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Azul Posts Encouraging June Traffic and Load Factor Data

With air-travel demand increasing gradually, Azul S.A. AZUL reported impressive June traffic numbers. Both domestic as well as international demand and supply increased on a month-over-month basis. Moreover, consolidated load factor (% of seats filled by passengers) inched up since consolidated traffic demand was more than the capacity expansion.

Consolidated traffic (measured in revenue passenger kilometers or RPKs) surged 43.6% on a month-over-month basis. Apart from a 27.8% rise in international traffic, the metric soared 47% on the domestic front, thereby bumping up the overall figure. Consolidated capacity (measured in available seat kilometers/ASKs) jumped 37.1% owing to 43.9% and 9.7% growth in domestic and international capacity, respectively, from the past month levels.

Consolidated load factor at Azul, which competes with Gol Linhas GOL and Copa Holdings CPA in the Latin American aviation space, climbed to 75.5% (or 3.5 percentage points). Domestic load factor inched up 1.6 percentage points to 75.7% while international load factor rose 10.5 percentage points to 74.3% from the May reading.

While Gol currently carries a Zacks Rank #3 (Hold), Copa is a Zacks #4 Ranked (Sell) stock at present.

Zacks Rank & Key Pick

Azul currently carries a Zacks Rank of 3.

A better-ranked stock in the Zacks Transportation sector is Canadian Pacific Railway Limited CP, carrying a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Canadian Pacific’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 4.9%.

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Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
 
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
 
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
 
AZUL SA (AZUL) : Free Stock Analysis Report
 
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