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Copa Holdings' (CPA) Traffic and Load Factor Decline in July

Zacks Equity Research

Copa Holdings CPA reported lackluster traffic figures for July, wherein load factor (% of seats filled by passengers) declined as traffic reduction was more than capacity contraction in the month.

Also, traffic, measured in revenue passenger miles (RPMs), decreased 2.6% year over year to 1.96 billion in the month. On a year-over-year basis, consolidated capacity (available seat miles/ASMs) inched down 0.8% year over year to 2.26 billion. Load factor declined 1.7 percentage points to 86.6%.

In the first seven months of 2019, the carrier generated RPMs of 12.55 billion, down 0.5% year over year and ASMs of 14.84 billion (down 1.2%). Load factor increased 0.6 percentage points to 84.6% during the same period as capacity contraction was more than the traffic decline on a year-to-date basis.

Copa Holdings, S.A. Price

Copa Holdings, S.A. Price

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

Notably, Copa Holdings’ July traffic report comes close on the heels of its second-quarter 2019 earnings report, wherein this Zacks Rank #1 (Strong Buy) stock delivered better-than-expected earnings and revenues. However, both capacity and traffic declined in the reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Furthermore, Copa Holdings, which competes with the likes of GOL Linhas GOL, Azul AZUL and LATAM Airlines LTM in the Latin American aviation space, lowered its 2019 capacity guidance due to the grounding of the Boeing 737 MAX jets in its fleet. The carrier now anticipates capacity to slip 2% year over year compared to an increase of 1% expected previously.  This Latin American carrier currently has a fleet size of 104, comprising six Boeing 737 MAX9, 82 Boeing 737NG and 16 Embraer-190 jets.

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