Allegiant Travel Co Stock Price, News & Analysis

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.

Allegiant Travel Company (NASDAQ: ALGT) announced its largest service expansion, introducing 44 new nonstop routes and adding three new cities to its network: Gulf Shores (Alabama), Colorado Springs (Colorado), and Columbia (South Carolina). Starting February 2025, the expansion will serve 51 cities with introductory one-way fares starting as low as $39. The expansion includes new routes connecting various destinations across the United States, focusing on providing affordable air service to underserved communities with or no air service. The company's strategy targets periods of strong leisure demand such as holidays, summer, weekends, and school breaks.

Allegiant Travel Company (ALGT) reported significant traffic decline in October 2024 due to hurricanes Helene and Milton. Nearly 1,000 flights were canceled between late September and early January, with about two-thirds occurring in October. The company saw a 17% decrease in passengers to 1,168,344, while revenue passenger miles dropped 15.7%. Load factor decreased by 5.2 points to 78.5%. The system-wide available seat miles declined 9.2%, with departures down 9.9%. The estimated average fuel cost was $2.52 per gallon. However, post-election booking trends indicate a faster-than-expected recovery in affected areas.

Allegiant Travel Company (NASDAQ: ALGT) reported a third quarter 2024 GAAP diluted loss per share of $(2.05). Total operating revenue was $562.2M, down 0.6% year-over-year, with operating loss at $(26.3M). The airline segment showed a 2.9% decrease in revenue to $549.1M. Despite challenges from hurricanes and operational disruptions, the company achieved positive aspects including a 3.1% increase in ancillary fare to $74.02 and 15.9% growth in fixed fee contract revenue to $20.6M. Total available liquidity stood at $1.1B, including $804.6M in cash and investments.

Allegiant Travel Company (NASDAQ: ALGT) has reported its preliminary passenger traffic results for September 2024 and the third quarter of 2024. Key points include:

- Scheduled service passengers decreased by 1.9% in September 2024 compared to September 2023

- Third quarter 2024 saw a 0.9% decrease in passengers compared to Q3 2023

- Load factor for September 2024 increased by 0.5 percentage points to 83.3%

- Q3 2024 load factor decreased by 1.9 percentage points to 85.6%

- Total system passengers decreased by 2.4% in September 2024 and 0.8% in Q3 2024 year-over-year

- Estimated average fuel cost per gallon for September 2024 was $2.49, and $2.69 for Q3 2024

Allegiant Travel Company (NASDAQ: ALGT) has announced its third quarter 2024 financial results conference call, scheduled for Wednesday, October 30 at 4:30 p.m. EDT. The call will be broadcast live through the company's Investor Relations website at http://ir.allegiantair.com, where it will also be archived in the 'Events & Presentations' section.

Allegiant Air, a Las Vegas-based integrated travel company, focuses on connecting customers from small-to-medium cities to vacation destinations with all-nonstop flights and industry-low average fares. The airline boasts base airfares less than half the cost of the average domestic roundtrip ticket. For more information, visit Allegiant.com.

Allegiant (NASDAQ: ALGT) has released its third-annual Sustainability Report, highlighting progress in key areas. The airline has set a decarbonization goal to reduce tank-to-wake greenhouse gas emissions by 10% per revenue-ton-kilometer by 2030 against a 2023 baseline, marking the first such goal in the U.S. ULCC sector. Allegiant is on track for IOSA certification by 2026, demonstrating its commitment to global safety standards.

The company achieved significant recognition in customer satisfaction, winning SkyTrax's "Best Low-Cost Airline" in North America. In 2023, Allegiant exceeded its controllable completion goal, finishing with a rate of 99.8%. President and CEO Gregory C. Anderson emphasized the company's dedication to responsible sustainability initiatives that strengthen the business while serving stakeholders.

Allegiant Travel Company (NASDAQ: ALGT) reported its August 2024 traffic results, noting a strong demand environment. The company expects third-quarter unit revenues to be down approximately 5.5% year-over-year, an improvement from the previously anticipated 7.5% decline. Non-fuel unit costs are projected to increase by about 4.5% in Q3, which is 2.5 points better than expected. Fuel costs are estimated at $2.70 per gallon for Q3, down from the prior $2.80 forecast.

August 2024 saw a 1.3% increase in passengers for scheduled service compared to August 2023. The total system experienced a 1.8% rise in passengers and a 3.0% increase in available seat miles. However, the load factor decreased by 1.5 percentage points to 84.5%. Allegiant has updated its Q3 guidance, projecting an airline-only operating margin between -0.5% and -1.5%, and consolidated earnings per share between -$1.75 and -$2.25, excluding special charges.

Allegiant (NASDAQ: ALGT) has announced the resignation of Scott DeAngelo, Executive Vice President and Chief Marketing Officer, effective September 30, 2024. DeAngelo, who joined the company in 2018, established a successful marketing strategy that led to multiple awards. CEO Gregory C. Anderson praised DeAngelo's leadership and contributions. During his tenure, DeAngelo oversaw marketing, ecommerce, leisure products, and loyalty programs. He led the development of Allegiant's frequent flyer program and secured naming rights for Allegiant Stadium. To ensure continuity, Drew Wells will assume the position of Chief Commercial Officer, taking over DeAngelo's responsibilities along with revenue and network planning departments.