Allegiant Travel Company (ALGT - Free Report) reported impressive traffic numbers for the month of May as air-travel demand improved in the United States. With more and more Americans getting jabbed, the picture is rosier on a year-over-year basis.
Scheduled traffic (measured in revenue passenger miles) surged 172% from May 2020 levels. Capacity (measured in available seat miles) for scheduled service increased 87.3% from May 2020 readings.
With the traffic surge outweighing capacity expansion, load factor (% of seats filled by passengers) in May expanded 21.4 points to 68.7% from the year-ago period. For the total system (including scheduled service and fixed fee contract), Allegiant carried more passengers in May 2021, up 186.4% from the May 2020 levels.
Compared to May 2019 levels (pre-COVID), both traffic and capacity plunged 18.7% and 1.2%, respectively. Moreover, the load factor also tanked 14.9 points to 68.7% as decline in traffic was more than capacity contraction. For the total system, the airline carried 18.3% less passengers in May 2021 from May 2019 levels.
With oil prices shooting up, Allegiant is witnessing a rise in fuel cost per gallon. The metric, which was $1.90 in April, is estimated to have risen to $2.02 in May.
Besides, Allegiant expects its June loads to be in excess of 75% versus June 2019 levels with capacity increases of approximately 15%. Moreover, the carrier continues to expect its June-end quarters scheduled service revenue (excluding fixed fee and other revenue) to be down by 6-10%, from second-quarter 2019 levels.
Zacks Rank & Stocks to Consider
Allegiant currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector include Landstar System, Inc. (LSTR - Free Report) , Triton International Limited and Herc Holdings Inc. (HRI - Free Report) . Herc Holdings sports a Zacks Rank #1 (Strong Buy), while Triton and Landstar carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.
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Allegiant Travel Company (ALGT - Free Report) reported impressive traffic numbers for the month of May as air-travel demand improved in the United States. With more and more Americans getting jabbed, the picture is rosier on a year-over-year basis.
Scheduled traffic (measured in revenue passenger miles) surged 172% from May 2020 levels. Capacity (measured in available seat miles) for scheduled service increased 87.3% from May 2020 readings.
With the traffic surge outweighing capacity expansion, load factor (% of seats filled by passengers) in May expanded 21.4 points to 68.7% from the year-ago period. For the total system (including scheduled service and fixed fee contract), Allegiant carried more passengers in May 2021, up 186.4% from the May 2020 levels.
Compared to May 2019 levels (pre-COVID), both traffic and capacity plunged 18.7% and 1.2%, respectively. Moreover, the load factor also tanked 14.9 points to 68.7% as decline in traffic was more than capacity contraction. For the total system, the airline carried 18.3% less passengers in May 2021 from May 2019 levels.
With oil prices shooting up, Allegiant is witnessing a rise in fuel cost per gallon. The metric, which was $1.90 in April, is estimated to have risen to $2.02 in May.
Besides, Allegiant expects its June loads to be in excess of 75% versus June 2019 levels with capacity increases of approximately 15%. Moreover, the carrier continues to expect its June-end quarters scheduled service revenue (excluding fixed fee and other revenue) to be down by 6-10%, from second-quarter 2019 levels.
Zacks Rank & Stocks to Consider
Allegiant currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector include Landstar System, Inc. (LSTR - Free Report) , Triton International Limited and Herc Holdings Inc. (HRI - Free Report) . Herc Holdings sports a Zacks Rank #1 (Strong Buy), while Triton and Landstar carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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