Azul S.A. (AZUL - Free Report) posted impressive traffic numbers for July compared with June levels, as air-travel demand picks up on increased inoculation programs.
Consolidated traffic, measured in revenue passenger kilometers, increased 30.4% month over month. With travel demand rising, the company expanded capacity significantly. Capacity measured in available seat kilometers moved up 21.6% in July from June levels. Since traffic surge was more than capacity expansion, load factor (% of seats filled by passengers) rose to 82.3% in July from 76.8% in June.
On a year-over-year basis, the scenario was rosier with consolidated traffic surging 253%. In the same time frame, capacity expanded 241%. Load factor increased 2.8 percentage points (p.p) to 82.3%.
On the domestic front, traffic and capacity increased 268.6% and 252.7%, respectively, from the year-ago period’s levels. Consequently, load factor increased 3.6 p.p to 83% in July. Internationally, traffic and capacity surged 110.8% and 132.5%, respectively, in the same time frame. However, internationally load factor dropped 7.6 p.p to 73.4%.
Compared with July 2019 (pre-COVID) levels, both traffic and capacity (consolidated) plunged 20.9% and 16.8%, respectively. Load factor also tanked 4.3 p.p to 86.6% as decline in traffic was more than capacity contraction.
Zacks Rank & Stocks to Consider
Azul currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Knight-Swift and Landstar carry a Zacks Rank #2 (Buy), while Herc Holdings sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 49.2%, respectively.
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Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Azul S.A. (AZUL - Free Report) posted impressive traffic numbers for July compared with June levels, as air-travel demand picks up on increased inoculation programs.
Consolidated traffic, measured in revenue passenger kilometers, increased 30.4% month over month. With travel demand rising, the company expanded capacity significantly. Capacity measured in available seat kilometers moved up 21.6% in July from June levels. Since traffic surge was more than capacity expansion, load factor (% of seats filled by passengers) rose to 82.3% in July from 76.8% in June.
On a year-over-year basis, the scenario was rosier with consolidated traffic surging 253%. In the same time frame, capacity expanded 241%. Load factor increased 2.8 percentage points (p.p) to 82.3%.
On the domestic front, traffic and capacity increased 268.6% and 252.7%, respectively, from the year-ago period’s levels. Consequently, load factor increased 3.6 p.p to 83% in July. Internationally, traffic and capacity surged 110.8% and 132.5%, respectively, in the same time frame. However, internationally load factor dropped 7.6 p.p to 73.4%.
Compared with July 2019 (pre-COVID) levels, both traffic and capacity (consolidated) plunged 20.9% and 16.8%, respectively. Load factor also tanked 4.3 p.p to 86.6% as decline in traffic was more than capacity contraction.
Zacks Rank & Stocks to Consider
Azul currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Knight-Swift and Landstar carry a Zacks Rank #2 (Buy), while Herc Holdings sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 49.2%, respectively.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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