GOL’s shares were down 1.7% yesterday, as Brazil’s Bovespa index fell from a 17-month high, slipping 1.3%, and narrowing this month’s 8.1% gain. GOL’s shares have more than doubled in 2009, beating a 77% gain in the overall index.
GOL’s CEO, Constantino de Oliveira Jr, meanwhile, stated GOL is raising fares for the first time in a year as the national economy shows signs of recovery. The carrier is charging passengers an average 12% more in 4Q3009 (compared to 3Q2009 levels), although fares are still “well below” 2008 levels.
This new advertising forum will increase ancillary revenue for the company and joins existing onboard advertising, including the carrier’s in flight magazine, seat pocket advertising, advertising on catering items like napkins and flight attendant announcements.
The LCC has also confirmed plans to launch a six-month cargo operation trial, as part of efforts to enhance its ancillary revenue streams. The carrier will handle cargo on several routes from London for a third-party cargo company later this week. The agreement was signed two days ago.
According to COO, Cor Vrieswijk, in an interview with Emirates Business 24/7, "I just signed off a business case to start cargo this week. It's going to be a pilot. It's going to be for small cargo and we don't know whether it's going to be successful. It will be basically on several routes from Gatwick. So we're going to try and see whether it will work…We'll see whether it's going to add money to the bottom line because that's ultimately the most important”.
See related article: easyJet sees large profitability decline but improvements ahead
Selected LCCs daily share price movements (% change): 18-Nov-09
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