Gol Jumps to Ten-Month High on Demand Outlook: Sao Paulo MoverDenyse Godoy
Gol Linhas Aereas Inteligentes SA, Brazil’s second-biggest carrier by market share, rallied to a ten-month high after an industry group said demand for air travel will jump as much as 9.5 percent this year.
Gol climbed 2.6 percent to 14.72 reais at the close of trading in Sao Paulo, the highest price since March. The Bovespa stock index rose 0.7 percent.
The number of airline tickets sold last year rose 7.1 percent and demand will increase faster this year as economic growth accelerates, Eduardo Sanovicz, the head of the country’s airline association, told reporters today in Sao Paulo.
“There is still big room for air transportation to expand in the country,” Pedro Galdi, the chief strategist at Sao Paulo-based brokerage SLW Corretora, said in a phone interview. “Gol has recovered in the past weeks because of this positive expectation, but the company has to improve its capital structure in order to present better results.”
Gol’s adjusted net loss narrowed 57 percent to 309.4 million reais in the third quarter of 2012 from the previous three months as the carrier cut flights and fired workers. It is seeking to renegotiate terms on bank loans to reduce its ratio of debt to assets.
Growth in Latin America’s biggest economy will quicken to 3.2 percent this year, according to the median estimate in a central bank survey of about 100 analysts published this week.
Gol has gained 14 percent this year.