Brazilian airline shares ’soar’
Brazilian airline, Gol, saw its share price rise yesterday after the US federal reserve cut interest rates by half a percentage point.
The Sao Paulo Bovespa exchange reported that Gol’s share price increased by 10.7 per cent and its US shares closed with an increase of 11 per cent, on the New York stock exchange.
The news follows announcements from the family-run company that it is considering a share buy-back but has not made a final decision.
Gol began in 2001 with just six planes and seven destinations and provided competition for Brazilian rival TAM Linhas Asreas airlines, which Gol’s market share is now just a small margin behind.
Airline analyst, Ray Neidl, of Calyon Securities, voiced his opinions on the market position of Gol airlines.
Speaking to the Associated Press, he described the company as experiencing "strong growth" with "profitability potential", but questioned the value of delisting the company from the stock market.
The rise in airline shares was not exclusive to Gol as UAL, the parent company of United Airlines, also saw a sharp increase of 3.6 per cent with Delta Airline’s shares also rising.
