We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Azul's (AZUL) June Traffic Results Improve From May Levels
Read MoreHide Full Article
Azul S.A. (AZUL - Free Report) posted impressive traffic numbers for the month of June compared with May levels, as air-travel demand picks up on increased inoculation programs.
Consolidated traffic, measured in revenue passenger kilometers, increased 18.2% month over month. With travel demand rising, the company expanded capacity significantly. Capacity measured in available seat kilometers moved up 16.8% in June from May levels. Since traffic surge was more than capacity expansion, load factor (% of seats filled by passengers) rose to 76.8% in June from 75.8% in May.
On a year-over-year basis (as the current year situation is somewhat better with the coming of vaccines), the scenario was rosier with consolidated traffic surging 280.4%. In the same time frame, capacity expanded 273.4%. Consequently, with traffic surge outweighing capacity expansion, load factor increased 1.4 percentage points (p.p).
In the domestic front, traffic and capacity increased 328.2% and 310.9%, respectively, from the year-ago period’s levels. Consequently, load factor increased 3.2 p.p to 78.8% in June. Internationally, in the same time frame, traffic and capacity surged 21.2% and 73.4%, respectively. However, internationally load factor dropped 22.3 p.p to 52%.
Compared with June 2019 (pre-COVID) levels, both traffic and capacity plunged 24% and 17.3%, respectively. Moreover, the load factor also tanked 6.8 p.p to 83.6% as decline in traffic was more than capacity contraction.
Zacks Rank & Stocks to Consider
Azul currently carries a Zacks Rank #5 (Strong Sell).
Long-term (three to five years) expected earnings per share growth rate for Landstar, C.H. Robinson and FedEx is projected at 12%, 9% and 12%, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Azul's (AZUL) June Traffic Results Improve From May Levels
Azul S.A. (AZUL - Free Report) posted impressive traffic numbers for the month of June compared with May levels, as air-travel demand picks up on increased inoculation programs.
Consolidated traffic, measured in revenue passenger kilometers, increased 18.2% month over month. With travel demand rising, the company expanded capacity significantly. Capacity measured in available seat kilometers moved up 16.8% in June from May levels. Since traffic surge was more than capacity expansion, load factor (% of seats filled by passengers) rose to 76.8% in June from 75.8% in May.
On a year-over-year basis (as the current year situation is somewhat better with the coming of vaccines), the scenario was rosier with consolidated traffic surging 280.4%. In the same time frame, capacity expanded 273.4%. Consequently, with traffic surge outweighing capacity expansion, load factor increased 1.4 percentage points (p.p).
In the domestic front, traffic and capacity increased 328.2% and 310.9%, respectively, from the year-ago period’s levels. Consequently, load factor increased 3.2 p.p to 78.8% in June. Internationally, in the same time frame, traffic and capacity surged 21.2% and 73.4%, respectively. However, internationally load factor dropped 22.3 p.p to 52%.
Compared with June 2019 (pre-COVID) levels, both traffic and capacity plunged 24% and 17.3%, respectively. Moreover, the load factor also tanked 6.8 p.p to 83.6% as decline in traffic was more than capacity contraction.
Zacks Rank & Stocks to Consider
Azul currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader Zacks Transportation sector are Landstar System (LSTR - Free Report) , C.H. Robinson (CHRW - Free Report) and FedEx Corporation (FDX - Free Report) . Landstar and C.H. Robinson carry a Zacks Rank #2 (Buy), while FedEx sports a Zacks #1(Strong Buy) Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three to five years) expected earnings per share growth rate for Landstar, C.H. Robinson and FedEx is projected at 12%, 9% and 12%, respectively.