Copa Holdings, S.A. CPA reported traffic numbers for November 2024 on the back of upbeat air-travel demand. Driven by high passenger volumes, revenue passenger miles (a measure of traffic) improved on a year-over-year basis in November.

To match the demand swell, CPA is increasing its capacity. In November, available seat miles (a measure of capacity) increased 8.4% year over year. Revenue passenger miles increased 6.8% year over year. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor (percentage of seats filled by passengers) fell to 86.1% from 87.4% in November 2023.

Apart from Copa Holdings, another airline company, Ryanair Holdings RYAAY, aEuropean carrier, reported solid traffic numbers for November 2024, driven by upbeat air-travel demand.

The number of passengers transported on Ryanair flights was 13 million in November 2024, reflecting an 11% year-over-year increase. The November load factor of 92% remained flat on a year-over-year basis, reflecting consistent passenger demand for the airline's services.  RYAAY operated more than 73,750 flights in November 2024.

To meet the upbeat demand, Ryanair expects its traffic view to grow 8% on a year-over-year basis for fiscal 2025, subject to no worsening of current Boeing delivery delays.

CPA’s Zacks Rank & Price Performance

CPA currently carries a Zacks Rank #3 (Hold).

Shares of CPA have gained 2.8% over the past three months compared with 9.4% growth of the Zacks Airline industry.

Three-Month Price Comparison

 

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the Zacks Transportation sector are Expeditors International of Washington, Inc. (EXPD) and Wabtec Corporation WAB. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EXPD has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (missed the mark in the remaining quarter and met in the other quarter), delivering an average surprise of 4.75%.

The Zacks Consensus Estimate for EXPD’s 2024 earnings has been revised 6.4% upward over the past 90 days. EXPD has an expected earnings growth rate of 8.38% for 2024. Shares of EXPD have lost 4.5% so far this year.

WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 9.46%.