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Gol Linhas' (GOL) April Traffic Declines From March Levels

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With Brazil reeling under a second wave of the deadly coronavirus pandemic, Gol Linhas Aereas Inteligentes posted lacklustre traffic numbers for the month of April.

Notably, traffic, measured in revenue passenger kilometers, plunged 36% sequentially in April. With falling travel demand, the company reduced capacity significantly. In the same time frame, capacity measured in available seat kilometers contracted 44.5%. Since traffic decline was less than capacity contraction, load factor (% of seats filled by passengers) moved up 11 percentage points (pp) from March levels to 82.8%.  

Nevertheless, with the distribution of COVID-19 vaccine, passengers are eager to travel more now. Notably, traffic surged 289.2% year over year in April. In the same time frame, capacity expanded 273.5%. Since traffic surge was more than capacity expansion, load factor increased 3.3 pp to 82.8% from year-ago period’s levels. Gol Linhas’ total monthly departures increased 289.6% and seats surged 340.3%.

Demand in the domestic market increased 294% in April from the year-ago levels. Moreover, supply also increased 280% in April on a year-over-year basis. The Latin America-based airline did not operate international flights during April.

Zacks Rank & Stocks to Consider

Gol Linhas currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Transportation sector include Landstar System, Inc. (LSTR - Free Report) , Triton International Limited and Herc Holdings Inc. (HRI - Free Report) . Herc Holdings sports a Zacks Rank #1 (Strong Buy), while Triton and Landstar carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.

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