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Gol Linhas (GOL) November Traffic Plunges, Load Factor Rises

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Owing to coronavirus-induced weakness in air-travel demand, Gol Linhas Aereas Inteligentes’ GOL traffic, measured in revenue passenger kilometers, plunged 43.8% year over year in November.

With travel demand falling far below the year-ago levels, the company reduced capacity significantly. In November, capacity measured in available seat kilometers, contracted 46.3%. However, with traffic declining less than the amount of capacity contraction, load factor (% of seats filled by passengers) inched up 3.7 percentage points year over year. Gol Linhas’ total monthly departures slumped 49.1% and seats tanked 49.9%.

Due to pandemic woes, shares of Gol Linhas have dropped 41.1% in the year-to-date period compared with the industry’s 24.2% decline.

Although air-travel demand is well below 2019 levels, its gradual improvement is evident from increased demand for flights operated by Gol Linhas. Demand in the domestic market increased 5% in November from October levels. Meanwhile, supply contracted 3% in November month over month. The Latin America-based airline did not operate international flights during the month of November.

Gol Linhas operated 369 flights per day on average in November compared with 363 in October. Moreover, the carrier increased frequencies at three airports including São Paulo, Rio de Janeiro and Bahia in November.

Zacks Rank & Stocks to Consider

Gol Linhas currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. KNX, Landstar System, Inc. LSTR and Herc Holdings Inc. HRI. Landstar carries a Zacks Rank #2 (Buy), while Knight-Swift and Herc Holdings sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.

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Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
 
KnightSwift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
 
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
 
Herc Holdings Inc. (HRI) : Free Stock Analysis Report
 
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