Canada Markets open in 1 hr 9 mins

Azul's (AZUL) September Traffic Surges 120% Year Over Year

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Azul AZUL reported impressive traffic numbers for September, with air-travel demand improving in Latin America. People are increasingly opting for air travel nowadays as fears of contracting the coronavirus have declined owing to widespread vaccination programs.

Considering this upbeat scenario, it was small wonder that Azul’s domestic traffic for the month skyrocketed 125.6% from the year-ago period’s number. Capacity expanded 126.7% year over year in response to higher demand. With capacity growth outweighing the traffic increase, load factor (percentage of seats filled by passengers) moved southward in the month by 0.4 percentage points (p.p.) to 80.3%. Traffic and capacity (domestic) increased 8.7% and 11.1%, respectively, from the September 2019 (pre-pandemic levels) numbers. On the international front, traffic and capacity surged 53.6% and 72.8%, respectively, on a year-over-year basis. Consequently, load factor fell 8.3 p.p. to 66.3%.

Moreover, consolidated load factor at Azul also plunged 0.8 p.p. to 79.4% in September. Consolidated traffic and capacity were up 120.1% and 122.3%, respectively. However, traffic and capacity have plunged 10.6% and 6.2%, respectively, from 2019 levels. Another Brazilian carrier, Gol Linhas Aereas Inteligentes’ GOL September traffic rose from August levels entirely on domestic strength as the airline did not operate regular international flights in August. We also expect the Latin American carrier, Copa Holdings CPA, to deliver solid September traffic statistics on a year-over-year basis owing to air-travel demand recovery. The airline is anticipated to announce its September traffic data later in October.

Although air-travel demand is upbeat in Latin America, the same cannot be said about the United States due to the Delta variant spread. In fact, many U.S. carriers including the likes of Southwest Airlines LUV have warned that their September-quarter results will be hurt by the spread of this highly-contagious strain of COVID-19.
 


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
 
Southwest Airlines Co. (LUV) : 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

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting