Due to the coronavirus pandemic affecting air travel demand severely, Gol Linhas Aereas Inteligentes’ GOL did not operate its international flights during June. Its total monthly traffic, measured in revenue passenger kilometers (RPK), tanked 88% on a year-over-year basis.
With Gol Linhas lowering capacity in response to dwindling demand, total monthly capacity (measured in available seat miles) contracted 87.4%. Moreover, consolidated load factor (% of seats filled by passengers) fell to 79.1% from 83% a year ago. Load factor tanked as the fall in traffic was more than capacity contraction.
Gol Linhas’ total monthly departures plunged 86.9% and seats declined 87.9%.
However, with air-travel demand improving on the domestic front (domestic demand rose 95.4% in June compared with May), the company boosted its network to operate 100 flights per day for June, primarily through reopening of some bases such as Porto Seguro, Petrolina, IIheus, Juazeiro do Norte and Chapeco along with increase in flight frequencies for São Paulo, Brasilia and Rio de Janeiro airports. Additionally, supply in June increased 84.8% on a month-on-month basis.
Gol Linhas Aereas Inteligentes S.A. Price
Gol Linhas Aereas Inteligentes S.A. price | Gol Linhas Aereas Inteligentes S.A. Quote
Zacks Rank & Key Picks
Gol Linhas currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are Canadian Pacific Railway Limited CP, TFI International TFII and Canadian National Railway Company CNI. All the stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings (three to five years) growth rate for Canadian Pacific, TFI International and Canadian National is estimated at 7.5%, 4.1% and 6.9%, respectively.
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