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Allegiant's (ALGT) April Traffic Reflects Coronavirus Woes

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Allegiant Travel Company (ALGT - Free Report) reported weak traffic numbers for the month of April, primarily due to lackluster air travel demand stemming from the COVID-19 outbreak. Traffic for scheduled service, measured in revenue passenger miles (RPMs), decreased 97% on a year-over-year basis to 35.18 million. Scheduled capacity, calculated in available seat miles (ASMs), also fell 87.2% to 182.5 million in the month.

Since the decline in traffic exceeded capacity reduction, load factor (percentage of seats filled with passengers) plunged 6170 basis points year over year to 19.3%.

The number of departures for scheduled service declined 88.3% on a year-over-year basis. However, average stage length (average distance flown per aircraft departure) climbed 4.4% to 934 miles in the same month. For the total system (including scheduled service and fixed fee contract), number of departures decreased 87.7%, while the average stage length increased 2.6%.

Zacks Rank & Key Picks

Allegiant Travel carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Zacks Transportation sector are Scorpio Tankers Inc. (STNG - Free Report) , Teekay Tankers Ltd. (TNK - Free Report) and Nordic American Tankers Limited (NAT - Free Report) . Scorpio Tankers and Teekay Tankers sport a Zacks Rank #1 (Strong Buy), while Nordic American Tankers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Scorpio Tankers’ current-year earnings has been revised upward in excess of 100% in the past 60 days.

The Teekay Tankers stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward by 53.4% in the past 60 days.

The Zacks Consensus Estimate for Nordic American Tankers’ current-year earnings has been revised upward by 36.9% in the past 60 days.

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