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Azul's (AZUL) November Traffic Jumps 45% Y/Y, Capacity Up 48%

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Azul AZUL reported strong traffic results for November as air-travel demand continues to recover in Latin America, especially on the domestic front, courtesy of increased vaccinations.

AZUL’s traffic, measured in revenue passenger kilometers (RPKs), jumped 44.6% year over year on the domestic front. Capacity, measured in available seat kilometers (ASKs), increased 48.9% from the year-ago level. With capacity expansion outweighing traffic growth, load factor (percentage of seats filled by passengers) deteriorated 2.5 percentage points (p.p) to 81.3% last month.

Azul’s domestic traffic improved not only on a year-over-year basis but also from the pre-pandemic (2019) levels. While RPK rose 22.9% in November from the 2019 level, ASK climbed 24.2%. Domestic load factor decreased 0.9 p.p from November 2019.

AZUL Price

AZUL Price
AZUL Price

AZUL price | AZUL Quote


However, Azul’s international traffic continues to lag the pre-pandemic levels. International RPK plunged 72% in November from the 2019 level. In response to this weak demand, international ASK slumped 72.4% from November 2019. With traffic declining less than the amount of capacity contraction, international load factor rose 1.9 p.p to 84.7%.

Despite being below the pre-pandemic levels, Azul’s international traffic has improved significantly from the pandemic-induced slump. The carrier’s international RPK surged 52% year over year in November. International ASK increased 30.3% year over year. International load factor ascended 12.1 p.p.

Azul’s total RPK rose 45% year over year and 1.5% from the pre-pandemic level in November. ASK climbed 47.6% year over year and 2.6% from the 2019 level. Load factor deteriorated 1.5 p.p year over year and 0.9 p.p from the 2019 level to 81.5%.

Zacks Rank & Key Picks

Azul carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Transportation sector are as follows:

Expeditors International of Washington EXPD sports a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprising being 29.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Expeditors have appreciated more than 39% so far this year.

Schneider National SNDR carries a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21%.

Shares of Schneider National have rallied more than 24% so far this year.

ArcBest Corporation ARCB flaunts a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.4%.

Shares of ArcBest have surged more than 100% so far this year.


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AZUL (AZUL) : Free Stock Analysis Report

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