ALLEGIANT REPORTS MARCH 2024 TRAFFIC

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) reported March 2024 traffic results, showing a decrease in passengers, revenue passenger miles, and load factor compared to March 2023. The 1st Quarter of 2024 also saw declines in passengers and revenue passenger miles. Despite a slight increase in available seat miles, the overall performance was lower year-over-year.

Positive

• None.

Negative

• Passenger numbers, revenue passenger miles, and load factor for Allegiant Travel Company in March 2024 were lower than in March 2023. The 1st Quarter of 2024 also showed decreases in passengers and revenue passenger miles, despite a rise in available seat miles.

Insights

Financial Analyst

Allegiant Travel Company's reported decrease in passenger traffic and load factor might initially appear as a negative performance indicator. However, it's important to dig beyond the surface numbers. A 1.6 decline in passengers year-over-year and a 2.3 drop in load factor could be signaling a softening in consumer demand or a strategic capacity management adjustment. The slight increase in average stage length suggests a shift towards longer flights, which often carry different pricing dynamics and costs. Investors should consider the change in fuel costs, remaining stable at $3.03 per gallon, which could mitigate some revenue loss if the company has managed this expense effectively. The balance of these factors could have varying implications on the company's margins and operational efficiency, which are often reflected in the stock's performance.

Market Research Analyst

In contrasting Allegiant's passenger traffic data with broader industry trends, it appears that the airline is facing modest headwinds. While a 1.6 year-over-year passenger decrease and a dip in load factor of 2.3 points is not drastic, it contrasts with the general recovery trajectory of the travel industry post-pandemic. This could reflect competitive pressures or perhaps a strategic pivot. The airline's focus on connecting smaller cities to vacation destinations might be experiencing unique market challenges or a shift in consumer travel preferences. For a retail investor, understanding the nuances of these trends and how they compare to Allegiant's peers can give insight into the company's relative market position and potential growth opportunities.

LAS VEGAS, April 29, 2024 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for March 2024.

Scheduled Service – Year Over Year Comparison
	March 2024	March 2023	Change
Passengers	1,649,826	1,676,400	(1.6 %)
Revenue passenger miles (000)	1,569,978	1,589,454	(1.2 %)
Available seat miles (000)	1,828,212	1,802,132	1.4 %
Load factor	85.9 %	88.2 %	(2.3 pts)
Departures	11,075	11,119	(0.4 %)
Average stage length (miles)	930	916	1.5 %
	1st Quarter 2024	1st Quarter 2023	Change
Passengers	4,069,519	4,122,196	(1.3 %)
Revenue passenger miles (000)	3,883,810	3,925,362	(1.1 %)
Available seat miles (000)	4,636,922	4,573,766	1.4 %
Load factor	83.8 %	85.8 %	(2.0 pts)
Departures	28,177	28,273	(0.3 %)
Average stage length (miles)	926	915	1.2 %

 

Total System* - Year Over Year Comparison
	March 2024	March 2023	Change
Passengers	1,668,252	1,691,039	(1.3 %)
Available seat miles (000)	1,892,229	1,850,874	2.2 %
Departures	11,585	11,557	0.2 %
Average stage length (miles)	921	906	1.7 %
	1st Quarter 2024	1st Quarter 2023	Change
Passengers	4,104,860	4,148,453	(1.1 %)
Available seat miles (000)	4,771,971	4,677,622	2.0 %
Departures	29,225	29,145	0.3 %
Average stage length (miles)	919	908	1.2 %

*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
March 2024 estimated average fuel cost per gallon – system	$3.03
1st quarter 2024 estimated fuel cost per gallon - system	$3.03

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

How did Allegiant Travel Company's passenger traffic perform in March 2024?

In March 2024, Allegiant reported a 1.6% decrease in passengers compared to March 2023.

What was the change in revenue passenger miles for Allegiant in March 2024?

Allegiant saw a 1.2% decrease in revenue passenger miles in March 2024.

What was the load factor for Allegiant Travel Company in March 2024?

The load factor for Allegiant in March 2024 was 85.9%, a decrease of 2.3 percentage points from March 2023.

What was the change in passengers for Allegiant in the 1st Quarter of 2024?

In the 1st Quarter of 2024, Allegiant had a 1.3% decrease in passengers compared to the same period in 2023.

How did available seat miles change for Allegiant in the 1st Quarter of 2024?

Available seat miles for Allegiant in the 1st Quarter of 2024 increased by 1.4% compared to the same period in 2023.