Gol Linhas Aereas Inteligentes S.A. reported a third-quarter 2023 loss of 25 cents per share against the Zacks Consensus Estimate’s earnings per share (EPS) of 4 cents. In the year-ago quarter, GOL reported a loss of 75 cents.  

Net operating revenues of $956 million lagged the Zacks Consensus Estimate of $974.4 million. However, with people again taking to the skies, the top line improved 24.8% year over year.

Revenues from passenger transportation, which accounted for 91.1% of total revenues, rose 13.1%, thanks to continued recovery in air-travel demand in Brazil. Cargo and other revenues surged 65.1%.

Gol Linhas transported 8.1 million passengers in the third quarter, up 16.4% from the year-ago number.

Consolidated revenue passenger kilometers, the measure for revenues generated per kilometer per passenger, increased 8.2% from the third quarter of 2022. Consolidated available seat kilometers (ASK), which measures an airline's passenger-carrying capacity, also rose 5.2% year over year with expanded domestic capacity.

Gol Linhas’ total load factor (percentage of seats filled with passengers) rose to 83.7% from 81.3% in the year-ago reported quarter. The net yield climbed 4.5% year over year. Net passenger revenues per ASK ascended 7.6%, while net revenues per ASK jumped 10.7%.

Fuel price per liter decreased 29.6% to $4.62. Cost per ASK fell 8% year over year. Excluding fuel, the metric increased 6.1%. Total operating expenses fell 3.2% year over year in the third quarter.

Gol Linhas exited the third quarter with total liquidity (cash and cash equivalents, financial investments, deposits and accounts receivable) of R$4.7 billion, up 27.7% from the prior-year quarter.

During the third quarter, operating activities generated cash of R$0.9 billion.

At the third-quarter end, Gol Linhas’ fleet comprised 141 Boeing 737 aircraft (97 NGs, 39 MAXs and 5 Cargo NGs).

2023 Outlook

Gol Linhas still expects capacity to increase 10%-15% year over year in 2023. GOL still estimates the load factor to be 82% (prior view: 81%) in the current year. Fuel price per liter is now predicted to be R$5.1 in the current year.

Net capital investments are still projected to be R$600 million. Total net revenues are now anticipated to be R$19.3 billion (prior view: R$19.5 billion) in the current year. The pre-tax margin is now estimated to be 3% (prior view: 4%) for 2023.

EBITDA margin and EBIT margin are now anticipated to be 24% and 14%, respectively. Previously, the metrics were expected to register 25% and 15%, respectively.

Currently, Gol Linhas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Transportation Companies

J.B. Hunt Transport Services, Inc.’s (JBHT Quick QuoteJBHT - Free Report) third-quarter 2023 EPS of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.

JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.

Delta Air Lines, Inc. (DAL Quick QuoteDAL - Free Report) reported third-quarter 2023 EPS (excluding 31 cents from nonrecurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.

DAL’s revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air-travel demand.

Alaska Air Group, Inc. (ALK Quick QuoteALK - Free Report) reported third-quarter 2023 EPS of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.

Operating revenues of $2,839 million missed the Zacks Consensus Estimate of $2,876.1 million. The top line jumped 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1% owing to continued recovery in air-travel demand.