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Gol Linhas (GOL) Posts Bland December Traffic Statistics

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Thanks to coronavirus-induced dwindling air-travel demand, Gol Linhas Aereas Inteligentes’ traffic, measured in revenue passenger kilometers, plunged 36.4% year over year in December.

With travel demand falling far below the year-ago levels, the company reduced capacity significantly. In December, capacity measured in available seat kilometers contracted 35.6%. However, with traffic declining more than the amount of capacity contraction, load factor (% of seats filled by passengers) tanked by 1 percentage point year over year to 81%. Gol Linhas’ total monthly departures slumped 40.3% and seats tanked 40.6%.

Due to coronavirus-related woes, shares of Gol Linhas have plunged 50.4% in the past year compared with the industry’s 27.5% decline.

However, gradual improvement is evident from increased demand for flights operated by Gol Linhas. Demand in the domestic market increased 33% in December from November levels. Moreover, supply expanded 38% in December on month over month basis. The Latin America-based airline did not operate international flights during the month of December.

Gol Linhas operated 476 flights per day on average in December compared with 369 in November. The carrier reopened three bases namely — Jericoacoara, Caldas Novas and Cabo Frio — in December. Besides, the airline also added 2,052 frequencies at Guarulhos, São Paulo, Santos Dumont, Rio de Janeiro, Brasília, Ceará and Bahia airports.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Knight-Swift carries a Zacks Rank #2 (Buy), while FedEx and Herc Holdings sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.

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