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Copa Holdings Reports Robust Traffic Statistics for November

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Copa Holdings, S.A. (CPA - Free Report) has reported impressive traffic results for November. Traffic, measured in revenue passenger miles (RPMs), came in at 1.62 billion, up 10.6% from the year-ago figure.

On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) climbed 8.5% to 1.97 billion. As the increase in traffic outpaced capacity growth, the load factor (% of seats filled by passengers) expanded 160 basis points (bps) to 82.2% in the month.

For the first 11 months of 2017, Copa Holdings generated RPMs of 18.15 billion (up 12.8% year over year) and ASMs of 21.80 billion (up 8.9%). Load factor registered a rise of 290 bps year over year to 83.3% during the period.

Notably, the carrier has been benefitting from an improved Latin American economy for quite some time now. Moreover, a strong demand for air travel has also been aiding the company. This momentum is expected to continue going forward.

Buoyed by this optimism, the carrier has raised its guidance for 2017 load factor and RASM (revenue per available seat mile). The company now expects load factor of approximately 83% and RASM of around 10.5 cents. Previous guidance had called for an increase of 82% in load factor and 10.4 cents in RASM.

Zacks Rank & Key Picks

Copa Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are Gol Linhas Aereas Inteligentes S.A. , International Consolidated Airlines Group SA (ICAGY - Free Report) and Deutsche Lufthansa AG (DLAKY - Free Report) . While Gol Linhas and International Consolidated Airlines sport a Zacks Rank #1 (Strong Buy), Deutsche Lufthansa carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Gol Linhas, International Consolidated Airlines and Deutsche Lufthansa have soared more than 200%, 53% and 100%, respectively, in a year.

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