Volaris Reports Decrease in Consolidated Load Factor for July

Mexican carrier Controladora Vuela Compañía de Aviación VLRS, or Volaris, recently reported a year-over-year increase in revenue passenger miles (RPMs: a measure of air traffic) for July 2025.

Volaris reported a 6% year-over-year jump in consolidated capacity (measured in available seat miles). The load factor (% of seats filled by passengers) decreased 5 percentage points to 84.9% on a consolidated basis. The metric fell as the increase in consolidated traffic (0.1%) was less than the increase in consolidated capacity. In July, Volaris transported 2.76 billion passengers, up 3% year over year.

On the domestic front, RPMs decreased 0.4% and ASMs (Available Seat Miles) increased 0.7%, respectively, from the July 2024 levels. The domestic load factor in July was 90.1%, a decline of 1 percentage point from the year-ago levels. In international markets, RPM surged 1% year over year, while ASM rose 14.1% year over year. The international load factor increased by 10.1 percentage points on a year-over-year basis to 77.7%.

Apart from VLRS, other airline companies like Ryanair Holdings RYAAY have also reported their July traffic numbers.

Ryanair reported solid traffic numbers for July 2025, driven by upbeat air travel demand. The number of passengers transported on Ryanair flights was 20.2 million in July 2025, reflecting an 8% year-over-year increase. The July load factor (percentage of seats filled by passengers) of 96% remained flat as compared with the year-ago levels, reflecting consistent passenger demand for the airline's services.

A Stock to Consider

Investors interested in the Transportation - Airline sector may consider Copa Holdings CPA, based in Panama City, Panama, which is gaining from upbeat passenger volumes. The company reported robust traffic numbers for June 2025, and RPM improved on a year-over-year basis in June.

To match the demand swell, CPA is increasing its capacity. In June, ASM, a measure of capacity, rose 5.3% year over year. RPM surged 6.3% year over year. Since traffic outpaced capacity expansion, the load factor (the percentage of seats filled by passengers) increased to 87.5% from 86.6% in June 2024.

CPA has an expected earnings growth rate of 13.2% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 7.27%.

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This article originally published on Zacks Investment Research (zacks.com).

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