Brazil airline Gol expects to halve cash burn for remainder of 2020

FILE PHOTO: The logo of Brazilian airline Gol Linhas Aereas Inteligentes SA is seen inside an airplane at Augusto Severo International Airport in Natal, Brazil November 23, 2018. Picture taken November 23, 2018. REUTERS/Paulo Whitaker

SAO PAULO (Reuters) - Brazil's Gol Linhas Aereas Inteligentes GOLL4.SA said on Thursday it expects to burn through 3 million reais ($565,195.27) a day for the rest of 2020, half of its previously announced expected cash consumption.

Gol faced a cash crunch at the end of August as the deadline neared to repay a $300 million loan that credit rating analysts said had a high risk of default.

Gol said Thursday it had managed "a full pay-down" of the loan, which was secured by Delta Air Lines DAL.N.

Last week, Reuters reported that Delta had actually helped Gol refinance the loan.

In the month of August, excluding the repayment of its debt, Gol burned through 6 million reais per day, it said.

As of the end of the month, it said it had a “total liquidity” of 2.1 billion reais, although it did not disclose how much of that was in readily available cash.

Under its own metric, liquidity has fallen 46% since June, and 17% since July.

Reporting by Marcelo Rochabrun; Editing by Nick Zieminski