Back to top

Image: Bigstock

Azul's (AZUL) February Traffic and Load Factor Fall Y/Y

Read MoreHide Full Article

In the wake of the coronavirus-induced suppressed air-travel demand, Azul S.A.’s (AZUL - Free Report) consolidated traffic for the month of February declined 34.4% year over year to 1,678 million. While traffic in the domestic markets fell 14.2%, international traffic tanked 96.6% year over year.

Consolidated capacity (measured in available seat kilometers) plunged 32.1% from February 2020 levels. With traffic decreasing more than capacity, consolidated load factor (% of seats filled with passengers) contracted 2.7 percentage points to 78.4%. Load factor in domestic declined 2.9 percentage points to 78.6%. However, traffic in the domestic markets was 4.6% higher in February 2021 from the February 2019 figure.

Apart from year-over-year numbers, what is alarming is that the recent spike in coronavirus cases in Brazil worsened the traffic scenario. Notably, Azul’s consolidated traffic in February declined 25.8% from January levels. Consolidated load factor in February dipped to 78.4% from 78.7% in January.

As a result of this bleak scenario, Azul’s shares have performed disappointingly on the bourses over the past month, shedding 22% of its value. Meanwhile, the Zacks Airline industry has witnessed a 12.5% rise in the same time period.

The next few months are also likely to be tough for this Brazilian carrier as stated by its CEO John Rodgerson due to “weak seasonality and the second wave of the pandemic”.

Zacks Rank & Stocks to Consider

Azul currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Transportation sector are Kansas City Southern (KSU - Free Report) , FedEx Corporation (FDX - Free Report)  and Herc Holdings (HRI - Free Report) . Both Kansas City Southern and FedEx carry a Zacks Rank #2 (Buy) while Herc Holdings sports a Zacks Rank #1 (Strong Buy) at present. 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 Kansas City Southern, FedEx and Herc Holdings is pegged at 15%, 12% and 31.2%, respectively.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

 


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Kansas City Southern (KSU) - free report >>

FedEx Corporation (FDX) - free report >>

Herc Holdings Inc. (HRI) - free report >>

AZUL SA (AZUL) - free report >>