Copa Holdings (CPA) May Traffic Rises 11.8%, Capacity Up

Copa Holdings SA CPA, the Latin American carrier, posted a rise in air traffic for the month of May. Traffic – measured in revenue passenger miles (RPMs) – came in at 1.57 billion, up 11.8% from 1.41 billion recorded in May 2016.

On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) increased 6.3% to 1.93 billion. As the increase in traffic outpaced growth in capacity, the load factor (% of seats filled by passengers) climbed 400 basis points (bps) to 81.6% in the month.

For the first five months of 2017, Copa Holdings has generated RPMs of 7.86 billion (up 11.5% year over year) and ASMs of 9.60 billion (up 5.1%). Load factor registered growth of 470 bps year over year to 81.9% during the period.

Last month, Copa Holdings reported earnings numbers for first-quarter 2017. The company topped expectations both with respect to earnings as well as revenues.

Its first-quarter earnings (on an adjusted basis) of $ 2.43 per share beat the Zacks Consensus Estimate of $ 2.29. The figure was also well above the year-ago tally of $ 1.66.

Quarterly revenues improved 10.6% year over year to $ 617 million. The figure also beat the Zacks Consensus Estimate of $ 615 million. Another Latin American carrier, GOL Linhas GOL too revealed first-quarter earnings figures last month.

Zacks Rank & Key Picks

Copa Holdings currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in airline space include Air France-KLM SA AFLYY and Deutsche Lufthansa AG DLAKY. Both sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

Shares of Air France-KLM and Deutsche Lufthansa jumped above 49% and 31%, respectively, over the last three months.

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