Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Southwest Airlines Co. (LUV) - free report >>
JetBlue Airways Corporation (JBLU) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Southwest Airlines Co. (LUV) - free report >>
JetBlue Airways Corporation (JBLU) - free report >>
Image: Bigstock
Allegiant to Set Up $50M Worth North Carolina Operational Base
Allegiant Travel Company (ALGT - Free Report) intends to invest $50 million in establishing a new base at Concord, NC. The company aims to immediately start hiring pilots, flight attendants, mechanics and ground personnel to facilitate operations at the new base, which are expected to begin Oct 7, 2020.
Notably, the commencement of operations is likely to generate at least 66 high-wage jobs. Moreover, two Airbus aircraft will be housed at the new base. We note that the Concord-Padgett Regional Airport will become the 21st aircraft base for the carrier. The decision to set up a base at Concord is a prudent move as the city, apart from being a popular tourist destination, is home to a large and diversified population.
The Concord-Padgett Regional Airport has attracted more than 1 million passengers since its inception including 353,000 in 2019. Notably, Allegiant Travel is being aided by impressive growth in overall passenger revenues, which increased 9.7% in 2019.
Passenger revenues apart, low fuel costs are supporting bottom-line growth. The company expects fuel cost per gallon to be $2.15 for the full year, indicating an improvement from the 2019 reported figure of $2.18. Low fuel costs are in fact not only favorable for Allegiant but also its fellow airline players.
Evidently, fuel costs declined 5%, 6.7% and 7.5% in 2019 at other low-cost carriers, namely, Southwest Airlines (LUV - Free Report) , JetBlue Airways (JBLU - Free Report) and Spirit Airlines (SAVE - Free Report) , respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>