December 5, 2021

CPA, ALGT, UAL, AAL and SAVE third quarter results at a glance

Last week the Latin American carrier Copa Holdings CPA reported impressive earnings for the third quarter of 2021. Results were supported by optimistic passenger revenues, which increased 48.4% sequentially. Allegiant Travel Agency ALGT also made headlines, thanks to its impressive October traffic report.

In response to the increased demand for air travel, Spirit Airlines SAVE added non-stop flights from Manchester. United Airlines UAL has decided to add flights to meet the expected increase in demand for the CES 2022 event. American Airlines AAL has resumed flights to India after a hiatus of almost 10 years.

Read the latest airline summary here

Recap of the latest best stories

1. United Airlines plans to add 44 flights to Las Vegas for the CES 2022 event seeing a slight increase in searches for flights for the big tech conference on its website. UAL management said a recent survey showed that 20% of the airline’s business customers expect travel for meetings and conferences to exceed pre-pandemic levels in 2022. . Business travel showing signs of recovery is a big positive for United Airlines, which like others US airlines see continued backlog in business travel demand despite steadily improving demand of leisure travel following the coronavirus crisis. For the peak arrival days of January 3 and January 4, 2022, currently Zacks Rank # 3 (Hold) United Airlines will operate 81 flights to Las Vegas while on the peak departure days of January 8 to January 10, it will operate 109 flights. .

You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

2. Spirit Airlines expands its presence at Manchester-Boston Regional Airport (MHT) with new non-stop flights to Southwest Florida International Airport in Fort Myers, Fla., And Chicago International Airport. Tampa. The new flights complement existing Spirit Airlines services to Fort Lauderdale and Orlando from MHT, expanding its presence in Florida.

3. At Allegiant, scheduled traffic (measured in revenue passenger miles) in October 2021 increased 51.2% from October 2020 levels. Capacity (measured in available seat miles) for scheduled service was increased by 27.8% from the October 2020 reading. With the increase in traffic exceeding the expansion of capacity, the load factor (% of seats occupied by passengers) in October increased by 11. 6 points to 74.7% compared to the levels of the previous year. System-wide (including regular service and fixed-rate contract), Allegiant carried 51.4% more passengers in October 2021 compared to the level of the previous year. Compared to October 2019 levels (before COVID), scheduled traffic and capacity increased by 7.4% and 19.6% respectively.

4. Copa Holdings ‘third quarter profit (excluding 51 cents of one-time items) of 70 cents a share came against Zacks’ consensus estimate of a loss of 17 cents. During the period of last year, the CPA suffered a loss of $ 2.86 due to lower demand for air travel due to the coronavirus. Quarterly revenue of $ 445 million also exceeded Zacks’ consensus estimate of $ 420.9 million and increased significantly year over year, thanks to improved demand for air travel. in Panama compared to lows caused by last year’s pandemic.

Copa Holdings expects a capacity of 5.1 billion in the fourth quarter of 2021, or 83% of the program carried out in the fourth quarter of 2019. The operating margin is estimated at around 12% in the current quarter. CPA estimates total revenue to be about $ 545 million in the same period, which is about 80% of fourth quarter 2019 revenue. Fuel price per gallon is expected to increase by about 17%, sequentially, in the fourth quarter. quarter to reach $ 2.50.

5. After suspending flights to India in 2012, American Airlines restarted operations in the country, according to a Reuters report. AAL has already started operations on the New Delhi-New York route and intends to begin flights on the Bengaluru-Seattle route in March 2022.


The following table shows the price development of the main air transport players over the past week and over the past six months.

Zacks investment research

Image source: Zacks Investment Research

The chart above shows that all airline stocks have traded in the red over the past week, causing the NYSE ARCA Airline Index to drop 5.6% to $ 88.55. Over the past six months, the NYSE ARCA Airline index has depreciated by 20.3%.

What’s next in the airspace?

With the recovery in demand for US air travel, further expansion-related updates can be expected from US-based carriers.

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

United Airlines Holdings Inc (UAL): Free Stock Analysis Report

Copa Holdings, SA (CPA): Free Stock Analysis Report

American Airlines Group Inc. (AAL): Free Stock Analysis Report

Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report

Allegiant Travel Company (ALGT): Free Stock Analysis Report

To read this article on, click here.

Zacks investment research

Source link