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Allegiant (ALGT) Shares Rise 30.7% in 6 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 April.
In April 2023, revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 1% and 2.1%, respectively, from the year-ago levels. Also, scheduled departures increased 1.1% year over year. However, load factor (percentage of seats filled by passengers) decreased 1 point to 84.3% in April 2023, as the traffic increase was less than the capacity expansion.
In April 2023, capacity increased 2.5% from the year-ago month’s reading. Departures (systemwide) improved 1.5% from the April 2022 actuals. The estimated average fuel cost per gallon for April was $2.84 (systemwide).
Apart from the upbeat traffic report, Allegiant, currently carrying a Zacks Rank #2 (Buy), has a strong cash position. Cash and cash equivalents of $317.6 million at the end of first-quarter 2023 was higher than the current debt figure of $289.7 million. This implied that the company had enough cash to meet its debt burden.
ALGT has gained 30.7% in the past six months compared with 0.5% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Other Stocks to Consider
Investors interested in the Airline industry may also consider some other top-ranked stocks.
American Airlines (AAL - Free Report) , which currently carries a Zacks Rank #2, is also being aided by the improved air-travel-demand situation. The carrier's debt-reduction efforts are also impressive. Management aims to reduce its debt by $15 billion by 2025 end. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
For the second quarter and 2023, AAL’s earnings are expected to register 65.8% and 440% growth, respectively, on a year-over-year basis.
Alaska Air Group (ALK - Free Report) , currently carrying a Zacks Rank #2, also benefits from the improved air-travel-demand situation. On the back of upbeat air-travel demand and favorable pricing, Alaska Air's top line increased 31% year over year in the March quarter. ALK expects to boost its fleet and workforce in 2023 to meet the anticipated high demand.
For the second quarter and 2023, ALK’s earnings are expected to register 12% and 44.8% improvements, respectively, on a year-over-year basis.
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Allegiant (ALGT) Shares Rise 30.7% in 6 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 April.
In April 2023, revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 1% and 2.1%, respectively, from the year-ago levels. Also, scheduled departures increased 1.1% year over year. However, load factor (percentage of seats filled by passengers) decreased 1 point to 84.3% in April 2023, as the traffic increase was less than the capacity expansion.
In April 2023, capacity increased 2.5% from the year-ago month’s reading. Departures (systemwide) improved 1.5% from the April 2022 actuals. The estimated average fuel cost per gallon for April was $2.84 (systemwide).
Apart from the upbeat traffic report, Allegiant, currently carrying a Zacks Rank #2 (Buy), has a strong cash position. Cash and cash equivalents of $317.6 million at the end of first-quarter 2023 was higher than the current debt figure of $289.7 million. This implied that the company had enough cash to meet its debt burden.
ALGT has gained 30.7% in the past six months compared with 0.5% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Other Stocks to Consider
Investors interested in the Airline industry may also consider some other top-ranked stocks.
American Airlines (AAL - Free Report) , which currently carries a Zacks Rank #2, is also being aided by the improved air-travel-demand situation. The carrier's debt-reduction efforts are also impressive. Management aims to reduce its debt by $15 billion by 2025 end. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
For the second quarter and 2023, AAL’s earnings are expected to register 65.8% and 440% growth, respectively, on a year-over-year basis.
Alaska Air Group (ALK - Free Report) , currently carrying a Zacks Rank #2, also benefits from the improved air-travel-demand situation. On the back of upbeat air-travel demand and favorable pricing, Alaska Air's top line increased 31% year over year in the March quarter. ALK expects to boost its fleet and workforce in 2023 to meet the anticipated high demand.
For the second quarter and 2023, ALK’s earnings are expected to register 12% and 44.8% improvements, respectively, on a year-over-year basis.