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Allegiant (ALGT) October 2022 Passenger Volumes Top 2019-Level

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Reflecting the recovery in air-travel demand from the pandemic lows, Allegiant Travel Company (ALGT - Free Report) posted highly impressive traffic numbers for October 2022. ALGT carried 1.25 million passengers in the month, up 12.9% from the October 2019 actuals (pre-COVID period).

Revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 20.3% and 17%, respectively, from October 2019. Load factor (% of seats filled by passengers) increased 2.4 points to 85.5% in October 2022, as the traffic increase was more than the capacity expansion.

In October 2022, Allegiant carried 7.3% more passengers (system-wide) than in October 2021. Capacity contracted 2.4% from the year-ago comparable month’s reading. With respect to scheduled service, 7.4% more passengers boarded ALGT flights in October 2022 than in the year-ago period. Revenue passenger miles increased 12% from October 2021 levels. Available seat miles contracted 2.2% from October 2021 reading. Load factor increased 10.8 points to 85.5% in October 2022 as the traffic increased while capacity contracted. Average fuel cost per gallon (estimated) in October 2022 was $3.91 per gallon.

Driven by the buoyant air-travel demand scenario, Allegiant’s shares have increased 16% over the past month, outperforming its industry’s 7.5% growth.

Zacks Investment Research
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Zacks Rank & Key Picks

Allegiant currently carries a Zacks Rank #4 (Sell).

In the broader Zacks Transportation sector, investors may consider some better-ranked stocks like Covenant Logistics (CVLG - Free Report) and Ryder System (R - Free Report) .

Covenant Logistics offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.

The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are appreciated as well. CVLG currently sports a Zacks Rank #1 (Strong Buy). The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Miami, FL-based Ryder provides integrated logistics and transportation solutions. With improved economic and freight market conditions, R is benefiting from higher rental revenues owing to strong demand and favorable pricing. R’s acquisitions of Whiplash and Midwest Warehouse & Distribution System expand its e-commerce fulfillment network and boost multi-client warehousing capabilities. The transactions are expected to drive growth in the supply-chain solutions segment.

Ryder currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for R’s 2022 earnings has been revised 7% upward in the past 60 days.


See More Zacks Research for These Tickers


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Ryder System, Inc. (R) - free report >>

Allegiant Travel Company (ALGT) - free report >>

Covenant Logistics Group, Inc. (CVLG) - free report >>

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