Copa Holdings, S.A. CPA reported solid traffic numbers for July 2024 on the back of upbeat air-travel demand. Driven by high passenger volumes, revenue passenger miles (a measure of traffic) rose in double digits in July on a year-over-year basis.
To match the demand swell, CPA is increasing its capacity. In July, available seat miles (a measure of capacity) increased 11.3% year over year. Revenue passenger miles increased 9.5% from the year-ago quarter. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor (percentage of seats filled by passengers) fell to 87.6% from 89% in July 2023.
Upbeat air travel demand has been aiding Copa Holdings' revenues. Management expects the current-year load factor (percentage of seats filled by passengers) to be 86.5%, assuming that the rosy traffic scenario continues. For 2024, the company expects consolidated capacity or available seat miles to register 9% growth year over year. Operating margin is projected to be in the 21-23% band.
Given the buoyant traffic scenario, Copa Holdings is not the only airline to report impressive traffic numbers. Ryanair Holdings RYAAY reported solid traffic numbers for July 2024, driven by upbeat air-travel demand.
The number of passengers transported on Ryanair flights was 20.2 million in July 2024, reflecting an 8% year-over-year increase. RYAAY’s traffic in July was much more than the June reading of 19.3 million, the May reading of 18.9 million, the April reading of 17.3 million and the March reading of 13.6 million.
The July load factor (percentage of seats filled by passengers) of 96% remained flat on a year-over-year basis. The figure was higher than the load factor of 95% reported in June and May, 92% reported in April 2024 and 93% reported in March 2024.
Notably, RYAAY operated more than 110,500 flights in July 2024. This marks an improvement from 106,000 flights operated in June 2024, 105,000 flights in May 2024, 98,400 flights in April 2024 and 77,000 flights in March 2024. However, almost 651 flights got canceled due to the ATC (air traffic control) delays.
Recently, Allegiant Travel Company (ALGT) reported traffic numbers for June 2024. Scheduled traffic (measured in revenue passenger miles) grew 1.4% from the June 2023 levels. Capacity (measured in available seat miles) for scheduled service grew 5.5% year over year. Although traffic improved year over year, it failed to outpace capacity expansion. As a result, the load factor (percentage of seats filled by passengers) in June 2024 declined to 86.6% from 90.1% a year ago.
Total departures (scheduled services) improved 6% in June 2024 from a year ago. Average stage length (miles) remained flat year over year.
For the total system (including scheduled service and fixed fee contract), Allegiant carried 1.9% more passengers in June 2024 from the year-ago levels. System-wide capacity expanded 7% in June 2024 on a year-over-year basis.
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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
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