In March 2021, GOL Linhas Aéreas Inteligentes (GOL) adjusted its capacity to an average of 245 flights per day, a 31% decrease from an average of 355 flights in February 2021. The company operated approximately 381 daily flights on peak days. GOL's consolidated gross revenues for the month were R$300 million and the average load factor was 71.8%, which GOL states highlights the management's on-going focus on maintaining sustainable operations through the continuous matching of seat supply to the level of traveller demand.
In March, there was a 25% decrease in the search for GOL’s airline tickets, compared to February, with a 40% reduction in the volume of daily sales during that month, due to the decline in travel demand as a consequence of the increase in cases of Covid-19 in Brazil, combined with the transition to the low season.
Brazil recently experienced a "second wave" of Covid-19 cases with pressure on its hospital network. In response to the increase in the number of cancellations and no-shows, GOL's airline network was adjusted to match costs to the new level of inflows and had a 29% reduction between the first and the fourth weeks of March. PRASK was R$15.45 cents, a decrease of 19% over February/21 and a year-on-year variation of -23% due to the greater reduction in fares by industry peers to sustain their higher level of capacity.
"During this challenging second wave of Covid-19 cases in Brazil, we remain diligently focused on Safety for our Customers and Employees," said Paulo Kakinoff, Chief Executive Officer. "We have strong hygiene protocols in place and the flexibility to rapidly readjust our network. We reiterate our belief that, even with the non-linear resumption of demand, the Company will emerge stronger and even more resilient as markets start to normalize."
GOL states that it anticipates that the successful roll-out of vaccinations through Brazil's National Immunization Program will reactivate demand in the leisure and corporate segments as of the middle of the second quarter of 2021.
GOL estimates that it has sufficient liquidity to finance its working capital, expenses and debt service through the coming months, a period of higher impact on its cash flow. The company ended March with approximately R$1.9 billion in total liquidity. Including the financeable amounts of deposits and unencumbered assets, GOL's potential liquidity sources total over R$5 billion. Excluding financial debt service, GOL's net cash consumption was neutral in March.
Richard Lark, Chief Financial Officer, added: "Throughout the pandemic we have protected our balance sheet by reducing our costs, met our financial obligations provided for in our cash flow and taken advantage of the capital markets at the right time. As such, our liquidity remains in line with where it was in April/20 and is adequate to manage the operations until the percentage of the immunized population increases. We are therefore confident in our Management team's ability to effectively manage operations through this second wave, until we see a recovery in travel demand following the vaccine roll-out.