Copa Holdings, S.A. (NYSE:CPA) reported below par traffic numbers for January 2020. Consolidated traffic, measured in revenue passenger miles (RPMs), slipped 5.7% to 1.82 billion in the month. On a year-over-year basis, consolidated capacity (measured in available seat miles/ASMs) dropped 7% year over year to 2.16 billion.
The downside was caused by 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 revenues. The company’s fourth-quarter performance is likely to get impacted by this drab scenario.
Meanwhile, with traffic declining less than the amount of capacity contraction, load factor (% of seats filled by passengers) increased 120 basis points to 84.2% in January.
Zacks Rank & Key Picks
Copa Holdings carries a Zacks Rank #4 (Sell). Few better-ranked airline stocks are Azul SA (NYSE:AZUL) , Ryanair Holdings plc ( (NASDAQ:RYAAY) and Delta Air Lines (NYSE:DAL) . All three carriers sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Azul, Ryanair and Delta have rallied more than 6%, 6% and 3%, respectively, in the past three month.
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Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
AZUL SA (AZUL): Free Stock Analysis Report
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