Gol Linhas To Cancel International Flights On Coronavirus Woes

Gol Linhas Aereas Inteligentes S.A. (NYSE:GOL) will be suspending all international flights effective Mar 28 through May 3 as coronavirus concerns mount. Additionally, due to plummeting air travel demand, the airline will slash its domestic capacity by 92% for the same period.

The carrier will only be operating a network of 50 daily flights between the São Paulo International airport in Guarulhos (GRU) and 26 other capital cities of Brazil to help customers with essential travel.

In these trying times, the Brazilian low-fare airline will, however, adjust its flight services as per the requirement from the capital cities and accordingly, provide additional flights to domestic and international destinations. Moreover, to ease customer worries, Gol Linhas has waived change fees for flights booked between Mar 28 and May 3.

With diminishing travel demand in the wake of the coronavirus outbreak, shares of Gol Linhas have plunged 79.3% since the beginning of February compared with the industry’s 56.8% decline.

Gol Linhas’ Latin American counterparts Avianca Holdings (NYSE:AVH) and Copa Holdings (NYSE:CPA) have temporarily closed all passenger operations. Among the U.S. carriers, United Airlines (NASDAQ:UAL) reduced its international schedule by approximately 90% for April.

Zacks Rank

Gol Linhas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>