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%.
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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.
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Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
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