SÃO PAULO - Azul S.A. (B3: AZUL4, NYSE: AZUL) and GOL Linhas Aéreas have entered into a codeshare agreement, enhancing flight connectivity across Brazil. This partnership is set to offer passengers over 150 domestic destinations, combining the flight networks of both carriers.
Starting at the end of June, customers will be able to purchase tickets for exclusive domestic routes operated by either Azul or GOL through both airlines' sales channels. This collaboration does not include routes served by both companies.
The codeshare agreement will also integrate the airlines' loyalty programs, Azul Fidelidade and Smiles. Passengers can earn points on their preferred program for flights booked under the agreement.
Abhi Shah, President of Azul, highlighted the customer benefits, stating, "Our complementary offerings will provide customers with the widest range of travel options." Celso Ferrer, CEO of GOL, echoed this sentiment, emphasizing the expansion of travel choices within Brazil.
The arrangement simplifies travel processes for passengers. Check-in and baggage check must be completed with the operating airline or the first segment airline in case of connecting flights. Rescheduling and cancellations are to be managed by the ticket-selling airline. Additional services and loyalty program benefits will follow the respective airline's policies.
The codeshare agreement between Azul and GOL is expected to create over 2,700 new travel opportunities with just one connection, significantly enhancing the domestic travel landscape in Brazil.
Azul, recognized for its punctuality and service, operates 1,000 daily flights to more than 160 destinations with a fleet of over 180 aircraft. GOL, part of the Abra Group, has been a leading low-cost airline in Latin America since 2001, offering a variety of codeshare and interline agreements with global partners.
The information in this article is based on a press release.
InvestingPro Insights
Amidst the announcement of the codeshare agreement between Azul S.A. and GOL Linhas Aéreas, investors and stakeholders are keeping a watchful eye on Azul's financial metrics and market performance. According to InvestingPro data, Azul's market capitalization currently stands at 663.61 million USD. Despite facing challenges, the company has shown a revenue growth of 8.83% in the last twelve months as of Q1 2024, indicating a potential rebound in its operational scale.
InvestingPro Tips suggest that Azul is expected to see net income growth this year, and the valuation implies a strong free cash flow yield. These insights may be particularly relevant for investors considering the impact of the codeshare agreement on Azul's financial health and future prospects. With the company positioned as a prominent player in the Passenger Airlines industry, the partnership with GOL could be a strategic move to fortify its market presence.
However, it's worth noting that Azul has not been profitable over the last twelve months, and the stock has experienced significant volatility, with a 43.71% drop in the six-month price total return as of Q1 2024. Yet, analysts predict the company will be profitable this year, which could signal a turnaround for the airline. For those interested in a deeper analysis, InvestingPro offers additional tips on Azul, which can be accessed at https://www.investing.com/pro/AZUL4. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a total of 10 InvestingPro Tips for Azul.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.