GOL Linhas Aereas Inteligentes S.A. (GOL) recorded a y-o-y demand growth of 12.3% and 16.7% on its domestic and international route network, respectively. GOL’s total load factor reached 62.9% in May, up 5.0 percentage points year over year while yield remained close to R$19.00 cents. The company aims to improve aircraft productivity in order to leverage the global aviation demand.
The domestic market demand growth was mainly attributable to the company’s dynamic fare management program offering an affordable low fare status even during a typically low-season month for encouraging domestic leisure traffic. Expansion of the route network (Montes Claros) amplified the demand scenario, thereby generating business. The expansion included the network’s regional penetration owing to the trade agreements signed by the company with regional partners since May 2010.
The upward movement has also been recorded in case of International demand. Apart from its low fare appeal and route expansion strategy, GOL has launched new international destinations (Bridgetown/Barbados and Aeroparque/Buenos Aires) and entered into partnership with travel agents to sell block seating on flights. This, along with 11% appreciation of Brazilian Real against dollar, has increased demand among the emerging middle class while boosting international tourism. The company’s codeshare agreement with Qatar airlines opened up additional sales channel and route network for GOL.
The company’s capacity expansion strategy is in line with the current global aviation scenario boosting supply by 3.8% year over year. Going forward, GOL plans to improve aircraft productivity by increasing load factor, reducing fuel consuming charter flights and reassessing financial route viability as a cost effective business tactics.
GOL Linhas is one of the most profitable low-cost airlines in the world. It is also the only low-fare, low-cost airline providing frequent services on routes connecting the major cities of Brazil as well as those in Argentina, Bolivia, Chile, Paraguay, Peru and Uruguay.
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