U.S. Markets closed

Copa Holdings Posts Dismal August Traffic Data, Shares Down

Zacks Equity Research

Copa Holdings, S.A. CPA reported disappointing traffic figures for August, following which its shares declined 2.9% to close Friday’s (Sep 13) trading session at $98.59.

Consolidated traffic, measured in revenue passenger miles (RPMs), slipped 3% to 1.81 billion in the month. On a year-over-year basis, consolidated capacity (measured in available seat miles/ASMs) decreased 5% year over year to 2.13 billion.

Although load factor (% of seats filled by passengers) improved 180 basis points (bps) as traffic decline was less than the decrease in capacity, this alone does not justify healthy traffic results. With the prolonged grounding of the Boeing 737 MAX aircraft, the carrier has been battling low capacity issues. This, in turn, seems to be taking a toll on its traffic. The airline’s struggles are likely to persist with no certainty of the 737 MAX aircraft’s return to service.

In the first eight months of 2019, the carrier generated RPMs of 14.37 billion, down 0.8% year over year, and ASMs of 16.97 billion (down 1.7%). Load factor increased 70 bps to 84.7% during the period.

Copa Holdings, S.A. Price

 

Copa Holdings, S.A. Price

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


Zacks Rank & Other Key Picks

Copa Holdings sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the broader Transportation sector include Controladora Vuela Compania de Aviacion, S.A.B. de C.V. VLRS, Heartland Express, Inc.  HTLD and Radiant Logistics, Inc.  RLGT, each flaunting the same solid Zacks Rank as Copa Holdings. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Controladora Vuela, Heartland Express and Radiant Logistics have rallied more than 94%, 19% and 30% so far this year, respectively.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
 
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) : Free Stock Analysis Report
 
Heartland Express, Inc. (HTLD) : Free Stock Analysis Report
 
Radiant Logistics, Inc. (RLGT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research