GOL up on stock upgrade and prospects of recovery: LCC SHARE WRAP

GOL's shares rose to the highest level in 14 months in Sao Paulo trading yesterday after Banco Santander raised its rating for the carrier’s stock from “underperform” to “hold”.

The increase reflected the Brazilian airline’s “improved operating performance, profitability, and balance sheet”. Banco Santander added that “second-quarter results and July traffic indicate that Gol’s turnaround process is succeeding.” The carrier, which gained 9.6% yesterday, was the largest upward mover on the Bovespa index.

Also gaining yesterday was AirAsia and Virgin Blue, both up 4.1%. In Europe, easyJet was stronger (+1.5%), while Ryanair was down slightly (-0.4%).

Selected LCCs daily share price movements (% change): 18-Aug-09