GOL Linhas Aéreas Inteligentes S.A. (GOL) announced strong, preliminary air traffic figures for June 2021. Shares of Brazil’s largest low-cost domestic airline have jumped 22% over the past year.
Notably, in June, demand (Revenue Passenger Kilometres) for GOL’s flights jumped 282% year-over-year, while supply (Available Seat Kilometres) leaped 260%. Revenue Passenger Kilometres (RPK) and Available Seat Kilometres (ASK) are common metrics used in the airline industry to measure market demand and supply. (See GOL stock chart on TipRanks)
Furthermore, on a quarterly basis, RPK and ASK grew 343.9% and 307.55%, respectively, during the second quarter of 2021 compared to the prior-year quarter.
Domestic load factor grew 470 bps to 83.9% versus 79.2% reported in June 2020, while the number of passengers traveled increased 278% year-over-year.
The company said that it did not operate regular international flights during June.
HSBC analyst Cenk Orcan recently reiterated a Hold rating on the stock.
Orcan believes that Latin American traffic recovery is visible. However, he also thinks that the recovery may be unevenly distributed across the large markets.
GOL scores a 6 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.
Overall, the stock has a Hold consensus rating based on 1 Buy, 2 Holds, and 1 Sell. The average Gol Linhas price target of $8.80 implies 4.8% downside potential from current levels.
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