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Allegiant Travel (ALGT) Posts Dismal October Traffic Data

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Air-travel demand continues to trend far below the year-ago levels despite showing signs of recent recovery. Due to this downside, Allegiant Travel Company’s (ALGT - Free Report) traffic, measured in revenue passenger miles, decreased 29% year over year in October for scheduled service.

To compensate for the year-over-year weakness in demand, this Las Vegas, NV-based carrier is trimming capacity. Consequently, last month, capacity (measured in available seat miles) contracted 6.4%. With traffic declining more than the extent of capacity reduction, load factor (% of seats filled by passengers) fell 20 points year over year to 63.1%. Allegiant Travel’s monthly departures for scheduled service dropped 9.5%.

Moreover, the number of passengers transported by Allegiant Travel in October for scheduled service plunged 30.1%. For the total system (scheduled service and fixed fee contract) passengers transported decreased 30.8% year over year due to coronavirus woes. Moreover, the systemwide average fuel price per gallon in the month was estimated to be $1.29 per gallon.

Due to pandemic crisis, shares of Allegiant Travel have dropped 11.2% since the beginning of March compared with the industry’s 9.7% fall.

Zacks Rank & Key Picks

Allegiant Travel carries a Zacks Rank #3 (Hold), currently. Some better-ranked stocks in the broader Transportation sector are FedEx Corporation (FDX - Free Report) , Landstar System (LSTR - Free Report) and Expeditors International of Washington (EXPD - Free Report) . While FedEx sports a Zacks Rank #1 (Strong Buy), both Landstar and Expeditors carry a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of FedEx, Landstar and Expeditors have gained 77.1%, 14% and 13.6% so far this year, respectively.

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