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More nice news for Gol Linhas Aereas Inteligentes (NYSE:GOL), the low-cost airline in Brazil that's slowly expanding across South America.

Petrobras, which controls prices for oil in Brazil under governmental guidance, just cut jet fuel prices by 5.3%, according to both Investors Business Daily and Marketwatch articles I noticed today.

GOL already enjoyed the highest margins of any airline in the world, thanks to their keen eye on cost-cutting and their access to relatively cheap jet fuel in Brazil, where they do most of their fuel consumption and where prices were already well below international market rates.

And now ... even cheaper. Gol provided nice guidance for earnings this year and their stock has performed very well, and now, lower costs on fuel, which means more opportunity for them to either drive profit margins higher or cut fares even further, pressure their competitors, and continue to expand the market.

That's why GOL is one of my favorite companies these days -- sure, plenty of risk in owning an airline stock, especially one in Brazil, but the possible growth of air travel in the immature South American travel market dwarfs the growth we might see here in the States, and this management knows what it's doing (and the managing family still owns a huge portion of the company). Lots to like.


GOL 1-yr Chart

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Source: Brazilian Gol Has Highest Airline Margins (GOL)