Brazilian Gol Flies 32% More People and Gets Help from Weak Dollar

Gol airline of Brazil Brazilian Airline Gol saw a demand on it route network grow by 32.1% in January over the same period last year (31.4% in the domestic market and 36.9% in the international market). It was the second consecutive month to record a year-on-year upturn.

According to the company, the key factor behind the upturn was the improved economic scenario in Brazil and South America, especially in regard to consumer confidence, and Gol’s strategic positioning in its operational markets.

Gol points out some of the factors they see contributing to the growth: high flight frequency between main airports, rewarding clients who schedule their trips in advance with lower fares, encouraging demand and reducing the number of available seats on flights where advanced booking is rare.

Specifically in regard to the international market, they say that the increase in demand was also due to adjustments to the international route network, which now includes new routes from Brazil to the Caribbean with flights to Aruba and Curacao and the integration of Gol’s and VRG’s reservation systems in January 2009.

Demand grew by 8.5% over December 2009 (5.3% in the domestic market and 35.3% in the international market). The international market growth drivers also included the 19.1% appreciation of the Brazilian real against the dollar over January 2009, which was a key factor that contributed positively to this growth, and the new Caribbean routes, which reached their sales peak in January.

As a result, the Company delivered a total load factor of 77.9% in January 2010 (77.3% in the domestic market and 81.8% in the international market), and the international market was 24.5 percentage points more than the 57.3% recorded in January 2009, and 11.5 percentage points up on the 70.3% registered in December 2009.

  Operating Data            January    January    Ch. %    December    Ch. %
                             2010*      2009*     (YoY)     2009*      (MoM)
  Total System
    ASK (mm) (1)            3,936.7    3,369.1    16.8%     3,702.9     6.3%
    RPK (mm) (2)            3,066.0    2,320.3    32.1%     2,827.0     8.5%
    Load Factor (3)           77.9%      68.9%   +9.0pp       76.3%   +1.5pp
  Domestic Market
    ASK (mm) (1)            3,443.2    2,854.4    20.6%     3,278.6     5.0%
    RPK (mm) (2)            2,662.3    2,025.4    31.4%     2,528.7     5.3%
    Load Factor (3)           77.3%      71.0%   +6.4pp       77.1%   +0.2pp
  International Market
    ASK (mm) (1)              493.5      514.6    -4.1%       424.3    16.3%
    RPK (mm) (2)              403.7      295.0    36.9%       298.3    35.3%
    Load Factor (3)           81.8%      57.3%  +24.5pp       70.3%  +11.5pp

( * ) January 2010 – preliminary figures; Figures from the National Civil Aviation Agency (Anac) for January 2009 and December 2009.

In January 2010, Gol increased its domestic capacity by 20.6%, while demand moved up by 31.4%. This strategy was more effective in the international market, where Gol reduced its capacity by 4.1%, while demand climbed by 36.9%.

Yields maintained their gradual recovery pace, averaging more than R$ 19.00 cents in January.

(1) Available seat kilometers (ASK) is the sum of the products obtained by multiplying the number of seats available on each flight stage by the distance of the average flight stage.

(2) Revenue passenger kilometers (RPK) is the sum of the products obtained by multiplying the number of revenue passengers carried on each flight stage by the average stage distance.

(3) Load factor is the percentage of aircraft seating capacity effectively used, which is calculated by dividing the number of passenger- kilometers flown by the number of seat-kilometers available.

Tags:

You May Also Like

Brazil’s College Quota: 10% for Poor and Blacks

Brazil’s government program, University for All, has received support from a total of 32 privately-owned ...

No New Scandal, Brazil Relaxes and Market Soars

Brazilian and Latin American shares moved solidly higher alongside strength in U.S. markets. The ...

Death Squad Spreads Terror in Rio Killing 30 in the Streets

Rio’s Secretariat of Public Safety Public is investigating the massacre of at least 30 ...

4.7% of All Brazil Exports Go to Arabs, a 35% Jump

Brazilian exports to the Arab countries generated US$ 7.07 billion from January to September, ...

Clothes and Jewels Play Together at Fashion Rio, Brazil

Brazilian beach fashion is standing out this week. Apart from the spring/summer shows at ...

Brazil on a Roll: US$ 100 Billion in Exports in 2005

The Brazilian minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, said on ...

Senator Marina Silva gets prize in the US

At 16, when disease forced her to go to the city, rubber-tapper Marina Silva ...

Brazil Launches Its First Bio Insecticide

Brazil’s  Embrapa Genetic Resources and Biotechnology and the Bthek Biotechnology Company are launching today ...

Brazil: 10 Years Later No Policeman Is in Jail for Massacre of 19 Workers

Of the 144 Brazilian military police incriminated in the  massacre of 19 rural landless ...

Despite 47.5% Fall 2.5 Million Children Still Work in Brazil

Between 1995 and 2003, the number of working children and adolescents between the ages ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`