Why Shares in Azul Flew Higher Today
Shares in Brazilian airline Azul (NYSE: AZUL) rose more than 5% in early trading on Tuesday. As of 12:41 p.m. ET, they were up 4.87%. The move comes after the release of its traffic figures for December 2021. The figures not only confirmed that Brazil's domestic flights (Azul's primary market) are on a recovery track but also served to demonstrate that the airline's operating metrics are making a solid recovery.
For reference, airlines report traffic data in terms of revenue passenger kilometers (RPK) or the number of kilometers flown by paying passengers. Airlines also report available seat kilometers (ASK), or kilometers available for paying passengers. The third number, and arguably the most critical metric for airlines, is the load factor, simply the RSK divided by ASK. So, a higher load factor is better.
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Source Fool.com
