Allegiant (ALGT) December Traffic Falls From Year-Ago Levels
Allegiant Travel Company ALGT recently reported a disappointing year-over-year decrease in traffic and capacity for December 2023.
Scheduled traffic (measured in revenue passenger miles) fell 6.8% from December 2022 levels. Capacity (measured in available seat miles) for scheduled service declined 4.4% from the December 2022 reading. The load factor (percentage of seats filled by passengers) in December 2023 reached 82.5%.
Total departures (scheduled services) dipped 5% year over year in December 2023. However, its average stage length (miles) inched up 0.2%. For the total system (including scheduled service and fixed fee contract), Allegiant carried 6.3% less passengers in December 2023 from the year-ago levels. System-wide capacity contracted 3.7% in December on a year-over-year basis.
Fuel price per gallon in December is estimated to be $2.96. For 2023, the guidance for average fuel cost per gallon is $3.09, higher than the prior view of $3.12.
Zacks Rank & Key Picks
ALGT currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector are Air Canada ACDVF and Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB.
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a year-round route between Montreal and Madrid. You can see the complete list of today’s Zacks #1 Rank stocks here.
The service will commence in May 2024 as part of its expanded international summer 2024 flying schedule to cater to increased demand.
Wabtec has an expected earnings growth rate of 22.43% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
Wabtec presently flaunts a Zacks Rank of 1.
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Allegiant Travel Company (ALGT) : Free Stock Analysis Report
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