Brazil Gol’s Air Traffic Jumps 27% in September

Gol counter in Brazil According to data just released by Brazilian Airline Gol, in September, that company recorded a 26.6% growth in air traffic demand compared to September of last year.

Gol attributes the good numbers to three main factors: the increased supply and improved distribution of seats due to the merger of Gol and Varig's operations in the fourth quarter of last year, the continued revitalization of the SMILES program (Latin America's largest mileage program with more than 6.4 million members) and competition in the domestic market, with successive fare reductions that drove up demand sharply in September.

In this scenario, domestic market demand moved up by 36.4% over September 2008 and by 6.5% over August 2009. However, the factors behind this demand increase were partially offset by the fewer number of days in September compared to August.

International demand dropped by 22.4% year-on-year due to the reduction in the supply of seats on less profitable international routes.

In comparison with August 2009, international demand rose by 21.1% due to the same factors that drove domestic demand and the recovery of traffic to Chile and Argentina, since the end of winter has led to a substantial reduction in H1N1 flu cases.

On the capacity front, seating capacity per kilometer flown climbed by 8.7% over September 2008, mainly due to the expansion of the operating fleet and a 4.2% decline in consolidated capacity in comparison with August 2009, due to the reduction in the supply of seats in the international market.

Operating Data    September   September   % Chg.    August     % Chg.
      2009 *      2008 *    (YoY)     2009 *      (MoM)

Total System
ASK (mm) (1)      3,289.7     3,027.4     8.7%     3,432.6     -4.2%
RPK (mm) (2)      2,184.6     1,725.3    26.6%     2,025.9      7.8%
Load Factor (3)    66.4%        57.0%   9.4 pp       59.0%    7.4 pp

Domestic Market
ASK (mm) (1)      2,922.1     2,547.5    14.7%     3,019.0     -3.2%
RPK (mm) (2)      1,962.6     1,439.3    36.4%     1,842.6      6.5%
Load Factor (3)     67.2%       56.5%  10.7 pp       61.0%    6.2 pp

International
Market
ASK (mm) (1)        367.5       479.9   -23.4%       413.5    -11.1%
RPK (mm) (2)        222.0       286.0   -22.4%       183.3     21.1%
Load Factor (3)     60.4%       59.6%   0.8 pp       44.3%   16.1 pp

(*) September 2009 preliminary figures; September 2008 and August 2009 ANAC figures.

The utilization ratio of Gol's operational fleet (measured in block hours) remained above 12 hours/day.

As a result of the highly competitive price scenario in the domestic market, average net yield in September was around R$ 17.00 cents, taking the quarterly yield slightly to approximately R$ 19.00 cents.

Despite the decrease in average net yield, the Company has maintained its operating cash generation in line with the two previous quarters.

Operating Data             3Q09       3Q08      % Chg.     2Q09    % Chg.
Total System – Quarter
ASK (mm) (1)            10,212.7   9,909.3      3.1%    9,635.2     6.0%
RPK (mm) (2)             6,705.8   5,942.5     12.8%    5,794.7    15.7%
Load Factor (3)            65.7%     60.0%    5.7 pp      60.1%   5.5 pp


(1) Available seat kilometers, or ASK, represents the aircraft seating capacity multiplied by the number of kilometers the seats are flown.

(2) Revenue passenger kilometers, or RPK, represents the number of kilometers flown by revenue passengers.

(3) Load factor represents the percentage of aircraft seating capacity that is actually utilized (calculated by dividing RPK by ASK).

Tags:

You May Also Like

Brazil: Pizzaiolo? You Should Mind Your Tongue, Mr. President!

Before he assumed the presidency, President Lula had dinner at my house more than ...

The Poor, Lusterless Life of Brazil’s Buckaroos

For over 100 years, Brazil’s cowboys have earned a living and shaped a culture ...

Brazil’s Embargo-Proof Cattle

Brazil’s Ministry of Agriculture and cattle ranchers are joining forces in an effort to ...

Brazilian Embraer Sells 30 New Jets to US Market

Embraer announced that it has reached an agreement for the sale of 30 firm ...

Brazil Wishes to Help in Middle East Saying the “Quartet” Talks Are Not Enough

Brazil’s foreign minister, Celso Amorim, was in Egypt at the end of last year ...

RAPIDINHAS

Sex The  Brazilian  Touch After all, the Bobbit episode does have its Brazilian connection. ...

Brazilian Government Invites Chavez to Receive Cancer Treatment in Brazil

The Brazilian government is offering medical treatment for the leader of Venezuela. Brazil’s Foreign ...

Brazil Drafts US Multinationals to Affirmative Action Program

Brazil’s Minister of the Special Secretariat of Policies for the Promotion of Racial Equality ...

Ahmadinejad Says He Won’t Renounce Right to Nuclear Technology. Lula Backs Him

The Iranian program of nuclear energy was supported today, November 23, by the president ...

Brazil Having a Hard Time Quenching World’s Thirst for Coffee

Worldwide demand for coffee is on the rise and grows 2% each year. That ...