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Allegiant (ALGT) Shares Rise 21% in 3 Months: 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 February.
In February 2023, Allegiant carried 1.24 million passengers in scheduled service, up 13% from the February 2022 actuals. Revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 12.2% and 2.3%, respectively, from the year-ago levels. Load factor (percentage of seats filled by passengers) increased 7.6 points to 85.4% in February 2023, as the traffic increase was greater than the capacity expansion. Moreover, scheduled departures increased 3.1% year over year.
In February 2023, Allegiant carried 13.1% more passengers (systemwide) than that in February 2022. Capacity increased 2.3% from the year-ago month’s reading. Departures (systemwide) improved 3.2% from the February 2022 actuals. The estimated average fuel cost per gallon for February was $3.53 (systemwide).
Apart from the upbeat traffic report, Allegiant, currently carrying a Zacks Rank #3 (Hold), reported a strong cash position in fourth-quarter 2022. Cash and cash equivalents of $230 million at fourth-quarter end was higher than the current debt figure of $153 million. This implies that the company has enough cash to meet its debt burden. Also, management expects revenues to remain strong in 2023.
ALGT has gained 21% in the past three months against the 3.3% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Investors interested in the above Airline industry may consider the following better-ranked stocks:
American Airlines (AAL - Free Report) , currently carrying a Zacks Rank #2 (Buy), is also being aided by the improved air-travel-demand situation. In fourth-quarter 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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 fourth-quarter 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 2023 earnings are expected to surge 227% year over year.
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Allegiant (ALGT) Shares Rise 21% in 3 Months: 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 February.
In February 2023, Allegiant carried 1.24 million passengers in scheduled service, up 13% from the February 2022 actuals. Revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 12.2% and 2.3%, respectively, from the year-ago levels. Load factor (percentage of seats filled by passengers) increased 7.6 points to 85.4% in February 2023, as the traffic increase was greater than the capacity expansion. Moreover, scheduled departures increased 3.1% year over year.
In February 2023, Allegiant carried 13.1% more passengers (systemwide) than that in February 2022. Capacity increased 2.3% from the year-ago month’s reading. Departures (systemwide) improved 3.2% from the February 2022 actuals. The estimated average fuel cost per gallon for February was $3.53 (systemwide).
Apart from the upbeat traffic report, Allegiant, currently carrying a Zacks Rank #3 (Hold), reported a strong cash position in fourth-quarter 2022. Cash and cash equivalents of $230 million at fourth-quarter end was higher than the current debt figure of $153 million. This implies that the company has enough cash to meet its debt burden. Also, management expects revenues to remain strong in 2023.
ALGT has gained 21% in the past three months against the 3.3% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Investors interested in the above Airline industry may consider the following better-ranked stocks:
American Airlines (AAL - Free Report) , currently carrying a Zacks Rank #2 (Buy), is also being aided by the improved air-travel-demand situation. In fourth-quarter 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For first-quarter and 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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 fourth-quarter 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 2023 earnings are expected to surge 227% year over year.