Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
Brazil airline Gol's shares soar after unexpected Q4 net profit
Published Mar 08, 2023 09:26AM ET
© Reuters.
By Gabriel Araujo
SAO PAULO (Reuters) - Brazilian airline Gol Linhas Aereas Inteligentes SA on Wednesday reported an unexpected fourth quarter net profit, reversing a multi-billion-real loss seen a year earlier on the back of higher yields and positive tourism demand.
The surprisingly strong figures sent shares in the company soaring more than 12% in Sao Paulo morning trading, with analysts highlighting improving operating figures and strong revenue trends.
The firm's shares had already jumped roughly 30% in the previous two sessions after rival carrier Azul SA (NYSE:AZUL) predicted bluer skies ahead, driving travel-related stocks in Brazil up.
Gol, which said the results were preliminary as some auditing work was still left to be done, posted a net income of 230.9 million reais ($44.48 million) in the period, up from a 2.8 billion-real loss in the previous year.
Analysts polled by Refinitiv had forecast a net loss of 484.75 million reais.
"Despite fuel costs still being one of the main factors affecting revenues in the sector, Gol showed a strong operational improvement even against a complex macroeconomic backdrop," Guide Investimentos analyst Mateus Haag said.
Gol said the results reflected a strong recovery in demand for air travel in "all segments," leading it to the highest net operating revenue ever as well as the highest operating margin since the COVID-19 pandemic hit.
Quarterly net revenue totaled 4.7 billion reais, up 61.7% and above analysts' forecasts of 4.46 billion. The average yield per passenger jumped 24.8%, also hitting an all-time high.
"The beat came in mainly on the back of higher than expected unit revenues, which were only partially offset by a slight increase in unit costs," analysts at Goldman Sachs (NYSE:GS), which has given Gol a "buy" rating, said in a note to clients.
Gol's Chief Revenue Officer Eduardo Bernardes said the firm expects the recovery of the corporate market in the fourth quarter to continue to intensify during 2023, contributing to the expansion of the aviation market in general.
Gol also slightly reviewed estimates for the year, saying the annual average load factor is now forecast to reach about 81%, up from 80% in the previous estimate.
Full-year net revenue expectations were reduced by 500 million reais to about 19.5 billion reais, but diluted earnings per share in the full year were kept at 0.3 real, the airline added.
($1 = 5.1910 reais)
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.