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Allegiant (ALGT) Shares Rise 20.5% in a Month: Here's Why
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Allegiant Travel Company (ALGT - Free Report) is being aided by the upbeat air travel demand scenario in the United States. Owing to increased passenger volumes, ALGT recently reported buoyant traffic data for January.
In January 2023, Allegiant carried 1.20 million passengers in scheduled service, up 27.6% from the January 2022 actuals. Revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 27% and 5.5%, respectively, from the year-ago levels. Load factor (percentage of seats filled by passengers) increased 14.1 points to 83.2% in January 2023, as the traffic increase was greater than the capacity expansion. Moreover, scheduled departures increased 6.4% year over year.
In January 2023, Allegiant carried 27.2% more passengers (system-wide) than that in January 2022. Capacity increased 5.1% from the year-ago month’s reading. Departures (system-wide) improved 6.3% from the January 2022 actuals. The estimated average fuel cost per gallon for January was $3.75 (systemwide).
Apart from the upbeat traffic report, Allegiant, currently carrying a Zacks Rank #3 (Hold), was in the news recently due to its stellar fourth-quarter 2022 earnings report. Allegiant’s fourth-quarter 2022 earnings (excluding 30 cents from non-recurring items) of $3.17 per share surpassed the Zacks Consensus Estimate of 79 cents per share. Buoyant demand for air travel, along with operational improvements, supported the earnings uptick.
Operating revenues of $611.55 million beat the Zacks Consensus Estimate of $578.32 million and increased 23% on a year-over-year basis. Passenger revenues, which accounted for the bulk (92.6%) of the top line, increased around 25% on a year-over-year basis.
The above-mentioned events are responsible for the ALGT stock gaining 20.5% in a month. The industry to which Allegiant belongs has depreciated 5.5% in the same time period.
Image Source: Zacks Investment Research
Investors interested in the above industry may consider the following better-ranked stocks:
American Airlines (AAL - Free Report) is also being aided by the improved air travel demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter 2023, AAL’s earnings are expected to register 100.4% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 332% on a year-over-year basis.
American Airlines, currently carrying a Zacks Rank #2 (Buy), has evidenced the Zacks Consensus Estimate for first-quarter 2023 earnings being revised upward by 103.2% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Airlines (UAL - Free Report) , currently carrying a Zacks Rank #2, is seeing steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in the fourth quarter of 2022. The fourth quarter was the third consecutive profitable quarter at UAL.
Driven by solid demand, management expects total revenue per available seat mile to grow 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow 50% year over year. The Zacks Consensus Estimate for UAL’s first-quarter 2023 has been revised upward by 270% in the past 60 days.
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Allegiant (ALGT) Shares Rise 20.5% in a Month: Here's Why
Allegiant Travel Company (ALGT - Free Report) is being aided by the upbeat air travel demand scenario in the United States. Owing to increased passenger volumes, ALGT recently reported buoyant traffic data for January.
In January 2023, Allegiant carried 1.20 million passengers in scheduled service, up 27.6% from the January 2022 actuals. Revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 27% and 5.5%, respectively, from the year-ago levels. Load factor (percentage of seats filled by passengers) increased 14.1 points to 83.2% in January 2023, as the traffic increase was greater than the capacity expansion. Moreover, scheduled departures increased 6.4% year over year.
In January 2023, Allegiant carried 27.2% more passengers (system-wide) than that in January 2022. Capacity increased 5.1% from the year-ago month’s reading. Departures (system-wide) improved 6.3% from the January 2022 actuals. The estimated average fuel cost per gallon for January was $3.75 (systemwide).
Apart from the upbeat traffic report, Allegiant, currently carrying a Zacks Rank #3 (Hold), was in the news recently due to its stellar fourth-quarter 2022 earnings report. Allegiant’s fourth-quarter 2022 earnings (excluding 30 cents from non-recurring items) of $3.17 per share surpassed the Zacks Consensus Estimate of 79 cents per share. Buoyant demand for air travel, along with operational improvements, supported the earnings uptick.
Operating revenues of $611.55 million beat the Zacks Consensus Estimate of $578.32 million and increased 23% on a year-over-year basis. Passenger revenues, which accounted for the bulk (92.6%) of the top line, increased around 25% on a year-over-year basis.
The above-mentioned events are responsible for the ALGT stock gaining 20.5% in a month. The industry to which Allegiant belongs has depreciated 5.5% in the same time period.
Image Source: Zacks Investment Research
Investors interested in the above industry may consider the following better-ranked stocks:
American Airlines (AAL - Free Report) is also being aided by the improved air travel demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter 2023, AAL’s earnings are expected to register 100.4% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 332% on a year-over-year basis.
American Airlines, currently carrying a Zacks Rank #2 (Buy), has evidenced the Zacks Consensus Estimate for first-quarter 2023 earnings being revised upward by 103.2% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Airlines (UAL - Free Report) , currently carrying a Zacks Rank #2, is seeing steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in the fourth quarter of 2022. The fourth quarter was the third consecutive profitable quarter at UAL.
Driven by solid demand, management expects total revenue per available seat mile to grow 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow 50% year over year. The Zacks Consensus Estimate for UAL’s first-quarter 2023 has been revised upward by 270% in the past 60 days.