Why Azul Shares Gained Altitude This Week
Brazilian airline Azul (NYSE: AZUL) saw an uptick in traffic in December, an encouraging sign for investors hoping the worst is over for the airline. The news helped spark a rally in Azul shares, with the stock up as much as 13.4% for the week as of close of trading Thursday.
Airline stocks have been hit hard by the pandemic, and Latin American airlines have had more trouble than most. But Azul has held up better than some of its rivals that ended up in bankruptcy, and as the pandemic fades, the airline should have an opportunity to pick up market share.
The airline on Jan. 11 delivered positive news about traffic flows. Azul saw domestic passenger traffic up 20.9% compared to December 2019. For the full year, traffic increased by 2.8% over 2019. Factoring in international travel, which remains restricted, traffic fell 1.9% in December and 17% for the year compared to the same periods in 2019.
Source Fool.com
