Earlier this week, GOL Linhas Aereas Inteligentes S.A. (GOL) announced its preliminary traffic figures for November 2009. GOL reported demand growth of 41.1% compared to November 2008.
Domestic market demand increased by 45.9%, while International market demand improved 9.6%. The year-over-year growth was driven by the company’s unique positioning in South America, with one of the most comprehensive route network and a high flight frequency between Brazil’s main airports, along with a decline in the dollar exchange rate, and increased demand due to new flights to the Caribbean.
Improved demand reflects signs of a recovery in Brazilian consumer confidence since the beginning of the second half of 2009. The company is maintaining its strategy of increasing capacity as demand moves up. In November, GOL increased its domestic market capacity by 17.2%, while demand went up 45.9%. The company expects this upward trend to continue in the coming months.
GOL remains well positioned to capitalize on the growth of discount air travel in Brazil and the rest of Latin America, given its strong market position and efficient operations. Favorable trends in fuel prices and exchange rates are also benefiting the company’s outlook.
Although competitive pressures and the impact of the global financial crisis are a source of concern, GOL’s position is strong. We expect the company to experience growth in the short-to-medium term given its continued investment in fleet renovation and international agreements.
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