GOL Linhas Aéreas Inteligentes S.A.
), a low-cost airline based in Latin America, reported increased
air traffic for the month of December 2012. Per GOL's recent
strategy of reducing its domestic market supply, the company
closed down its Webjet operations in late November last year. The
effects of the shut down were reflected in the total domestic
supply for December 2012, reducing to the extent of 21%.
Driven by the holiday season across the American continent,
GOL witnessed rising international traffic. Therefore, in order
to meet up with this trend, the company increased its services to
various destinations. Moreover, the company also expanded its
operations to Santo Domingo and Miami to take full advantage of
the growing international demand.
For the reported month, the passenger revenue per available
seat kilometer (PRASK) increased by 14% due to the steps taken by
the company to restructure its domestic demand. For the fourth
quarter 2012, PRASK increased by 11% compared to the prior year
quarter. Also, the fuel prices for the month increased roughly
25% year over year, with the fourth quarter prices increasing
around 20% year over year.
Recently, another airline
LATAM Airlines Group S.A.
) reported its traffic updates for the same period. The domestic
passenger traffic increased 10.5% for the month compared to the
year-ago month. Also, last month, the company achieved an
increase in the load factor of about 1.8 percentage points
against a 4.9 percentage points for GOL over the same period last
Southwest Airlines Co.
), a Texas based airline, reported a fall in the traffic and
capacity for December 2012. Also, at the beginning of January
Delta Air Lines
) reported a modest increase in traffic for the same month.
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).
DELTA AIR LINES (DAL): Free Stock Analysis
GOL LINHAS-ADR (GOL): Free Stock Analysis
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