Brazil airline Gol says first quarter will be worse than expected due to pandemic second wave

RIO DE JANEIRO, BRAZIL – Gol Linhas Aéreas Inteligentes on Thursday, March 18th, said it was revising downward its outlook for early 2021, suggesting the pandemic’s second wave in Brazil is having significant negative impact on the air travel market.

While Gol had expected that Q1 revenue would come in at R$2.4 billion (US$429.72 million), it is now forecast to only total R$1.7 billion. The new revenue estimate represents just 52% of a pre-pandemic levels, down by two-thirds.

Gol, Brazil’s largest airline, reported a modest profit of R$16.8 million (US$3.01 million) in the fourth quarter, which is part of Brazil’s high season. Still, Gol lost a total of R$6 billion in 2020, in large part due to the pandemic that upended air travel.

Gol’s less optimistic outlook is the latest sign that Brazil’s second coronavirus wave, which just this week hit record highs for daily deaths and new infections, is negatively affecting the this industry as health restrictions hamper travel demand.

Read: Updated information about airlines flying to Brazil amid the pandemic

Gol said its March numbers were the most affected by the new wave and that it has had to reduce its flight schedule to 40% of pre-pandemic levels.

The airline also increased its expected cash burn for the first quarter to 3 million reais a day from an original estimate of 2 million reais a day.