Allegiant Reports July 2024 Traffic

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) has reported its preliminary passenger traffic results for July 2024. The report shows a slight decline in passenger numbers and revenue passenger miles compared to July 2023, but an increase in available seat miles and departures. Key figures include:

- Scheduled service passengers: 1,897,963 (down 1.9%)
- Revenue passenger miles: 1,683,321,000 (down 1.7%)
- Available seat miles: 1,923,205,000 (up 2.4%)
- Load factor: 87.5% (down 3.7 points)
- Departures: 12,580 (up 2.7%)

The total system figures show similar trends. The estimated average fuel cost per gallon for July 2024 was $2.84. Allegiant continues to focus on connecting customers in small-to-medium cities with vacation destinations through all-nonstop flights and low average fares.

Positive

• Increase in available seat miles by 2.4% for scheduled service
• Growth in departures by 2.7% for scheduled service
• Total system available seat miles increased by 3.2%
• Total system departures grew by 3.6%

Negative

• Decrease in passenger numbers by 1.9% for scheduled service
• Decline in revenue passenger miles by 1.7% for scheduled service
• Load factor decreased by 3.7 percentage points to 87.5%
• Total system passenger numbers decreased by 1.8%

Insights

Financial Analyst

Allegiant's July 2024 traffic report reveals mixed signals for investors. The 1.9% decrease in passengers and 1.7% drop in revenue passenger miles compared to July 2023 indicate softening demand. However, the company increased capacity with a 2.4% rise in available seat miles and 2.7% more departures. This expansion amid declining passenger numbers resulted in a 3.7 percentage point decrease in load factor to 87.5%.

The $2.84 estimated average fuel cost per gallon is a important metric to watch, as fuel expenses significantly impact airline profitability. Investors should monitor how Allegiant manages this cost in relation to its pricing strategy and overall financial performance.

While the slight decline in traffic is concerning, Allegiant's focus on connecting smaller cities to vacation destinations with low fares could provide resilience in a challenging market. The company's ability to maintain profitability while balancing capacity growth and demand will be key in the coming months.

Market Research Analyst

Allegiant's July 2024 performance reflects broader industry trends of post-pandemic travel normalization. The 1.8% decrease in total system passengers suggests a slight cooling in leisure travel demand, which has been Allegiant's primary market. However, the airline's 3.2% increase in total system available seat miles indicates confidence in future growth prospects.

The decline in load factor to 87.5% from 91.2% year-over-year is noteworthy, as it may pressure yields if sustained. Allegiant's unique business model focusing on underserved markets and low-frequency routes could provide some insulation from broader industry headwinds, but investors should watch for signs of fare pressure or route adjustments in response to changing demand patterns.

The company's ability to maintain its cost advantage, particularly with rising fuel prices, will be important for preserving its competitive edge in the price-sensitive leisure travel segment.

LAS VEGAS, Aug. 20, 2024 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for July 2024.

Scheduled Service – Year Over Year Comparison

	July 2024	July 2023	Change
Passengers	1,897,963	1,934,464	(1.9 %)
Revenue passenger miles (000)	1,683,321	1,711,901	(1.7 %)
Available seat miles (000)	1,923,205	1,877,266	2.4 %
Load factor	87.5 %	91.2 %	(3.7pts)
Departures	12,580	12,252	2.7 %
Average stage length (miles)	870	867	0.3 %

Total System* - Year Over Year Comparison

	July 2024	July 2023	Change
Passengers	1,908,813	1,943,900	(1.8 %)
Available seat miles (000)	1,968,720	1,907,384	3.2 %
Departures	12,912	12,459	3.6 %
Average stage length (miles)	868	866	0.2 %

*Total system includes scheduled service and fixed fee contract.  System revenue passenger miles and system load factor are not useful statistics as system available seat miles include both ASMs flown by fixed fee flying as well as non-revenue producing repositioning flights used for operational needs. Fixed fee flying is better measured through dollar contribution versus operational statistics.

Preliminary Financial Results

	$ per gallon
July 2024 estimated average fuel cost per gallon – system	$2.84

Allegiant Travel Company

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant's fleet serves communities across the nation, with base airfares less than half the cost of the average domestic roundtrip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF

ALGT/G

Note: This news release was accurate at the date of issuance. However, information contained in the release may have changed. If you plan to use the information contained herein for any purpose, verification of its continued accuracy is your responsibility.

For further information please visit the company's investor website: http://ir.allegiantair.com

Reference to the Company's website above does not constitute incorporation of any of the information thereon into this news release.

Allegiant Media Contact:		Investor Inquiries:
Sonya Padgett		Sherry Wilson
email: mediarelations@allegiantair.com		email: ir@allegiantair.com

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SOURCE Allegiant Travel Company

FAQ

What was Allegiant's passenger traffic change in July 2024 compared to July 2023?

Allegiant reported a 1.9% decrease in scheduled service passengers, from 1,934,464 in July 2023 to 1,897,963 in July 2024.

How did Allegiant's (ALGT) load factor change in July 2024?

Allegiant's load factor decreased by 3.7 percentage points, from 91.2% in July 2023 to 87.5% in July 2024.

What was the estimated average fuel cost per gallon for Allegiant (ALGT) in July 2024?

The estimated average fuel cost per gallon for Allegiant's system in July 2024 was $2.84.

How did Allegiant's (ALGT) available seat miles change in July 2024?

Allegiant's available seat miles for scheduled service increased by 2.4%, from 1,877,266,000 in July 2023 to 1,923,205,000 in July 2024.