Allegiant Travel Co Stock Price, News & Analysis

Allegiant Travel Company (NASDAQ: ALGT) reported preliminary passenger traffic results for June 2022 and the second quarter. Total revenue reached approximately $629 million, up 28% from 2019. The strong demand led to a TRASM increase of over 15% year-over-three-year. June saw a TRASM rise of about 20%. However, CASM (excluding fuel and bonuses) was up 14%, and fuel costs averaged $4.32 per gallon. Expected earnings per share for the quarter are approximately $0.62.

Allegiant Travel Company (NASDAQ: ALGT) has announced its second quarter 2022 financial results conference call, set for August 3, 2022, at 4:30 p.m. EDT. Investors can access the live broadcast via the company's Investor Relations website. Allegiant, known for its low-cost, nonstop flights connecting small-to-medium cities to major vacation destinations, continues to serve communities across the nation.

Allegiant has entered a multi-year partnership with the Detroit Pistons, designating Allegiant as the Official Airline of the Detroit Pistons. This partnership, commencing on July 1, underscores Allegiant's commitment to Michigan, where it has established two permanent bases in Flint and Grand Rapids. The collaboration includes sponsorship of events like Pistons Pride Night and fan engagement activities. Allegiant has invested over $117 million in Michigan and operates 29 routes from its local bases, aligning with the aspirations of NBA fans, who constitute a significant portion of its travelers.

Allegiant Travel Company (NASDAQ: ALGT) reported strong preliminary passenger traffic results for May 2022, with a capacity growth of nearly 16% compared to 2019 and a load factor of 87%, marking the highest since the pandemic began. Despite strong demand and forward bookings exceeding capacity growth, flight cancellations due to crew availability have impacted the quarter's revenue, expected to rise by approximately 28%. Fuel costs increased significantly, now anticipated to average $4.30 per gallon, resulting in excess expenses of around $18 million.

Allegiant Travel Company (NASDAQ: ALGT) reported strong preliminary passenger traffic results for April 2022. The airline had 1,515,579 passengers, a 19.5% increase from April 2019 and a 50.1% rise compared to April 2021. Revenue passenger miles reached 1,403,617, marking a 21.6% increase since 2019, while available seat miles rose 15.5% to 1,646,286. The load factor improved to 85.3%. Furthermore, the average fuel cost was estimated at $4.15 per gallon for the month.

Allegiant (NASDAQ: ALGT) is promoting exclusive travel packages for NFL fans as the upcoming season approaches. These packages include roundtrip flights, hotel stays, and tickets to Las Vegas Raiders games at Allegiant Stadium. They feature the Allegiant Total bundle for added convenience. Allegiant Stadium was voted the top venue for gameday satisfaction last season, enhancing the appeal of the packages. Moreover, Allegiant is expanding services to key NFL cities. With the easing of COVID restrictions, ticket sales are expected to be brisk.

Allegiant (NASDAQ: ALGT) announced the launch of seven new nonstop routes, commencing in August 2022. To promote these routes, the airline is offering one-way fares starting at $29. The new routes connect Provo, Utah to destinations such as Las Vegas and San Diego, among others. Allegiant emphasizes its commitment to affordable travel with no layovers. The introductory fares are available for booking until May 8, 2022, for travel through February 13, 2023.

Allegiant Travel Company (NASDAQ: ALGT) reported a Q1 2022 net loss of $7.9 million, with a diluted loss per share of $(0.44). Total operating revenue surged 79.2% YoY to $500.1 million, while operating expenses rose by 93.6%. Despite challenges, the airline achieved a 21% operating margin in March and expects Q2 revenue up by 30% compared to 2019. Notably, new cardholders for the Allways Allegiant World Mastercard increased by 99% compared to Q1 2019. The company remains bullish on future growth and is awaiting DOT approval for its joint venture with Viva Aerobus.

Allegiant Travel Company (NASDAQ: ALGT) will establish a new four-aircraft base at Provo Airport, investing approximately $95 million and creating at least 157 new high-wage jobs. Operations are set to commence on November 16, 2022. This expansion supports the company’s goal of linking small-to-medium cities with leisure destinations and builds on the existing success of eight non-stop routes from Provo. Allegiant has flown over 700,000 passengers through Provo since 2013, contributing an estimated $15 million to the local economy per new route.