Allegiant Reports November 2024 Traffic
Rhea-AI Summary
Allegiant Travel Company (NASDAQ: ALGT) reported strong November 2024 traffic results, with booking trends exceeding initial expectations. Post-hurricane demand recovery has been faster than anticipated, and Thanksgiving week TRASM performed on par with the previous year. The company revised its Q4 TRASM forecast to -1.5% year-over-year (vs. initial -4.5%) on 1.8% capacity growth.
The company received two additional 737-MAX aircraft in November and expects to end 2024 with four MAX aircraft in service, bringing the total fleet to 125. A Q4 sale of underutilized CFM engines resulted in a $15 million gain. The company updated its Q4 guidance, projecting airline-only operating margin of 13-14% and consolidated earnings per share of $1.75-$2.25, excluding special charges.
Positive
- Q4 TRASM decline improved to -1.5% from initial -4.5% forecast
- Holiday bookings outpacing expectations
- $15 million gain from CFM engine sale
- Operating margin guidance increased to 13-14% from 6-8%
- Consolidated EPS guidance raised to $1.75-$2.25 from $0.00-$1.00
- Faster than expected hurricane-impacted destination recovery
Negative
- TRASM still expected to decline 1.5% year-over-year in Q4
News Market Reaction – ALGT
On the day this news was published, ALGT gained 0.74%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"Booking trends following the election continue to outpace our initial expectations," stated Drew Wells, Chief Commercial Officer of Allegiant Travel Company. "Demand recovery to hurricane-impacted destinations has been faster than expected, with demand to most impacted regions returning to normal. Additionally, close-in holiday demand during November exceeded our expectations with TRASM performing on par with the prior year during the week of Thanksgiving. December capacity is expected to be up 17 percent year-over-year, and we are encouraged by the strength in bookings for the December holiday period, which are outpacing our initial expectations. Based on recent booking trends, we now expect fourth quarter TRASM to be down approximately 1.5 percent year-over-year on capacity growth of 1.8 percent for the quarter, versus our initial TRASM expectation of down 4.5 percent year-over-year."
"We took delivery of two incremental 737-MAX aircraft in November," stated Robert Neal, Chief Financial Officer of Allegiant Travel Company. "We expect to end the year with four MAX aircraft in service, as compared with our initial expectation of one, bringing our total fleet count at year end to 125. With heightened confidence in 737 deliveries, we opportunistically executed a transaction during the fourth quarter to sell underutilized CFM engines, resulting in a
Updated Fourth Quarter Guidance – Subject to Revision1 | ||
4Q24 - Updated | 4Q24 – Prior | |
System ASMs – year-over-year change | ~ | ~ |
Scheduled service ASMs – year-over-year change | ~ | ~ |
Fuel cost per gallon | ||
Airline-only operating margin | ||
Airline-only earnings per share, excluding special charges1 | ||
Consolidated earnings per share, excluding special charges1 | ||
1 Certain forward-looking financial information in the above table is not presented in accordance with accounting principles generally accepted in the
Scheduled Service – Year Over Year Comparison | |||
November 2024 | November 2023 | Change | |
Passengers | 1,214,205 | 1,303,894 | (6.9 %) |
Revenue passenger miles (000) | 1,108,281 | 1,178,002 | (5.9 %) |
Available seat miles (000) | 1,381,831 | 1,405,369 | (1.7 %) |
Load factor | 80.2 % | 83.8 % | (3.6pts) |
Departures | 8,821 | 9,001 | (2.0 %) |
Average stage length (miles) | 898 | 885 | 1.5 % |
Total System* – Year Over Year Comparison | |||
November 2024 | November 2023 | Change | |
Passengers | 1,247,401 | 1,333,604 | (6.5 %) |
Available seat miles (000) | 1,457,723 | 1,467,019 | (0.6 %) |
Departures | 9,456 | 9,529 | (0.8 %) |
Average stage length (miles) | 883 | 873 | 1.2 % |
*Total system includes scheduled service and fixed fee contract. System revenue passenger miles and system load factor are not useful statistics as system available seat miles include both ASMs flown by fixed fee flying as well as non-revenue producing repositioning flights used for operational needs. Fixed fee flying is better measured through dollar contribution versus operational statistics.
Preliminary Financial Results | |
$ per gallon | |
November 2024 estimated average fuel cost per gallon - system | |
Allegiant Travel Company
ALGT/G
Note: This news release was accurate at the date of issuance. However, information contained in the release may have changed. If you plan to use the information contained herein for any purpose, verification of its continued accuracy is your responsibility.
For further information please visit the company's investor website: ir.allegiantair.com
Reference to the Company's website above does not constitute incorporation of any of the information thereon into this news release.
Allegiant Media Contact: | Investor Inquiries: | |
Sonya Padgett | Sherry Wilson | |
View original content to download multimedia:https://www.prnewswire.com/news-releases/allegiant-reports-november-2024-traffic-302329821.html
SOURCE Allegiant Travel Company
FAQ
What is Allegiant's (ALGT) revised Q4 2024 TRASM guidance?
How many 737-MAX aircraft will Allegiant (ALGT) have by end of 2024?
What is Allegiant's (ALGT) updated Q4 2024 operating margin guidance?
How much did Allegiant (ALGT) gain from the CFM engine sale in Q4 2024?
What is Allegiant's (ALGT) projected capacity growth for Q4 2024?
