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Gol Linhas (GOL) October Gross Sales Rise 3% From September

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Gol Linhas Aereas Inteligentes reported an investor update for October. The company stated that it expanded its capacity to an average of 363 flights a day during last month, up 34% from the comparable figure in September. The company saw 34% improvement in demand in the period from the September reading. The uptick in air-travel demand resulted in the carrier operating 500 flights daily in October on peak days.

The Latin American airline’s gross sales in October was R$827 million, up 3% month over month. Additionally, gross revenues surged 23% to R$603 million in October from September-levels. Average load factor (% of seats filled with passengers) was 78% in the month of October, down by 2 percentage points from September levels. In October, there was a 25% month-over-month increase in sales across all channels. In October, Gol Linhas’ total fleet size was 128 planes, of which 41 were grounded. Total liquidity at the end of the month was R$2.2 billion.

During October, the carrier had a net cash burn rate of R$1 million/day (excluding include amortizations of bank debt and interest paid on bonds) which is an improvement in the net cash burn of R$3 million/day that company had forecast for this period.

Anticipating the increase in travel demand to continue, Gol Linhas further boosted its November capacity to operate nearly 372 flights a day and 450 flights daily on peak days. The carrier expects to bring its November 2020 operations at around 50% of its flight schedule achieved in November 2019.  Gol Linhas plans to operate 94 aircraft in the network.

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings Inc. (HRI - Free Report) . All the stocks 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, FedEx and Herc Holdings is pegged at 15%, 12% and 6.5%, respectively.

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