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GOL Linhas (GOL) Reports Robust January Traffic Figures

Zacks

Shares of GOL Linhas Aereas Inteligentes S.A. GOL have performed exceedingly well over the last six months. The company has surged more than 60%, significantly outperforming the Zacks Airline industry’s rally of 5.8%.

Ushering in further good news, the carrier recently unveiled an impressive January traffic report. Consolidated traffic, measured in revenue passenger kilometers (RPK), increased 5.2% to 4.15 billion in the month.


On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) rose 4.9% to 4.92 billion primarily owing to the expansion of 2.3% and 27.5% in domestic and international capacity, respectively. In January, domestic and international RPK also improved a respective 2.7% and 27.9%. The carrier further witnessed a 2.4% increase in passenger count in the same period.

Load factor — percentage of seats filled by passengers — improved to 83.5% from 83.2% a year ago as traffic expansion exceeded capacity growth.

Additionally, GOL Linhas, which competes with the likes of Copa Holdings CPA, Latam Airlines Group S.A. LTM and Azul S.A. AZUL in the Latin American aviation space, is benefiting from an increased demand for air travel owing to an improved Brazilian economy. Consequently, this Zacks Rank #3 (Hold) carrier is expected to perform well in the fourth quarter of 2017. Detailed results will be out on Mar 7. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For the fourth quarter, GOL Linhas anticipates operating margin in the range of 13.2-14.2%. This metric (excluding non-recurring expenses) was 12.8% in the year-ago quarter. Passenger unit revenue (PRASK) is also projected to increase between 7% and 7.5% year over year as the airline is benefiting from capacity discipline and revenue management strategies.

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