GOL Linhas Traffic & Capacity Fall in May, Load Factor Rises
GOL Linhas AereasInteligentes S.A GOL recently reported air traffic figures for the month of May. Traffic – measured in revenue passenger kilometers (RPK) – dropped 2.4% to 2.7 billion in May 2017 from 2.8 billion a year ago.
On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) contracted 4.6% to 3.6 billion. This was primarily because of a decline of 3.2% and 14.5% in domestic and international capacity, respectively. International and domestic RPK in the month of May also deteriorated 6.6% and 1.9%, respectively. The carrier further witnessed a 0.4% decrease in passenger count in May.
On the other hand, load factor – percentage of seats filled by passengers – rose to 76.6% from 74.9% in May 2016. This was owing to capacity contraction exceeding the decline in traffic.
At the end of the first five months of 2017, RPK increased 1.2% while ASK slipped 1.7%. Load factor for the same period improved 220 basis points. The company however recorded a 10.1% reduction in the number of seats in first five months of 2017, while volume of departures fell 10.5%.
We remind investors that GOL Linhas reported better-than-expected earnings in first-quarter 2017, released last month. The carrier’s earnings per share of $1.06 topped the Zacks Consensus Estimate of 15 cents. Net revenue in the first quarter of 2017 came in at $841.2 million (R$2.6 billion). While cargo revenues rallied 27.3%, passenger revenues declined 5.8%
Gol Linhas Aereas Inteligentes S.A. Price
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Zacks Rank & Key Picks
GOL Linhas currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in airline space are Air France-KLM SA AFLYY, Deutsche Lufthansa AG DLAKY and International Consolidated Airlines Group SA ICAGY. All sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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