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Gol Linhas (GOL) Posts Upbeat November Traffic Statistics

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Gol Linhas Aereas Inteligentes reported strong traffic numbers for November 2021 as air-travel demand continues to recover in Latin America.

Traffic, measured in revenue passenger kilometers (RPK), rose 17.1% year over year to 2.23 billion. Capacity, measured in available seat kilometers (ASK), increased 20.4% year over year to 2.7 billion in November. Since traffic growth was less than capacity expansion, load factor (percentage of seats filled by passengers) deteriorated 2.3 percentage points (p.p) to 82.1% last month.

With steady improvement in travel demand, RPK climbed 9.4% year over year in the first 11 months of 2021. In response to this uptick, Gol Linhas expanded its capacity by 6.6% over the same time frame. Load factor ascended 2.1  p.p to 82% in the 11-month period.

Gol Linhas’ domestic supply increased 17.6% and demand rose 14.8% in November. The carrier’s domestic load factor in the month was 82.4%. The domestic volume of departures rose 27.4% and seats increased 25.3%. The company resumed its international operations in November with an international supply of 61 million and a demand of 43 million. During November, the total (both domestic and international) number of departures increased 28.7%, while the total number of seats rose 26.5%.  

Consistent improvement in traffic is expected to buoy Gol Linhas’ top-line numbers in the December quarter.

Zacks Rank & Stocks to Consider

Gol Linhas currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .

The long-term expected earnings per share (three to five years) growth rate for Knight-Swift is pegged at 15%. KNX is benefitting from an improvement in the adjusted operating ratio. Notably, the adjusted operating ratio improved to 82.8% in the first nine months of 2021 compared with 86.6% reported in the first nine months of 2020. In third-quarter 2021, the metric improved to 81.3% from 83.9% a year ago.  

This uptick in adjusted operating ratios is primarily driven by higher revenues in the Trucking, Logistics and Intermodal segments. Lower the value of the metric, the better. KNX has surged 42.7% in the past year. Knight-Swift sports a Zacks Rank #1.

The long-term expected earnings per share (three to five years) growth rate for Landstar is pegged at 12%. LSTR is benefitting from a gradual recovery in the economy and freight market conditions in the United States.

LSTR’s top and the bottom line increased substantially in each quarter from the third quarter of 2020, owing to robust revenues in the primary segment — truck transportation. LSTR has surged 27.7% in the past year. Landstar carries a Zacks Rank #2 (Buy).

The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW benefits from higher pricing and volumes across most of its service lines. Total revenues jumped 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments.

CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has moved up 5% in the past year. C.H. Robinson holds a Zacks Rank #2.
 

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