Shares of Gol Airlines crashed 10 percent at market opening today after the company released grim projections on its Q1 earnings report. 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 revenues in Q2 as a direct result of the Covid-19 pandemic. The spread of the disease has grounded nearly all commercial aircraft in the country. Gol expects Brazil’s GDP to plunge 5 percent this year.
The airline believes it has enough cash to hold on until the end of the year, “assuming there are no improvements in current conditions.” And it may also resort to a BRL 3 billion-loan with the Brazilian National Development Bank (BNDES).
Aviation has been one of the sectors hit hardest by the pandemic, with the coronavirus bringing a large portion of flights to a halt.