With Brazil reeling under a second wave of the deadly coronavirus pandemic, it was obvious that Azul’s (AZUL - Free Report) March traffic report will be a disappointment compared with its February numbers.
Notably, traffic, measured in revenue passenger kilometers, declined13.4% month over month. With travel demand falling below the year-ago levels, the company reduced capacity significantly. In the same time frame, capacity measured in available seat kilometers contracted 5% in March from February levels. Since traffic decline was more than capacity contraction, load factor (% of seats filled by passengers) skidded to 71.7% in March from 78.6% in February.
AZUL SA Price
AZUL SA price | AZUL SA Quote
However, on a year-over-year basis, the scenario was rosier with consolidated traffic increasing 11.2%. However, the capacity expansion in March was more (15.4%). Consequently, load factor decreased 2.7 percentage points. While traffic declined 8.9% domestically, the fall was huge (89.3%) internationally. Load factor declined 2.2 percentage points to 71.2% in March. Internationally, the measure plummeted 12.5% percentage points to 57.3% at Azul, which competes with the likes of Gol Linhas and Copa Holdings (CPA - Free Report) in the Latin American aviation space.
Zacks Rank & Key Pick
Azul presently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the Zacks Transportation sector is Old Dominion Freight Line (ODFL - Free Report) , presently carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Old Dominion have gained more than 75% in a year’s time.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
With Brazil reeling under a second wave of the deadly coronavirus pandemic, it was obvious that Azul’s (AZUL - Free Report) March traffic report will be a disappointment compared with its February numbers.
Notably, traffic, measured in revenue passenger kilometers, declined13.4% month over month. With travel demand falling below the year-ago levels, the company reduced capacity significantly. In the same time frame, capacity measured in available seat kilometers contracted 5% in March from February levels. Since traffic decline was more than capacity contraction, load factor (% of seats filled by passengers) skidded to 71.7% in March from 78.6% in February.
AZUL SA Price
AZUL SA price | AZUL SA Quote
However, on a year-over-year basis, the scenario was rosier with consolidated traffic increasing 11.2%. However, the capacity expansion in March was more (15.4%). Consequently, load factor decreased 2.7 percentage points. While traffic declined 8.9% domestically, the fall was huge (89.3%) internationally. Load factor declined 2.2 percentage points to 71.2% in March. Internationally, the measure plummeted 12.5% percentage points to 57.3% at Azul, which competes with the likes of Gol Linhas and Copa Holdings (CPA - Free Report) in the Latin American aviation space.
Zacks Rank & Key Pick
Azul presently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the Zacks Transportation sector is Old Dominion Freight Line (ODFL - Free Report) , presently carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Old Dominion have gained more than 75% in a year’s time.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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