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Azul's (AZUL) March Traffic Drops 13.4% From February Level

With Brazil reeling under a second wave of the deadly coronavirus pandemic, it was obvious that Azul’s AZUL March traffic report will be a disappointment compared with its February numbers.

Notably, traffic, measured in revenue passenger kilometers, declined13.4% month over month. With travel demand falling below the year-ago levels, the company reduced capacity significantly. In the same time frame, capacity measured in available seat kilometers contracted 5% in March from February levels. Since traffic decline was more than capacity contraction, load factor (% of seats filled by passengers) skidded to 71.7% in March from 78.6% in February.

AZUL SA Price

AZUL SA price | AZUL SA Quote

However, on a year-over-year basis, the scenario was rosier with consolidated traffic increasing 11.2%. However, the capacity expansion in March was more (15.4%). Consequently, load factor decreased 2.7 percentage points. While traffic declined 8.9% domestically, the fall was huge (89.3%) internationally. Load factor declined 2.2 percentage points to 71.2% in March. Internationally, the measure plummeted 12.5% percentage points to 57.3% at Azul, which competes with the likes of Gol Linhas GOL and Copa Holdings CPA in the Latin American aviation space.

Zacks Rank & Key Pick

Azul presently carries a Zacks Rank #4 (Sell).

A better-ranked stock in the Zacks Transportation sector is Old Dominion Freight Line ODFL, presently carrying a Zacks Rank #2 (Buy).

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

Shares of Old Dominion have gained more than 75% in a year’s time.

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Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
 
Old Dominion Freight Line, Inc. (ODFL): Free Stock Analysis Report
 
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
 
AZUL SA (AZUL): Free Stock Analysis Report
 
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