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Airlines Post Impressive August Traffic Numbers: An Analysis
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The Zacks Airline industry has been benefiting from buoyant air travel demand, following the easing of COVID-19 travel restrictions and the reopening of the global economy. The industry is witnessing a solid recovery in demand for domestic as well as international flights. People are again booking flights, thereby leading to higher passenger revenues, which contribute to the bulk of most airlines’ top lines.
Notably, the Zacks Airline industry has risen 6.4% so far this year, outperforming 5.9% growth of the broader Zacks Transportation sector.
Driven by the buoyant scenario with respect to air traffic, Copa Holdings CPA, Azul S.A. AZUL, Gol Linhas Aereas Inteligentes GOL and Ryanair Holdings RYAAY reported impressive traffic numbers for August. Each of the aforementioned stocks presently carries a Zacks Rank #3 (Hold).
Let’s take an in-depth look at these companies’ August traffic reports.
Driven by high passenger volumes, Copa Holdings’ revenue passenger miles (a measure of traffic) rose in double digits in August on a year-over-year basis. To match the demand swell, CPA is increasing its capacity. In August, available seat miles (a measure of capacity) increased 12.8% year over year. Revenue passenger miles increased 13.3%. With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) improved to 87% from 86.6% in August 2022.
Brazilian carrier, Azul reported double-digit year-over-year increases in traffic and capacity for August 2023.
In August, the Brazilian carrier’s consolidated revenue passenger kilometers (a measure of air traffic) and available seat kilometers (a measure of capacity) increased 13.5% and 13.1%, respectively, on a year-over-year basis. With consolidated passenger traffic growth outpacing capacity expansion, the load factor (the percentage of seats filled by passengers) improved to 81.6% from 81.3% in August 2022.
On the domestic front, with revenue passenger kilometers (7.5%) outpacing available seat kilometers (6.8%), the load factor increased to 80.2% from 79.7% in August 2022.
Internationally, revenue passenger kilometers and available seat kilometers increased 38.4% and 41.8%, respectively, on a year-over-year basis. The load factor was 86.3%.
Gol Linhas reported a double-digit year-over-year increase in traffic and capacity for August 2023.
In August, consolidated revenue passenger kilometers (a measure of air traffic) and available seat kilometers (a measure of capacity) increased 11.6% and 7.7%, respectively, on a year-over-year basis. With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) for August 2023 improved to 84.4% from 81.5% in August 2022. The number of flight departures at GOL in August registered a 17.8% year-over-year increase. Consolidated passengers on board rose 22.4% year over year.
On the domestic front, with revenue passenger kilometers (13.7%) outpacing available seat kilometers (9.4%), the load factor increased to 84.6% from 81.4% in August 2022.
Internationally, the load factor increased to 82.7% from 82.3% in August 2022.
Ryanair, a European carrier, also reported impressive traffic numbers for August 2023, driven by upbeat air-travel demand. The number of passengers ferried on RYAAY flights in August was 18.9 million, implying an increase of 12% from a year ago. Owing to upbeat traffic, the load factor was as high as 96% in August. The reading was similar in the year-ago period.
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
AZUL (AZUL): Free Stock Analysis Report
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