Copa Holdings’ (CPA - Free Report) traffic, measured in revenue passenger miles (RPMs), declined 35.2% to 1.17 billion in August 2021 from the comparable period in 2019. The downside was caused by lower air-travel demand from the pre-pandemic levels (2019), due to rising cases of the Delta variant in Panama City.
Thanks to the tepid demand, capacity — measured in available seat miles (ASMs) — fell 30.6% from the 2019 level to 1.47 billion. With traffic declining more than the amount of capacity contraction, load factor (percentage of seats filled with passengers) deteriorated 570 basis points to 79.6% in August.
The picture is rosier on a month-over-month basis. Owing to increased inoculation programs, air-travel demand is continuously improving. The Panama-based carriers’ August traffic statistics represent a significant increase on a month-over-month basis. Traffic rose nearly 3.4% sequentially in August, while capacity climbed 2.4%. Since traffic expansion outweighed capacity growth, load factor improved 80 basis points in August from the July level.
Zacks Rank & Stocks to Consider
Copa Holdings’ 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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Copa Holdings’ (CPA - Free Report) traffic, measured in revenue passenger miles (RPMs), declined 35.2% to 1.17 billion in August 2021 from the comparable period in 2019. The downside was caused by lower air-travel demand from the pre-pandemic levels (2019), due to rising cases of the Delta variant in Panama City.
Thanks to the tepid demand, capacity — measured in available seat miles (ASMs) — fell 30.6% from the 2019 level to 1.47 billion. With traffic declining more than the amount of capacity contraction, load factor (percentage of seats filled with passengers) deteriorated 570 basis points to 79.6% in August.
The picture is rosier on a month-over-month basis. Owing to increased inoculation programs, air-travel demand is continuously improving. The Panama-based carriers’ August traffic statistics represent a significant increase on a month-over-month basis. Traffic rose nearly 3.4% sequentially in August, while capacity climbed 2.4%. Since traffic expansion outweighed capacity growth, load factor improved 80 basis points in August from the July level.
Zacks Rank & Stocks to Consider
Copa Holdings’ 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.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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