Copa Holdings' (CPA) Traffic & Capacity Fall In November

Copa Holdings, S.A. (NYSE:CPA) reported disappointing traffic statistics for November. Consolidated traffic, measured in revenue passenger miles (RPMs), slipped 1.5% to 1.7 billion in the month. On a year-over-year basis, consolidated capacity (measured in available seat miles/ASMs) dipped 2.9% year over year to 1.99 billion.

This fall in capacity and the resultant decrease in traffic can be attributed to reduced capacity due to the extended grounding of the Boeing (NYSE:BA) 737 MAX jets. The carrier with six Boeing MAX 9 jets in its fleet removed all MAX flights from its schedule through March 2020. Consequently, multiple fight cancellations are affecting its revenues.

Meanwhile, with traffic declining less than the amount of capacity contraction, load factor (% of seats filled by passengers) improved 120 basis points (bps).

In the first 11 months of 2019, the carrier generated RPMs of 19.49 billion, down 0.9% year over year, and ASMs of 22.99 billion, down 2.4%. Load factor expanded 130 bps to 84.8% in the period.

Zacks Rank & Key Picks

Copa Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Allegiant Travel Company (NASDAQ:ALGT) , Ryanair Holdings plc (NASDAQ:RYAAY) and Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS) . While Allegiant and Ryanair sport a Zacks Rank #1 (Strong Buy), ControladoraVuela carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Allegiant, Ryanair and Controladora Vuela have rallied more than 74%, 22% and 97%, respectively, so far this year.

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