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Copa Holdings' March Traffic Results Highlight Coronavirus Woes

Zacks Equity Research

Copa Holdings, S.A. CPA, which has been taking a significant hit from the coronavirus pandemic, reported a massive decline in its March traffic. Consolidated traffic, measured in revenue passenger miles (RPMs), plunged 43.4% to 1 billion.

With the company having temporarily suspended all operations effective Mar 23 through Apr 21, consolidated capacity (measured in available seat miles/ASMs) also dropped 35.7% to 1.37 billion in the month. Load factor (% of seats filled by passengers) declined 990 basis points (bps) to 73.4% as traffic decreased more than the contraction in capacity.
 
In the first three months of 2020, the Zacks Rank #5 (Strong Sell) company generated RPMs of 4.47 billion, down 16.3% year over year. In the same period, Copa Holdings recorded ASMs of 5.49 billion, down 14.4%. With traffic declining more than the amount of capacity decrease, load factor deteriorated 190 bps to 81.5%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Grappling with waning travel demand due to the coronavirus crisis, shares of Copa Holdings have slumped more than 57% since the beginning of February.

Price Performance Since February


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The carrier’s Latin American counterparts,such as Gol Linhas Aereas Inteligentes S.A. GOL, LATAM Airlines Group LTM and Azul S.A. AZUL are equally troubled. In response to the extremely low-demand scenario, Gol Linhas suspended all international flights effective Mar 28 through May 3 besides slashing domestic capacity by 92%. LATAM Airlines reduced 95% of its capacity for April while Azul trimmed consolidated capacity by 90% for the Mar 25-Apr 30 timeframe.

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Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
 
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
 
LATAM Airlines Group S.A. (LTM) : Free Stock Analysis Report
 
AZUL SA (AZUL) : Free Stock Analysis Report
 
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