Send me real-time posts from this site at my email

Gol Linhas (GOL) Expects Q2 Demand & Capacity to Surge Y/Y

Gol Linhas Aereas Inteligentes S.A. GOL provided its expectations for the second quarter of 2021.

Amid coronavirus-led disruptions in the aviation industry, the airline estimates approximately 126 domestic routes to have been served in the second quarter, which is about 87% of the 2019 level. Average operating fleet is estimated to be around 50% of the pre-pandemic level.

The carrier anticipates net operating revenues to be approximately R$1 billion in the second quarter, which represents 31% of the revenues in the same period in 2019. Load factor (percentage of seats filled with passengers) in the period is forecast to be 85.1%. While EBITDA margin is estimated to be between 16-18%, EBIT margin is predicted to be in the range of 8-10%. The company anticipates average fuel price per liter to be R$3.38 - R$3.44 in the second quarter. Its net cash burn is expected to be neutral in the quarter.

Gol Linhas expects passenger revenues per available seat kilometers (PRASK) to decline approximately 17% in the second quarter from the year-ago level as air-travel demand remains suppressed in Brazil amid a third wave of coronavirus. Operating cost per available seat mile, excluding fuel, is estimated to be down around 55% from the second quarter of 2020.

Domestic demand, measured in revenue passenger kilometers (RPK) is estimated to surge more than 300% in the second quarter from the year-ago level, highlighting the improvement in travel demand from the lows in 2020. Domestic capacity, measured in available seat kilometers (ASK), is also expected to rise more than 300%. The company estimates total demand, capacity and the number of seats to increase more than 300% as well in the to-be-reported quarter. Detailed result will be available on Jul 29.

Zacks Rank & Key Picks

Gol Linhas carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are C.H. Robinson Worldwide CHRW, Expeditors International of Washington EXPD and ArcBest Corporation ARCB. While ArcBest sports a Zacks Rank #1 (Strong Buy), C.H. Robinson and Expeditors carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of C.H. Robinson, Expeditors and ArcBest have rallied more than 10%, 64% and 100% in a year’s time, respectively.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
ArcBest Corporation (ARCB): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue