Update: GOL Traffic Figures For Q2 2014 Are Significant

Jul.28.14 | About: GOL Linhas (GOL)

Summary

GOL reached its highest ever load factor in Q2 2014.

The company remains focused on growing strongly in international market.

In my original article I have stated that this strategy is key to the company.

The Passenger Load Factor (PLF) of GOL Linhas Aéreas Inteligentes S.A. (NYSE:GOL) has reached 75.2% in Q2 '14, an increase of 7.4 percentage points YoY. PLF is the capacity that is actually utilized of an aircraft, and is a crucial metric. According to data released today by the company, while domestic demand increased by 3.5% international demand grew 30.2% in the quarter. The number of paying passengers reached 18.3 million in the first six months of the year, a 10% increase YoY. International passengers still stood at 11% of the total traffic, but its share is growing fast. The World Cup was played in Brazil between June 12 and July 14. During this period 3.4 million passengers were transported which is relevant.

PRASK increased 27% YoY due to the climb in the load factor together with an excellent yield increase of 15% in Q2 '14. PRASK is the total passenger revenue divided by the total number of available seat kilometers. Being a powerful metric, the high level that was reached lead us to believe in the continued development of GOL's business.

In my original article I stated that the decisive aspect to GOL's full recovery will have to do with strong revenue growth in the corporate and international segments. This becomes crucial in order to face the Real weakness against the Dollar, and the possibility of increased oil prices. GOL appears to be on the right track.

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