Allegiant Travel Co (ALGT) Reports Q3 2023 Earnings, Reveals Diluted Loss Per Share of $(1.44)
Allegiant Travel Co (NASDAQ:ALGT) reported a GAAP diluted loss per share of $(1.44) for Q3 2023
The company's total operating revenue increased by 0.9% YoY to $565.4 million
Net loss improved by 46.0% YoY, reducing from $(46.5) million to $(25.1) million
Allegiant Travel Co (NASDAQ:ALGT) announced the opening of Sunseeker Resort on December 15, 2023
On November 2, 2023, Allegiant Travel Co (NASDAQ:ALGT) released its financial results for the third quarter of 2023. The company reported a GAAP diluted loss per share of $(1.44), and a diluted earnings per share, excluding special charges, of $0.09. The airline-only diluted earnings per share, excluding special charges, was reported at $0.31.
Financial Performance
Allegiant Travel Co (NASDAQ:ALGT) reported a slight increase in total operating revenue, which rose by 0.9% year-over-year (YoY) to $565.4 million. The total operating expense decreased by 1.4% YoY to $583.2 million, resulting in an operating loss of $(17.9) million, a 42.1% improvement from the $(30.9) million loss in the same period last year.
The company's net loss improved significantly by 46.0% YoY, reducing from $(46.5) million to $(25.1) million. The diluted loss per share also improved by 44.2% YoY from $(2.58) to $(1.44).
Company Highlights and Future Plans
Allegiant Travel Co (NASDAQ:ALGT) announced that the Sunseeker Resort is set to open on December 15, 2023. The company's CEO, Maurice J. Gallagher, Jr., expressed his excitement about the opening of the resort and praised the management team for their efforts.
Furthermore, the company is focusing on enhancing its brand through the Allegiant credit card, which has significantly impacted the bottom line through new cardholder acquisitions and increased cardholder spend. The company has received $88 million in remuneration from its partner, Bank of America, and expects this number to continue growing.
Financial Tables Summary
The financial tables provided in the earnings report show a detailed breakdown of the company's performance. For the nine months ended September 30, 2023, the total operating revenue increased by 12.3% YoY to $1,898.9 million. The net income improved significantly by 339.2% YoY to $119.6 million, and the diluted earnings per share increased by 331.3% YoY to $6.43.
For the airline-only segment, the operating income increased by 414.3% YoY to $230.9 million, and the net income improved by 1,348.2% YoY to $137.3 million. The airline operating margin, excluding special charges, was reported at 13.0%.
Analysis of Company's Performance
Despite the challenges posed by the ongoing pandemic, Allegiant Travel Co (NASDAQ:ALGT) has shown resilience with a slight increase in total operating revenue and a significant improvement in net loss. The company's efforts to enhance its brand and diversify its revenue streams have contributed to its financial performance. The upcoming opening of the Sunseeker Resort also represents a significant milestone for the company and is expected to contribute to its future growth.
Explore the complete 8-K earnings release (here) from Allegiant Travel Co for further details.
This article first appeared on GuruFocus.
