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LAS VEGAS - Allegiant Travel Company (NASDAQ:ALGT) reported a wider-than-expected third quarter loss on Tuesday as the leisure airline struggled with seasonally weak demand despite operational improvements.
The company’s shares were unchanged following the earnings release.
Allegiant posted an adjusted loss of $2.09 per share for the third quarter, missing analyst estimates of $1.79 per share. Revenue came in at $561.9 million, slightly below the consensus estimate of $576.47 million and essentially flat compared to $562.2 million in the same quarter last year.
"The airline has always been Allegiant’s central focus, and I’m proud of how Team Allegiant continues to execute at a high level," stated Gregory Anderson, chief executive officer of Allegiant Travel Company. "At an airline, everything begins and ends with running a safe and reliable operation."
The company maintained its industry-leading controllable completion factor of 99.9% while flying nearly 33,000 departures and transporting 4.6 million passengers during the quarter, both third-quarter records. Allegiant also highlighted its cost discipline, with adjusted airline-only operating CASM (cost per available seat mile) excluding fuel down 4.7% YoY.
Looking ahead, Allegiant reported that leisure booking momentum has continued, with holiday demand "shaping up nicely." The company now expects a double-digit fourth-quarter operating margin, yielding a full-year airline-only operating margin of around 7%. As a result, Allegiant raised its airline-only full-year EPS guidance to more than $4.35 per share.
The company also announced the promotion of Robert "BJ" Neal to president, where he will continue to serve as chief financial officer.
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