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GOL Linhas' (GOL) Traffic and Load Factor Increase in July

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GOL Linhas Aereas Inteligentes (GOL - Free Report) reported impressive air traffic figures for July, courtesy of the strong demand for air travel. Consolidated traffic, measured in revenue passenger kilometers (RPK), climbed 7.2% to 4.17 billion. While international RPK surged 64.8%, domestic RPK grew 1.8% in the month.

On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) increased 3.4% to 4.9 billion, primarily on 40.6% expansion in international capacity. Moreover, the carrier witnessed an 8.1% increase in consolidated passenger count in July driven by a 46% uptick on the international front.

Consolidated load factor, percentage of seats filled by passengers, improved to 84.6% from 81.6% a year ago as traffic growth exceeded capacity expansion. On a consolidated basis, departures and seats increased 3.5% and 4.3%, respectively.

In the first seven months of the year, consolidated RPK increased 8.5% while ASK grew 5.3%. Also, the load factor for the period improved 240 basis points to 82.2%. While GOL Linhas recorded a 0.5% rise in the volume of departures, the number of seats increased 3.4%.

Notably, GOL Linhas’ traffic report comes close on the heels of the Latin-American carrier’s second-quarter 2019 earnings report, wherein it reported in-line earnings but better-than-expected revenues.

Investors interested in the Latin American aviation space are keenly awaiting second-quarter earnings reports from Azul (AZUL - Free Report) and LATAM Airlines (LTM - Free Report) on Aug 8 and 14, respectively.

Zacks Rank & Another Key Pick

GOL Linhas sports a Zacks Rank #1 (Strong Buy). Investors interested in the Zacks Airline industry may also consider Delta Air Lines (DAL - Free Report) , which carries the same rank as GOL Linhas. You can see the complete list of today’s Zacks #1 Rank stocks here.

Delta has an impressive earnings surprise history, having outshined the Zacks Consensus Estimate in each of the trailing four quarters, the average being 3.8%.

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