Back to top

Image: Bigstock

Copa Holdings (CPA) Posts Disappointing March Traffic Figures

Read MoreHide Full Article

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 (TRTN - Free Report) , 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.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>