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Copa Airlines November Traffic Gains on Favorable Factors

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Copa Airlines, a business arm of Copa Holdings SACPA , posted an increase in air traffic for the month of November, this year. Traffic - measured in revenue passenger miles (RPMs) - came in at 1.3 billion, up 2.6% from 1.27 billion recorded in Nov 2014.

On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 2.6% to 1.77 billion while the load factor or percentage of seats filled by passengers was 74% in Nov 2015, flat year over year.

For the first eleven months of 2015, Copa Airlines generated RPMs of 14.83 billion (up 2.4% year over year) and ASMs of 19.73 billion (up 4.6%). However, the load factor fell by 150 basis points year over year to 75.2%.

Copa Airlines continues to gain from increased flight frequencies and route expansion. Moreover, the carrier is poised to gain from the upcoming festivities which will result in a busy travel season.

However, the deteriorating Brazilian economy and the weakening of real against the strong U.S. dollar pose considerable threat to Latin American-based carriers. We believe that these headwinds will continue to defer travel plans for most passengers and will also hurt air traffic and profits for Latin American carriers.

Zacks Rank & Stocks to Consider

Copa Holdings currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space are SkyWest Inc. SKYW , Hawaiian Holdings, Inc. HA and Southwest Airlines Co. LUV . SkyWest sports a Zacks Rank #1 (Strong Buy) while the other two companies carry a Zacks Rank #2 (Buy).

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SOUTHWEST AIR (LUV): Free Stock Analysis Report

COPA HLDGS SA-A (CPA): Free Stock Analysis Report

HAWAIIAN HLDGS (HA): Free Stock Analysis Report

SKYWEST INC (SKYW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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