Copa Holdings (CPA - Free Report) reported lackluster traffic figures for July, wherein load factor (% of seats filled by passengers) declined as traffic reduction was more than capacity contraction in the month.
Also, traffic, measured in revenue passenger miles (RPMs), decreased 2.6% year over year to 1.96 billion in the month. On a year-over-year basis, consolidated capacity (available seat miles/ASMs) inched down 0.8% year over year to 2.26 billion. Load factor declined 1.7 percentage points to 86.6%.
In the first seven months of 2019, the carrier generated RPMs of 12.55 billion, down 0.5% year over year and ASMs of 14.84 billion (down 1.2%). Load factor increased 0.6 percentage points to 84.6% during the same period as capacity contraction was more than the traffic decline on a year-to-date basis.
Notably, Copa Holdings’ July traffic report comes close on the heels of its second-quarter 2019 earnings report, wherein this Zacks Rank #1 (Strong Buy) stock delivered better-than-expected earnings and revenues. However, both capacity and traffic declined in the reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Furthermore, Copa Holdings, which competes with the likes of GOL Linhas (GOL - Free Report) , Azul (AZUL - Free Report) and LATAM Airlines (LTM - Free Report) in the Latin American aviation space, lowered its 2019 capacity guidance due to the grounding of the Boeing 737 MAX jets in its fleet. The carrier now anticipates capacity to slip 2% year over year compared to an increase of 1% expected previously. This Latin American carrier currently has a fleet size of 104, comprising six Boeing 737 MAX9, 82 Boeing 737NG and 16 Embraer-190 jets.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>