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Allegiant (ALGT) Q1 Earnings & Revenues Top Estimates, Up Y/Y

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Allegiant Travel Company (ALGT - Free Report) reported first-quarter 2023 earnings of $3.04 per share, surpassing the Zacks Consensus Estimate of $2.29. The company had reported a loss in the year-ago reported quarter. Operating revenues of $649.7 million beat the Zacks Consensus Estimate of $628.2 million and increased 29.9% on a year-over-year basis.

Passenger revenues, which accounted for the bulk (93.7%) of the top line, increased by around 31.3% on a year-over-year basis. Upbeat air travel demand can be correlated with such an increase.

Air traffic (measured in revenue passenger miles) for scheduled service increased 10.3% year over year in the quarter under review.  Capacity (measured in available seat miles or ASMs) grew 1.4% from the year-ago reported figure. The load factor (percentage of seats filled by passengers) improved from 6.9% to 85.8% in the reported quarter, as traffic surge outweighed capacity expansion.

Operating cost per available seat miles, excluding fuel, increased 9.8% year over year to 7.75 cents. The average fuel cost per gallon (scheduled) increased 13.6% to $3.42. Total scheduled service passenger revenue per available seat miles improved to 13.89 cents from the year-ago reported 10.78 cents.

Allegiant Travel Company Price, Consensus and EPS Surprise Allegiant Travel Company Price, Consensus and EPS Surprise

Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote

Liquidity

As of Mar 31, 2023, Allegiant Travel’s total unrestricted cash and investments totaled $1,077 million compared with $1,018.4 million at the end of December 2022. Long-term debt and finance lease obligations (net of current maturities and related costs) was $2,105.9 million compared with $2,097 million reported at 2022-end. Debt, net of unrestricted cash and investments, came in at $1,028.9 million compared with $1,078.6 million at December 2022-end.         

2023 Expectations

For 2023, ASM (for scheduled service) is now expected to increase 0-3% (prior view: 2-6%) on a year-over-year basis. Total system ASM is now expected to rise 0-3% (prior view: 2-6%) on a year-over-year basis. Earnings per share (airline) are now expected in the $9.00-$13.00 (prior view: $5.00-$9.00) range.  Fuel cost per gallon is expected to be $3.00 (prior view: $3.60).

Interest expenses are still expected to be in the range of $150-$160 million.

For 2023, under Airline capex, aircraft, engines, induction costs and pre-delivery deposits are still expected in the $550-$570 million range. Capitalized deferred heavy maintenance is expected to be in the range of $50-$60 million. Other airline capital expenditures are expected to be between $130 million and $150 million. Total project spending (Sunseeker Resorts Project) for 2023 is expected to be $695 million (prior view: $618 million). The company expects to expand its fleet size to 127 at 2023-end.

Allegiant Travel presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Transportation Companies

J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.

JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.

JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.

Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.

Alaska Air Group, Inc. (ALK - Free Report) reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.

ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.

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