GOL Records Sharp July Load Factor

GOL Records Sharp July Load Factor

GOL recorded demand growth of 16.2 percent on its total route network in July, with an increase in its load factor to 75.8 percent; up 9.9 percentage points year over year and up 10.2 p.p. from a month ago.

Domestic market demand grew by 19.6 percent over a year-ago period. The increase was attributable to growth in airline industry capacity. Demand moved up by 26.7 percent compared with the previous month due to increased seasonal holiday trips in July and more aircraft operating days during the month. In terms of the daily average, demand scaled up by 22.7 percent during the reported month.

The International route network demand fell by 12.0 percent year over year. The year over year fall in demand was due to the discontinuation of flights to Bogotá as well as the return of B767 aircrafts operating again on international routes. These effects however were partially offset by tourism expansion across Southern Cone and the Caribbean coupled with 12.0 percent Real appreciation against Dollar.

Demand however increased by 54.5 percent compared with the previous month due to seasonal school holidays in July, higher number of operating days and currency appreciation.

The year over year increase in supply was recorded at 1.1 percent due to Bogota flight discontinuation, re-operation of B767 aircrafts as well as the conservative capacity addition strategy to raise the load factor. Supply grew by 11.3 percent compared with the month ago period primarily due to holiday seasonality. The aircraft productivity increased to 13.3 block-hours per day in July 2011, up from 13.0 block-hours per day, a year ago.

GOL’s net yield hovered within the range of 18.5 and 18.9 cents (R$) in July, down approximately 11.0 percent in the year-ago comparable period. The passenger revenue per available seat-kilometer (PRASK) fell by around 5.0 percent due to the load factor rise.

Of late, GOL Linhas reported financial results for the second quarter of fiscal 2011 on August 11, 2011. Net loss in the quarter was recorded at R$358.7 million (US$225.6 million).