Virgin America Inc. (VA) witnessed a significant increase in air traffic in the month of December. Traffic – measured in revenue passenger miles (RPMs) – came in at 872.7 million, up 1.7% from 858 million recorded in the comparable month a year ago. Also, on a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 0.5% to 1.05 billion.
Meanwhile, the load factor or percentage of seats filled by passengers increased to 82.8% in December from 81.9% in the year-ago month. Likewise, passengers boarded in the month grew 2.3% while for the full year the metric rose 2.8%.
In fiscal 2014, Virgin America generated RPMs of 10.07 billion (up 2.7% year over year) and ASMs of 12.24 billion (flat year over year). Load factor stood at 82.3% against 80.2% last year.
Recently, Virgin America initiated a daily non-stop seasonal service between New York’s John F. Kennedy International Airport (JFK) and Fort Lauderdale International Airport (FLL).
In Nov 14, 2014, Virgin America had marked an impressive debut on Nasdaq with shares reaching 30% on the very first day of trading.
Virgin America continues its success story largely benefitting from new route launches, introduction of ancillary products, and efficient customer service. Moreover, lower fuel prices continue to boost profits for the company.
Other Stocks to Consider
Virgin America currently carries a Zacks Rank #2 (Buy). Other favorably-ranked stocks are American Airlines Group (AAL), JetBlue Airways Corp. (JBLU) and Hawaiian Holdings Inc. (HA), all of which sport a Zacks Rank #1 (Strong Buy).
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