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GOL Linhas Traffic & Capacity Fall in May, Load Factor Rises

GOL Linhas AereasInteligentes S.AGOL recently reported air traffic figures for the month of May. Traffic - measured in revenue passenger kilometers (RPK) - dropped 2.4% to 2.7 billion in May 2017 from 2.8 billion a year ago.

On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) contracted 4.6% to 3.6 billion. This was primarily because of a decline of 3.2% and 14.5% in domestic and international capacity, respectively. International and domestic RPK in the month of May also deteriorated 6.6% and 1.9%, respectively. The carrier further witnessed a 0.4% decrease in passenger count in May.

On the other hand, load factor - percentage of seats filled by passengers - rose to 76.6% from 74.9% in May 2016. This was owing to capacity contraction exceeding the decline in traffic.

At the end of the first five months of 2017, RPK increased 1.2% while ASK slipped 1.7%. Load factor for the same period improved 220 basis points. The company however recorded a 10.1% reduction in the number of seats in first five months of 2017, while volume of departures fell 10.5%.

We remind investors that GOL Linhas reported better-than-expected earnings in first-quarter 2017, released last month. The carrier's earnings per share of $1.06 topped the Zacks Consensus Estimate of 15 cents. Net revenue in the first quarter of 2017 came in at $841.2 million (R$2.6 billion). While cargo revenues rallied 27.3%, passenger revenues declined 5.8%

Gol Linhas Aereas Inteligentes S.A. Price

Gol Linhas Aereas Inteligentes S.A. Price | Gol Linhas Aereas Inteligentes S.A. Quote

Zacks Rank & Key Picks

GOL Linhas currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in airline space are Air France-KLM SA AFLYY , Deutsche Lufthansa AG DLAKY and International Consolidated Airlines Group SA ICAGY . All sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Shares of Air France-KLM, Deutsche Lufthansa and International Consolidated Airlines gained above 55%, 38% and 7% respectively, over a period of three 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.


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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