Shares of GOL Linhas Aereas Inteligentes S.A. (GOL) scaled a 52-week high of $4.76 in the trading session on Jun 19, 2023, before closing a tad lower at $4.67.
The company’s shares have gained 74.9% year to date, significantly higher than 27% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s find out the factors supporting the uptick.
Continued recovery in air travel demand in Brazil bodes well for Gol Linhas. In first-quarter 2023, revenues from passenger transportation, accounting for 92.2% of total revenues, jumped 50.6%, thanks to continued recovery in air travel demand in Brazil. Gol Linhas transported 7.9 million passengers in the first quarter, up 17.7% from the year-ago number. Strong air travel demand is likely to aid second-quarter results as well.
Meanwhile, Gol Linhas recently reported a double-digit year-over-year increase in traffic and capacity. In May 2023, consolidated revenue passenger kilometers (a measure of air traffic) and available seat kilometers (a measure of capacity) increased 13.1% and 14.9%, respectively, on a year-over-year basis. The load factor was 76.1%. The number of flight departures at GOL in May registered a 20.7% year-over-year increase. Consolidated passenger on board rose 20.1% year over year.
Domestic departures, accounting for more than 95% of total departures during the month, grew 19.3% on a year-over-year basis. On the domestic front, the number of seats increased 19.5% in May. International departures surged 66.9% in May on a year-over-year basis. The number of seats surged 68.9% internationally.
On the domestic front, passenger on board rose 19.7% year over year. Internationally, the metric increased 28.9% year over year.
Zacks Rank & Stocks to Consider
Gol Linhas currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the Zacks Transportation sector are Copa Holdings CPA and Allegiant Travel Company ALGT. Each of these companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 75.42% for the current year. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 25.5% over the past 90 days. Shares of CPA have soared 32.5% over the past six months.
Allegiant has an expected earnings growth rate of more than 100% for the current year. ALGT delivered a trailing four-quarter earnings surprise of 79.78%, on average.
The Zacks Consensus Estimate for ALGT’s current-year earnings has improved 46.5% over the past 90 days. Shares of ALGT have soared 77.9% over the past six months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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