Prime Air
  • ABOUT
  • NEWS
  • COMPANIES
  • HISTORY
  • SERVICES
  • RESOURCES
    • BROCHURE
    • PHOTO GALLERY
Rss
CONTACT
Prime Air
  • ABOUT US
  • NEWS
  • COMPANIES
  • HISTORY
  • SERVICES
  • RESOURCES
    • BROCHURE
    • PHOTO GALLERY
  • CONTACT US

July 10, 2015 By Shannon Balliet

GOL faces sharp stock decline

Shares of GOL Linhas Aereas Inteligentes dropped 2.1% this week, touching a 52-week low of $1.88. However, the company’s shares ended a little higher at $1.91, declining more than 63% in the past six months.

The price decline was largely the result of adverse foreign currency movements characterized by the strengthening of the U.S. dollar against Brazilian real. Furthermore, the 2015 projection by the International Air Transport Association (IATA) paints a gloomy picture for Latin American carriers. According to the forecast, these carriers will account for only $600 million of the estimated $29.3 billion global net profit in 2015.

For 2015, the company expects domestic supply to remain flat year over year. The company is also exposed to currency fluctuation risks due to its substantial scale of international operations. Moreover, operating costs related to aircraft rent, maintenance and promotional activities have put margins under pressure.

The company is highly dependent on products of big suppliers like Boeing 737-700/800 Next Generation aircraft and CFM 56-7B engines. A shift in loyalty among suppliers may affect the company’s profits going forward. Moreover, GOL has been facing considerable loans and liabilities which have increased the company’s debts and subsequently led to a weaker balance sheet.

Read more:  http://www.nasdaq.com/article/gol-at-52-week-low-on-currency-woes-dismal-iata-outlook-analyst-blog-cm494841#ixzz3fVeV8nM6

Filed Under: airlines https://ninjaforms.com/three/?utm_medium=plugin&utm_source=admin-notice&utm_campaign=Ninja+Forms+THREE&utm_content=Learn+More

Our GSSA Services

Sales and Marketing
Warehouse Management and ULD Control
Reception and Dispatch of Aircraft
Charters
Cold Storage Facilities
Ground Handling
Trucking
Ramp Supervision
Security
Revenue Accounting
Yield Management
Management Reports
Representation at Industry Events
Track and Trace
Customer Service
Direct Mailings
Market Analysis
TERMS AND CONDITIONS
RESOURCES
  • BROCHURE
  • PHOTO GALLERY
CONTACT US
FOLLOW US
Rss
PrimeGroup-White
PRIME GROUP
  • PRIMEAIR
  • PRIME LOGISTICS
  • PRIME FRESH HANDLING
  • PRIME PLANET
© 2022 Prime Group Holdings. All Rights Reserved | Website Designed by Lifecycle Marketing