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AZUL December Passenger Traffic Increases From 2022 Levels
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Azul S.A. (AZUL - Free Report) reported double-digit year-over-year increases in traffic and capacity for December 2023.
In December, the Brazilian carrier’s consolidated revenue passenger kilometers (a measure of air traffic) and available seat kilometers (a measure of capacity) increased 5.7% and 2.9%, respectively, on a year-over-year basis. With consolidated passenger traffic growth outpacing capacity expansion, the load factor (the percentage of seats filled by passengers) improved to 79.8% from 77.6% in December 2022.
On the domestic front, with revenue passenger kilometers (4%) outpacing available seat kilometers (1.1%), the load factor increased to 79.2% from 77% in December 2022.
Internationally, revenue passenger kilometers and available seat kilometers increased 12.2% and 9.7%, respectively, on a year-over-year basis. The load factor increased to 81.7% from 79.9% in December 2022.
Azul’s chief executive officer, John Rodgerson, stated, “2023 was another strong year for Azul. Demand for our products and services remained extremely strong, our capacity and traffic increased 11% and 12% respectively, leading to load factor expansion and an all-time record RASK in 4Q23. We maintained our high on-time performance as we were the 2nd most punctual airline in the world. Through our strong operations, we now have the ability to focus on our growth and margin expansion for the next several years.”
Impressive air traffic has led to a 24.9% appreciation in the AZUL stock in the past year. This northward movement compares favorably with the 0.7% decline recorded by the Zacks Airline industry in the same time frame.
Image Source: Zacks Investment Research
Ryanair Holdings (RYAAY - Free Report) , a European carrier, also reported solid traffic numbers for December 2023, driven by upbeat air-travel demand. The number of passengers ferried on RYAAY flights in December 2023 was 12.54 million, implying that 9% more passengers flew than a year ago. The load factor was high at 91% in December 2023. RYAAY operated more than 72,500 flights in December 2023. However, more than 900 flights got cancelled due to the Israel/Gaza conflict.
Wabtec has an expected earnings growth rate of 22.43% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 27.2% in the past year.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 38.9% over the past 90 days. Shares of SKYW have surged 217.7% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.
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AZUL December Passenger Traffic Increases From 2022 Levels
Azul S.A. (AZUL - Free Report) reported double-digit year-over-year increases in traffic and capacity for December 2023.
In December, the Brazilian carrier’s consolidated revenue passenger kilometers (a measure of air traffic) and available seat kilometers (a measure of capacity) increased 5.7% and 2.9%, respectively, on a year-over-year basis. With consolidated passenger traffic growth outpacing capacity expansion, the load factor (the percentage of seats filled by passengers) improved to 79.8% from 77.6% in December 2022.
On the domestic front, with revenue passenger kilometers (4%) outpacing available seat kilometers (1.1%), the load factor increased to 79.2% from 77% in December 2022.
Internationally, revenue passenger kilometers and available seat kilometers increased 12.2% and 9.7%, respectively, on a year-over-year basis. The load factor increased to 81.7% from 79.9% in December 2022.
Azul’s chief executive officer, John Rodgerson, stated, “2023 was another strong year for Azul. Demand for our products and services remained extremely strong, our capacity and traffic increased 11% and 12% respectively, leading to load factor expansion and an all-time record RASK in 4Q23. We maintained our high on-time performance as we were the 2nd most punctual airline in the world. Through our strong operations, we now have the ability to focus on our growth and margin expansion for the next several years.”
Impressive air traffic has led to a 24.9% appreciation in the AZUL stock in the past year. This northward movement compares favorably with the 0.7% decline recorded by the Zacks Airline industry in the same time frame.
Image Source: Zacks Investment Research
Ryanair Holdings (RYAAY - Free Report) , a European carrier, also reported solid traffic numbers for December 2023, driven by upbeat air-travel demand. The number of passengers ferried on RYAAY flights in December 2023 was 12.54 million, implying that 9% more passengers flew than a year ago. The load factor was high at 91% in December 2023. RYAAY operated more than 72,500 flights in December 2023. However, more than 900 flights got cancelled due to the Israel/Gaza conflict.
Zacks Rank and Stocks to Consider
Azul currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) and SkyWest, Inc. (SKYW - Free Report) . Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wabtec has an expected earnings growth rate of 22.43% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 27.2% in the past year.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 38.9% over the past 90 days. Shares of SKYW have surged 217.7% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.