Copa (CPA) shares have done alright since my last update, gaining a bit though not as much Azul (AZUL) or LATAM (LTM), the latter of which got a big boost from Delta (DAL)
announcing its intention to invest in the airline. In any case, Copa
continues to execute to a plan that has long proved successful – serve a
broad selection of markets throughout Latin America with narrow-body
jets using a hub-and-spoke model and focusing relentlessly on costs.
I do see some risk over the next few quarters as Copa looks to accelerate its fleet transformation (adding more Boeing (BA) MAX jets and retiring Embraer (ERJ)
jets), but I think the risk is more to market perception and patience
than any long-term issues for the business. With the shares still
trading below my fair value, I’m bullish on an airline that is not only
serving some attractive growth markets but also operating one of the
most profitable models in the world.
Follow the link for more:
Copa Leveraging Emerging Market Air Travel Growth And Exceptional Operating Efficiency
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