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Azul's (AZUL) Traffic and Load Factor Plunge in December
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Owing to coronavirus led dwindling air travel demand mainly on the international front, Azul S.A. (AZUL - Free Report) releases disappointing traffic numbers for December 2020.
Consolidated traffic (measured in revenue passenger kilometers or RPKs) declined 31.4% year over year to 2.03 billion owing to 10.6% decline on domestic front and 85.3% fall, internationally. On a year-over-year basis, consolidated capacity (or available seat kilometres or ASKs) fell 28.4% to 2.54 billion. The downside was caused by 9% contraction in domestic capacity and 81.4% plunge in international capacity.
With traffic decline outpacing capacity contraction, load factor (percentage of seats filled by passengers) deteriorated 350 basis points (bps) to 80%. Both domestic load factor and international load factor tanked 150 bps and 1820 bps, respectively.
For 2020, the carrier registered RPK of 16.3 billion (down 45.5%) and ASK of 20.4 billion (down 43.1%). Consequently, load factor fell to 79.9% from 83.5% in the year-ago period.
On a month-over-month basis, consolidated domestic traffic and capacity soared 18.1% and 22.5% in December, respectively, from November reading. Consolidated load factor for December tanked to 80% compared with 83.1% in November. Both domestic and international load factor declined to 80.8% and 68.7% in December from 83.8% and 72.6% in November, respectively.
In December, the carrier flew more than 90% of its domestic capacity in comparison to same time last year. Moreover, Azul ended 2020 giving service to 113 destinations.
Long-term expected earnings per share (three to five years) growth rate for FedEx, Landstar and Herc Holdings is pegged at 12%, 12% and 12.6%, respectively.
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Azul's (AZUL) Traffic and Load Factor Plunge in December
Owing to coronavirus led dwindling air travel demand mainly on the international front, Azul S.A. (AZUL - Free Report) releases disappointing traffic numbers for December 2020.
Consolidated traffic (measured in revenue passenger kilometers or RPKs) declined 31.4% year over year to 2.03 billion owing to 10.6% decline on domestic front and 85.3% fall, internationally. On a year-over-year basis, consolidated capacity (or available seat kilometres or ASKs) fell 28.4% to 2.54 billion. The downside was caused by 9% contraction in domestic capacity and 81.4% plunge in international capacity.
With traffic decline outpacing capacity contraction, load factor (percentage of seats filled by passengers) deteriorated 350 basis points (bps) to 80%. Both domestic load factor and international load factor tanked 150 bps and 1820 bps, respectively.
For 2020, the carrier registered RPK of 16.3 billion (down 45.5%) and ASK of 20.4 billion (down 43.1%). Consequently, load factor fell to 79.9% from 83.5% in the year-ago period.
On a month-over-month basis, consolidated domestic traffic and capacity soared 18.1% and 22.5% in December, respectively, from November reading. Consolidated load factor for December tanked to 80% compared with 83.1% in November. Both domestic and international load factor declined to 80.8% and 68.7% in December from 83.8% and 72.6% in November, respectively.
In December, the carrier flew more than 90% of its domestic capacity in comparison to same time last year. Moreover, Azul ended 2020 giving service to 113 destinations.
Zacks Rank & Stocks to Consider
Azul currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are FedEx Corporation (FDX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Landstar carries a Zacks Rank #2 (Buy), while FedEx and Herc Holdings sport 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 FedEx, Landstar and Herc Holdings is pegged at 12%, 12% and 12.6%, respectively.
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