Allegiant Travel Co Stock Price, News & Analysis

Allegiant (NASDAQ: ALGT) has been named the top Best Airline Credit Card and Best Frequent Flyer program in USA TODAY's 10Best 2024 Readers' Choice Awards. This marks the sixth consecutive year for the airline's credit card to receive the top spot. The recently rebranded Allways Rewards Visa® card continues to impress customers with its features and travel rewards.

Allegiant's frequent flyer program, Allways Rewards, offers unlimited opportunities to earn and redeem points without restrictions or blackout dates. Members earn points on every dollar spent, with enhanced rates for higher spending. The program also provides unique rewards through partnerships, including sports and live music event tickets.

This recognition highlights Allegiant's commitment to providing exceptional value and rewards to its customers, particularly in connecting small to medium-sized cities to top vacation destinations with all-nonstop flights and industry-low average fares.

Allegiant Travel Company (NASDAQ: ALGT) reported its second-quarter 2024 financial results on July 31, 2024.

Key figures include:

• GAAP diluted earnings per share (EPS) of $0.75
• Diluted EPS excluding special charges of $1.77
• Airline-only diluted EPS excluding special charges of $2.24
• Total operating revenue of $666.3M, down 2.6% YoY
• Net income of $13.7M, down 84.5% YoY
• Operating income of $34.9M, down 73.8% YoY
• Total operating expenses increased by 14.7% to $631.4M

Allegiant announced a strategic review of its Sunseeker Resort. The company also expects notable benefits in 2025 from increased aircraft utilization and the Navitaire reservation system. Notably, Allegiant achieved strong operational performance with a controllable completion factor of 99.7% in Q2.

Allegiant Travel Company (NASDAQ: ALGT) has engaged Prospect Hotel Advisors to conduct a strategic review of its Sunseeker Resort Charlotte Harbor in Southwest Florida. The aim is to maximize the resort's value and improve its financial performance. Prospect Hotel Advisors, known for their expertise in resort operations and strategic positioning, will work with Sunseeker's management team to identify the best path forward.

The review comes as Allegiant seeks to enhance the recently opened resort, which features 785 guestrooms, 20 food and beverage brands, extensive meeting space, and amenities including pools, a spa, and the exclusive Aileron Golf Club. This move aligns with Allegiant's strategy to optimize its hospitality assets and potentially explore strategic alternatives for Sunseeker Resort.

Allegiant Air pilots, represented by Teamsters Local 2118, are raising concerns about the company's priorities ahead of Allegiant Travel Company's (NASDAQ: ALGT) Q2 2024 earnings announcement. The 1,300 pilots have been working under an outdated 2016 labor agreement, with negotiations entering their fourth year. Allegiant is reportedly demanding concessionary changes to pilot schedules and contracts while offering compensation increases that still lag behind industry peers.

The union questions Allegiant's focus on projects like the Sunseeker Resort hotel, which has faced losses and low occupancy, instead of prioritizing pilot investments. Captain Jim Clark of Local 2118 warns that the company's bargaining tactics may lead to a labor dispute, potentially harming the airline and its brand. Investors are urged to encourage company leaders to prioritize investing in the airline and its pilots to avoid a labor conflict and ensure growth.

Allegiant Travel Company (NASDAQ: ALGT) has awarded a $34,000 Careers in Aviation scholarship to Jill Prime, a 17-year-old aspiring pilot. The scholarship will fund Jill's education at Embry-Riddle Aeronautical University, supporting her dream of becoming a pilot. This initiative is part of Allegiant's partnership with the Boys & Girls Club of America and their $1 million pledge to promote STEM education and aviation careers.

The scholarship was revealed during the Paper Plane Palooza event in Las Vegas, where Jill was surprised with the announcement. Allegiant's commitment aims to address the gender gap in aviation, with only 5% of airline pilots being women. The company is also providing Jill with a mentor, Captain Kati Whatley, to guide her through her aviation journey.

This scholarship program aligns with Allegiant's corporate giving strategy to inspire young aviators and promote diversity in the industry. The partnership with Boys & Girls Clubs of America enables the development of aviation-inspired programming for youth across the country.

Allegiant Travel Company (NASDAQ: ALGT) has released its preliminary passenger traffic results for June 2024. The report shows a 1.5% increase in scheduled service passengers compared to June 2023, reaching 1,830,067. However, the load factor decreased by 3.5 percentage points to 86.6%. For the second quarter of 2024, passenger numbers declined by 3.1% compared to the same period in 2023. The company's total system passengers increased by 1.9% in June 2024 compared to the previous year. Allegiant also reported an estimated average fuel cost of $2.72 per gallon for June 2024 and $2.83 per gallon for the second quarter of 2024.

Allegiant Travel Company (NASDAQ: ALGT) has announced a significant leadership change. Gregory C. Anderson will succeed Maurice J. Gallagher as CEO and President, effective September 1. Gallagher, who has been CEO for nearly 25 years, will transition to the role of Executive Chairman of the Board.

Anderson, who joined Allegiant in 2010, has held various leadership positions, including CFO, and was important in navigating the company through the pandemic. Under his current role as president, Allegiant has excelled in financial and operational performance, as well as customer satisfaction. The company has received numerous industry accolades for its performance and customer experience.

This leadership transition represents a continuation of Allegiant's unique business model, which offers leisure consumers nonstop flights at industry-low fares. The change also highlights the company's ability to internally develop talent, which Gallagher describes as a core strength.

Allegiant Travel Company (NASDAQ: ALGT) has announced eight new nonstop routes to 13 cities, offering one-way fares as low as $39. The routes, launching in November 2024, will connect various cities to popular vacation destinations in Florida and Georgia. Notable routes include Grand Rapids to Palm Beach, Punta Gorda to Savannah/Hilton Head, and Cincinnati to Melbourne Orlando.

Drew Wells, Allegiant's chief revenue officer, stated that these additions reflect the success of existing services and respond to consumer demand. The new routes are timed for winter getaways and aim to provide affordable travel options. Introductory fares are available for purchase until July 17, 2024, for travel by February 10, 2025.

Allegiant Travel Company (NASDAQ: ALGT) announced it will host a conference call to discuss its second quarter 2024 financial results on Wednesday, July 31 at 4:30 p.m. EDT. A live broadcast of the call will be accessible through Allegiant's Investor Relations website, and an archived webcast will be available in the 'Events & Presentations' section of the site. Allegiant Travel, based in Las Vegas, operates an airline focused on connecting small-to-medium cities to popular vacation destinations with nonstop flights and low fares. More information and media resources are available on Allegiant's official website. For inquiries, contact mediarelations@allegiantair.com or ir@allegiantair.com.