LAS VEGAS - Allegiant Travel Company (NASDAQ:ALGT) has released its preliminary passenger traffic results for September 2024, showing a slight decline in the number of passengers and revenue passenger miles compared to the same period last year. The data also includes figures for the third quarter of 2024.
In September 2024, Allegiant saw a 1.9% decrease in passengers with a total of 969,844 compared to 988,981 in September 2023. Revenue passenger miles, a measure of the volume of passengers carried, also fell by 2.7% to 844,968,000. The airline's available seat miles, which indicate capacity, dropped by 3.4% to 1,014,201,000. However, the load factor, representing the percentage of available seating capacity that is filled with passengers, increased slightly by 0.5 percentage points to 83.3%.
For the third quarter of 2024, Allegiant reported a marginal decrease of 0.9% in passengers, down to 4,195,572 from 4,234,196 in the third quarter of 2023. Revenue passenger miles decreased by 1.1% to 3,701,747,000, while the load factor saw a reduction of 1.9 percentage points, falling to 85.6%. Despite this, the available seat miles for the quarter rose by 1.1% to 4,326,870,000, and departures increased by 1.7%.
When considering the total system, which includes scheduled service and fixed fee contract, there was a 2.4% decrease in passengers in September 2024 compared to the previous year. The total system's available seat miles went down by 3.2%, and departures fell by 2.1%. For the third quarter, the total system's passengers decreased by 0.8%, while available seat miles and departures saw increases of 1.5% and 2.2%, respectively.
Allegiant also provided preliminary financial results, estimating the average fuel cost per gallon for the system at $2.49 in September 2024 and $2.69 for the third quarter of 2024.
Allegiant, based in Las Vegas, is known for providing low-cost, nonstop flights connecting small-to-medium cities to major vacation destinations. The company has been operating since 1999 and has focused on keeping base airfares competitive.
This information is based on a press release statement from Allegiant Travel Company.
In other recent news, Allegiant Travel Company has seen a series of revisions to its financial outlook by analysts from TD Cowen and Susquehanna. TD Cowen raised Allegiant's price target from $33.00 to $42.00, maintaining a Hold rating, following the company's positive third-quarter guidance update. Susquehanna, however, reduced its price target for Allegiant to $40 from $55, citing a potential supply and demand imbalance in the U.S. domestic market and decreased demand for Allegiant's Sunseeker resort in Florida.
Allegiant recently reported a series of developments that could impact investors. The company's Q3 guidance has improved, with the airline anticipating a smaller decline in unit revenues and lower non-fuel costs than previously expected. This positive outlook is backed by robust demand and better-than-expected unit revenue performance in late September. Allegiant also reported a 1.3 percent increase in passengers for August 2024, compared to the same month in the previous year.
However, Allegiant experienced a slight decrease in passenger traffic and load factor in July 2024. Despite these fluctuations, the company remains committed to its growth strategy, including the integration of new Boeing (NYSE:BA) aircraft into its fleet. The company also revealed plans to integrate new Boeing aircraft into its fleet as part of its growth strategy. These are the latest developments for Allegiant Travel Company.
InvestingPro Insights
Allegiant Travel Company's recent traffic results reveal some challenges, but InvestingPro data provides additional context to the company's financial situation. As of the last twelve months ending Q2 2024, Allegiant's revenue stood at $2.5 billion, with a gross profit margin of 22.87%. However, the company has experienced a revenue decline of 0.25% over this period.
InvestingPro Tips highlight some important factors for investors to consider. Notably, Allegiant is operating with a significant debt burden, which could impact its financial flexibility. This is particularly relevant given the recent decline in passenger numbers and revenue passenger miles. Additionally, the company is quickly burning through cash, which aligns with the reported decrease in traffic and could potentially affect its ability to navigate the current market conditions.
On a more positive note, 8 analysts have revised their earnings upwards for the upcoming period, suggesting some optimism about Allegiant's near-term prospects. This is particularly interesting given the recent traffic data and could indicate that analysts see potential for improvement or have factored in other positive elements not reflected in the passenger numbers alone.
The stock has shown strong returns over the last month and three months, with price total returns of 38.35% and 31.55% respectively. This performance is noteworthy considering the challenges presented in the traffic report.
Investors seeking a more comprehensive analysis can find 11 additional InvestingPro Tips for Allegiant Travel Company, offering a deeper understanding of the company's financial health and market position.
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