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Gol Linhas (GOL) August Traffic Increases From 2022 Levels

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Gol Linhas Aereas Inteligentes S.A. recently reported a double-digit year-over-year increase in traffic and capacity for August 2023.

In August, consolidated revenue passenger kilometers (a measure of air traffic) and available seat kilometers (a measure of capacity) increased 11.6% and 7.7%, respectively, on a year-over-year basis. With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) for August 2023 improved to 84.4% from 81.5% in August 2022. The number of flight departures at GOL in August registered a 17.8% year-over-year increase. Consolidated passengers on board rose 22.4% year over year.

On the domestic front, with revenue passenger kilometers (13.7%) outpacing available seat kilometers (9.4%), the load factor increased to 84.6% from 81.4% in August 2022.

Internationally, the load factor increased to 82.7% from 82.3% in August 2022.

Domestic departures, accounting for more than 95% of total departures during the month, grew 18.1% on a year-over-year basis. On the domestic front, the number of seats increased 21.8% in August. International departures increased 11.7% in August on a year-over-year basis. The number of seats rose 17.4% internationally.

On the domestic front, passengers on board rose 22.7% year over year. Internationally, the metric increased 13% year over year.

Given the buoyant traffic scenario, Gol Linhas is not the only airline to report impressive traffic numbers for August. Ryanair Holdings (RYAAY - Free Report) , a European carrier, also reported impressive traffic numbers for August 2023, driven by upbeat air-travel demand. The number of passengers ferried on RYAAY flights in August was 18.9 million, implying an increase of 12% from a year ago. Owing to upbeat traffic, the load factor was as high as 96% in August. The reading was similar in the year-ago period.

Zacks Rank & Key Picks

Gol Linhas currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX - Free Report) and SkyWest, Inc. (SKYW - Free Report) . Each of these companies presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GATX has an expected earnings growth rate of 14.33% for the current year. GATX delivered a trailing four-quarter earnings surprise of 17.30%, on average.

The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 6% year to date.

SkyWest's fleet-modernization efforts are commendable. A fall in operating expenses is a tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a decline in operating costs. Low operating expenses boost bottom-line results. Shares of SKYW have surged 163.6% year to date.

SKYW delivered a trailing four-quarter earnings surprise of 31.51%, on average.


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