GOL Linhas Aereas Inteligentes S.A. announced traffic results for July. Traffic – measured in revenue passenger kilometers (RPK) — increased 6.3% to 3.65 billion in Jul 2017 from 3.44 billion, recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) expanded 7.9% to 4.46 billion, thanks to a rise of 7.9% and 8%% in domestic and international capacity, respectively. Domestic and International RPK for July also appreciated 5.8% and 10.2%, respectively. The carrier further witnessed a 4.9% increase in passenger count for the same month.
On the other hand, load factor – percentage of seats filled by passengers – decreased 130 basis points (bps) to 81.9% in July due to capacity expansion exceeding traffic growth.
At the end of the first seven months of 2017, RPK inched up 1.5%, while ASK slipped 0.9%. Load factor for the same period improved 190 bps. The company however, recorded a 7.3% reduction in the number of seats in the first seven months of 2017 and volume of departures fell 7.6%.
The company recently reported second-quarter earnings numbers. The carrier’s earnings of 24 cents per share compared favorably with the Zacks Consensus Estimate of a loss of 60 cents. However, the bottom line contracted 51% on a year-over-year basis due to higher expenses on aircraft fuel. Net revenue, comprising cargo and passenger revenues, came in at $696.2 million (R$2.2 billion), up significantly year over year.
Despite stiff competition from peers like Copa Holdings S.A. (CPA - Free Report) , LATAM Airlines Group S.A. and Azul SA (AZUL - Free Report) in the Latin American space, the company is expected to perform well in the near term, driven by its restructuring efforts.
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GOL Linhas Aereas Inteligentes S.A. announced traffic results for July. Traffic – measured in revenue passenger kilometers (RPK) — increased 6.3% to 3.65 billion in Jul 2017 from 3.44 billion, recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) expanded 7.9% to 4.46 billion, thanks to a rise of 7.9% and 8%% in domestic and international capacity, respectively. Domestic and International RPK for July also appreciated 5.8% and 10.2%, respectively. The carrier further witnessed a 4.9% increase in passenger count for the same month.
On the other hand, load factor – percentage of seats filled by passengers – decreased 130 basis points (bps) to 81.9% in July due to capacity expansion exceeding traffic growth.
At the end of the first seven months of 2017, RPK inched up 1.5%, while ASK slipped 0.9%. Load factor for the same period improved 190 bps. The company however, recorded a 7.3% reduction in the number of seats in the first seven months of 2017 and volume of departures fell 7.6%.
The company recently reported second-quarter earnings numbers. The carrier’s earnings of 24 cents per share compared favorably with the Zacks Consensus Estimate of a loss of 60 cents. However, the bottom line contracted 51% on a year-over-year basis due to higher expenses on aircraft fuel. Net revenue, comprising cargo and passenger revenues, came in at $696.2 million (R$2.2 billion), up significantly year over year.
Despite stiff competition from peers like Copa Holdings S.A. (CPA - Free Report) , LATAM Airlines Group S.A. and Azul SA (AZUL - Free Report) in the Latin American space, the company is expected to perform well in the near term, driven by its restructuring efforts.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
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 a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent 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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