GOL: Another Flight to Caribbean – Analyst Blog

Low-fare airliner GOL Linhas Aereas Inteligentes S.A. (GOL) is initiating a couple of flights from Brasilia to the Caribbean.

 

Recently, GOL announced plans to introduce flights from Brasilia to Saint Marteen (Netherlands Antilles) in the Caribbean from June 12. At the beginning of this month, it announced flights between Brasilia to Barbados, which are expected start from June 26.

 

During the first quarter, GOL introduced new routes between Brazil and the Caribbean with flights to Aruba and Curacao.

 

Based on adjustments in the company’s international network, international demand increased, which will continue in the coming months.

 

During the first quarter, GOL reported an increase in international passenger traffic by 36.9% in January, 40.3% in February, and 23.6% in March. The repositioning of sales channels, including the opening and renovation of airport stores were another reason for increased demand.

 

GOL remains better positioned to capitalize on the increase of discounted air travel in Brazil and the rest of Latin America, given its strong market share and efficient operations. We expect the company to experience growth in the short-to-medium term given its continued investment in fleet renovation and international agreements.

 

In the first quarter, GOL took delivery of five Boeing 737-800NG SFPs to replace five Boeing 737-300s and three Boeing 737-800s, which were retired during the period. The company closed the quarter with 108 operational aircraft, with an average age of 5.8 years.

 

Other Latin American and Chinese airline stocks have performed well in 2009. We believe that 2010 may be another profitable year for the airlines industry in the emerging markets, provided the overall economy continues to grow. Besides, the economic growth in emerging markets will be higher than in the developed markets.