Advertisement
Canada markets open in 9 minutes
  • S&P/TSX

    21,318.08
    +145.68 (+0.69%)
     
  • S&P 500

    5,087.03
    +105.23 (+2.11%)
     
  • DOW

    39,069.11
    +456.87 (+1.18%)
     
  • CAD/USD

    0.7423
    +0.0004 (+0.06%)
     
  • CRUDE OIL

    77.36
    -1.25 (-1.59%)
     
  • Bitcoin CAD

    68,821.95
    +16.47 (+0.02%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,034.80
    +4.10 (+0.20%)
     
  • RUSSELL 2000

    2,013.84
    +19.10 (+0.96%)
     
  • 10-Yr Bond

    4.3190
    -0.0080 (-0.18%)
     
  • NASDAQ futures

    18,083.75
    +36.25 (+0.20%)
     
  • VOLATILITY

    14.01
    -0.53 (-3.65%)
     
  • FTSE

    7,687.29
    +2.80 (+0.04%)
     
  • NIKKEI 225

    39,098.68
    +836.48 (+2.19%)
     
  • CAD/EUR

    0.6850
    -0.0002 (-0.03%)
     

Airlines Post Impressive October Traffic Numbers: An Analysis

The Zacks Airline industry has been benefiting from buoyant air travel demand following the easing of COVID-19 travel restrictions and the reopening of the global economy. The industry is witnessing a solid recovery in demand for domestic as well as international flights. People are again booking flights, thereby leading to higher passenger revenues, which contribute to the bulk of most airlines’ top lines.

Driven by the buoyant scenario with respect to air traffic, Copa Holdings CPA, Gol Linhas Aereas Inteligentes GOL, Azul S.A. AZUL and Ryanair Holdings RYAAY reported impressive traffic numbers for September 2023. CPA, GOL and RYAAY each carry a Zacks Rank #3 (Hold). AZUL is a Zacks Rank #4 (Sell) stock.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Let’s take an in-depth look at these companies’ October traffic reports.

Driven by high passenger volumes, Copa Holdings’ revenue passenger miles (a measure of traffic) rose in double digits in October on a year-over-year basis. To match the demand swell, CPA is increasing its capacity. In October, available seat miles (a measure of capacity) increased 12% year over year. Revenue passenger miles increased 10.2%. The load factor (percentage of seats filled by passengers) came in at 87.6% for October 2023.

Gol Linhas reported a double-digit year-over-year increase in traffic and capacity for October 2023.

In October, consolidated revenue passenger kilometers (a measure of air traffic) increased 2.6% on a year-over-year basis, while available seat kilometers (a measure of capacity) fell 1.2%. With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) for October 2023 improved to 84.5% from 81.4% in October 2022. The number of flight departures at GOL in October registered a 3.1% year-over-year increase. Consolidated passengers on board rose 8.6% year over year.

On the domestic front, with revenue passenger kilometers (4.7%) outpacing available seat kilometers (1%), the load factor increased to 84.6% from 81.6% in October 2022. Internationally also, the load factor increased to 83.4% from 79.7% in October 2022.

Domestic departures, accounting for more than 95% of total departures during the month, grew 3.5% on a year-over-year basis. On the domestic front, the number of seats increased 4.7% in October. On the domestic front, passengers on board rose 9% year over year.

Azul reported double-digit year-over-year increases in traffic and capacity for October 2023.

In October, the Brazilian carrier’s consolidated revenue passenger kilometers (a measure of air traffic) and available seat kilometers (a measure of capacity) increased 13.7% and 8.4%, 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 81.1% from 77.2% in October 2022.

On the domestic front, with revenue passenger kilometers (7.6%) outpacing available seat kilometers (3.1%), the load factor increased to 78.6% from 75.3% in October 2022.

Internationally, revenue passenger kilometers and available seat kilometers increased 37.5% and 31.8%, respectively, on a year-over-year basis. The load factor increased to 89.8% from 86.1% in October 2022.

Ryanair, a European carrier, also reported impressive traffic numbers for October 2023, driven by upbeat air-travel demand. The number of passengers ferried on RYAAY flights in October was 17.1 million, implying that 9% more passengers flew than a year ago. The load factor (percentage of seats filled by passengers) came in at 93% in October 2023. RYAAY operated more than 96,700 flights in October 2023.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report

Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report

Copa Holdings, S.A. (CPA) : Free Stock Analysis Report

AZUL (AZUL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research