We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gol Linhas' (GOL) Gross Revenues & Sales Drop in February
Read MoreHide Full Article
Gol Linhas Aereas Inteligentes S.A. provided an update on its operational trends in February. The carrier’s consolidated gross revenues of R$503 million declined 42% sequentially in February. Additionally, level of sales decreased 28% sequentially in the same month due to reduced air-travel demand as a result of accelerated second wave of coronavirus cases in Brazil and a seasonally low period. This deceleration in demand began in January, prior to which, the airline was seeing a steady recovery in domestic travel demand.
Due to reduced demand, the airline operated an average of 355 flights per day last month, indicating a decrease of 28% from January. On peak days, it operated approximately 469 daily flights. The airline’s February capacity was 50% of the February 2020 level. Gol Linhas’ average load factor (percentage of seats filled by passengers) in the period was 80.8%, a deterioration of 240 basis points from January. Passenger revenue per available seat kilometers, or PRASK, declined 12.7% sequentially and 15% year over year in January.
Gol Linhas’ net cash burn was R$3 million per day in February. The carrier estimates its net cash burn to be R$3 million per day in the first quarter as well, considering the spike in COVID-19 cases in Brazil.
To tackle the softness in demand, the airline is stepping up its cost-control measures, such as postponement of payments to important partners of the company among other initiatives.
The company, which had operated 100% of its domestic network in the past few months, reduced the same in February, operating 98% of the routes. Anticipating further deceleration in travel demand, the carrier expects to operate approximately 250 flights per day in March, i.e, approximately 40% of the year-ago level.
With regard to fleet management, Gol Linhas expects approximately 15% of its NG fleet to be replaced with the fuel-efficient Boeing 737 MAX aircraft by the end of this year. This should help the company reduce its total unit costs or CASK (cost per available seat kilometers).
At the end of February, Gol Linhas had total liquidity of R$2 billion, down 10% from January.
Shares of ArcBest, Saia and USA Truck have rallied more than 100%, 59% and 26% in the past six months, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Gol Linhas' (GOL) Gross Revenues & Sales Drop in February
Gol Linhas Aereas Inteligentes S.A. provided an update on its operational trends in February. The carrier’s consolidated gross revenues of R$503 million declined 42% sequentially in February. Additionally, level of sales decreased 28% sequentially in the same month due to reduced air-travel demand as a result of accelerated second wave of coronavirus cases in Brazil and a seasonally low period. This deceleration in demand began in January, prior to which, the airline was seeing a steady recovery in domestic travel demand.
Due to reduced demand, the airline operated an average of 355 flights per day last month, indicating a decrease of 28% from January. On peak days, it operated approximately 469 daily flights. The airline’s February capacity was 50% of the February 2020 level. Gol Linhas’ average load factor (percentage of seats filled by passengers) in the period was 80.8%, a deterioration of 240 basis points from January. Passenger revenue per available seat kilometers, or PRASK, declined 12.7% sequentially and 15% year over year in January.
Gol Linhas’ net cash burn was R$3 million per day in February. The carrier estimates its net cash burn to be R$3 million per day in the first quarter as well, considering the spike in COVID-19 cases in Brazil.
Gol Linhas Aereas Inteligentes S.A. Price
Gol Linhas Aereas Inteligentes S.A. price | Gol Linhas Aereas Inteligentes S.A. Quote
To tackle the softness in demand, the airline is stepping up its cost-control measures, such as postponement of payments to important partners of the company among other initiatives.
The company, which had operated 100% of its domestic network in the past few months, reduced the same in February, operating 98% of the routes. Anticipating further deceleration in travel demand, the carrier expects to operate approximately 250 flights per day in March, i.e, approximately 40% of the year-ago level.
With regard to fleet management, Gol Linhas expects approximately 15% of its NG fleet to be replaced with the fuel-efficient Boeing 737 MAX aircraft by the end of this year. This should help the company reduce its total unit costs or CASK (cost per available seat kilometers).
At the end of February, Gol Linhas had total liquidity of R$2 billion, down 10% from January.
Zacks Rank & Key Picks
Gol Linhas carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader Transportation sector are ArcBest Corp. (ARCB - Free Report) , Saia, Inc. (SAIA - Free Report) and USA Truck, Inc. . While USA Truck sports a Zacks Rank #1 (Strong Buy), ArcBest and Saia carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest, Saia and USA Truck have rallied more than 100%, 59% and 26% in the past six months, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>