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GOL Linhas' (GOL) Traffic & Load Factor Rise in February

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GOL Linhas Aereas Inteligentes S.A. (GOL - Free Report) reported air traffic figures for February 2019. Traffic, measured in revenue passenger kilometers (RPK), climbed 8.4% to 3.18 billion. While international RPK rose 17.8%, domestic RPK grew 6.9% in the month.

On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) was up 4.5% to 3.92 billion, primarily on 23.8% expansion in international capacity. Moreover, the carrier witnessed a 11.5% increase in passenger count in February.

Load factor, percentage of seats filled by passengers, ascended to 81.1% from 78.2% a year ago as traffic growth exceeded capacity expansion.

At the end of the first two months of 2019, RPK increased 6.6% while ASK grew 5.2%. Also, load factor for the period improved 120 basis points. However, the company recorded a 1% dip in the volume of departures whereas the number of seats occupied by passengers inched up 3.4%.

GOL Linhas recently reported fourth-quarter 2018 earnings numbers. The company’s adjusted earnings per share of 38 cents beat the Zacks Consensus Estimate of 21 cents. Meanwhile, net revenues of R$3.2 billion were 10.1% higher year over year owing to solid demand for air travel and a strong pricing. Passenger revenues accounted for bulk (93.3%) of the top line and rose 10.3% on a year-over-year basis. (Read more: Gol Linhas Q4 Earnings Beat,'19 & '20 EPS View Up)

Zacks Rank & Other Key Picks

GOL Linhas carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same space are Azul (AZUL - Free Report) , Air China Ltd. (AIRYY - Free Report) and SkyWest, Inc. (SKYW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Azul and Air China have rallied more than 70% and 16%, respectively, in the past six months. Meanwhile, the SkyWest stock boasts an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the trailing four reported quarters, the average being 16.9%.

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