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Allegiant (ALGT) Posts Bland August Traffic, Load Factor Tanks
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Allegiant Travel Company (ALGT - Free Report) reported dull traffic numbers for August, primarily due to weak air travel demand stemming from the COVID-19 pandemic. Traffic for scheduled service, measured in revenue passenger miles (RPMs), plunged 48.4% on a year-over-year basis to 540.3 million. Scheduled capacity, calculated in available seat miles (ASMs), fell 0.3% to 1226.4 million in the month.
Since the decline in traffic exceeded capacity reduction, load factor (percentage of seats filled with passengers) plunged 4110 basis points year over year to 44.1%. Moreover, number of passengers carried declined 49% year over year to 633.2 million.
Number of departures for scheduled service declined 3.6% on a year-over-year basis. However, average stage length (average distance flown per aircraft departure) moved up 1.6% to 835 miles in the same month. For the total system (including scheduled service and fixed fee contract), number of departures fell 6.7%, while the average stage length inched up 1.1% to 833 miles. The average fuel cost per gallon (estimated) for August was $1.34.
Average daily bookings for August were approximately $2 million per day. The company expects average daily cash burn to exceed $1 million for the September quarter. The same is expected to be lower than $1 million for the final quarter of the year, in the event of current booking trends remaining stable.
Zacks Rank & Stocks to Consider
Allegiant currently carries a Zacks Rank #3 (Hold).
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Canadian Pacific and Werner is pegged at 15%, 8% and 8.5%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Allegiant (ALGT) Posts Bland August Traffic, Load Factor Tanks
Allegiant Travel Company (ALGT - Free Report) reported dull traffic numbers for August, primarily due to weak air travel demand stemming from the COVID-19 pandemic. Traffic for scheduled service, measured in revenue passenger miles (RPMs), plunged 48.4% on a year-over-year basis to 540.3 million. Scheduled capacity, calculated in available seat miles (ASMs), fell 0.3% to 1226.4 million in the month.
Since the decline in traffic exceeded capacity reduction, load factor (percentage of seats filled with passengers) plunged 4110 basis points year over year to 44.1%. Moreover, number of passengers carried declined 49% year over year to 633.2 million.
Number of departures for scheduled service declined 3.6% on a year-over-year basis. However, average stage length (average distance flown per aircraft departure) moved up 1.6% to 835 miles in the same month. For the total system (including scheduled service and fixed fee contract), number of departures fell 6.7%, while the average stage length inched up 1.1% to 833 miles. The average fuel cost per gallon (estimated) for August was $1.34.
Average daily bookings for August were approximately $2 million per day. The company expects average daily cash burn to exceed $1 million for the September quarter. The same is expected to be lower than $1 million for the final quarter of the year, in the event of current booking trends remaining stable.
Zacks Rank & Stocks to Consider
Allegiant currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Canadian Pacific Railway Limited (CP - Free Report) and Werner Enterprises, Inc. (WERN - Free Report) . Knight-Swift sports a Zacks Rank #1(Strong Buy), while Canadian Pacific and Werner carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Canadian Pacific and Werner is pegged at 15%, 8% and 8.5%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>