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Azul's (AZUL) September Traffic Rises on High Travel Demand
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Azul S.A. (AZUL - Free Report) delivered decent traffic figures for September 2018. Consolidated traffic (measured in revenue passenger kilometers or RPKs) increased 16% to 1.9 billion on the back of 32.1% rise on the international front and 11.7% growth on the domestic front.
On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) expanded 16.1% to 2.3 billion, owing to 38.4% growth in international capacity and 10.6% rise in domestic capacity.
Consolidated load factor (percentage of seats filled by passengers) were flat at 83.2% in September. Domestically, load factor increased to 82.6% from 81.8% in the year-ago period. Load factor on the international front declined to 85% from 89.1% in the year-ago period.
At the end of the first nine months of 2018, RPK was up 17% and ASK grew 16.7%. Also, load factor registered a rise of 0.3 percentage points (pp) to 82.1% on a year-over-year basis as traffic growth outpaced capacity expansion
In spite of decent traffic figures, the Brazilian carrier suffers from certain headwinds like high fuel costs and depreciation in the currency. For 2018, the company estimates an increase in costs of R$800 million and R$900 million for currency fluctuation and fuel price, respectively. In fact, these concerns have compelled Azul to trim guidance for current-year operating margin. Operating margin is anticipated in the range of 9-11% compared with the previous guidance of 11-13%.
Shares of Old Dominion, ArcBest and Matson have gained 5.7%, 30% and 40.6%, respectively, in the past six months.
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And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Azul's (AZUL) September Traffic Rises on High Travel Demand
Azul S.A. (AZUL - Free Report) delivered decent traffic figures for September 2018. Consolidated traffic (measured in revenue passenger kilometers or RPKs) increased 16% to 1.9 billion on the back of 32.1% rise on the international front and 11.7% growth on the domestic front.
On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) expanded 16.1% to 2.3 billion, owing to 38.4% growth in international capacity and 10.6% rise in domestic capacity.
Consolidated load factor (percentage of seats filled by passengers) were flat at 83.2% in September. Domestically, load factor increased to 82.6% from 81.8% in the year-ago period. Load factor on the international front declined to 85% from 89.1% in the year-ago period.
At the end of the first nine months of 2018, RPK was up 17% and ASK grew 16.7%. Also, load factor registered a rise of 0.3 percentage points (pp) to 82.1% on a year-over-year basis as traffic growth outpaced capacity expansion
AZUL SA Price
AZUL SA Price | AZUL SA Quote
In spite of decent traffic figures, the Brazilian carrier suffers from certain headwinds like high fuel costs and depreciation in the currency. For 2018, the company estimates an increase in costs of R$800 million and R$900 million for currency fluctuation and fuel price, respectively. In fact, these concerns have compelled Azul to trim guidance for current-year operating margin. Operating margin is anticipated in the range of 9-11% compared with the previous guidance of 11-13%.
Zacks Rank & Key Picks
Azul carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the broader Transportation Sector are Old Dominion Freight Line, Inc. (ODFL - Free Report) , ArcBest Corporation (ARCB - Free Report) and Matson, Inc. (MATX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Old Dominion, ArcBest and Matson have gained 5.7%, 30% and 40.6%, respectively, in the past six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>