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Gol Linhas (GOL) Traffic Plunges Year Over Year in October
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Even though the recent uptick in air-travel demand gave investors a reason to cheer for, the same continues to trend way below the year-ago levels. Due to this weakness, Gol Linhas Aereas Inteligentes’ traffic, measured in revenue passenger kilometers, plunged 47.6% year over year in October.
To match the year-over-year softness in demand, the Latin American carrier is trimming capacity. Consequently, in October, capacity measured in available seat kilometers, contracted 45%. With traffic declining more than the amount of capacity reduction, load factor (% of seats filled by passengers) decreased 3.8 percentage points year over year to 78%. Gol Linhas’ total monthly departures slumped 48.3% and seats tanked 45%.
Due to pandemic woes, shares of Gol Linhas have dropped 44.1% since the beginning of March compared with the industry’s 24.8% depreciation.
Although air-travel demand is well below the 2019 levels, its gradual improvement is evident from increased demand for flights operated by this Latin American carrier. Demand in the domestic market surged 34% in October from September levels. Additionally, supply improved 37% in October month over month. Moreover, Gol Linhas operated 363 flights per day on average in October compared with 270 in September. Moreover, the carrier reopened three bases in October.
Notably, the carrier, which competes with the likes of Copa Holdings (CPA - Free Report) and Azul (AZUL - Free Report) in the Latin American aviation space, did not operate regular international flights last month.
Zacks Rank & Key Pick
Gol Linhas carries a Zacks Rank #4 (Sell), currently.
Shares of FedEx havesoared more than 84% so far this year.
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Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Gol Linhas (GOL) Traffic Plunges Year Over Year in October
Even though the recent uptick in air-travel demand gave investors a reason to cheer for, the same continues to trend way below the year-ago levels. Due to this weakness, Gol Linhas Aereas Inteligentes’ traffic, measured in revenue passenger kilometers, plunged 47.6% year over year in October.
To match the year-over-year softness in demand, the Latin American carrier is trimming capacity. Consequently, in October, capacity measured in available seat kilometers, contracted 45%. With traffic declining more than the amount of capacity reduction, load factor (% of seats filled by passengers) decreased 3.8 percentage points year over year to 78%. Gol Linhas’ total monthly departures slumped 48.3% and seats tanked 45%.
Due to pandemic woes, shares of Gol Linhas have dropped 44.1% since the beginning of March compared with the industry’s 24.8% depreciation.
Although air-travel demand is well below the 2019 levels, its gradual improvement is evident from increased demand for flights operated by this Latin American carrier. Demand in the domestic market surged 34% in October from September levels. Additionally, supply improved 37% in October month over month. Moreover, Gol Linhas operated 363 flights per day on average in October compared with 270 in September. Moreover, the carrier reopened three bases in October.
Notably, the carrier, which competes with the likes of Copa Holdings (CPA - Free Report) and Azul (AZUL - Free Report) in the Latin American aviation space, did not operate regular international flights last month.
Zacks Rank & Key Pick
Gol Linhas carries a Zacks Rank #4 (Sell), currently.
A better-ranked stock in the broader Transportation sector is FedEx Corporation (FDX - Free Report) , presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of FedEx havesoared more than 84% so far this year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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