Business

Brazilian airline Gol expects to halve cash burn for remainder of 2020

In the month of August, excluding the repayment of its debt, Gol burned through BRL 6 million per day

The logo of Brazilian airline Gol Linhas Aereas Inteligentes SA is seen inside an airplane at Augusto Severo International Airport in Natal, Brazil November 23, 2018. Picture taken November 23, 2018. REUTERS/Paulo Whitaker
  • Gol faced a cash crunch at the end of August as the deadline neared to repay a $300 million loan secured by Delta Air Lines.
  • Under Gol’s own metric, liquidity has fallen 46% since June, and 17% since July.

Brazil’s airline Gol Linhas Aéreas Inteligentes said on Thursday it expects to burn through BRL 3 million ($565,195.27) a day for the rest of 2020, half of its previously announced expected cash consumption.

Gol faced a cash crunch at the end of August as the deadline neared to repay a $300 million loan that credit rating analysts said had a high risk of default.

Gol said Thursday it had managed “a full pay-down” of the loan, which was secured by Delta Air Lines. Last week, Reuters reported that Delta had actually helped Gol refinance the loan.

In the month of August, excluding the repayment of its debt, Gol burned through BRL 6 million per day as a consequence of the coronavirus pandemic, it said.

As of the end of the month, it said it had a “total liquidity” of BRL 2.1 billion, although it did not disclose how much of that was in readily available cash.

Under its own metric, liquidity has fallen 46% since June, and 17% since July.

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