GOL Predicts Domestic Demand Growth of 10 to 15 Percent in 2011

Brazilian airline GOL Linhas Aereas Inteligentes SA issued its guidance for 2011 yesterday, saying that the company expects domestic air traffic demand to increase by 10 percent to 15 percent.

Demand is predicted to grow by between 2.5x and 3.0x Brazilian GDP, based on historical demand growth in recent years and on the financial market’s estimates of 2011 GDP growth of between 4 percent and 5 percent, combined with the continuing expansion of Brazil’s potential market led by the accelerated growth of the country’s middle class and tourism in South America and the Caribbean.

The airline predicts that it will transport between 33m and 36m passengers during the year, with a load factor of around 70 percent. Average nominal yields are expected to remain stable in comparison to 2010. During the year GOL will add four aircraft, increasing its operational fleet to 115 at the end of 2011.