Shares of Brazil airline Gol rise on strong sales
SAO PAULO, July 28 (Reuters) - Gol Linhas Aereas SA , Brazil's No. 2 airline, reported strong second-quarter sales on Monday, lifting its shares to near a three-month high as concerns eased that the start of the World Cup had disrupted operations.
Passenger revenue per flight rose 27 percent from a year earlier as solid demand for a shrinking network helped to fill planes and boost ticket prices. A pricing indicator known as yield rose 15 percent.
Brazil's biggest airline, the TAM unit of Latam Airlines Group SA has already said that passenger traffic during the World Cup did not fall as much as expected. Strong demand from fans offset a decline in business travel during the month-long soccer tournament that began in Brazil in mid June.
Evidence of robust demand and higher prices from April to June boosted Gol shares as much as 6 percent in Sao Paulo trading to their highest levels since May 6.
Gol's outlook for the rest of the year has improved significantly in recent weeks, Chief Financial Officer Edmar Lopes said on a conference call held to discuss traffic numbers. Still, he said the airline expects economic activity to be "volatile" in the second half of the year.
Gol is scheduled to report its complete financial results for the second quarter on Aug. 13. (Reporting by Alberto Alerigi Jr.; Writing by Brad Haynes; Editing by Peter Galloway)
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