The ongoing uncertainty in the Middle East has resulted in a sharp jump in oil prices. This upward movement in oil prices is naturally hurting the bottom line of airlines because fuel expenses represent a key input cost for airlines. With most U.S. carriers having abandoned fuel hedging strategies, such oil supply disruption has left them fully exposed to price spikes.
High labor costs continue to bother the bottom-line growth of airlines. With U.S. airlines grappling with labor shortages, the bargaining power of various labor groups has naturally increased. As a result, we have seen pay-hike deals being inked in the space.
Despite headwinds like high inflation, elevated fuel and labor costs, the industry has been benefiting from buoyant air travel demand, both on the domestic and international fronts. Upbeat passenger volumes have always been acting as a tailwind. Higher bookings contribute to the airlines’ top-line performance. Stocks in the Zacks Transportation - Airline industry have shown resilience, particularly among companies focusing on growth strategies and operational efficiency.
Given this backdrop, let’s take a look at the July 2026 traffic reports issued by Copa Holdings CPA, LATAM Airlines Group (LTM, Controladora Vuela Compania de Aviacion VLRS, also known as Volaris and Ryanair Holdings RYAAY.
July 2026 Traffic Reports: CPA, LTM, VLRS, RYAAY
Copa Holdings
Based in Panama City, Panama, Copa Holdings is gaining from upbeat passenger volumes. Driven by high passenger volumes, Copa Holdings’ revenue passenger miles (RPM: a measure of air traffic) improved on a year-over-year basis in July 2026.
To match the demand swell, CPA is increasing its capacity. In July, available seat miles (a measure of capacity) increased 16.2% year over year. RPM improved 17.4% year over year. Since traffic outpaced capacity expansion, the load factor (the percentage of seats filled by passengers) rose to 89.7% from 88.8% in July.
Copa Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LATAM Airlines
LATAM Airlines reported a year-over-year increase in revenue passenger-kilometers (RPK: a measure of air traffic) for July 2026.
LATAM Airlines reported an 8.2% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK). The uptick was driven by a 10.8% increase in international operations. During the month, LATAM Airlines launched its new long-haul routes connecting Sao Paulo (GRU), Brazil, with Punta Cana, Dominican Republic, and Cape Town, South Africa, making the latter LATAM group's second destination on the African continent. This was complemented by a 7.1% increase in domestic capacity offered by LATAM Airlines Brazil and a 1.6% increase in domestic operations of the affiliates in Chile, Colombia, Ecuador and Peru.
LTM’s consolidated traffic, measured in revenue passenger-kilometers (RPK), grew 5.6% year over year, owing to an 8.3% increase in international operations, followed by LATAM Airlines Brazil's domestic market, which recorded a 4.4% year-over-year increase.
In July 2026, LATAM Airlines transported 8.06 million passengers, an increase of 2% year over year. So far this year, LATAM Airlines has transported 52.04 million passengers across its network, reflecting an increase of 5.2% year over year. LATAM Airlines currently carries a Zacks Rank #3 (Hold).
Volaris
Mexican carrier, Volaris, recently reported a year-over-year increase in revenue passenger miles (RPMs), a measure of air traffic, for July.
VLRS reported a 14.4% year-over-year increase in consolidated capacity (measured in available seat miles).Consolidated traffic, measured in revenue passenger-miles (RPM), grew 18.5% year over year. Since traffic growth has outpaced capacity expansion, the load factor (percentage of seats filled by passengers) increased 3 percentage points year over year to 87.9%.
On the domestic front, RPMs increased 16% and ASMs (Available Seat Miles) increased 16.2% from the July 2025 levels. The domestic load factor in July was 90%, a decline of 0.2 percentage points from the year-ago levels.
Internationally, RPM increased 22.4% year over year, while ASM rose 11.9% year over year. Since traffic growth outpaced capacity expansion, the international load factor increased 7.3 percentage points on a year-over-year basis to 84.9%.
During July 2026, VLRS transported 3.31 million passengers, representing a 19.8% year-over-year increase.Volaris currently carries a Zacks Rank #3 (Hold).
Ryanair Holdings
European carrier, Ryanair, reported solid traffic numbers for July 2026, driven by upbeat air-travel demand. The number of passengers transported on Ryanair flights was 22.2 million in July 2026, reflecting a 7% year-over-year increase. Apart from a year-over-year surge, RYAAY’s traffic in July was much more than the June reading of 21.2 million, May reading of 20.7 million, April reading of 19.3 million, March reading of 15.8 million, the February reading of 13.3 million and the January reading of 12.7 million, highlighting continued momentum from the beginning of the year.
Ryanair’s load factor remained flat year over year at 96% in July 2026, reflecting stable and consistent demand for the carrier’s services. It also improved from the load factor of 95% reported in both June and May 2026, 93% reported in both April and March 2026, 92% reported in February 2026 and 91% reported in January 2026.
RYAAY operated more than 1,20,800 flights in July 2026. This marks an improvement from 1,16,800 flights operated in June 2026, 1,14,000 flights operated in May 2026, 1,08,000 flights operated in April 2026, 88,000 flights operated in March 2026, 75,000 flights operated in February 2026 and 73,000 flights operated in January2026, reflecting expanded capacity to meet strong passenger demand. RYAAY currently carries a Zacks Rank #5 (Strong Sell).
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This article originally published on Zacks Investment Research (zacks.com).
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