Zacks Investment Research | Feb 21, 2018 05:35AM ET
The past week, which included a holiday in the form of Presidents' Day, saw the release of data on airfare for January by the Bureau of Transportation Services. Airfares declined in the month, marking the third consecutive month of a drop in ticket prices.
Even though, the low air fares are encouraging for fliers, it is likely to hurt the top line of airline companies. Capacity overexpansion by some carriers in key markets leading to intense competition may have resulted in the decline of airfares.
On the traffic front, Copa Holdings, S.A. (NYSE:CPA) and Alaska Air Group, Inc. (NYSE:ALK) unveiled their respective traffic numbers for January. Load factor (percentage of seats filled by passengers) increased at Copa Holdings for the month. However, the metric declined at Alaska Air Group as capacity expansion exceeded traffic growth. Southwest Airlines Co. (NYSE:LUV) was also in the news during the week, by virtue of its expansion-related update.
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