Copa Holdings SA’s (CPA) business arm – Copa Airlines – posted a significant rise in air traffic in the month of November. Traffic – measured in revenue passenger miles (RPMs) – stood at 1.27 billion, up 5.2% from 1.21 billion recorded in the comparable month a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 9.9% to 1.72 billion. However, the load factor or percentage of seats filled by passengers fell to 74.1% from 77.3% in Nov 2013.
The onset of the holiday season along with an improving U.S. economy has resulted in considerable operating strength for Copa Holdings. However, the positives were slightly marred by the snowstorm in the northeast U.S. which severely disrupted air travels during Thanksgiving.
Recently, Copa Airlines announced its intent to operate daily non-stop flights between Campinas and Panama City, thus expanding its network across eight additional destinations in Brazil.
Increased demand for air travel, mainly during the holiday season, coupled with lower fuel prices will continue to boost profits for Copa Airlines. Moreover, International Air Transport Association (IATA) also expects the airline industry to witness a 10.6% increase in revenues to $19.9 billion in 2014.
Other Stocks to Consider
Copa Holdings SA currently carries a Zacks Rank #4 (Sell) while other better-ranked stocks sporting a Zacks Rank #1 (Strong Buy) are American Airlines Group (AAL), Alaska Air Group, Inc. (ALK) and Southwest Airlines Co. (LUV).
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