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Copa Holdings (CPA) October Traffic Up, Load Factor Down

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Copa Holdings (CPA) October Traffic Up, Load Factor Down

Copa Holdings' (CPA) load factor declines in October as capacity expansion exceeds traffic growth.

Copa Holdings, S.A. CPA reported traffic figures for October. Traffic, measured in revenue passenger miles (RPMs), was 1.75 billion, up 2.7% from the year-ago figure.

On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) increased 6.2% to 2.14 billion. However, load factor (% of seats filled by passengers) contracted 280 basis points (bps) to 82% in the month as traffic growth was outstripped by capacity expansion.
 
In the first 10 months of 2018, the carrier generated RPMs of 17.95 billion (up 8.5% year over year) and ASMs of 21.51 billion (up 8.4%). Load factor registered a rise of 10 bps year over year to 83.4% during the period.

The company recently released third-quarter 2018 financial results posting lower-than-expected earnings. Moreover, the bottom line plunged significantly year over year. Quarterly revenues, though increased more than 2% year over year, fell shy of the Zacks Consensus Estimate. Results were hurt by high fuel prices and weakening Brazilian and Argentinian currencies. (Read more: Copa Holdings Q3 Earnings & Revenues Miss on Cost Woes)

Copa Holdings, S.A. Price

 

Copa Holdings, S.A. Price | Copa Holdings, S.A. Quote


Zacks Rank & Key Picks

Copa Holdings carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the airline space are Air France-KLM SA AFLYY, International Consolidated Airlines Group SA ICAGY and Spirit Airlines, Inc. SAVE, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Air France-KLM and Spirit Airlines have surged more than 33% and 43%, respectively, in the past six months. Meanwhile the International Consolidated Airlines stock has gained more than 6% in a month.

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