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Allegiant (ALGT) May 2021 Traffic Up 172% From May 2020
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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).
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.
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Allegiant (ALGT) May 2021 Traffic Up 172% From May 2020
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>>