Copa Holdings, S.A.CPA reported traffic numbers for December 2024 on the back of upbeat air-travel demand. Driven by high passenger volumes, revenue passenger miles (a measure of traffic) improved on a year-over-year basis in December.
To match the demand swell, CPA is increasing its capacity. In December, available seat miles (a measure of capacity) increased 6.5% year over year, and revenue passenger miles increased 6.8% year over year. Since traffic outpaced capacity expansion, the load factor (percentage of seats filled by passengers) rose to 85.3% from 85.1% in December 2023.
Apart from Copa Holdings, we find another airline company, Ryanair Holdings RYAAY, a European carrier, reported solid traffic numbers for December 2024, driven by upbeat air-travel demand.
The number of passengers transported on Ryanair flights was 13.6 million in December 2024, reflecting an 8% year-over-year increase. RYAAY’s traffic in December was much more than the November reading of 13 million.
The December load factor improved to 92% from 91% in the year-ago period. This figure remained flat sequentially, reflecting consistent passenger demand for the airline's services. RYAAY operated more than 77,380 flights in December 2024. This marks an improvement from 73,750 flights operated in November 2024.
To meet the upbeat demand, Ryanair expects its traffic view to grow 8% on a year-over-year basis for fiscal 2025, subject to no worsening of current Boeing delivery delays.
CPA’s Zacks Rank & Price Performance
CPA currently carries a Zacks Rank #3 (Hold).
Shares of CPA have lost 9.6% over the past three months against 3.8% growth of the Zacks Airline industry.
Three-Month Price Comparison
Image Source: Zacks Investment Research
Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider American Airlines AAL and United Airlines UAL.
American Airlines currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AAL has an expected earnings growth rate of 16% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 124.4%. Shares of AAL have risen 16.4% in the past year.
United Airlines currently carries a Zacks Rank #2 (Buy). UAL has an expected earnings growth rate of 1.3% for the current year.
The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 26.9%. Shares of UAL have surged 122.9% in the past year.
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