Allegiant Travel June Traffic Rises, Q2 Guidance Bullish
Las Vegas, NV-based Allegiant Travel Company ALGT has reported traffic numbers for the month of June. Traffic for the total system, which includes scheduled service and fixed fee contract and measured in revenue passenger miles (RPMs), increased 6.8% on a year-over-year basis to 1.11 billion.
System capacity, measured in available seat miles (ASMs), improved 7.6% in the month to 1.31 billion. With capacity growth outpacing the rise in traffic, load factor (percentage of seats filled with passengers) declined 70 basis points year over year to 84.6%. Allegiant’s passenger count rose 10.8% in Jun 2017.
Its system-wide average fuel cost per gallon was approximately $1.64 per gallon in Jun 2017. Additionally, the system-wide average fuel cost per gallon for the second quarter is estimated at $1.71. Detailed results are expected on Jul 26.
Allegiant expects the second quarter total revenue per scheduled ASM (TRASM) to increase in the range of 2.7-3.1%, up from its previous guidance of 1.5-3.5%. Cost per available seat mile, excluding fuel (CASM-ex fuel), is estimated to increase between 13.1-13.5% year over year in the second quarter, the previous forecast for which was 13-15%.
The company expects system-wide capacity growth for the third quarter of 2017 in the band of 3-7%. This metric is projected to grow further in the 9-13% range during the fourth quarter of 2017.
Allegiant Travel Company Price
Allegiant Travel Company Price | Allegiant Travel Company Quote
Zacks Rank & Key Picks
Allegiant currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in airline space are Air France-KLM SA AFLYY, American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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