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Allegiant (ALGT) Posts Stellar November Traffic Figures

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Allegiant Travel Company (ALGT - Free Report) reported impressive traffic numbers for November as air-travel demand recovers in the United States from Delta variant-led woes. With more Americans getting vaccinated, the scenario looks positive on a year-over-year and year-over-two-year basis.

Scheduled traffic (measured in revenue passenger miles) surged 78.8% from the November 2020 levels. Capacity (measured in available seat miles) for scheduled service increased 32.8% from November 2020 reading. With the traffic surge outweighing capacity expansion, the load factor (% of seats filled by passengers) in November expanded 20 points to 77.6% from the year-ago period’s levels. For the total system (including scheduled service and fixed fee contract), Allegiant carried 74.9% more passengers in November 2021 from the year-ago period’s level.

Compared with the November 2019 levels (pre-COVID), scheduled traffic and capacity surged 10.8% and 14.7%, respectively. The load factor tanked 2.8 points to 77.6% as the increase in traffic was lower than capacity expansion. For the total system, the airline carried 7.3% more passengers in November 2021 from November 2019 levels.

With oil prices increasing, Allegiant is witnessing a rise in fuel cost per gallon. Fuel price per gallon in November is estimated to have been $2.56 compared with $2.52 in October.

Zacks Rank & Stocks to Consider

Allegiant currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Some better-ranked stocks in the broader Zacks Transportation sector are J.B. Hunt Transport Services, Inc. (JBHT - Free Report) , Landstar System, Inc. (LSTR - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .

The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. While the Dedicated Contract Services (DCS) unit is being aided by fleet-productivity improvement and rise in average revenue producing trucks, the Integrated Capacity Solutions (ICS) unit is gaining from favorable customer freight mix as well as higher contractual and spot rates.

JBHT measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has increased 36.4% in the past year. J.B. Hunt currently carries a Zacks Rank #2 (Buy).

The long-term expected earnings per share (three to five years) growth rate for Landstar is pegged at 12%. LSTR is benefitting from a gradual recovery in the economy and freight market conditions in the United States.

LSTR’s top and bottom line increased substantially in each quarter from third-quarter 2020, owing to robust revenues generated from the primary segment — truck transportation. The stock has returned 23.5% in the past year. Landstar sports a Zacks Rank #1.

The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW is benefitting from higher pricing and volumes across most of its service lines. Total revenues rallied 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments.

CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has increased 6.7% in the past year. C.H. Robinson flaunts a Zacks Rank #1.
 

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