to the average 3.5% appreciation of the US Dollar against the Brazilian Real, which generated exchange variation expenses on foreign-currency-denominated liabilities, and the recognition of income tax and social contribution on net income as a result of taxable income during the quarter," GOL said in a statement.

The company ended the quarter with a net debt of BRL1.74 billion, down from BRL2.94 billion in the year-ago period. Operational costs totaled BRL1.54 billion in the first quarter, up from BRL1.4 billion last year.

Net revenue rose 14% to BRL1.73 billion in the first quarter.

The company said its earnings before interest, taxes, depreciation, amortization and aircraft rental costs, or Ebitdar, totaled BRL405 million in the period, up from BRL359.3 million.

The Ebitdar margin was 23.4% in the first quarter, compared with 23.7% last year.

Figures were compiled using international financial reporting standards, or IFRS, accounting criteria.

GOL Airlines first quarter net profit declines due to rising costs
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