Advertisement
U.S. markets open in 8 hours 12 minutes
  • S&P Futures

    5,207.50
    -7.25 (-0.14%)
     
  • Dow Futures

    39,207.00
    -16.00 (-0.04%)
     
  • Nasdaq Futures

    18,175.00
    -56.50 (-0.31%)
     
  • Russell 2000 Futures

    2,047.20
    -2.60 (-0.13%)
     
  • Crude Oil

    82.56
    -0.16 (-0.19%)
     
  • Gold

    2,162.20
    -2.10 (-0.10%)
     
  • Silver

    25.30
    +0.03 (+0.12%)
     
  • EUR/USD

    1.0871
    -0.0006 (-0.05%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • Vix

    14.33
    -0.08 (-0.56%)
     
  • GBP/USD

    1.2717
    -0.0012 (-0.09%)
     
  • USD/JPY

    150.1900
    +1.0920 (+0.73%)
     
  • Bitcoin USD

    65,117.64
    -3,250.53 (-4.75%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,722.55
    -4.87 (-0.06%)
     
  • Nikkei 225

    39,880.63
    +140.23 (+0.35%)
     

GOL Linhas (GOL) Reports Robust January Traffic Figures

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.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
 
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
 
LATAM Airlines Group S.A. (LTM) : Free Stock Analysis Report
 
AZUL SA (AZUL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement