GOL Linhas A (GOL), recorded demand growth of 16.2% on its total route network in July, with an increase in its load factor to 75.8%; up 9.9 percentage points (p.p) year over year and up 10.2 p.p. from a month ago.
Domestic market demand grew by 19.6% over a year-ago period. The increase was attributable to growth in airline industry capacity. Demand moved up by 26.7% compared with the previous month due to increased seasonal holiday trips in July and more aircraft operating days during the month. In terms of the daily average, demand scaled up by 22.7% during the reported month.
The International route network demand fell by 12.0% year over year. The year over year fall in demand was due to the discontinuation of flights to Bogotá as well as the return of B767 aircrafts operating again on international routes. These effects however were partially offset by tourism expansion across Southern Cone and the Caribbean coupled with 12.0% Real appreciation against Dollar.
Demand however increased by 54.5% compared with the pervious month due to seasonal school holidays in July, higher number of operating days and currency appreciation.
The year over year increase in supply was recorded at 1.1% due to Bogota flight discontinuation, re-operation of B767 aircrafts as well as the conservative capacity addition strategy to raise the load factor. Supply grew by 11.3% compared with the month ago period primarily due to holiday seasonality. The aircraft productivity increased to 13.3 block-hours per day in July 2011, up from 13.0 block-hours per day, a year ago.
GOL’s net yield hovered within the range of 18.5 and 18.9 cents (R$) in July, down approximately 11.0% in the year-ago comparable period. The passenger revenue per available seat-kilometer (PRASK) fell by around 5.0% due to the load factor rise.
Of late, GOL Linhas reported financial results for the second quarter of fiscal 2011 on August 11, 2011. Net loss in the quarter was recorded at R$358.7 million (US$225.6 million).
GOL Linhas is one of the most profitable low-cost airlines in the world connecting the cities of Brazil as well as those in Argentina, Bolivia, Chile, Paraguay, Peru and Uruguay. The company currently operates about 38% of Brazil's domestic flights and 12% of international flights. It competes directly with its peers, such as Copa Holdings SA (CPA), LAN Airlines S.A (LFL), and TAM S.A (TAM).
COPA HLDGS SA-A (CPA): Free Stock Analysis Report
GOL LINHAS-ADR (GOL): Free Stock Analysis Report
LAN CHILE-ADR (LFL): Free Stock Analysis Report
TAM SA-ADR (TAM): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment