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Allegiant's (ALGT) Traffic & Load Factor Fall in December
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Thanks to coronavirus-led dwindling air travel demand, Allegiant Travel Company’s (ALGT - Free Report) reports disappointing traffic numbers for December.
Traffic for scheduled service, measured in revenue passenger miles (RPMs), plunged 47.6% on a year-over-year basis to 611.4 million. Scheduled capacity, calculated in available seat miles (ASMs), also fell 20% to 1.13 billion in the month.
With traffic plunge exceeding capacity contraction, load factor (percentage of seats filled with passengers) was slashed by 2840 basis points year over year to 54.2%.
The number of departures for scheduled services fell 22.7%. However, the average stage length (average distance flown per aircraft departure) moved up 2.3% to 891 miles in the same month.
For the total system (including scheduled service and fixed fee contract), number of departures plunged 23.3% while the average stage length inched up 1.7%. Moreover, traffic and capacity for the total system declined 39.8% and 15.6%, respectively.
Meanwhile, the current scenario of low fuel cost is a positive and is expected to have driven the company’s fourth-quarter results, scheduled to be released on Feb 3. Evidently, the company expects fuel cost per gallon (system wide) to be $1.41, which suggests 35.3% decline from the figure reported in fourth-quarter 2019.
Zacks Rank & Stocks to Consider
Allegiant currently carries a Zacks Rank #4 (Sell).
Long-term expected earnings per share (three to five years) growth rate for FedEx, Landstar and Herc Holdings is pegged at 12%, 12% and 12.6%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Allegiant's (ALGT) Traffic & Load Factor Fall in December
Thanks to coronavirus-led dwindling air travel demand, Allegiant Travel Company’s (ALGT - Free Report) reports disappointing traffic numbers for December.
Traffic for scheduled service, measured in revenue passenger miles (RPMs), plunged 47.6% on a year-over-year basis to 611.4 million. Scheduled capacity, calculated in available seat miles (ASMs), also fell 20% to 1.13 billion in the month.
With traffic plunge exceeding capacity contraction, load factor (percentage of seats filled with passengers) was slashed by 2840 basis points year over year to 54.2%.
The number of departures for scheduled services fell 22.7%. However, the average stage length (average distance flown per aircraft departure) moved up 2.3% to 891 miles in the same month.
For the total system (including scheduled service and fixed fee contract), number of departures plunged 23.3% while the average stage length inched up 1.7%. Moreover, traffic and capacity for the total system declined 39.8% and 15.6%, respectively.
Meanwhile, the current scenario of low fuel cost is a positive and is expected to have driven the company’s fourth-quarter results, scheduled to be released on Feb 3. Evidently, the company expects fuel cost per gallon (system wide) to be $1.41, which suggests 35.3% decline from the figure reported in fourth-quarter 2019.
Zacks Rank & Stocks to Consider
Allegiant currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Transportation sector are FedEx Corporation (FDX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Landstar carries a Zacks Rank #2 (Buy), while FedEx and Herc Holdings 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 FedEx, Landstar and Herc Holdings is pegged at 12%, 12% and 12.6%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>