Las Vegas, NV-based Allegiant Travel Company ALGT, the parent company of Allegiant Air, reported impressive traffic numbers for Sep 2016. Traffic for the total system, which includes scheduled service and fixed fee contract and measured in revenue passenger miles (RPMs), climbed 31.4% on a year-over-year basis to 655.68 million.
Traffic and Preliminary Financial Results
System capacity, measured in available seat miles (ASMs), surged 33.4% in the month to 820.96 million. With capacity growth outpacing the rise in traffic, load factor (percent of seats filled with passengers) declined 120 basis points year over year to 79.9%. Allegiant carried 37.4% more passengers in Sep 2016.
According to the preliminary financial results released by the company, its system-wide average fuel cost per gallon was approximately $1.60 per gallon in Sep 2016. Additionally, the system-wide average fuel cost per gallon for the third quarter is estimated at $1.57. Allegiant has estimated the third-quarter total revenue per scheduled ASM (TRASM) to decline in the range of 7.4% to 7.8% year over year. The company expects system-wide capacity growth for the fourth quarter of 2016 in the band of 10% to 14%. The metric is projected to grow in the band of 10% to 14% in the first quarter of 2017. Cost per available seat mile, excluding fuel (CASM-ex fuel), is estimated to increase 0.8% to 1.2% year over year in the third quarter.
Allegiant Travel Company faces intense competition from peers such as JetBlue Airways Corp. JBLU, Southwest Airlines Co. LUV and Delta Air Lines, Inc. DAL.
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