Allegiant Travel Company ALGT has recently reported traffic numbers for January. Traffic for the total system including scheduled service and fixed fee contract, measured in revenue passenger miles (RPMs), increased 9.3% on a year-over-year basis to 877.42 million. System capacity, calculated in available seat miles (ASMs), improved 6.1% to 1.1 billion.
With traffic growth outpacing capacity expansion, load factor (percentage of seats filled with passengers) rose 240 basis points year over year to 79.9%.
Allegiant’s passenger count gained 8.7% in January while its system-wide average fuel cost per gallon was approximately $2.23 in the month.
Allegiant Travel Company Price
Allegiant Travel Company Price | Allegiant Travel Company Quote
The robust traffic results were released just a few days after the company reported fourth-quarter 2017 financial numbers with better-than-expected earnings per share and revenues. Moreover, both the metrics improved substantially from the year-ago figures. The bottom line was aided by higher revenues while the top line was boosted, primarily by a significant increase in ancillary revenues.
For the first quarter of 2018, this Zacks Rank #2 (Buy) company expects average seat miles (scheduled and system) to rise year over year in the 10-14% band. Additionally, it anticipates ASMs (scheduled and system) to grow in the range of 11-15% year over year for the current year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other key airline players namely United Continental Holdings UAL, Southwest Airlines LUV and American Airlines AAL have also recently announced fourth-quarter earnings performance, each reporting better-than-expected figures.
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