So far, the company has shown expansion and reduction operational costs strategies. But what about the passenger traffic?
The company posted a record load factor in May. Its overall revenue passenger miles increased 5.9%, led by an 8.4% increase in its Atlantic RPM division. The company increased its available seat miles by 3.9% to meet strong passenger traffic. Consequently, its load factor rose 1.7% to 85.8%.
In conclusion, US Airways Group, Inc. (NYSE:LCC) is expanding to Brazil, which is what we want to take advantage of the World Cup. Costs of operation are being reduced by the replacement of old The Boeing Company (NYSE:BA) aircraft with more fuel-efficient Airbus aircraft. Lastly, the passenger traffic continues to gain strength.
The other major airline
United Continental Holdings Inc (NYSE:UAL) is another major player in the airline industry. The company trades with a negative P/E. According to its most recent earnings report, its revenue rose 1% to $8.72 billion. Its net loss shrunk from $448 million to $417 million. Also, its cash from operations increased $200 million to $393 million. Overall, the company had a better quarter compared to last year’s.
Going back to the topic of our discussion, the carrier also has flights to Sao Paulo and Rio de Janeiro from several destinations in the United States, including the Houston Intercontinental Airport and the Washington Dulles Airport. The passenger traffic to Brazil for the World Cup should increase for United Continental Holdings Inc (NYSE:UAL).
The company is showing signs of growth. Recently, the company expanded the order of The Boeing Company (NYSE:BA) 787s “Dreamliner” to 65 aircraft. The company currently operates six of them. Further, the company will convert 10 B787 aircraft to B787-10, a stretched version of the original aircraft. The carrier will cut costs of operation by this transaction because, apparently, the B787-10 offers the best fuel consumption rate per seat in the aircraft. In this fashion, the company will be able to replace old aircraft with this more fuel-efficient aircraft.
Overall, the company has a large exposure to the Brazilian market, and it presents an attractive investment option to profit from the event.
The Foolish conclusion
The World Cup means money, and investors should take advantage of it. By investing in airlines with exposure to the Brazilian market, investors should benefit from an event that occurs every four years. These companies have appealing valuation metrics. Also, they are expanding operations by establishing new routes, unveiling new terminals, or acquiring new aircraft. For these reasons, investors should consider these stocks to profit from the World Cup.
Robinson Roacho has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article Profit From the Soccer World Cup With These Stocks originally appeared on Fool.com.
Robinson is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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