LAS VEGAS - Allegiant Travel Company (NASDAQ: NASDAQ:ALGT) has released its preliminary passenger traffic results for April 2024, indicating a decline in key performance metrics compared to the same month last year. The data shows a decrease in the number of passengers, revenue passenger miles, available seat miles, and load factor for scheduled services.
In April 2024, Allegiant served 1,328,010 passengers, a 12.1% decrease from the 1,511,309 passengers in April 2023. Revenue passenger miles fell by 13.0% to 1,232,419,000 from 1,417,077,000 year over year. The airline's available seat miles also saw a decline of 11.0%, down to 1,495,665,000 from 1,680,635,000. Consequently, the load factor, which measures how efficiently an airline fills seats, dropped by 1.9 percentage points to 82.4%.
Total system figures, which include scheduled service and fixed fee contract flying, mirrored this downward trend. Total passengers in April 2024 were 1,344,077, an 11.8% decrease from 1,524,420 in the previous year. Total departures decreased by 10.4%, and the average stage length, which is the average non-stop distance flown per departure, remained nearly unchanged.
The airline also reported an estimated average fuel cost of $2.99 per gallon for the month.
Allegiant, known for its low-cost fares and nonstop flights primarily serving small-to-medium cities, has not provided additional commentary on the factors contributing to the decline in passenger traffic.
The company, which has been operational since 1999, has made a name for itself by offering base airfares that are typically less than half the cost of the average domestic roundtrip ticket.
This report is based on a press release statement from Allegiant Travel Company and reflects the company's performance for April 2024. As always, the information contained in the release is accurate as of its date, but may have changed since then. Investors are advised to verify the continued accuracy of this data if using it for any financial decisions.
InvestingPro Insights
As Allegiant Travel Company (NASDAQ: ALGT) faces a challenging period with declining passenger traffic, the latest InvestingPro data and tips provide further context into the airline's financial health and stock performance.
Allegiant's market capitalization stands at $863.09 million, with a Price to Earnings (P/E) ratio of 15.22, reflecting investor sentiment about its earnings potential. On the liquidity front, the company's P/E ratio based on the last twelve months as of Q1 2024 is at a lower 10.17, suggesting a potentially more attractive valuation relative to its recent earnings.
Despite a modest revenue growth of 2.66% over the last twelve months as of Q1 2024, Allegiant is grappling with significant challenges, as indicated by InvestingPro Tips. The airline is operating with a considerable debt burden and is quickly burning through cash, which may raise concerns about its financial sustainability. Moreover, with seven analysts having revised their earnings downwards for the upcoming period and expectations of a net income drop this year, the financial outlook appears cautious.
Investors should note that Allegiant's stock has experienced considerable volatility and is currently trading near its 52-week low, as per InvestingPro data. The stock has fared poorly over the last month, with a 1-month price total return of -12.78%, and has taken a substantial hit over the last six months, with a -27.68% return. These figures underscore the stock's recent performance struggles in the market.
For those considering an in-depth analysis of Allegiant Travel Company, there are additional InvestingPro Tips available that could provide valuable insights. These include the company's short-term obligations exceeding liquid assets and a valuation that implies a poor free cash flow yield. Interested readers can find more tips at https://www.investing.com/pro/ALGT, and by using the coupon code PRONEWS24, you can receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights.
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