Singapore markets closed

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


 

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.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
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
 
To read this article on Zacks.com click here.
 
Zacks Investment Research