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Copa Holdings August 2024 Traffic Improves Year Over Year
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Copa Holdings, S.A. (CPA - Free Report) reported traffic numbers for August 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 August.
To match the demand swell, CPA is increasing its capacity. In August, available seat miles (a measure of capacity) increased 8.2% year over year. Revenue passenger miles increased 5.8% year over year. 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 85.1% from 87% in August 2023.
Apart from Copa Holdings, we find another airline company -- Ryanair Holdings (RYAAY - Free Report) , a European carrier -- who has also reported traffic numbers for August 2024.
The number of passengers transported on Ryanair flights was 20.5 million in August 2024, reflecting an 8% year-over-year increase. RYAAY’s traffic in August was much more than the July reading of 20.2 million, June reading of 19.3 million, May reading of 18.9 million, April reading of 17.3 million and March reading of 13.6 million.
The August load factor (percentage of seats filled by passengers) of 96% remained flat sequentially, as well as 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.
RYAAY operated more than 111,800 flights in August 2024. This marks an improvement from 110,500 flights in July 2024, 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.
Notably, RYAAY’s impressive August 2024 traffic numbers reflect improvement at a six-month stretch from March 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 Boeingdeliveries returning to contracted levels before the year-end.
CPA’s Zacks Rank & Price Performance
CPA currently carries a Zacks Rank #3 (Hold).
Shares of CPA have plunged 17.3% so far this year against 13.7% growth of the Zacks Airline industry.
Image Source: Zacks Investment Research
Copa Holdings is currently mired in multiple headwinds, which, we believe, have led to its unimpressive price performance. Escalating operating expenses are hurting Copa Holdings’ bottom line. In the first half of 2024, total operating expenses increased 3.8% year over year, owing to higher capacity.
Expenses on wages, salaries and benefits rose 10% year over year in first-half 2024 due to an increase in operational staff to support current capacity and cost of living salary adjustments. High fuel costs (up 2.4% in first-half 2024) are pushing up operating costs as well.
The decline in cargo revenues due to lower cargo yields represents another woe. Given the headwinds surrounding the stock, earnings estimates have been southbound, as shown below.
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%.
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.
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Copa Holdings August 2024 Traffic Improves Year Over Year
Copa Holdings, S.A. (CPA - Free Report) reported traffic numbers for August 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 August.
To match the demand swell, CPA is increasing its capacity. In August, available seat miles (a measure of capacity) increased 8.2% year over year. Revenue passenger miles increased 5.8% year over year. 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 85.1% from 87% in August 2023.
Apart from Copa Holdings, we find another airline company -- Ryanair Holdings (RYAAY - Free Report) , a European carrier -- who has also reported traffic numbers for August 2024.
The number of passengers transported on Ryanair flights was 20.5 million in August 2024, reflecting an 8% year-over-year increase. RYAAY’s traffic in August was much more than the July reading of 20.2 million, June reading of 19.3 million, May reading of 18.9 million, April reading of 17.3 million and March reading of 13.6 million.
The August load factor (percentage of seats filled by passengers) of 96% remained flat sequentially, as well as 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.
RYAAY operated more than 111,800 flights in August 2024. This marks an improvement from 110,500 flights in July 2024, 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.
Notably, RYAAY’s impressive August 2024 traffic numbers reflect improvement at a six-month stretch from March 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 Boeingdeliveries returning to contracted levels before the year-end.
CPA’s Zacks Rank & Price Performance
CPA currently carries a Zacks Rank #3 (Hold).
Shares of CPA have plunged 17.3% so far this year against 13.7% growth of the Zacks Airline industry.
Copa Holdings is currently mired in multiple headwinds, which, we believe, have led to its unimpressive price performance. Escalating operating expenses are hurting Copa Holdings’ bottom line. In the first half of 2024, total operating expenses increased 3.8% year over year, owing to higher capacity.
Expenses on wages, salaries and benefits rose 10% year over year in first-half 2024 due to an increase in operational staff to support current capacity and cost of living salary adjustments. High fuel costs (up 2.4% in first-half 2024) are pushing up operating costs as well.
The decline in cargo revenues due to lower cargo yields represents another woe. Given the headwinds surrounding the stock, earnings estimates have been southbound, as shown below.
Stocks to Consider
Some better-ranked stocks from the Zacks Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) and Wabtec Corporation (WAB - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%.
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.