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LAS VEGAS - Allegiant Travel Company (NASDAQ: NASDAQ:ALGT), currently valued at $1.83 billion, has released its preliminary passenger traffic results for December 2024, revealing a mixed performance in its operational statistics. The data indicates an increase in passengers and available seat miles (ASMs) for the month of December, but a decline in load factor and a slight decrease in the average stage length. According to InvestingPro data, the stock has shown remarkable momentum with a 99.75% return over the past six months, while maintaining a relatively high beta of 1.62.
In December 2024, Allegiant reported a 13.9% year-over-year increase in passengers, with a total of 1,544,874 travelers compared to 1,356,025 in December 2023. Revenue passenger miles (RPMs) also rose by 14.8% to 1,441,734,000. However, the load factor, which measures the percentage of available seating capacity that is filled with passengers, saw a slight decrease of 1.1 percentage points, dropping from 82.5% in December 2023 to 81.4% in December 2024.
The airline’s ASMs, a measure of airline capacity, increased by 16.4% to 1,771,717,000. Departures were up by 16.7%, and the average stage length, which is the average non-stop distance flown per departure, saw a minor increase of 1.0% to 912 miles.
For the fourth quarter of 2024, Allegiant experienced a 3.5% decrease in passengers compared to the same period in 2023, with a total of 3,927,423 passengers. The RPMs for the quarter fell by 2.2%, and the load factor declined by 3.1 percentage points to 80.2%. Departures increased slightly by 1.3%. InvestingPro analysis reveals that 8 analysts have recently revised their earnings upward for the upcoming period, with the company’s next earnings report scheduled for February 4, 2025. Subscribers can access detailed financial health metrics and 12 additional ProTips for deeper insights.
The full-year results for 2024 also showed a downward trend in passengers, with a 2.2% decrease to 16,765,283, and a 2.1% drop in RPMs. The load factor for the year decreased by 2.3 percentage points to 83.6%, while departures saw a marginal increase of 0.3%.
In terms of fuel costs, Allegiant’s estimated average fuel cost per gallon for December 2024 was $2.47, with the fourth quarter average at $2.50 and the full-year average at $2.76.
Allegiant, a Las Vegas-based integrated travel company, has been connecting customers to vacation destinations with nonstop flights and low fares since 1999. Despite the mixed traffic results, the company continues to serve communities across the nation, offering base airfares that are competitive in the industry. InvestingPro data indicates the company operates with a current ratio of 0.75 and a debt-to-equity ratio of 1.75, reflecting its capital structure. A comprehensive Pro Research Report, available to subscribers, provides detailed analysis of Allegiant’s financial position among 1,400+ top US stocks.
The information presented in this article is based on a press release statement from Allegiant Travel Company.
In other recent news, Allegiant Travel Company has seen a series of developments. Analysts from TD Cowen and Goldman Sachs have updated their earnings estimates based on the company’s recent guidance. TD Cowen reaffirmed its Hold rating and increased the price target to $70.00, citing a quicker recovery than anticipated following recent hurricanes. Goldman Sachs has also updated Allegiant’s December quarter earnings per share (EPS) estimate to $2.15, an increase from the previous estimate of $0.85.
Allegiant anticipates an increase in Q4 earnings and operating margins, driven by recent booking trends and operational adjustments. The company has revised its December quarter revenue per available seat mile (RASM) forecast to a decrease of 1.5%, an improvement from the previously projected 4.5% drop. Additionally, Allegiant’s cost per available seat mile excluding fuel (CASMex) improved due to a $15 million gain from the sale of CFM engines.
UBS has resumed coverage on Allegiant shares with a neutral rating, citing pressures from lower aircraft utilization and increased staffing costs due to delays in Boeing (NYSE:BA) MAX aircraft deliveries. These factors, along with losses from its Sunseeker resort, are expected to improve in the coming year.
Recent developments also include a decrease in passenger traffic and revenue passenger miles, largely due to the impact of hurricanes. Allegiant’s pilots, represented by the Teamsters union, voted in favor of a strike to negotiate better compensation and work conditions, potentially affecting pilot retention and aircraft utilization.
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