GOL Linhas Aereas Inteligentes S.A. (GOL: 13.68 +0.06 +0.44%) announced its preliminary passenger traffic figures for January 2010. In January, GOL’s total passenger traffic grew by 32.1% in relation to the same period last year, reflecting the company’s better positioning in its markets and increased demand due to the recovery in Brazil’s economy.
Domestic passenger traffic increased 31.4% in relation to January 2008. International passenger traffic increased 36.9% year over year.
The key factor behind the upturn was the improved economic scenario in Brazil and South America, especially with regard to consumer confidence, and GOL’s strategic positioning in its operational markets.
Specifically with regard to the international market, the increase in demand was also due to adjustments to the company’s international route network, which now includes new routes from Brazil to the Caribbean with flights to Aruba and Curacao, the integration of GOL’s and VRG’s reservation systems in January 2009 and the repositioning of the sales channels last year, including the opening and renovation of airport stores abroad in order to adjust them to GOL’s business model and the client profile of the location in question.
GOL remains better positioned to capitalize on the increase of discounted air travel in Brazil and the rest of Latin America given its strong market share and efficient operations. We expect the company to experience growth in the short-to-medium term given its continued investment in fleet renovation and international agreements.
Moreover, other Latin American and Chinese airline stocks have performed well in 2009. We believe that 2010 may be another profitable year for the airlines industry in emerging markets provided the overall economy continues to grow. Current estimates for 2010 suggest that the economic growth in emerging markets will be higher than in the developed markets.
Domestic passenger traffic increased 31.4% in relation to January 2008. International passenger traffic increased 36.9% year over year.
The key factor behind the upturn was the improved economic scenario in Brazil and South America, especially with regard to consumer confidence, and GOL’s strategic positioning in its operational markets.
Specifically with regard to the international market, the increase in demand was also due to adjustments to the company’s international route network, which now includes new routes from Brazil to the Caribbean with flights to Aruba and Curacao, the integration of GOL’s and VRG’s reservation systems in January 2009 and the repositioning of the sales channels last year, including the opening and renovation of airport stores abroad in order to adjust them to GOL’s business model and the client profile of the location in question.
GOL remains better positioned to capitalize on the increase of discounted air travel in Brazil and the rest of Latin America given its strong market share and efficient operations. We expect the company to experience growth in the short-to-medium term given its continued investment in fleet renovation and international agreements.
Moreover, other Latin American and Chinese airline stocks have performed well in 2009. We believe that 2010 may be another profitable year for the airlines industry in emerging markets provided the overall economy continues to grow. Current estimates for 2010 suggest that the economic growth in emerging markets will be higher than in the developed markets.
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