Back to top

Image: Bigstock

Gol Linhas (GOL) Secures $600 Million With Castlelake LP

Read MoreHide Full Article

In an effort to modernize its fleet, Gol Linhas Aereas Inteligentes completed a deal of securing up to $600 million with Castlelake LP to finance the buyout of  12 new 737 MAX aircraft. This agreement will enable GOL to replace NG planes with Boeing jets.

GOL Linhas CEO, Paulo Kakinoff stated, “With favorable market conditions for new MAX aircraft and our strong partnership with Boeing, as one of its largest customers, these aircraft further advance our market leadership position”.

The deal will include 10 finance leases and two sale-leasebacks. The interest for the lease is approximately 6%.  The delivery of these additional 12 Boeing 737 MAX aircraft starts this January.  To further cut costs, GOL anticipates returning up to 18 737 NG aircraft in 2022 and a total of 34 NG aircraft by the end of 2025.

This move to buy new Boeing 737 MAX planes will reduce carbon emissions and is in sync with GOL’s aim to reach carbon neutrality by 2050. These jets consume 15% less fuel, produce 16% fewer carbon emissions and 40% less noise, possessing greater flight range than the NG aircraft.

Zacks Rank & Stocks to Consider  

Gol Linhas currently carries a Zacks Rank #3 (Hold). 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 J.B. Hunt Transport Services (JBHT - Free Report) , FedEx Corporation (FDX - Free Report) and Schneider National (SNDR - Free Report) .

The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. The Dedicated Contract Services (DCS) unit is being aided by fleet-productivity improvement and a rise in average revenue-producing trucks. The Integrated Capacity Solutions (ICS) unit is gaining from a favorable customer freight mix as well as higher contractual and spot rates.

JBHT’s measures to reward shareholders are encouraging. Driven by the tailwinds, the stock has increased 41.3% in the past year. J.B. Hunt currently sports a Zacks Rank #1.

The long-term expected earnings per share (three to five years) growth rate for FedEx is pegged at 12%. FDX is benefitting from a surge in e-commerce demand amid the pandemic.

FDX exited first-quarter fiscal 2022 with cash and equivalents of $6,853 million, higher than its current debt of $125 million. FedEx currently carries a Zacks Rank #2.

The long-term expected earnings per share (three to five years) growth rate for Schneider is pegged at 20.7%. SNDR benefits from strong performance in the Intermodal and Logistics units.

SNDR’s third-quarter cash balance is also encouraging. Driven by the tailwinds, the stock has moved up 17.6% in the past year. Schneider currently sports a Zacks Rank #1.
 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


J.B. Hunt Transport Services, Inc. (JBHT) - free report >>

FedEx Corporation (FDX) - free report >>

Schneider National, Inc. (SNDR) - free report >>

Published in