5 

The accompanying notes are an integral part of these condensed consolidated financial statements. 

Note

s 

Three-month period 

ended September 30, 

Nine-month period 

ended September 30, 

 2009 2008 2009 2008 

 

Operating revenues 

Passenger 1,268,513 1,610,313 3,901,400 4,449,736

Cargo and other 228,144 177,958 506,333 407,824

Total operating revenues 1,496,657 1,788,271 4,407,733 4,857,560

 

Expenditures on operation 

Salaries 5 (278,015) (246,558) (801,165) (734,898)

Aircraft fuel (485,372) (748,504) (1,361,232) (2,146,278)

Aircraft rent (152,345) (124,300) (506,239) (436,074)

Aircraft insurance (13,299) (11,030) (44,513) (32,037)

Sales and marketing (101,824) (193,884) (270,472) (456,469)

Landing fees (77,596) (86,095) (238,024) (266,507)

Aircraft and traffic servicing (100,669) (90,789) (278,399) (317,716)

Maintenance materials and repairs (69,508) (90,267) (268,918) (233,003)

Depreciation and amortization (47,245) (25,879) (116,407) (91,494)

Other operating expenses (71,697) (67,409) (228,237) (285,595)

Total expenditures on operation (1,397,570) (1,684,715) (4,113,606) (5,000,071)

 

Income (loss) before finance income 

 and expenses 99,087 103,556 294,127 (142,511)

 

Income and finance costs 

 Interest expense (75,747) (60,584) (213,416) (178,732)

 Capitalized interest 2,674 6,850 5,198 21,094

Exchange variation gain (loss) 163,520 (482,349) 697,992 (255,587)

Interest income 22,058 28,061 157,396 79,607

Other expense, net (54,016) (48,238) (231,608) (70,992)

Total income and finance cost 58,489 (556,260) 415,562 (404,610)

 

Income (loss) before income taxes 157,576 (452,704) 709,689 (547,121)

 

Income taxes 6 (79,691) (58,029) (216,681) (150,651)

 

Net income (loss) for the period 77,885 (510,733) 493,008 (697,772)

 

 

Basic and diluted earnings (loss) per 

 share 14 0.34 (2.54) 2.27 (3.47)

 
6 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 

(In thousands of Brazilian Reais) 

Notes 

Three-month period 

ended September 30, 

Nine-month period 

ended September 30, 

 2009 2008 2009 2008 

 

Income (loss) for the period 77,885 (510,733) 493,008 (697,772)

 

Other comprehensive income (loss) 

Available for sale financial assets 18a 10,695 - 5,624 10,190

Cash flow hedges 17 (3,600) (50,624) 17,659 (33,288)

Income tax (2,412) 17,212 (7,916) 7,853

 4,683 (33,412) 15,367 (15,245)

 

Total comprehensive income (loss) for 

 the period 82,568 (544,145) 508,375 713,017

The accompanying notes are an integral part of these interim condensed consolidated financial statements. 
7 

CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2009 

 (In thousands of Brazilian Reais) 

Notes 

September 30, 

2009 

December 31, 

2008 

 

Assets 

Non-current assets 

Property, plant and equipment 7 3,141,799 2,998,756 

Intangible assets 8 1,225,073 1,210,320 

Other non-current assets 

Prepaid expenses 65,917 58,793 

Deposits 726,200 507,428 

Deferred income tax 6 687,683 729,784 

Restricted cash 7,112 6,589 

Other non-current assets 18,795 84,987 

Total other non-current assets 1,505,707 1,387,581 

Total non-current assets 5,872,579 5,596,657 

 

Current assets 

Inventories 9 195,156 200,514 

Other current assets 53,426 52,386 

Prepaid expenses 95,893 123,801 

Deposits 181,282 237,914 

Recoverable taxes 6 66,420 110,767 

Trade and other receivables 10 553,165 344,927 

Restricted cash 17 16,678 176,697 

Short-term investments 18a 483,806 245,585 

Cash and cash equivalents 11 162,341 169,330 

Total current assets 1,808,167 1,661,921 

 

Total assets 7,680,746 7,258,578 

The accompanying notes are an integral part of these condensed consolidated financial statements. 
8 

 (In thousands of Brazilian Reais) 

Notes 

September 30, 

2009 

December 31, 

 2008 

 

 Shareholders' equity and liabilities 

Shareholders' equity 

Issued capital 12 1,454,149 1,250,618 

Capital reserves 89,556 89,556 

Treasury shares (41,180) (41,180) 

Retained earnings (accumulated losses) 284,518 (227,386) 

 Total shareholders' equity 1,787,043 1,071,608 

 

 Non-current liabilities 

Other non-current liabilities 198,135 196,894 

Provisions 15 75,885 157,310 

Deferred taxes 6 761,839 548,680 

Smiles deferred revenue 301,275 262,626 

Long-term debt 18b 2,148,654 2,438,881 

 Total non-current liabilities 3,485,788 3,604,391 

 

 Current liabilities 

Other current liabilities 124,537 219,885 

Smiles deferred revenue 136,631 90,043 

Provisions 15 32,966 165,287 

Advance ticket sales 20 538,581 572,573 

Sales taxes and landing fees 69,753 97,210 

Current taxes 26,191 39,605 

Salaries, wages and benefits 240,607 146,805 

Accounts payable 342,845 283,719 

 Short-term debt 18b 895,804 967,452 

 Total current liabilities 2,407,915 2,582,579 

 

 Total shareholders' equity and liabilities 7,680,746 7,258,578 

The accompanying notes are an integral part of these condensed consolidated financial statements