This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

2 Brazil Airline Stocks to Watch

Stocks in this article: GOL TAM LFL

NEW YORK ( Karvy Global) -- Brazil's TAM (TAM) and Gol Linhas Aereas Inteligentes (GOL) are two airline stocks to watch.

Shareholders in TAM may benefit from the company's merger with another Latin America airline, while Gol could rise from a favorable industry outlook and strong fundamentals.

Brazilian domestic air traffic soared 18.6% to 6.98 billion passenger kilometers (4.33 billion miles) during December 2010 compared with the year-ago period, while international traffic rose 17.7% on a year-over-year basis during the same month, according to Brazil's Civil Aviation Authority (Anac).

For all of 2010, air traffic increased 23.5% to 70.2 billion passenger kilometers (43.6 billion miles), Anac adds. The Brazilian airline industry is witnessing rapid growth, benefiting from a significant increase in business travel and the country's robust economic growth (estimated at 7% for 2010).

Brazilian President Dilma Rousseff announced earlier this month that the government is mulling a plan to sell stakes in the country's airport authority, thereby bolstering private participation.

Brazil will experience higher passenger inflows related to the 2014 World Cup and 2016 Olympics. Moreover, the government is planning to ramp up investments for expanding airports.

According to Goldman Sachs, less than one-third of Brazilian families are potential air travelers right now. But that's expected to rise to 50% by 2020, with almost 12 million families flying for first time. What's more, international passenger traffic increased by 8.8% in 2010, due to a significant recovery in business and leisure travel, especially in Brazil, Russia, India and China, according to a United Nations report.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs