Allegiant Travel Company (ALGT - Free Report) reported a decline in load factor (% of seats filled with passengers) for April. The key metric decreased as traffic growth was outpaced by capacity expansion in the month.
Traffic for the total system (scheduled service and fixed fee contract) — measured in revenue passenger miles (RPMs) — increased 11.1% on a year-over-year basis to 1.17 billion. System capacity, calculated in available seat miles (ASMs), expanded 16.1% to 1.47 billion in the month. Meanwhile, load factor contracted 360 basis points year over year to 79.6%.
However, the company is not too perturbed by the decline in this key metric and stated that the development “was not outside of our expectations.” Allegiant said that significant capacity expansion between March-end and the commencement of the Easter travel period negatively impacted load factor.
In April 2019, Allegiant transported 10.2% more passengers compared with the year-ago period. Its system-wide average fuel cost per gallon was approximately $2.25 in the month. Fuel cost per gallon for the current year is anticipated to be $2.26.
Departures rose 13% (systemwide) to 9,653 and average stage length (total aircraft miles flown by the number of aircraft departures) inched up 1.3% to 891 miles.
Zacks Rank & Key Picks
Allegiant carries a Zacks Rank #3 (Hold). Some better-ranked airline stocks are SkyWest, (SKYW - Free Report) , Swire Pacific and Delta Air Lines (DAL - Free Report) . While SkyWest and Swire Pacific sport a Zacks Rank #1 (Strong Buy), Delta Air Lines carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest, Swire Pacific and Delta Air Lines have rallied more than 9%, 21% and 8%, respectively, in a year’s time.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>