Azul S.A. AZUL reported bland traffic numbers for April, 2020 primarily due to lacklustre air travel demand stemming from the COVID-19 outbreak. Both domestic as well as international demand and supply fell on a year-over-year and year-till-date basis. Moreover, consolidated load factor (% of seats filled by passengers) declined since consolidated traffic plunge was more than the capacity reduction.
Consolidated traffic (measured in revenue passenger kilometers or RPKs) fell 90% year over year. Apart from a significant decline of 92.6% in international traffic, the metric also plunged 89.3% on the domestic front, thereby buoying the overall figure. Consolidated capacity (measured in available seat kilometers/ASKs) dropped 87.7% due to 87.2% and 89.9% fall in domestic and international capacity, respectively.
Consolidated load factor fell to 68.8% (or 15.6 percentage points). Both domestic load factor declined 13.9 percentage points to 69.8 and international load factor declined 22.9 percentage points to 64%.
AZUL SA Price
AZUL SA price | AZUL SA Quote
Apart from the traffic report, Azul announced the closure of its acquisition of TwoFlex — a domestic airline company based in Brazil.The total purchase price will be R$123 million, payment of which is subjected to certain financial and operating conditions.
Zacks Rank and Stocks to Consider
Currently, Azul carry a Zacks Rank #4 (Sell). The company has a trailing four-quarter positive earnings surprise of more than 100%, on average. It reported better-than-expected earnings per share (EPS) in all of the last four quarters.
Investors interested in the Zacks Airline industry may also consider ControladoraVuelaCompania de Aviacion, S.A.B. de C.V. VLRS, Ryanair Holdings plc RYAAY and Alaska Air Group, Inc. ALK, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ControladoraVuelaCompania de Aviacion has a trailing four-quarter positive earnings surprise of 81.95%, on average. The carrier reported better-than-expected earnings per share (EPS) in all of the last four quarters.
Ryanair has a trailing four-quarter positive earnings surprise of 56.31%, on average. The carrier reported lower-than-expected EPS in one of the last four quarters and beat the Zacks Consensus Estimate in the other three.
Alaska has a trailing four-quarter positive earnings surprise of 10.55%, on average. The carrier reported better-than-expected earnings EPS in all of the last four quarters.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
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
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) : Free Stock Analysis Report
AZUL SA (AZUL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research