Brazilian airline Gol plans to halve cash consumption for remainder of 2020

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FILE PHOTO: The logo of Brazilian airline Gol Linhas Aereas Inteligentes SA is seen inside an aircraft at Augusto Severo International Airport in Natal, Brazil November 23, 2018. Photo taken November 23, 2018 . REUTERS / Paulo Whitaker

SAO PAULO (Reuters) – Brazilian Gol Linhas Aereas Inteligentes GOLL4.SA said Thursday he plans to spend 3 million reais ($ 565,195.27) per day for the remainder of 2020, half of his previously announced expected cash consumption.

Gol faced a liquidity shortage in late August as the deadline to repay a $ 300 million loan that credit rating analysts said posed a high risk of default.

Gol said on Thursday he had managed “a full repayment” of the loan, which was guaranteed by Delta Air Lines DAL.N.

Last week, Reuters reported that Delta actually helped Gol refinance the loan.

In August, excluding debt repayment, Gol spent R $ 6 million a day, he said.

At the end of the month, he said he had “total liquidity” of R $ 2.1 billion, although he did not disclose how much cash is readily available.

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

Report by Marcelo Rochabrun; Editing by Nick Zieminski

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