Gol Linhas is benefiting from the uptick in air-travel demand (particularly on the domestic front). The improvement in air-travel demand in Brazil is a huge boon for Gol Linhas, which currently carries a Zacks Rank #3 (Hold). In the second quarter of 2022, revenues from passenger transportation, which accounted for 92.4% of total revenues, surged 237.5% year over year.
Continuing this favorable trend, Gol Linhas’ consolidated traffic in September increased 41.4% year over year. To match the increased demand situation, GOL is expanding its capacity. In the same month, capacity grew 36.9% year over year. Since traffic growth was more than capacity expansion, the load factor improved 2.6 percentage points to 81.7% last month.
The upbeat traffic in its domestic markets is leading to a rosy scenario on a consolidated basis. In September, domestic traffic and capacity improved 27% and 23%, respectively. On the domestic front, 27.9% more passengers boarded GOL’s flights in September 2022.
On the flip side, rising fuel costs pose a threat to Gol Linhas’ bottom line. The average fuel price per liter increased 80.5% year over year in the second quarter. Primarily due to a significant increase in fuel costs, total operating expenses surged 86.8% year over year. With oil prices moving north, the forecast for current-year fuel price per liter has been raised. The metric is now predicted to be R$5.7 in 2022 (earlier expectation was R$4.3).
Stocks to Consider
Some better-ranked stocks from the broader Zacks Transportation sector are ZTO Express (ZTO - Free Report) , Air Lease Corporation (AL - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ZTO Express has an expected earnings growth rate of 22.9% for the current year. ZTO delivered a trailing four-quarter earnings surprise of 8.9%, on average.
The Zacks Consensus Estimate for ZTO’s current-year earnings has improved 4.4% over the past 90 days. Shares of ZTO have lost 19.6% over the past year.
Air Lease has a long-term expected growth rate of 16.9%. AL delivered a trailing four-quarter earnings surprise of 29.2%, on average.
Shares of AL have lost 20.8% over the past year.
Teekay Tankers has an expected earnings growth rate of 172.86% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 88.3% over the past year.
Zacks Names "Single Best Pick to Double"
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It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Gol Linhas is benefiting from the uptick in air-travel demand (particularly on the domestic front). The improvement in air-travel demand in Brazil is a huge boon for Gol Linhas, which currently carries a Zacks Rank #3 (Hold). In the second quarter of 2022, revenues from passenger transportation, which accounted for 92.4% of total revenues, surged 237.5% year over year.
Continuing this favorable trend, Gol Linhas’ consolidated traffic in September increased 41.4% year over year. To match the increased demand situation, GOL is expanding its capacity. In the same month, capacity grew 36.9% year over year. Since traffic growth was more than capacity expansion, the load factor improved 2.6 percentage points to 81.7% last month.
The upbeat traffic in its domestic markets is leading to a rosy scenario on a consolidated basis. In September, domestic traffic and capacity improved 27% and 23%, respectively. On the domestic front, 27.9% more passengers boarded GOL’s flights in September 2022.
On the flip side, rising fuel costs pose a threat to Gol Linhas’ bottom line. The average fuel price per liter increased 80.5% year over year in the second quarter. Primarily due to a significant increase in fuel costs, total operating expenses surged 86.8% year over year. With oil prices moving north, the forecast for current-year fuel price per liter has been raised. The metric is now predicted to be R$5.7 in 2022 (earlier expectation was R$4.3).
Stocks to Consider
Some better-ranked stocks from the broader Zacks Transportation sector are ZTO Express (ZTO - Free Report) , Air Lease Corporation (AL - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ZTO Express has an expected earnings growth rate of 22.9% for the current year. ZTO delivered a trailing four-quarter earnings surprise of 8.9%, on average.
The Zacks Consensus Estimate for ZTO’s current-year earnings has improved 4.4% over the past 90 days. Shares of ZTO have lost 19.6% over the past year.
Air Lease has a long-term expected growth rate of 16.9%. AL delivered a trailing four-quarter earnings surprise of 29.2%, on average.
Shares of AL have lost 20.8% over the past year.
Teekay Tankers has an expected earnings growth rate of 172.86% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 88.3% over the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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