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Gol Linhas (GOL) June Load Factor Improves, Stock Jumps
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GOL Linhas Aereas Inteligentes S.A.’s shares rose 7.75%, following the announcement of traffic results for June. Traffic – measured in revenue passenger kilometers (RPK) – dropped 2.5% to 2,690 million in Jun 2017 from 2,759 million recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) contracted 6.4% to 3,446 million. This was primarily because of a decline of 4.8% and 19% in domestic and international capacity, respectively. International and domestic RPK in the month of June also deteriorated 14.4% and 1.1%, respectively. The carrier further witnessed a 0.1% decrease in passenger count for the same month.
On the other hand, load factor – percentage of seats filled by passengers – increased 310 basis points (bps) to 78.1% in Jun 2017, owing to capacity contraction exceeding the decline in traffic.
At the end of the current year’s first six months, RPK inched up 0.6% while ASK slipped 2.4%. Load factor for the same period improved 240 bps. The company however recorded a 9.4% reduction in the number of seats in the first six months of 2017, while volume of departures fell 9.8%.
Gol Linhas’ rise in June load factor has impressed investors, leading to the stock’s appreciation. The company has also recently issued a bullish forecast for the second quarter. It anticipates passenger unit revenue (PRASK) to grow in the 7.5-8% band on a year-over-year basis. Meanwhile, unit revenue (RASK) is expected to improve in the range of 8.5-9% in the second quarter (Read more: GOL Linhas Issues Bullish Q2 Forecast, Stock Up).
Due to these tailwinds, shares of the company have significantly outperformed the Zacks categorized Transportation - Airline industry in the last one month. The stock has gained 20.78%, while the industry appreciated 5.19%.
Shares of Air France-KLM, American Airlines and Delta Air Lines have surged over 85%, 19% and 21%, respectively, in the last three months.
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Gol Linhas (GOL) June Load Factor Improves, Stock Jumps
GOL Linhas Aereas Inteligentes S.A.’s shares rose 7.75%, following the announcement of traffic results for June. Traffic – measured in revenue passenger kilometers (RPK) – dropped 2.5% to 2,690 million in Jun 2017 from 2,759 million recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) contracted 6.4% to 3,446 million. This was primarily because of a decline of 4.8% and 19% in domestic and international capacity, respectively. International and domestic RPK in the month of June also deteriorated 14.4% and 1.1%, respectively. The carrier further witnessed a 0.1% decrease in passenger count for the same month.
On the other hand, load factor – percentage of seats filled by passengers – increased 310 basis points (bps) to 78.1% in Jun 2017, owing to capacity contraction exceeding the decline in traffic.
At the end of the current year’s first six months, RPK inched up 0.6% while ASK slipped 2.4%. Load factor for the same period improved 240 bps. The company however recorded a 9.4% reduction in the number of seats in the first six months of 2017, while volume of departures fell 9.8%.
Gol Linhas’ rise in June load factor has impressed investors, leading to the stock’s appreciation. The company has also recently issued a bullish forecast for the second quarter. It anticipates passenger unit revenue (PRASK) to grow in the 7.5-8% band on a year-over-year basis. Meanwhile, unit revenue (RASK) is expected to improve in the range of 8.5-9% in the second quarter (Read more: GOL Linhas Issues Bullish Q2 Forecast, Stock Up).
Due to these tailwinds, shares of the company have significantly outperformed the Zacks categorized Transportation - Airline industry in the last one month. The stock has gained 20.78%, while the industry appreciated 5.19%.
Zacks Rank & Key Picks
Gol Linhas currently carries a Zacks Rank #3 (Hold). Investors interested in the airline space may consider a few better-ranked stocks like Air France-KLM SA (AFLYY - Free Report) , American Airlines Group, Inc. (AAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Air France-KLM, American Airlines and Delta Air Lines have surged over 85%, 19% and 21%, respectively, in the last three months.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>