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GOL Airlines posts R$2.2 Billion loss in first Quarter

Gol had a loss of R$2,2 billions in the first quarter and says it has enough cash to run until the end of the year

The Brazilian airlines released unaudited results, since the auditors requested more time to analyze the numbers; the airline sector is one of the most affected by the pandemic crisis.

With operations greatly affected by the coronavirus pandemic, Gol reported a loss of R$2,261 billions  in the first quarter of 2020 against a profit of R$35,2 millions during the same period of 2019. These results do not include the minority participation of Smiles.

The company disclosed unaudited numbers this Monday, since the independent auditors hired to analyze the reports asked for more time to finish their review. The expected results will be disclosed on the 15th, according to Gol.

The airline affirms to have enough cash to go through the turbulence until the end of the year, “assuming market conditions do not deteriorate”. Gol counts with a daily cash burn of R$9 millions for the second half of 2020.

In the document released by the company, when the focus should be the period of January to March, estimates for the challenges of the second quarter stood out.

“Gol hopes to finish the second quarter of 2020 with R$2,6 billions in cash and R$10,4 billions in debts against R$3 billions and R$11 billions on the previous quarter, respectively”, says the company.

Those numbers, according to Gol, do not include R$3 billions the company should receive from BNDS (Banco Nacional de Desenvolvimento Econômico e Social)