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Copa Holdings (CPA) Posts Disappointing March Traffic Figures

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In the wake of the continued coronavirus-induced suppressed air-travel demand, Copa Holdings’ (CPA - Free Report) traffic for March, measured in revenue passenger miles (RPMs), declined 42.5% year over year to 577 million. The same declined 67.4% since March 2019.

To tackle this depressed demand scenario, Copa Holdings is trimming capacity. Measured in available seat miles, capacity plunged 43.4% to 773 million from March 2020 levels.  The metric declined 63.7% from the reported figure of March 2019.

With traffic decreasing less than capacity reduction, consolidated load factor (% of seats filled with passengers) expanded 1.2 percentage points (pp) to 74.6%. Load factor declined 8.7 pp from March 2019 levels.

For first-quarter 2021 (detailed results coming out on May 5), Copa Holdings expects its capacity to reach approximately 2.6 billion or around 40% of the capacity in first-quarter 2019. Total revenues are anticipated in the range of $170-$200 million or 25-30% of total revenues for the first quarter of 2019.  

Zacks Rank & Stocks to Consider

Copa Holdings currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Transportation sector are Triton International Limited , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings (HRI - Free Report) . While Landstar carries a Zacks Rank #2 (Buy), Triton and Herc Holdings sport 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 Triton, Landstar and Herc Holdings is pegged at 10%, 12% and 31.2%, respectively.

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Copa Holdings, S.A. (CPA) - free report >>

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