Back to top

Image: Bigstock

Azul (AZUL) Inks Codeshare Deal With Gulf Carrier Emirates

Read MoreHide Full Article

In a customer-friendly move, Latin American carrier Azul S.A. (AZUL - Free Report) entered into a codeshare agreement with Emirates, an airline based in United Arab Emirates.

This new agreement offers Azul customers wider connectivity to various destinations including to and from eight cities operated by Azul in Brazil to Emirates’ global network through São Paulo. The benefits and convenience of a codeshare ticket provides passengers with seamless check-in, check-out, bag check and boarding on both sides of their journey.

Azul’s chief revenue officer, Abhi Shah stated, “We are delighted to announce this partnership with Emirates, which will provide seamless benefits and amenities to our customers, as well as access to a wide national and international network”.

With air travel demand improving from 2020 levels, we believe that the decision to enter into a codeshare agreement might boost traffic for Azul.

We remind investors that owing to the betterment in air-travel demand, total revenues at Azul surged more than 100% year over year to $321.4 million in second-quarter 2021. The upside can be attributed to widespread vaccination programs in Brazil. With more and more people taking to the skies, passenger revenues, accounting for 83.2% of the top line, escalated 401.7% from second-quarter 2020 levels.

Zacks Rank & Stocks to Consider

Azul 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.