Back to top

Analyst Blog

GOL Linhas Aéreas Inteligentes S.A. (GOL - Analyst Report), a low-cost airline based in Latin America, reported increased air traffic for the month of December 2012. Per GOL’s recent strategy of reducing its domestic market supply, the company closed down its Webjet operations in late November last year. The effects of the shut down were reflected in the total domestic supply for December 2012, reducing to the extent of 21%.

Driven by the holiday season across the American continent, GOL witnessed rising international traffic. Therefore, in order to meet up with this trend, the company increased its services to various destinations. Moreover, the company also expanded its operations to Santo Domingo and Miami to take full advantage of the growing international demand.

For the reported month, the passenger revenue per available seat kilometer (PRASK) increased by 14% due to the steps taken by the company to restructure its domestic demand. For the fourth quarter 2012, PRASK increased by 11% compared to the prior year quarter. Also, the fuel prices for the month increased roughly 25% year over year, with the fourth quarter prices increasing around 20% year over year.

Recently, another airline LATAM Airlines Group S.A. (LFL - Snapshot Report) reported its traffic updates for the same period. The domestic passenger traffic increased 10.5% for the month compared to the year-ago month. Also, last month, the company achieved an increase in the load factor of about 1.8 percentage points against a 4.9 percentage points for GOL over the same period last year.

However, Southwest Airlines Co. (LUV - Analyst Report), a Texas based airline, reported a fall in the traffic and capacity for December 2012. Also, at the beginning of January 2013, Delta Air Lines Inc. (DAL - Analyst Report) reported a modest increase in traffic for the same month.

GOL is expected to report its fourth quarter and fiscal 2012 results on March 25, 2013 after the market closes. The stock currently holds a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%
RF MICRO DE… RFMD 11.76 +2.31%