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Airline Stock Roundup: ALGT's Rosy Traffic Report for January, CPA in Focus
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In the past week, Allegiant Travel Company’s (ALGT - Free Report) management announced that 27.2% more passengers (system-wide) were transported on various ALGT flights in January 2023 than in the previous year. The stronger-than-expected recovery in air-travel demand from the pandemic lows is leading to this rosy scenario pertaining to air traffic.
The upbeat air-travel demand scenario also resulted in Copa Holdings (CPA - Free Report) reporting better-than-expected earnings per share and revenues for fourth-quarter 2022. Fourth-quarter earnings-related updates were discussed in the previous write-up as well. JetBlue Airways (JBLU - Free Report) was also in the news courtesy of its environmentally-friendly deal with the climate tech company, CHOOOSE.
Recap of the Latest Top Stories
1 In January 2023, Allegiant carried 1.20 million passengers in scheduled service, up 27.6% from the January 2022 actuals. Revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 27% and 5.5%, respectively, from the year-ago levels. Load factor (percentage of seats filled by passengers) increased 14.1 points to 83.2% in January 2023, as the traffic increase was greater than the capacity expansion. Moreover, scheduled departures increased 6.4% year over year.
In January 2023, Allegiant carried 27.2% more passengers (system-wide) than that in January 2022. Capacity increased 5.1% from the year-ago month’s reading. Departures (system-wide) improved 6.3% from the January 2022 actuals. The estimated average fuel cost per gallon for January was $3.75 (systemwide).
Currently, Allegiant carries a Zacks Rank #3 (Hold).
2. Copa Holdings’ fourth-quarter 2022 earnings of $4.49 per share surpassed the Zacks Consensus Estimate of $4.09 and rose more than 100% year over year. Revenues of $890.6 million beat the Zacks Consensus Estimate of $883.8 million and improved year over year on the back of passenger revenues.
Passenger revenues (contributed 95.6% to the top line) increased 29.5%, owing to higher yields (up 12.1%). Cargo and mail revenues jumped 69% to $27.09 million, owing to higher cargo volumes and yields. In January, CPA took delivery of one Boeing 737 MAX 9. It anticipates receiving one additional aircraft by the end of the first quarter.
3. JetBlue has partnered CHOOOSE to create a new online platform, which allows passengers to estimate the amount of carbon dioxide emissions from flights. To stop these harmful emissions, passengers can make financial contributions to fund the usage of environment-friendly sustainable aviation fuel (SAF) on JetBlue flights. When compared with traditional petroleum-based fuels, the usage of SAF can bring about an 80% reduction in lifecycle greenhouse gas emissions. In 2022, a mere 0.3% of JetBlue’s fuel consumed was SAF. JBLU aims to convert 10 % of its total fuel to SAF by 2030.
4. Recognizing American Airlines’ (AAL - Free Report) efforts to reduce carbon dioxide emissions, Air Transport World named AAL as the 2023 Eco-Airline of the year. Owing to its environmentally-friendly attitude, AAL has improved its fuel efficiency by more than 10% since 2013, in turn saving 1.9 billion gallons of fuel and preventing 19 million metric tons of carbon dioxide. AAL used 2 million gallons of SAF in 2022, thereby doubling its usage year over year.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that most airline stocks have traded in the red over the five trading days. The NYSE ARCA Airline Index has decreased 1.6% to $60.14. Over the course of the past six months, the NYSE ARCA Airline Index was almost flat.
What's Next in the Airline Space?
Investors await the fourth-quarter 2022 earnings report of the Latin American carrier Gol Linhas , scheduled to be out on Mar 8.
We expect GOL’s performance to have been aided by improved air-travel demand in Latin America. However, high fuel costs are likely to have impeded the bottom-line performance in the to-be-reported quarter.
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Airline Stock Roundup: ALGT's Rosy Traffic Report for January, CPA in Focus
In the past week, Allegiant Travel Company’s (ALGT - Free Report) management announced that 27.2% more passengers (system-wide) were transported on various ALGT flights in January 2023 than in the previous year. The stronger-than-expected recovery in air-travel demand from the pandemic lows is leading to this rosy scenario pertaining to air traffic.
The upbeat air-travel demand scenario also resulted in Copa Holdings (CPA - Free Report) reporting better-than-expected earnings per share and revenues for fourth-quarter 2022. Fourth-quarter earnings-related updates were discussed in the previous write-up as well. JetBlue Airways (JBLU - Free Report) was also in the news courtesy of its environmentally-friendly deal with the climate tech company, CHOOOSE.
Recap of the Latest Top Stories
1 In January 2023, Allegiant carried 1.20 million passengers in scheduled service, up 27.6% from the January 2022 actuals. Revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 27% and 5.5%, respectively, from the year-ago levels. Load factor (percentage of seats filled by passengers) increased 14.1 points to 83.2% in January 2023, as the traffic increase was greater than the capacity expansion. Moreover, scheduled departures increased 6.4% year over year.
In January 2023, Allegiant carried 27.2% more passengers (system-wide) than that in January 2022. Capacity increased 5.1% from the year-ago month’s reading. Departures (system-wide) improved 6.3% from the January 2022 actuals. The estimated average fuel cost per gallon for January was $3.75 (systemwide).
Currently, Allegiant carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
2. Copa Holdings’ fourth-quarter 2022 earnings of $4.49 per share surpassed the Zacks Consensus Estimate of $4.09 and rose more than 100% year over year. Revenues of $890.6 million beat the Zacks Consensus Estimate of $883.8 million and improved year over year on the back of passenger revenues.
Passenger revenues (contributed 95.6% to the top line) increased 29.5%, owing to higher yields (up 12.1%). Cargo and mail revenues jumped 69% to $27.09 million, owing to higher cargo volumes and yields. In January, CPA took delivery of one Boeing 737 MAX 9. It anticipates receiving one additional aircraft by the end of the first quarter.
3. JetBlue has partnered CHOOOSE to create a new online platform, which allows passengers to estimate the amount of carbon dioxide emissions from flights. To stop these harmful emissions, passengers can make financial contributions to fund the usage of environment-friendly sustainable aviation fuel (SAF) on JetBlue flights. When compared with traditional petroleum-based fuels, the usage of SAF can bring about an 80% reduction in lifecycle greenhouse gas emissions. In 2022, a mere 0.3% of JetBlue’s fuel consumed was SAF. JBLU aims to convert 10 % of its total fuel to SAF by 2030.
4. Recognizing American Airlines’ (AAL - Free Report) efforts to reduce carbon dioxide emissions, Air Transport World named AAL as the 2023 Eco-Airline of the year. Owing to its environmentally-friendly attitude, AAL has improved its fuel efficiency by more than 10% since 2013, in turn saving 1.9 billion gallons of fuel and preventing 19 million metric tons of carbon dioxide. AAL used 2 million gallons of SAF in 2022, thereby doubling its usage year over year.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that most airline stocks have traded in the red over the five trading days. The NYSE ARCA Airline Index has decreased 1.6% to $60.14. Over the course of the past six months, the NYSE ARCA Airline Index was almost flat.
What's Next in the Airline Space?
Investors await the fourth-quarter 2022 earnings report of the Latin American carrier Gol Linhas , scheduled to be out on Mar 8.
We expect GOL’s performance to have been aided by improved air-travel demand in Latin America. However, high fuel costs are likely to have impeded the bottom-line performance in the to-be-reported quarter.