Allegiant Travel (ALGT), being an airline, unfortunately is painted with the same brush as the rest of the industry. Oil up = sell airlines. Consumer weak = sell airlines. All they do is continue to execute. When I compare the data, they are pushing out versus the legacy airlines. It seems like 2 completely different sectors. While it is hard to own a name that trades outside of its fundamentals, I suppose that is becoming the case more and more in the market. Allegiant posted its June / Q2 traffic figures earlier this week, and it continues to stand head and shoulders above its peers. Heck, with oil down dramatically, the stock might even be given a chance to go up based on its own metrics.
- Allegiant Air said Tuesday its June traffic leaped 25.6 percent, a stark contrast to its bigger competitors, helped by its focus on leisure travelers in smaller cities. Excluding the company's charter service, Allegiant said traffic jumped 34.1 percent.
- Allegiant, a unit of Allegiant Travel Co., said paying passengers flew 468.8 million miles in June, compared with 373.2 million a year earlier.
- Its capacity jumped 29 percent to 527.3 million available seat miles.
- The percentage of seats filled, or load factor, fell by 2.4 percentage points to 88.9 percent.
The last factor is the one slight negative, but again, compared to what you see coming out of a Continental or Delta, it's a bit of a farce this stock is put in the same category.
Excluding the charter service here are the metrics, year over year for June (Q2 can be found in the link I posed above, very similar data to June)
- Passengers: +32.2%
- Revenue passenger miles: +34.1%
- Available seat miles: +37.8%
- Load factor: -2.5%
- Average stage length: +1.7%
So despite adding a lot of capacity, these are not longer flights and hence not more fuel per flight. Just more routes of similar length and they are generally, despite a horrific economy for consumers, filling very well.
Anyhow, none of that matters - back to squiggly line analysis.
[Jan 5, 2009: Beginning Allegiant Travel] (old portfolio)
Disclosure: Long Allegiant Travel in fund; no personal position