U.S. markets closed
  • S&P 500

    3,390.68
    -10.29 (-0.30%)
     
  • Dow 30

    27,463.19
    -222.19 (-0.80%)
     
  • Nasdaq

    11,431.35
    +72.41 (+0.64%)
     
  • Russell 2000

    1,590.71
    -14.50 (-0.90%)
     
  • Crude Oil

    38.93
    +0.37 (+0.96%)
     
  • Gold

    1,910.00
    -1.90 (-0.10%)
     
  • Silver

    24.47
    -0.10 (-0.43%)
     
  • EUR/USD

    1.1790
    -0.0024 (-0.20%)
     
  • 10-Yr Bond

    0.7780
    -0.0230 (-2.87%)
     
  • GBP/USD

    1.3041
    +0.0020 (+0.16%)
     
  • USD/JPY

    104.4940
    -0.3410 (-0.33%)
     
  • BTC-USD

    13,724.52
    +76.01 (+0.56%)
     
  • CMC Crypto 200

    271.23
    +9.94 (+3.80%)
     
  • FTSE 100

    5,728.99
    -63.02 (-1.09%)
     
  • Nikkei 225

    23,485.80
    -8.54 (-0.04%)
     

Allegiant (ALGT) Posts Bland August Traffic, Load Factor Tanks

Zacks Equity Research
·3 mins read

Allegiant Travel Company ALGT reported dull traffic numbers for August, primarily due to weak air travel demand stemming from the COVID-19 pandemic. Traffic for scheduled service, measured in revenue passenger miles (RPMs), plunged 48.4% on a year-over-year basis to 540.3 million. Scheduled capacity, calculated in available seat miles (ASMs), fell 0.3% to 1226.4 million in the month.

Since the decline in traffic exceeded capacity reduction, load factor (percentage of seats filled with passengers) plunged 4110 basis points year over year to 44.1%. Moreover, number of passengers carried declined 49% year over year to 633.2 million.

Number of departures for scheduled service declined 3.6% on a year-over-year basis. However, average stage length (average distance flown per aircraft departure) moved up 1.6% to 835 miles in the same month. For the total system (including scheduled service and fixed fee contract), number of departures fell 6.7%, while the average stage length inched up 1.1% to 833 miles. The average fuel cost per gallon (estimated) for August was $1.34.

Average daily bookings for August were approximately $2 million per day. The company expects average daily cash burn to exceed $1 million for the September quarter. The same is expected to be lower than $1 million for the final quarter of the year, in the event of current booking trends remaining stable.

Zacks Rank & Stocks to Consider

Allegiant currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. KNX, Canadian Pacific Railway Limited CP and Werner Enterprises, Inc. WERN. Knight-Swift sports a Zacks Rank #1(Strong Buy), while Canadian Pacific and Werner carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Canadian Pacific and Werner is pegged at 15%, 8% and 8.5%, respectively.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
KnightSwift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
 
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
 
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
 
Werner Enterprises, Inc. (WERN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research