GOL - Why Shares of Brazilian Airlines Are Up Today
A third Latin American airline has succumbed to bankruptcy, a sign of the toll the COVID-19 pandemic is taking on the industry. But for those that are still standing, the retrenchments are likely to offer opportunities, and some of the few remaining airlines in the region with stocks that trade in the U.S. are having a good day on Wednesday.
Shares of Gol Linhas Aereas Inteligentes (NYSE: GOL) are up 5.6% as of 1 p.m. EST on Wednesday, and shares of Azul (NYSE: AZUL) are 4.8% higher on the day.
Airlines around the globe have struggled due to the pandemic, with Grupo Aeromexico SAB de CV (OTC: GRPA.F) on Tuesday joining Latin American rivals Latam Airlines Group and Avianca Holdings in bankruptcy. Gol and Azul have struggled as well, with the stocks off 60% and 72% for the year, respectively, but so far they have held strong as others have been forced to reorganize.