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AVH - Avianca Holdings SA News Story

$0.88 0.0  0.0%

Last Trade - 08/05/20

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £2.56bn
Position in Universe th / 6850

UPDATE 1-Brazil airline Gol says it has enough cash to run until the end of the year

Mon 4th May, 2020 1:10pm
(Recasts with cash scenario)
    By Marcelo Rochabrun
    SAO PAULO, May 4 (Reuters) - Brazil's largest airline Gol
Linhas Aereas Inteligentes  GOLL4.SA  said on Monday it has
enough cash to keep the airline afloat until the end of the year
and still have significant reserves leftover, despite the
coronavirus crisis.
    Still, the airline was bleeding money before the outbreak
grounded almost all air traffic around the world. In the first
quarter, Gol posted a loss of 2.3 billion reais ($419 million),
almost entirely due to the depreciation of the Brazilian
currency. 
    Coronavirus barely factored in the steep loss, Gol said. A
year ago, the airline posted a loss of 32 million reais. 
    Airlines pay for aircraft leases and oil in dollars, which
is a risk for emerging market carriers that operate with
volatile currencies. 
    The results are unaudited, Gol said, because its independent
accountants requested two more weeks to finish their review.
What the accountants may have to say, however, is significant in
the middle of this crisis. 
    Last month, accountants for Colombian carrier Avianca
Holdings  AVT_p.CN  said they had "substantial doubt" about the
ability of the airline to exist a year from now.  urn:newsml:reuters.com:*:nL2N2CB2E1
    Gol said it hopes to reduce its daily cash burn rate to 7
million reais in the second half of 2020. If it accomplishes
this rate, it said it would have 2.6 billion reais in cash at
the end of 2020. 
    Like many carriers around the world, Gol is not expecting a
fast recovery from the coronavirus crisis. 
    ($1 = 5.4856 reais)

 (Reporting by Marcelo Rochabrun
Editing by Nick Zieminski)
 ((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))
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