Business

Gol earnings report a glimpse of dire times for Brazilian airlines

With planes grounded due to Covid-19, market leader Gol predicts poor results for the remainder of 2020, putting the entire Brazilian aviation industry in check

Gol earnings report a glimpse of dire times for Brazilian airlines
Empty airport Brasília. Photo: Antonio Salaverry/Shutterstock

Shares of Gol Airlines crashed by 11 percent at the opening of the market on Monday, after the company released grim projections on its Q1 earnings report that are set to be repeated across the entire commercial aviation sector. Though Brazil’s largest airline still managed to profit BRL 173 million in the first three months of the year, it forecasts a 70-percent drop in revenue for Q2 as a direct result of the Covid-19 pandemic — which has grounded nearly all planes in the country. Gol expects Brazil’s GDP to plunge 5 percent this year.

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