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Allegiant (ALGT) Benefits From Low Fuel Costs Amid Pandemic
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We recently issued an updated report on Allegiant Travel Company (ALGT - Free Report) .
Low fuel prices are aiding Allegiant amid adversities. Evidently, average fuel cost per gallon (scheduled) declined 30.9% to $1.50 in the first nine months of 2020. The company expects the metric for the fourth quarter to be $1.35 per gallon.
We are also impressed by the company's efforts to modernize its fleet. The carrier operates an all-Airbus fleet. Allegiant's fleet-size at the end of 2019 was 91 (37 A319 and 54 A320), up from 2018's reported figure. The transition to an all-Airbus fleet, completed in November 2018, increased Allegiant’s fuel efficiency.
However, with air-travel demand spiraling down to an unprecedented level, the company’s first nine months operating revenues declined 46.1% year over year. The downtick was caused by 46.5% fall in passenger revenues. Load factor tanked 2450 basis points as capacity contraction surpassed traffic plunge. Low air travel demand is also expected to hurt Allegiant's fourth-quarter performance.
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, FedEx and Herc Holdings is pegged at 15%, 12% and 6.5%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Allegiant (ALGT) Benefits From Low Fuel Costs Amid Pandemic
We recently issued an updated report on Allegiant Travel Company (ALGT - Free Report) .
Low fuel prices are aiding Allegiant amid adversities. Evidently, average fuel cost per gallon (scheduled) declined 30.9% to $1.50 in the first nine months of 2020. The company expects the metric for the fourth quarter to be $1.35 per gallon.
We are also impressed by the company's efforts to modernize its fleet. The carrier operates an all-Airbus fleet. Allegiant's fleet-size at the end of 2019 was 91 (37 A319 and 54 A320), up from 2018's reported figure. The transition to an all-Airbus fleet, completed in November 2018, increased Allegiant’s fuel efficiency.
However, with air-travel demand spiraling down to an unprecedented level, the company’s first nine months operating revenues declined 46.1% year over year. The downtick was caused by 46.5% fall in passenger revenues. Load factor tanked 2450 basis points as capacity contraction surpassed traffic plunge. Low air travel demand is also expected to hurt Allegiant's fourth-quarter performance.
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) , FedEx Corporation (FDX - Free Report) and Herc Holdings (HRI - Free Report) . All the stocks sport a Zacks Rank #1 (Strong 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, FedEx and Herc Holdings is pegged at 15%, 12% and 6.5%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>