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Gol Linhas Buoyed by Robust Demand Expects Solid Q3 PRASK
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Gol Linhas Aereas Inteligentes S.A. provided an update on its upcoming third-quarter 2019 results, set to be released on Oct 31.
The company is thriving on the back of solid demand for air travel. Evidently, air traffic, measured in revenue passenger kilometers (RPK), is anticipated to rise approximately 12.8% year over year in the third quarter. Owing to this tailwind, passenger unit revenues (PRASK) are anticipated to ascend approximately 20% year over year. Additionally, unit revenue (RASK) is estimated to climb nearly 19% in the quarter.
While total capacity (available seat kilometers or ASKs) is predicted to increase approximately 7.6%, the total number of seats are estimated to go up nearly 7.8%.
The airline anticipates EBITDA margin in the range of 29-31%, indicating an increase from 18.9% in the third quarter of 2018. Additionally, EBIT margin is expected in the band of 17-18%.
Fuel unit costs (CASK fuel) are anticipated to decrease 7% year over year. Average fuel price per liter is expected in the range of R$2.90-R$2.98. On the contrary, non-fuel unit costs (CASK ex-fuel) are forecast to jump approximately 15% year over year due to delivery delays from the MAX groundings among other factors.
Gol Linhas reduced its debt levels in the quarter by amortizing R$182 million. The company’s financial leverage, measured by Net Debt/LTM EBITDA ratio, at the end of the quarter was approximately 2.9x. Total liquidity at the end of the third quarter is estimated to be R$4 billion, suggesting an increase from R$3.7 billion sequentially.
Shares of Allegiant Travel, Controladora Vuela and SkyWest have rallied more than 47%, 97%, and 23%, respectively, so far this year.
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Gol Linhas Buoyed by Robust Demand Expects Solid Q3 PRASK
Gol Linhas Aereas Inteligentes S.A. provided an update on its upcoming third-quarter 2019 results, set to be released on Oct 31.
The company is thriving on the back of solid demand for air travel. Evidently, air traffic, measured in revenue passenger kilometers (RPK), is anticipated to rise approximately 12.8% year over year in the third quarter. Owing to this tailwind, passenger unit revenues (PRASK) are anticipated to ascend approximately 20% year over year. Additionally, unit revenue (RASK) is estimated to climb nearly 19% in the quarter.
While total capacity (available seat kilometers or ASKs) is predicted to increase approximately 7.6%, the total number of seats are estimated to go up nearly 7.8%.
Gol Linhas Aereas Inteligentes S.A. Price
Gol Linhas Aereas Inteligentes S.A. price | Gol Linhas Aereas Inteligentes S.A. Quote
The airline anticipates EBITDA margin in the range of 29-31%, indicating an increase from 18.9% in the third quarter of 2018. Additionally, EBIT margin is expected in the band of 17-18%.
Fuel unit costs (CASK fuel) are anticipated to decrease 7% year over year. Average fuel price per liter is expected in the range of R$2.90-R$2.98. On the contrary, non-fuel unit costs (CASK ex-fuel) are forecast to jump approximately 15% year over year due to delivery delays from the MAX groundings among other factors.
Gol Linhas reduced its debt levels in the quarter by amortizing R$182 million. The company’s financial leverage, measured by Net Debt/LTM EBITDA ratio, at the end of the quarter was approximately 2.9x. Total liquidity at the end of the third quarter is estimated to be R$4 billion, suggesting an increase from R$3.7 billion sequentially.
Zacks Rank & Other Key Picks
Gol Linhas carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same space are Allegiant Travel Company (ALGT - Free Report) , Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS - Free Report) and SkyWest, Inc. (SKYW - Free Report) , each carrying the same Zacks Rank as Gol Linhas. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Allegiant Travel, Controladora Vuela and SkyWest have rallied more than 47%, 97%, and 23%, respectively, so far this year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>