GOL Linhas Aéreas Inteligentes S.A.
), a low-cost airline based in Latin America, reported increased
air traffic for the month of Jan 2013, reaping benefits from
reduced capacity in domestic markets and subsequent international
For January, the passenger revenue per available seat
kilometer (PRASK) increased by 10% as a result of the reduction
in the domestic market supply. Also, the fuel prices for the
month increased roughly 18% year over year.
GOL is working in an appropriate manner to strategically
reduce supply in the domestic market, which led to the closure of
Webjet operation in late November, last year. Following the
closure, the services related to the Boeing 737-300 have been
suspended, leading to a decline in the domestic market supply, to
the tune of 17.8% year over year.
Operations in the international market increased 34.2% year
over year in January, as a result of expansion of GOL's
operations to newer destinations like Santo Domingo, Miami and
Recently, another airline,
), reported its traffic updates for the same period. The revenue
passenger miles (RPM) for the company increased 11.2% year over
year in January.
Southwest Airlines Co.
), a Texas based airline, reported a fall in the traffic and
capacity for Jan 2013. Another leading U.S. passenger carrier
Delta Air Lines
) displayed flat traffic growth for the same period.
Earlier this month, GOL entered into an agreement with Delta
to support each other's loyalty programs to attract more fliers
to the airline. GOL is expected to report its fourth quarter and
fiscal 2012 results on March 25, 2013 after the market closes.
The stock currently holds a Zacks Rank #3 (Hold).
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GOL LINHAS-ADR (GOL): Free Stock Analysis
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