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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month of November, 2008

(Commission File No. 001-32221) ,
 

 
GOL LINHAS AÉREAS INTELIGENTES S.A.
(Exact name of registrant as specified in its charter)
 
GOL INTELLIGENT AIRLINES INC.
(Translation of Registrant's name into English)
 


Rua Gomes de Carvalho 1,629
Vila Olímpia
05457-006 São Paulo, São Paulo
Federative Republic of Brazil
(Address of Regristrant's principal executive offices)



Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):



GOL Reports Operating Profit of R$ 61.2mm for 3Q08
Company Reports Quarterly Net Revenue of R$1.8bn

São Paulo, November 16, 2008 GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4), Brazil’s low cost airline, today announced preliminary unaudited financial results for the third quarter of 2008 (3Q08). The following financial and operating information, unless otherwise indicated, is presented pursuant to US GAAP and in Brazilian Reais (R$) and comparisons refer to the third quarter of 2007 (3Q07). Additionally, financial statements summary in BR GAAP are made available at the end of this release. As part of the process to transition the Company’s financial statements from USGAAP to IFRS (International Financial Reporting Standards), beginning with 3Q08 results, the Company will initially report its consolidated earnings in USGAAP with financial statements reported according to IFRS is expected to be released until December 15, 2008. IFRS is the most widely accepted accounting standard internationally. Quarterly information does not include the changes in accounting practices provided by Law No. 11,638, as permitted by the Brazilian Securities and Exchange Commission (CVM) in this period of transition.

  OPERATING & FINANCIAL HIGHLIGHTS 
 
IR Contact 

Email: ri@golnaweb.com.br 


Tel: +55 (11) 3169-6800 

IR Website:
 
voegol.com.br
/ir 

3Q08 Earnings 
Results Webcast
 

Date: 
Monday, November 17, 2008

> English
 
09:00 a.m. US EST 
12:00 p.m. Brasília Time
Phone: +1 (412) 858-4600 
Replay: +1 (412) 317-0088 
Code: GOL

> Portuguese
 
10:30 a.m. US EST
1:30 p.m. Brasília Time
Phone: +55 (11) 2188-0188 
Replay: +55 (11) 2188-0188 
Code: GOL
 1
Net revenues reached R$1.8bn, representing growth of 37.2% compared to the same period last year. The Company transported 6.0mm passengers during the quarter, representing growth of 8.7% over 3Q07. Ancillary revenues (cargo and other) increased 55.0% over 3Q07 to R$178.0mm.
 1
Consolidated operating income for the quarter was R$61.2mm, representing an operating margin of 3.4% . Consolidated net loss for the quarter was R$294.3mm (US$176.3mm), due to a negative exchange variation of R$261.8mm with no impact on cash and negative net hedging results of R$48.0mm. Consolidated net loss per share (EPS) was R$1.47; net loss per ADS was US$0.88.
 1
Consolidated operating costs per ASK (CASK) increased 22.4% from 14.23 cents (R$) in 3Q07 to 17.42 cents (R$) in 3Q08. Non-fuel CASK increased 13.6% to 9.87 cents (R$) due to planned lower aircraft utilization, extraordinary expenses related to aircraft return expenses, lower stage length, and increases in salaries, wages and benefits, sales and marketing and depreciation.
1
On September 30, the Company’s total liquidity was R$2.4bn, comprised of: cash, cash equivalents and short-term investments of R$723.8mm, accounts receivable of R$379.2mm, R$621.8mm in deposits with lessors and R$668.3mm deposited with Boeing as advances for aircraft acquisitions.
1
In line with its fleet renewal plan, the Company received four 737-700NGs and eight 737-800NGs and removed ten 737-300s and eight 767-300s from the operating fleet during the quarter, resulting in a net reduction of eight aircraft in the operating fleet. The Company plans to end 2008 with a consolidated fleet of 104 aircraft, mostly comprised of 737-800 and 737-700 aircraft.
1
Consolidated domestic RPKs decreased 17.7% and ASKs decreased 4.6%, versus 2Q08. Consolidated international revenue passenger kilometers (RPKs) increased 3.4% and ASKs decrease 16.6% versus 2Q08.
1
Consolidated RPKs increased 8.7% from 5,470mm in 3Q07 to 5,944mm in 3Q08 and ASKs increased 10.9% from 8,941mm in 3Q07 to 9,912mm in 3Q08. Consolidated average load factor decreased 1.2 percentage points versus 3Q07 to 60.0% . Consolidated break-even load factor decreased 1.9 percentage points versus 3Q07 to 57.9% .
   


- 1 / 23 -


1 Consolidated passenger yields increased 24.7% to R$27.09 cents, compared to a 57.1% increase in fuel price (WTI) in the same period. RASK increased 23.7% over 3Q07 to 18.04 cents (R$). Average fares were R$275.

1 GOL now offers over 790 daily flights to 59 different destinations in Brazil and South America, the most of any airline group. In 3Q08, GOL added 19 new daily flight frequencies. The Company’s low-cost operating structure permits flights to medium-sized cities with lower traffic volumes, allowing GOL to serve various destinations outside of Brazil’s main economic centers.

1 On August 31, the Company ceased long-haul services with the last intercontinental flight to Paris, France. Beginning August 31, the Company ceased operating Boeing 767s and now operates only Boeing 737s on its short and medium-haul flights.

1 On September 25, Anac (Brazil’s National Civil Aviation Agency) approved the Company’s corporate restructuring plan for its subsidiaries GTA and VRG. On September 30, the subsidiaries merged into one airline.

1 On October 19, GOL launched its new integrated route network. The new network compliments the Company’s unified structure by eliminating overlapping routes and schedules between GOL and VARIG, which improves flight occupancy levels by allowing the Company to increase offerings in markets where it has consolidated operations while also allowing new connections between previously unlinked cities.

1 On October 16, the Company launched a new “Comfort Class” on VARIG’s medium-haul international flights, which provides passengers with a number of important benefits, including a wide variety of meal choices, more legroom between seats, on-demand entertainment during the flight, and many other benefits. The Company has also enhanced its in-flight service on domestic flights.

1 Beginning on October 16, customers flying on both VARIG and GOL are able to accumulate miles through the SMILES frequent flyer program. Beginning November 16, miles can be exchanged for tickets to all destinations served by the Company.

1 On October 23 the Company signed an interline agreement with Germany-based Condor Airlines. Through this partnership, passengers of the European airline can purchase tickets on GOL to Belo Horizonte, Brasília, Fortaleza, Maceió, Natal, Rio de Janeiro and São Paulo.

1 The Company ended the quarter with 25.6% of its shares floating in the market. GOL’s shares presented average daily trading volumes of US$19.0mm (R$31.7mm) during 3Q08.

- 2 / 23 -


Consolidated Financial & Operating Highlights            %        % 
(US GAAP)   3Q08    3Q07    Change    2Q08    Change 
RPKs (mm)   5,944    5,470    8.7%    6,897    -13.8% 
ASKs (mm)   9,912    8,941    10.9%    10,677    -7.2% 
Load Factor    60.0%    61.2%    -1.2 pp    64.6%    -4.6 pp 
Passenger Revenue per ASK (R$ cents)   16.25    13.30    22.2%    12.55    29.5% 
Operating Revenue per ASK (R$ cents) (“RASK”)   18.04    14.58    23.7%    13.72    31.5% 
Operating Cost per ASK (R$ cents) (“CASK”)   17.42    14.23    22.4%    16.53    5.4% 
Operating Cost ex-fuel per ASK (R$ cents)   9.87    8.69    13.6%    9.66    2.2% 
Breakeven Load Factor    57.9%    59.8%    -1.9 pp    77.8%    -19.9 pp 
Net Revenues (R$ mm)   1,788.3    1,303.5    37.2%    1,464.9    22.1% 
EBITDAR (R$ mm)   259.9    193.4    34.4%    -90.4    nm 
EBITDAR Margin    14.5%    14.9%    -0.4 pp    -6.2%    +20.7 pp 
Operating Income (R$ mm)   61.2    30.8    99.0%    -299.2    nm 
Operating Margin    3.4%    2.4%    +1.0 pp    -20.4%    +23.8 pp 
Pre-tax Income (R$mm)   -338.6    62.3    nm    -228.9    47.9% 
Pre-tax Income Margin    -18.9%    4.8%    -23.7 pp    -15.6%    -3.3 pp 
Net Income (R$ mm)   -294.3    45.5    nm    -171.7    71.4% 
Net Income Margin    -16.5%    3.5%    -20.0 pp    -11.7%    -4.8 pp 
Earnings per Share (R$)   (R$ 1.47)   R$ 0.22    nm    (R$ 0.85)   72.9% 
Earnings per ADS Equivalent (US$)   ($0.88)   $0.12    nm    ($0.52)   69.2% 
Weighted average number of shares and ADSs, basic (000)   200,726    202,295    -0.8%    201,210    -0.2% 
 

Note: Historical RPK and ASK data may have immaterial alterations to match with official (final) ANAC data.

- 3 / 23 -


MANAGEMENT’S COMMENTS ON RESULTS 

During the third quarter of 2008, despite record fuel prices in the domestic market and incurring extraordinary costs related to aircraft returns, GOL was able to achieve its goal of having profitable consolidated operations in the quarter, with operating margin of 3.4% . Due to seasonality, decreased promotional activities, planned capacity reductions and the cease of long-haul operations, yields increased approximately 39% over 2Q08. Higher yields led to a 31% increase RASK during the same period. The Company’s punctuality rates were among the highest in the industry, reaching 88% in the quarter and 92% in September. Completion rate was 98% in 3Q08.

During the quarter, GOL took important steps towards improving operating efficiency and customer service. On September 30, 2008, GOL’s operating companies GTA and VRG merged into a single airline, following ANAC’s approval on September 25. The merger allowed GOL to launch a new integrated route network on October 19, complimenting the Company’s unified structure by eliminating overlapping routes and schedules between GOL and VARIG. The new network will also improve flight occupancy levels by allowing the Company to increase offerings in markets where it has consolidated operations while also allowing for new direct connections between previously unlinked cities.

During the quarter, GOL also invested in passenger’s onboard comfort by adding value to the air transportation service. The integration of operations and the increase in scale allowed the Company to improve onboard service in its flights, without incurring additional costs, adjusting onboard meals to different flight lengths. To better serve business passengers, the Smiles program, Latin America’s largest mileage program, was extended to all of the Company’s flights. GOL also launched the new ‘Comfort’ class on VARIG’s medium-haul flights in South America. “We believe the integrated network, combined with initiatives to add value to our services and improve our passengers’ flight experience will provide customers with the best quality in air transportation in South America, allowing us to further increase load factors without increasing costs”, said Constantino de Oliveira Junior, GOL’s president and CEO.

Demand for air travel in Brazil remained strong in the third quarter of 2008. Domestic RPKs grew at a rate of 9% in 2Q08, 1.8 times Brazil’s estimated GDP growth rate. To serve this growth, GOL added 12.4 aircraft to its fleet over 3Q07, increasing the Company’s capacity by 16% during the quarter. Passengers transported in 3Q08 increased 8.7% over 3Q07. The 3Q08 consolidated load factor was 60%, a decrease of 1.2 percentage point from 3Q07. The Company will continue to invest resources in the future and growth of the Brazilian air transportation system.

Consolidated operating costs per ASK excluding fuel increased 13.6% to 9.87 cents (R$) year-over-year, primarily due to a 4.5% reduction in aircraft utilization, and non-recurring expenses related to aircraft maintenance services related to returning aircraft. Consolidated fuel costs per available seat kilometer (ASK) increased 36.3% year-over-year. Due to higher fuel prices, lower aircraft utilization in the third quarter and extraordinary expenses related to aircraft returns, total consolidated operating cost per seat kilometer (CASK) increased 22.4% to 17.42 cents (R$).

GOL remains committed to its strategy of profitable expansion based on a low-cost structure and quality customer service. “The Company is taking the necessary steps to set the stage for the next phase of growth, in line with our strategy of profitable expansion through our low-cost structure” adds Constantino de Oliveira Junior. “We are very proud that over 97 million passengers have chosen to fly with us and we will continue to make every effort to offer our customers the best in air travel: new and modern aircraft, frequent flights in all major markets, an expanding integrated route system, an extensive mileage program and the lowest fares”, continues de Oliveira.

- 4 / 23 -


REVENUES 

Net operating revenues, principally revenues from passenger transportation, increased 37.2% to R$1.8bn, due to an 8.7% increase in RPKs, combined with a 24.7% increase in yields, partially offset by a 1.2 percentage point decrease in load factors. GOL’s consolidated RPK growth was driven by a 9.7% increase in departures. Consolidated RPKs grew 8.7% to 5,944mm and revenue passengers grew 8.7% to 6.0mm.

Consolidated yields increased 24.7% to 27.09 cents (R$) per passenger kilometer, mainly due to an increase of 25.0% in average fares from R$220 to R$275, while fuel price (WTI) increased 57.1% in the same period. Consolidated operating revenues per ASK (“RASK”) increased 23.7% to R$18.04 cents in 3Q08, compared to R$14.58 cents in 3Q07.

The 10.9% year-over-year capacity expansion, measured by ASKs, facilitated the addition of 19 new daily flight frequencies for GOL in 3Q08. The addition of 12.4 average operating aircraft compared to 3Q07 (from 91.0 to 103.4 average aircraft) drove the ASK increase.

GOL’s domestic market share averaged 40% during the quarter. Through regular international flights, GOL achieved international market share of 24% (share of Brazilian airlines flying to international destinations) over the same period. 22.0% of consolidated RPKs were related to international passenger traffic in 3Q08.

GOL’s cargo transportation activities (Gollog) are responsible for a majority of its ancillary revenues, reporting 3Q08 revenue of R$178.0mm.

OPERATING EXPENSES 

Total consolidated CASK increased 22.4% to 17.42 cents (R$), due to a 42.2% increase in fuel price per liter, planned lower aircraft utilization, and increases in salaries, wages and benefits expenses, sales and marketing and depreciation per ASK. The CASK increase was partially offset by maintenance, materials and repair expenses per ASK. Operating expenses per ASK excluding fuel increased 13.6% to 9.87 cents (R$). Total operating expenses increased 35.7%, reaching R$1,727.0mm, mainly due to higher fuel expenses, increased air traffic servicing expenses, sales and marketing expenses and the expansion of the Company’s operations (fleet and employee expansion as well as a higher volume of landing fees). The R$253.3mm increase in fuel expenses in 3Q08 over 3Q07 was due to increased fuel consumption and a 42.2% increase in fuel price per liter. Consolidated breakeven load factor decreased 1.9 percentage points to 57.9% versus 59.8% in 3Q07.

Results from GOL’s operating expense (jet fuel price and USD exchange rate) hedging programs are accounted for in accordance with SFAS 133 (Statement of Financial Accounting Standards No 133), “Accounting for Derivatives and Hedging Activities.”

The breakdown of consolidated costs and operational expenses for 3Q08, 3Q07 and 2Q08 are as follows:

- 5 / 23 -


Operating Expenses (R$ cents / ASK)                    
    3Q08    3Q07    % Chg.    2Q07    % Chg. 
Aircraft fuel    7.55    5.54    36.3%    6.87    9.9% 
Salaries, wages and benefits    2.48    2.24    10.7%    2.30    7.8% 
Aircraft rent    1.61    1.56    3.2%    1.44    11.8% 
Sales and marketing    1.96    1.11    76.6%    1.15    70.4% 
Landing fees    0.87    0.82    6.1%    0.88    -1.1% 
Aircraft and traffic servicing    0.92    0.90    2.2%    1.03    -10.7% 
Maintenance, materials and repairs    0.90    1.09    -17.4%    1.01    -10.9% 
Depreciation    0.39    0.26    50.0%    0.52    -25.0% 
Other operating expenses    0.74    0.71    4.2%    1.33    -44.4% 
 
Total operating expenses    17.42    14.23    22.4%    16.53    5.4% 
 
 
 
Operating expenses ex- fuel    9.87    8.69    13.6%    9.66    2.2% 
 


Operating Expenses (R$ million)                    
    3Q08    3Q07    % Chg.    2Q08    % Chg. 
Aircraft fuel    748.5    495.2    51.2%    733.6    2.0% 
Salaries, wages and benefits    246.0    200.2    22.9%    245.5    0.2% 
Aircraft rent    159.9    139.5    14.7%    153.4    4.2% 
Sales and marketing    193.9    99.1    95.6%    122.4    58.4% 
Landing fees    86.1    73.6    17.0%    94.1    -8.5% 
Aircraft and traffic servicing    90.8    80.6    12.7%    109.5    -17.1% 
Maintenance, materials and repairs    89.5    97.9    -8.5%    108.0    -17.1% 
Depreciation    38.8    23.1    67.9%    55.4    -30.0% 
Other operating expenses    73.5    63.7    15.5%    142.1    -48.3% 
 
Total operating expenses    1,727.0    1,272.9    35.7%    1,764.0    -2.1% 
 
 
 
Operating expenses ex- fuel    978.5    777.7    25.8%    1,030.4    -5.0% 
 

Aircraft fuel expenses per ASK increased 36.3% over 3Q07 to 7.55 cents (R$), mainly due to increased fuel price per liter year-over-year. The 42.2% increase in average fuel price per liter over 3Q07 was primarily due to an increase of 57.1% in crude oil (WTI) prices and a 61.4% increase in Gulf Coast jet fuel (factors influencing the determination of Brazilian jet fuel prices) and was partially offset by a 13.0% Brazilian Real appreciation against the U.S. Dollar. On September 30, 2008, the Company had hedged approximately 3% of its 4Q08 fuel requirements; the Company had no hedge contracted for its fuel requirements for 1Q09 and on.

Salaries, wages and benefits expenses per available seat kilometer (ASK) increased 10.7% to 2.48 cents (R$) in 3Q08, primarily due to planned lower aircraft utilization (0.6 less block hours per day), a 5% cost of living increase on salaries effected in December 2007 and a 10.6% increase in the number of full-time equivalent employees to 15,963.

- 6 / 23 -


Aircraft rent per ASK increased 3.2% to 1.61 cents (R$) in 3Q08, primarily due to a planned lower aircraft utilization rate and partially offset by a 13.0% Brazilian Real appreciation against the U.S. Dollar.

Sales and marketing expenses per ASK increased 76.6% to 1.96 cents (R$) due to an increase in sales incentives and lower aircraft utilization. During the quarter, the Company booked a majority of its tickets through a combination of its GOL and Varig websites (67.0%) and its call center (21.6%) .

Landing fees per ASK increased 6.1% to 0.87 cents (R$), mainly due to the increase in parking fees at São Paulo’s Congonhas airport and a decrease in average stage length as a result of closing intercontinental destinations.

Aircraft and traffic servicing expenses per ASK increase 2.2%, to 0.92 cents (R$), mainly due to an increase in handling expenses caused by a reduction in average stage length, partially offset by a decrease in landings at international airports during the quarter (with higher fares), due to the closing of intercontinental destinations.

Maintenance, materials and repairs per ASK decreased 17.4% to 0.90 cents (R$), primarily due to a 13.0% appreciation of the Brazilian Real against the U.S. Dollar. Main expenses during the quarter were related to the scheduled maintenance of 22 aircraft in the amount of R$53.9mm (including extraordinary expenses with maintenance services of returned aircraft), the use of spare parts inventory in the amount of R$9.3mm and the repair of rotable materials in the amount of R$9.6mm.

Depreciation per ASK increased 50.0% to 0.39 cents (R$), due to a higher amount of fixed assets (mainly spare parts inventory) and increased depreciation related to 17 new 737-800 NG aircraft which were added to the fleet between 4Q06 and 3Q08 and seven aircraft (three 737 NGs and four 767s) classified as capital leases.

Other operating expenses per ASK were 0.74 cents (R$), a 4.2% increase when compared to the same period of the previous year, due to an increase in cancelled flight expenses and crew lodging expenses, partially offset by a reduction in insurance expenses per ASK. Insurance expenses, at 0.11 cents (R$) per ASK (R$12.0mm total), decreased 1.8% over 3Q07, due to a 13.0% Brazilian Real appreciation against the U.S. Dollar.

- 7 / 23 -


COMMENTS ON EBITDA AND EBITDAR1 

A 3.46 cents (R$) increase in RASK, partially offset by a 3.19 cent (R$) increase in CASK, resulted in a 0.40 cents (R$) increase in EBITDA per available seat kilometer in 3Q08. EBITDA totaled R$100.0mm in the period, compared to R$53.9mm in 3Q07 and -R$243.8mm in 2Q08.

EBITDAR Calculation (R$ cents / ASK)                    
    3Q08    3Q07    Chg. %    2Q08    Chg. % 
Net Revenues    18.04    14.58    23.7%    13.72    31.5% 
Operating Expenses    17.42    14.23    22.4%    16.53    5.4% 
 
EBIT    0.62    0.35    77.1%    -2.81    nm 
Depreciation & Amortization    0.39    0.26    50.0%    0.52    -25.0% 
 
EBITDA    1.01    0.61    65.6%    -2.29    nm 
EBITDA Margin    5.6%    4.2%    +1.4 pp    -16.7%    +22.3 pp 
Aircraft Rent    1.61    1.56    3.2%    1.44    11.8% 
 
EBITDAR    2.62    2.17    20.7%    -0.85    nm 
EBITDAR Margin    14.5%    14.9%    -0.4 pp    -6.2%    +20.7 pp 
 

EBITDAR Calculation (R$ million)                    
    3Q08    3Q07    Chg. %    2Q08    Chg. % 
Net Revenues    1,788.3    1,303.5    37.2%    1,464.9    22.1% 
Operating Expenses    1,727.1    1,272.9    35.7%    1,764.1    -2.1% 
 
EBIT    61.2    30.8    98.7%    -299.2    nm 
Depreciation & Amortization    38.8    23.1    68.0%    55.4    -30.0% 
 
EBITDA    100.0    53.9    85.5%    -243.8    nm 
EBITDA Margin    5.6%    4.2%    +1.4 pp    -16.7%    +22.3 pp 
Aircraft Rent    159.9    139.5    14.6%    153.4    4.2% 
 
EBITDAR    259.9    193.4    34.4%    -90.4    nm 
EBITDAR Margin    14.5%    14.9%    -0.4 pp    -6.2%    +20.7 pp 
 

Aircraft rent represents a significant operating expense for the Company. As the Company today leases most of its aircraft, management believes that EBITDAR, equivalent to EBITDA before aircraft rent expenses (which are USD-denominated) is a useful measure of relative operating performance for users of GOL’s financial statements. On a per-ASK basis, EBITDAR was 2.62 cents (R$) in 3Q08, compared to 2.17 cents (R$) in 3Q07. EBITDAR amounted to R$259.9mm in 3Q08, compared to R$193.4mm in the same period last year and -R$90.4mm in 2Q08.

________________________________________

1EBITDA (earnings before interest, taxes, depreciation and amortization) and EBITDAR (earnings before interest, taxes, depreciation, amortization and rent) are non-USGAAP measures and are presented as supplemental information because we believe they are useful indicators of our operating performance for our investors. We usually present EBITDAR, in addition to EBITDA, because aircraft leasing represents a significant operating expense of our business, and we believe the impact of this expense should be considered in addition to the impact of depreciation and amortization. However, neither figure should be considered in isolation, as a substitute for net income prepared in accordance with US GAAP, BR GAAP or as a measure of a company’s profitability. In addition, our calculations may not be comparable to other similarly titled measures of other companies.

- 8 / 23 -


FINANCIAL RESULTS 

Net financial results totaled an expense of R$399.8mm in 3Q08. Interest expense increased R$63.2mm year-over-year primarily due to an increase in total debt. Interest income decreased R$57.6mm due to a lower balance of cash and cash equivalents versus 3Q07, partially offset by a 1.2 percentage point increase in average Brazilian interest rates (as measured by the CDI rate).

The non cash FX loss was R$261.8mm during the quarter, mainly related to the Company’s net foreign currency liabilities. The net impact of gains in currency hedges and losses in fuel hedges in the quarter was negative in R$48.0mm.

Financial Results (R$ thousands)   3Q08    3Q07    2Q08 
Interest expense    (96,432)   (33,194)   (35,351)
Capitalized interest    7,785    16,561    9,875 
Exchange variation gain (loss)   (261,789)   20,922    87,410 
Interest and investment income    4,464    62,041    23,825 
Other gains (losses)   (53,823)   (34,739)   (15,473)
Net Financial Results    (399,795)   31,591    70,286 
 

On September 30, 2008, the Company had hedged approximately 3% of its 4Q08 fuel requirements. The Company had no hedge contracted for its fuel requirements for 1Q09 and on.

On September 30, 2008, GOL contracted sufficient exchange rate derivatives to protect 46%, 25% and 12% of its cash obligations for 4Q08, 1Q09 and 2Q09, respectively.

The Company’s risk management policy explicitly forbids directional bets and speculative transactions with derivatives and requests diversification of transactions and counterparties. GOL exclusively uses unleveraged instruments, and transactions with notional values higher than the Company’s exposure are not permitted.

NET INCOME AND EARNINGS PER SHARE 

Reported net loss in 3Q08 was R$294.3mm, representing a -16.5% net income margin, versus a R$45.5mm net income in 3Q07.

Reported net loss per share, basic, was R$1.47 in 3Q08 compared to net income per share of R$0.22 in 3Q07. Basic weighted average shares outstanding were 200,726,391 in 3Q08 and 202,295,169 in 3Q07. Reported net loss per share, diluted, was R$1.47 in 3Q08 compared to net income per share of R$0.22 in 3Q07. Fully-diluted weighted average shares outstanding were 200,726,391 in 3Q08 and 202,319,917 in 3Q07.

Reported net loss per ADS, basic, was US$0.88 in 3Q08 compared to net earnings per ADS of US$0.12 in 3Q07. Reported net loss per ADS, diluted, was US$0.88 in 3Q08 compared to net earnings per ADS of US$0.12 in 3Q07.

On August 6, 2008, the Company’s Board of Directors approved the suspension of dividend payments for the remainder of fiscal year 2008, but guaranteed a minimum payment of 25% of the year’s consolidated net income. In January 2008, the Board, considering current share prices and the free float, authorized management to repurchase up to 5mm of the Company’s preferred shares, at market price, representing 9.7% of the free float on September 30, 2008, in accordance with the terms of CVM Instruction No. 10/80. As of September 30, the Company had repurchased 1,574,200 shares.

- 9 / 23 -


CASH FLOW 

Cash, cash equivalents and short-term investments decreased R$13.9mm during 3Q08, compared to 2Q08. Net cash used by operating activities was R$206.2mm, mainly due to a net loss of R$294.3mm, partially offset by an increase of R$92.8mm in accounts payable and other accrued liabilities.

Net cash used in investing activities was R$17.4mm, mainly due to an increase of R$60.6mm in deposits for aircraft leasing contracts and R$18.2mm in acquisition of property, partially offset by R$61.4mm in return of pre-delivery deposits.

Net cash provided by financing activities during 3Q08 was R$209.7mm, mainly due to R$131.6mm in exchange variation of long-term debt and R$51.0mm in short term borrowings. During 2008, the Company invested R$68.9mm in cash to repurchase approximately 10% of its outstanding senior and perpetual notes.

Cash Flow Summary (R$ million)   3Q08    3Q07    % Change    2Q08    % Change 
Net cash provided by (used in) operating activities    (206.2)   61.6    nm    (99.8)   106.6% 
Net cash provided by (used in) investing activities1    (17.4)   (207.8)   -91.6%    (144.0)   -87.9% 
Net cash provided by (used in) financing activities    209.7    (70.7)   nm    (60.4)   nm 
 
Net increase in cash, cash equivalents & short term                     
investments    (13.9)   (216.9)   -93.6%    (304.2)   -95.4% 
 

1. Excluding R$89.3mm in change in available-for-sale securities in 3Q08, -R$11.8mm in 3Q07 and R$151.7mm in 2Q08 of cash invested in highly-liquid short-term investments with maturities above 90 days, as defined by SFAS 115.

COMMENTS ON THE BALANCE SHEET 

The Company’s net cash position on September 30, 2008, was R$723.8mm, a decrease of R$13.9mm over 2Q08. The Company’s total cash liquidity reached R$2.4bn, including R$1,103.1mm in cash, short-term investments and accounts receivable at the end of 3Q08, R$621.8mm in deposits with lessors and R$668.3mm deposited with Boeing as advances for aircraft acquisitions. During 3Q08, the Real depreciated 20% against the U.S. Dollar, increasing the Company’s USD denominated debt amount in Reais.

Cash Position and Debt (R$ million)   9/30/2008    6/30/2008    % Change 
Cash, cash equivalents & short-term investments    723.8    737.7    -1.9% 
Short-term debt    602.9    429.0    40.5% 
 Local currency    68.0    16.3    317.2% 
 Foreign currency    534.9    412.7    29.6% 
Long-term debt    988.2    979.5    0.9% 
       
 Local currency    53.3    57.3    -7.0% 
 Foreign currency    934.9    922.2    1.4% 
 
Net cash    (867.3)   (670.8)   29.3% 
 

The Company currently leases most of its aircraft, as well as airport terminal space, other airport facilities, office space and other equipment. On September 30, 2008, the Company had 80 aircraft under operating leases with expiration dates ranging from 2008 to 2019 and 24 aircraft under capital leases. Future minimum lease payments under leases are denominated in U.S. Dollars.

As of September 30, 2008, the Company had 95 firm orders (net of 32 already delivered) and 40 options to purchase new Boeing 737-800 Next Generation aircraft. The firm orders had an approximate value of US$6.1bn (based on aircraft list price) and are scheduled for delivery between 2008 and 2014. As of

- 10 / 23 -


September 30, 2008, GOL had made deposits in the amount of US$400.2mm (R$668.3mm) related to these orders.

The following table provides a summary of the Company’s principal payments under long-term obligations, operating lease commitments, aircraft purchase commitments, and other obligations as of September 30, 2008:

Principal obligations (R$ thousands)           Beyond     
    2008    2009    2010    2011    2012    2012    Total 
Long-term debt      130,726    33,227    33,227    27,317    421,049    645,546 
obligations                             
Pre-delivery    145,128    161,479    141,191    187,851    230,855    107,984    974,488 
deposits                             
Aircraft purchase    1,186,850    2,446,956    1,686,045    1,852,860    2,714,483    2,917,640    12,804,834 
commitments                             
   
 
Total    1,331,978    2,739,161    1,860,463    2,073,938    2,972,655    3,446,673    14,424,868 
 

FLEET PLAN 

The Company is in the final phase of its plan to replace its 737-300 and 767-300 aircraft with 737-700s and 737-800s for operations on short- and medium-haul routes. These aircraft have lower operating costs, are more fuel efficient, and will reduce the fleet’s average age. The 737-700 NG aircraft provide the Company with more flexibility to operate in airports with operating restrictions and to offer more direct flights to medium-sized cities with lower traffic volumes. The 737 NGs are also equipped with winglets, a technology that improves aircraft performance during takeoff, allows longer non-stop flights and reduces fuel costs by more than three percent per year. All Boeing 737 model aircraft adhere to international safety rules and are certified by U.S. and Brazilian authorities for takeoffs and landings on short runways.
During 4Q08, GOL’s fleet modernization program will replace three aircraft 737-300 with three new Next Generation models, representing a sequential increase in total available seat capacity of approximately 2% over 3Q08. Additionally the Company has removed seven Boeing 767-300 aircraft from its operating fleet; these aircraft will be subleased or used for charter operations or freight services.
The fleet modernization plan guarantees that GOL’s fleet will maintain its status as one of the youngest and most modern in the world. By the end of 2008, it is expected that the fleet will be mostly comprised of Boeing 737 NGs, reducing the average age of the fleet to 6.8 years. By the end of 2009, the fleet will be comprised entirely of Boeing 737 NGs, reducing average fleet age to 5.5 years. At the end of 2012, 65% of the fleet will be comprised of 737-800 SFP aircraft, maintaining the average age at 5.5 years. The table below details the revised fleet plan through 2012:

Combined Operating Fleet Plan (EoP)   2007    2008    2009    2010    2011    2012 
B737-300    28    11         
B737-700 NG    31    38    40    40    40    40 
B737-800 NG    18    20    16    11     
B737-800 NG SFP    25    35    52    64    74    85 
B767-300 ER             
 
Total    111    104    108    115    121    127 
 

- 11 / 23 -


OUTLOOK 

GOL continues to invest in its successful low-cost business model. The Company will continue to evaluate opportunities to expand operations by adding new flights in Brazil, as well as expanding to other high-traffic centers in South America. Although GOL has a flexible fleet plan that allows the Company to manage its capacity growth according to market growth, the company expects to benefit from economies of scale as it continues to renew and standardize its fleet and further improve and integrate its highly efficient operating network. Management expects to reduce GOL’s non-fuel cost per available seat-kilometer (CASK) over time as the Company continues to reduce the age of its fleet, benefit from the cost savings through the aircraft maintenance center and improve upon GOL’s cost-efficient distribution channels. Through the VARIG brand, GOL provides an attractive service offering to business passengers traveling to the Company’s international destinations in South America. The Company expects to grow revenues from the Gollog cargo transportation business, the Smiles loyalty program and other ancillary revenues, such as the Voe Fácil installment payment program.

The air passenger transportation market in Brazil remains under-penetrated and increasing the number of available seats at low fares is important for the continued development of the sector and the economy. In 4Q08 GOL’s fleet modernization program will replace three older aircraft with three new Next Generation models (no net effect on the consolidated fleet) and will sequentially decrease total available seat capacity by approximately 2% over 3Q08 (+1% in the domestic market and -16% the international market).

For the fourth quarter of 2008, reflecting the network integration, GOL expects consolidated load factors in the range of 63% with consolidated passenger yields in the range of R$27 cents. For the fourth quarter, the Company expects consolidated non-fuel CASK to be in the range of R$9.7 cents (flat versus 3Q08) including expected extraordinary costs related to aircraft returns. The Company expects that the incorporation of larger, more fuel-efficient aircraft and reduction in jet fuel prices will reduce the Company’s fuel costs per ASK.

For the full year 2008, GOL has adjusted its fuel and currency assumptions. The Company’s full-year 2008 and 2009 general guidance is presented below for those analysts and investors that project GOL’s results.

- 12 / 23 -


General Guidance    2008E (+/-)   2008E (+/-)   Variation    2009E (+/-)
(Consolidated, USGAAP)   Previous    Revised       
Domestic Market Growth (% RPKs)   na    8.5      6.0 
Pax Transported (mm)   26    26      29 
ASKs, System (billion)   41.3    41.3      40.5 
     Domestic    32.5    32.5      34.0 
     International    8.8    8.8      6.5 
Fleet (end of period)   104    104      108 
RPKs, System (billion)   25.8    25.8      25.8 
Cargo and Other Revenues (R$ million)   500    550    +10    650 
Departures (000)   275    275      290 
CASK ex-fuel (R$ cents)   9.4    9.4      8.9 
Fuel liters consumed (mm)   1,350    1,370    +1    1,250 
Fuel Price (R$ / liter)   2.30    2.05    -11    1.90 
Average WTI (US$ / barrel)   na    105      85 
Average Exchange Rate (R$ / US$)   1.67    1.77    +6    1.95 
Estimated Tax Rate (%)   25    18    -7 pp    23 - 25 
Capital Expenditures (R$ mm)   950    950      1,150 
Total Adjusted Net Debt (1) / Total Cap. (%)   60    66    +6 pp    60 
Average Shares Outstanding (mm) (2)   200.2    200.2      200.0 
 

(1)     
Balance sheet debt and capital leases plus 7x annual rent, less cash.
(2)     
Total shares outstanding are based on general estimates and assumptions. The number of shares in the actual calculation of EPS will likely be different from those set forth above.
 

- 13 / 23 -


GLOSSARY OF INDUSTRY TERMS 

Revenue passengers represents the total number of paying passengers flown on all flight segments.

Revenue passenger kilometers (RPK) represents the numbers of kilometers flown by revenue passengers.

Available seat kilometers (ASK) represents the aircraft seating capacity multiplied by the number of kilometers the seats are flown.

Load factor represents the percentage of aircraft seating capacity that is actually utilized (calculated by dividing RPK by ASK).

Breakeven load factor is the passenger load factor that will result in passenger revenues being equal to operating expenses.

Aircraft utilization represents the average number of block hours operated per day per aircraft for the total aircraft fleet.

Block hours refers to the elapsed time between an aircraft leaving an airport gate and arriving at an airport gate.

Yield per passenger kilometer represents the average amount one passenger pays to fly one kilometer.

Passenger revenue per available seat kilometer represents passenger revenue divided by available seat kilometers.

Operating revenue per available seat kilometer (RASK) represents operating revenues divided by available seat kilometers.

Average stage length represents the average number of kilometers flown per flight.

Operating expense per available seat kilometer (CASK) represents operating expenses divided by available seat kilometers.

- 14 / 23 -


About GOL Linhas Aéreas Inteligentes S.A.
GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4), Brazil’s low-cost airline, offers nearly 800 daily flights to 49 destinations connecting the most important cities in Brazil and ten major destinations in South America. GOL and VARIG operate a young, modern fleet of Boeing 737 Next Generation aircraft, the safest and most comfortable aircraft of its class that provides low maintenance, fuel and training costs, as well as high aircraft utilization and efficiency ratios. The Company’s service is recognized as the best value proposition in the market.

CONTACT: GOL Linhas Aéreas Inteligentes S.A.

Investor Relations    Corporate Communication 
Ph: (5511) 3169 6800    Ph.: (11) 2128-4413 
E-mail: ri@golnaweb.com.br    comcorp@golnaweb.com.br 
Site: www.voegol.com.br/ir     
    Media 
    FSB Comunicações (Brazil): Rubiana Peixoto 
    Ph.: (11) 3061-9596 
    rubiana.peixoto@fsb.com.br 
 
    Edelman (EUA): M. Smith and N. Dean 
    Ph.: 1 (212) 704-8196 / 704-4484 
    meaghan.smith@edelman.com 

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of GOL. These are merely projections and, as such, are based exclusively on the expectations of GOL’s management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in GOL’s filed disclosure documents and are, therefore, subject to change without prior notice.

- 15 / 23 -


Consolidated Operating Data             
US GAAP - Unaudited             
    3Q08    3Q07    % Change 
       
Revenue Passengers (000)   6,025    5,543    8.7% 
Revenue Passengers Kilometers (RPK) (mm)   5,944    5,470    8.7% 
Available Seat Kilometers (ASK) (mm)   9,912    8,941    10.9% 
Load factor    60.0%    61.2%    -1.2 pp 
Break-even load factor    57.9%    59.8%    -1.9 pp 
Aircraft utilization (block hours per day)   12.8    13.4    -4.5% 
Average fare    R$ 275    R$ 220    25.0% 
Yield per passenger kilometer (cents)   27.09    21.73    24.7% 
Passenger revenue per available set kilometer (cents)   16.25    13.30    22.2% 
Operating revenue per available seat kilometer (RASK) (cents)   18.04    14.58    23.7% 
Operating cost per available seat kilometer (CASK) (cents)   17.42    14.23    22.4% 
Operating cost, excluding fuel, per available seat kilometer (cents)   9.87    8.69    13.6% 
Number of Departures    67,047    61,160    9.6% 
Average stage length (km)   906    974    -7.0% 
Average number of operating aircraft during period    103.4    91.0    13.6% 
Fuel consumption (mm liters)   328.6    305.6    7.5% 
Full-time equivalent employees at period end    15,963    14,436    10.6% 
% of Sales through website during period    67.0%    78.6%    -11.6 pp 
% of Sales through website and call center during period    88.6%    88.3%    +0.3 pp 
Average Exchange Rate (1)   R$ 1.67    R$ 1.92    -13.0% 
End of period Exchange Rate (1)   R$ 1.91    R$ 1.83    4.4% 
Inflation (IGP-M) (2)   1.5%    2.6%    -1.1 pp 
Inflation (IPCA) (3)   0.8%    0.9%    -0.1 pp 
WTI (avg. per barrel, US$) (4)   $118.23    $75.24    57.1% 
Gulf Coast Jet Fuel Cost (average per liter, US$) (4)   $0.92    $0.57    61.4% 
             
(1)Source: Brazilian Central Bank    (3)Source: IBGE 
(2)Source: Fundação Getulio Vargas    (4)Source: Bloomberg 
 



Page 16 of 23


Consolidated Financial Indicators             
US GAAP - Unaudited             
    LTM 3Q08    LTM 3Q07    % Change 
       
Return             
   ROE (1)   -25.3%    -15.7%    -9.6 pp 
   ROIC (2)   -10.2%    -6.3%    -3.9 pp 
   ROA (3)   -7.3%    -4.6%    -2.7 pp 
 
Credit             
   Total Assets / Net Equity    3.5    3.5    0.0% 
   EBITDA / Interest Expense    (0.7)   1.0    nm 
   Total Net Adjusted Debt (4) / EBITDAR    15.5    11.3    37.2% 
   Total Net Adjusted Debt (4) / Tot. Capitalization (5)   79.0%    67.6%    +11.4 pp 
 
Liquidity             
   Current Ratio (6)   0.8    0.8    0.0% 
   Cash + Accounts Receivable / Current Liabilities    0.6    0.6    0.0% 
 
 
 
 
(1)Net Income / Net Equity    (4) Total Debt + 7x Lease Expenses - Cash 
(2)Net Income / (Net Equity + Total Debt)   (5) Total Debt + 7x Lease Expenses + Net Equity 
(3)Net Income / Total Assets    (6) Current Assets / Current Liabilities 
 

Page 17 of 23


Consolidated Statement of Operations             
US GAAP - Unaudited             
R$ 000             
    3Q08    3Q07    % Change 
       
 
Net operating revenues             
   Passenger    R$ 1,610,313    R$ 1,188,751    35.5% 
   Cargo and Other    177,958    114,793    55.0% 
       
   Total net operating revenues    1,788,271    1,303,544    37.2% 
 
Operating expenses             
   Salaries, wages and benefits    245,950    200,188    22.9% 
   Aircraft fuel    748,504    495,170    51.2% 
   Aircraft rent    159,940    139,483    14.7% 
   Sales and marketing    193,884    99,101    95.6% 
   Landing fees    86,095    73,601    17.0% 
   Aircraft and traffic servicing    90,789    80,553    12.7% 
   Maintenance materials and repairs    89,538    97,896    -8.5% 
   Depreciation    38,822    23,125    67.9% 
   Other    73,542    63,670    15.5% 
       
Total operating expenses    1,727,064    1,272,787    35.7% 
 
Operating income (loss)   61,207    30,757    99.0% 
 
Other income (expense)            
   Interest expense    (96,432)   (33,194)   190.5% 
   Capitalized interest    7,785    16,561    -53.0% 
   Exchange variation gain (loss)   (261,789)   20,922    nm 
   Interest and investment income    4,464    62,041    -92.8% 
   Other expenses, net    (53,823)   (34,739)   54.9% 
       
Total other income (expense)   (399,795)   31,591    nm 
 
Income (loss) before income taxes    (338,588)   62,348    nm 
   Income taxes (expense) benefit    44,245    (16,835)   nm 
       
Net income (loss)   (294,343)   45,513    nm 
       
 
Earnings (loss) per share, basic    (R$ 1.47)   $0.22    nm 
Earnings (loss) per share, diluted    (R$ 1.47)   $0.22    nm 
 
Earnings (loss) per ADS, basic - US Dollar    ($0.88)   $0.12    nm 
Earnings (loss) per ADS, diluted - US Dollar    ($0.88)   $0.12    nm 
 
Basic weighted average shares outstanding (000)   200,726    202,295    -0.8% 
             
Diluted weighted average shares outstanding (000)   200,726    202,320    -0.8% 
 

Page 18 of 23


Consolidated Balance Sheet         
US GAAP - Unaudited         
R$ 000         
    September, 2008   June 30, 2008 
     
ASSETS    6,421,838    6,191,139 
Current Assets    1,685,725    1,679,930 
   Cash and cash equivalents    375,139    299,758 
   Short-term investments    348,695    437,981 
   Receivables, less allowance    379,244    339,898 
   Inventories of parts and supplies    153,791    133,825 
   Deposits    187,936    206,495 
   Recoverable and deferred taxes    74,553    85,628 
   Prepaid expenses    104,288    108,349 
   Other    62,079    67,996 
Property and Equipment, net    2,699,597    2,557,933 
   Pre-delivery deposits    668,265    729,682 
   Flight equipment    2,247,765    2,008,174 
   Other    214,602    200,058 
   Accumulated depreciation    (431,035)   (379,981)
Other Assets    2,036,516    1,953,276 
   Deposits    433,897    348,079 
   Deferred income taxes    333,055    280,403 
   Goodwill    538,944    538,944 
   Tradenames    63,109    63,109 
   Airport operating rights    560,842    560,842 
   Others    106,669    161,899 
 
LIABILITIES AND SHAREHOLDER'S EQUITY    6,421,838    6,191,139 
Current Liabilities    1,988,714    1,744,317 
   Short-term borrowings    51,021   
   Current portion of long-term debt    551,851    428,953 
   Current obligations under capital leases    98,546    117,353 
   Accounts payable    342,739    249,896 
   Salaries, wages and benefits    171,496    154,378 
   Sales tax and landing fees    152,355    156,210 
   Air traffic liability    452,675    419,466 
   Aircraft leasing payable    27,007    23,563 
   Insurance premium payable    1,438    231 
   Dividends payable    577    36,708 
   Deferred revenue    83,347    94,729 
   Other    55,662    62,830 
Long Term Liabilities    2,604,083    2,354,233 
   Long-term debt    988,203    979,476 
   Obligations under capital leases    1,095,146    852,663 
   Deferred revenue    243,094    274,531 
   Estimated civil and labor liabilities    141,590    142,839 
   Other    136,050    104,724 
Shareholder's Equity    1,829,041    2,092,589 
   Preferred shares (no par value)   1,205,801    1,205,801 
   Common shares (no par value)   41,500    41,500 
   Additional paid-in capital    40,853    40,186 
   Treasury shares    (41,180)   (41,180)
   Appropriated retained earnings    87,227    87,227 
   Unappropriated retained earnings    493,086    751,299 
   Accumulated other comprehensive income    1,754    7,756 
 

Page 19 of 23


Consolidated Statement of Cash Flows             
US GAAP - Unaudited             
R$ 000             
    3Q08    3Q07    % Change 
       
Cash flows from operating activities             
Net income (loss)   (294,343)   45,513    nm 
Adjustments to reconcile net income to net             
   cash provided by operating activities:             
   Depreciation    38,822    23,125    67.9% 
   Deferred income taxes    32,803    (30,078)   nm 
   Allowance for doubtful accounts receivable    3,863    4,600    -16.0% 
   Other, net    (30,221)     nm 
   Changes in operating assets and liabilities             
       Receivables    (43,209)   (62,011)   -30.3% 
       Inventories    (9,238)   (71,803)   -87.1% 
       Accounts payable and other accrued liabilities    92,843    54,570    70.1% 
       Deposits with lessors    (6,659)   29,855    nm 
       Air traffic liability    33,209    (27,176)   nm 
       Dividends payable    (36,131)   2,404    nm 
       Deferred income taxes    (85,455)   43,783    nm 
       Deferred revenues    (42,819)   (18,534)   131.0% 
       Other, net    140,381    67,336    108.5% 
       
Net cash provided by (used in) operating activities    (206,154)   61,584    nm 
Cash flows from investing activities             
   Deposits for aircraft leasing contracts    (60,600)   (144,116)   -58.0% 
   Acquisition of property and equipment    (18,228)   (148,983)   -87.8% 
   Pre-delivery deposits    61,417    85,276    -28.0% 
   Changes in available-for-sale securities, net    89,286    (11,761)   nm 
       
Net cash provided by (used in) investing activities    71,875    (219,584)   nm 
Cash flows from financing activities             
   Short term borrowings    51,021    81,964    -37.8% 
   Proceeds from issuance of long-term debt    131,625    (70,727)   nm 
   Paid-in subscribed capital    607      nm 
   Dividends paid    36,131    (76,517)   nm 
   Others, net    (9,724)   (5,446)   78.6% 
       
Net cash provided by (used in) financing activities    209,660    (70,726)   nm 
 
Net increase in cash and cash equivalents    75,381    (228,726)   nm 
Cash and cash equivalents at beginning of the period    299,758    553,669    -45.9% 
Cash and cash equivalents at end of the period    375,139    324,943    15.4% 
 
Cash, cash equiv. and ST invest. at beg. of the period    737,739    1,759,143    -58.1% 
Cash, cash equiv. and ST invest. at end of the period    723,834    1,542,178    -53.1% 
 
Supplemental disclosure of cash flow information             
Interest paid, net of amount capitalized    42,976    (15,501)   nm 
Income taxes paid    6,840    175,866    -96.1% 
Non cash investing activities             
Accrued capitilized interest    (5,006)   25,560    nm 
Capital leases    223,678    (76,897)   nm 
 

Page 20 of 23


Consolidated Statement of Operations         
BR GAAP - Unaudited             
R$ 000             
         3Q08    3Q07    % Change 
       
Net operating revenues             
   Passenger    R$ 1,610,313    R$ 1,188,751    35.5% 
   Cargo and Other    115,273    96,260    19.8% 
       
   Total net operating revenues    1,725,586    1,285,011    34.3% 
 
Operating expenses             
   Salaries, wages and benefits    245,343    199,823    22.8% 
   Aircraft fuel    748,505    495,170    51.2% 
   Aircraft leasing    164,795    128,412    28.3% 
   Sales and marketing    193,884    98,968    95.9% 
   Landing fees    86,095    73,601    17.0% 
   Aircraft and traffic servicing    90,789    80,553    12.7% 
   Maintenance materials and repairs    89,538    97,896    -8.5% 
   Depreciation and amortization    37,147    24,651    50.7% 
   Other operating expenses    98,312    68,289    44.0% 
       
Total operating expenses    1,754,408    1,267,363    38.4% 
 
Operating income (loss)   (28,822)   17,648    nm 
 
Other expense             
   Interest income (expense), net    (349,439)   16,988    nm 
 
Non-operating results    (20,008)   -    nm 
 
Income (loss) before income taxes    (398,269)   34,636    nm 
Income tax and social contribution    (76,126)   14,780    nm 
       
 
Net income (loss)   (474,395)   49,416    nm 
       
 
Earnings (loss) per share    (R$ 2.35)   R$ 0.24    nm 
Earnings (loss) per ADS - US Dollar    ($1.42)   $ 0.13    nm 
Number of outstanding shares on the balance             
sheet date (000)   202,301    202,295    0.0% 
 

Page 21 of 23


Consolidated Balance Sheet         
BR GAAP - Unaudited         
R$ 000         
    September 30, 2008   June 30, 2008
     
ASSETS    4,624,421    4,733,827 
Current Assets    1,590,313    1,596,827 
     Cash and cash equivalents    586,268    356,024 
     Short term investments    137,566    381,715 
     Accounts receivable    379,244    339,898 
     Inventories    159,642    143,114 
     Deferred taxes and carryforwards    74,553    85,628 
     Prepaid expenses    100,179    108,349 
     Credits with leasing companies    90,782    114,103 
     Other credits    62,079    67,996 
Non-Current Assets    516,881    571,731 
     Deposits for aircraft leasing contracts    169,635    165,616 
     Deferred taxes and carryforwards    334,342    395,341 
     Other Credits    12,904    10,774 
Permanent Assets    2,517,227    2,565,269 
     Investments    730    981,227 
     Pre-delivery deposits for flight equipment    862,440    914,455 
     Property, plant and equipment    638,673    639,196 
     Deferred    1,015,384    30,391 
LIABILITIES AND SHAREHOLDERS' EQUITY    4,624,421    4,733,827 
Current liabilities    1,866,512    1,574,914 
     Short-term borrowings    629,120    444,154 
     Suppliers    342,739    249,896 
     Rent Payable    27,007    23,563 
     Payroll and related charges    171,496    154,378 
     Taxes obligations    50,280    47,760 
     Landing fees and duties    102,075    108,450 
     Air traffic liability    452,675    419,466 
     Dividends and interest on shareholder's equity    577    36,708 
     Mileage program    62,461    42,595 
     Other liabilities    28,082    47,944 
Non-current    1,190,527    1,147,266 
     Long-term borrowings    988,203    979,476 
     Provision for contingencies    56,603    57,852 
     Other liabilities    145,721    109,938 
Shareholders' Equity    1,567,382    2,011,647 
     Capital stock    1,363,946    1,363,946 
     Capital reserves    89,556    89,556 
     Profit reserves    918,564    954,823 
     Retained earnings (losses)   (765,258)   (363,254)
     Adjustments to asset valuation    1,754    7,756 
     Treasury shares    (41,180)   (41,180)
 

Page 22 of 23


Consolidated Statements of Cash Flows             
BR GAAP - Unaudited             
R$ 000             
    3Q08    3Q07    % Change 
       
Cash flows from operating activities             
Net income (loss)   (474,395)   49,416    nm 
Adjustments to reconcile net income             
provided by operating activities:             
   Depreciation and amortization    37,147    24,651    50.7% 
   Provision for doubtful accounts receivable    3,863    4,600    -16.0% 
   Provision for allowance    (12,231)     nm 
   Deferred income taxes    67,827    29,008    133.8% 
   Exchange variation, net    261,799    (20,921)    
   Amortization of deferred assets    (825)   133    nm 
   Amortization of investments    274      nm 
   Provision for contingencies    (1,249)   3,135    nm 
   Changes in operating assets and liabilities             
       Receivables    (43,209)   (62,009)   -30.3% 
       Inventories    (4,297)   (71,803)   -94.0% 
       Prepaid expenses, tax recoverable and other receivables    16,204    (65,244)   nm 
       Credits with lessors    23,321    53,207    -56.2% 
       Suppliers    92,843    54,529    70.3% 
       Air traffic liability    33,209    (27,176)   nm 
       Mileage program    19,866    5,128    287.4% 
       Taxes payable    2,520    6,601    -61.8% 
       Insurance payable    1,187    (2,447)   nm 
       Payroll and related charges    17,118    23,907    -28.4% 
       Dividend and Interest on shareholder's capital    (36,131)   2,404    nm 
       Other liabilities    11,803    7,416    59.2% 
       
 
Net cash provided by (used in) operating activities    16,644    14,535    14.5% 
Cash flows from investing activities             
   Financial investments    244,149    222,497    9.7% 
   Investments      (25,065)   -100.0% 
   Deposits for leasing contracts    (4,019)   (105,297)   -96.2% 
   Deferred asset    (3,945)   (4,181)   -5.6% 
   Acquisition of property, plant and equipment, including pre-delivery deposits    15,391    (133,129)   nm 
Net cash used in investing activities    251,576    (45,175)   nm 
Cash flows from financing activities             
   Loans    (68,106)   97,556    nm 
   Capital increase      23    -100.0% 
   Total comprehensive income, net of taxes    (6,002)   (5,811)   3.3% 
   Dividends paid    36,132    (76,517)   nm 
       
Net cash provided by financing activities    (37,976)   15,251    nm 
Net increase in cash and cash equivalents    230,244    (15,389)   nm 
Cash and cash equivalents at beginning of the period    356,024    844,967    -57.9% 
Cash and cash equivalents at end of the period    586,268    829,578    -29.3% 
 
Additional information:             
 Interests paid for the period    (42,976)   43,212    nm 
 Income tax and social contribution paid for the period    (6,840)   19,839    nm 
             
Transactions not affecting cash:             
 Issuance of shares for VRG acquisition      25,065    -100.0% 
 

Page 23 of 23


 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 17, 2008

 
GOL LINHAS AÉREAS INTELIGENTES S.A.
By:

/S/ Anna Cecília Bettencourt Cochrane


 
Name:  Anna Cecília Bettencourt Cochrane
Title:     Investor Relations Officer
 

 

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.