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GOL Linhas' (GOL) Traffic & Load Factor Increase in April

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GOL Linhas Aereas Inteligentes S.A. (GOL - Free Report) reported air traffic figures for April 2019. Traffic, measured in revenue passenger kilometers (RPK), climbed 7.8% to 2.98 billion. While international RPK surged 36.9%, domestic RPK grew 4.3% in the month.

On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) was up 6.7% to 3.69 billion, primarily on 31.1% expansion in international capacity. Moreover, the carrier witnessed a 6.2% increase in passenger count in April.

Load factor, percentage of seats filled by passengers, inched up to 80.8% from 80% a year ago as traffic growth exceeded capacity expansion.

At the end of the first four months of 2019, RPK increased 6.6% while ASK grew 5.3%. Also, load factor for the period improved 90 basis points. However, the company recorded a 0.6% dip in the volume of departures whereas the number of seats occupied by passengers was up 3.4%.

GOL Linhas recently reported first-quarter 2019 earnings numbers. The company’s adjusted earnings per share of 9 cents missed the Zacks Consensus Estimate by 24 cents. Results were hurt by 16.2% depreciation of the Brazilian real against the US dollar and high fuel costs.

Meanwhile, net revenues of R$3.2 billion improved 8.3% year over year owing to solid demand for air travel and a strong pricing. Passenger revenues accounted for bulk (94.5%) of the top line and rose 8.4% on a year-over-year basis. (Read more: Gol Linhas Misses on Q1 Earnings, Tweaks '19 & '20 View)

Zacks Rank & Key Picks

GOL Linhas carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are SkyWest, Inc. (SKYW - Free Report) , Swire Pacific Ltd. (SWRAY - Free Report) and GATX Corporation (GATX - Free Report) . While SkyWest and Swire Pacific sport a Zacks Rank #1 (Strong Buy), GATX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of SkyWest, Swire Pacific and GATX have gained more than 6%, 23% and 5%, respectively, in a year’s time.

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