Seeking Alpha

Allegiant Travel Company (ALGT)

  • Mon, Jul. 13, 2:33 PM
    • Ancillary revenue in the airline industry rose 21% last year, according to analysis from IdeaWorks and CarTrawler.
    • Low-cost carriers saw a 33% jump in extra fees, while the U.S. majors realized a 19% increase.
    • Ancillary revenue at United Continental (NYSE:UAL) was $5.681B to lead all airlines.
    • Spirit Airlines (NASDAQ:SAVE), Allegiant (NASDAQ:ALGT), and Ryanair (NASDAQ:RYAAY) all showed +24% gains in ancillary revenue.
    • (OTC:DRTGF) , Spirit, and Qnatas Airways (OTCPK:QUBSF, OTCQX:QABSY) all made more than $50 per passenger.
    • Though bags fly free at Southwest (NYSE:LUV), the carrier still saw a 16% rise in ancillary revenue to $1.885B due in part to the popularity of its Rapid Rewards program.
    | Mon, Jul. 13, 2:33 PM | 6 Comments
  • Thu, Jul. 9, 11:20 AM
    | Thu, Jul. 9, 11:20 AM | 34 Comments
  • Sat, Jun. 20, 2:45 PM
    • Airlines stocks are poised for a breakout as the reality of improved profits overrides concerns on capacity growth, reasons Barron's Jack Hough.
    • The publication mirrors the view of many SA commenters that there's a disconnect between valuations in the sector and the degree to which lower jet fuel prices continue to prime operating earnings.
    • Take for example no-hedging American Airlines Group (NASDAQ:AAL) which is estimated to save $4B a year from the lower level of jet fuel prices. Other airlines are peeling off some hedges to reap a bigger fuel benefit each quarter.
    • Efficiency for U.S. airlines is still solid with a majority of airlines reporting load factors of 80% or higher, although increased competition in some markets has pushed key metric RASM lower. The most recent read on fares came in positive.
    • Also in the mix is the continued growth of service fees and consolidation benefits from mergers by legacy carriers.
    • P-E ratios of below 12 (based off of 2015 estimates) are common in the sector giving investors something of a value play. Republic Airways (NASDAQ:RJET) can be nabbed with a forward earnings multiple of 6.48. JetBlue (NASDAQ:JBLU) is up 27% YTD, but only trades with a 10.5 P-E collar.
    • Barron's identifies American Airlines Group, Delta Air Lines (NYSE:DAL), United Continental (NYSE:UAL), and Southwest Airlines (NYSE:LUV) as four stocks that could rise 15% to 50% over the next year. If the view on the sector is spot-on - JetBlue, Virgin America (NASDAQ:VA), Hawaiian Holdings (NASDAQ:HA), Spirit Airlines (NASDAQ:SAVE), Republic Airways, Allegiant Travel (NASDAQ:ALGT), SkyWest (NASDAQ:SKYW),  and Alaska Airlines Group (NYSE:ALK) should also put in gains.
    • Related ETFs: JETS
    | Sat, Jun. 20, 2:45 PM | 37 Comments
  • Thu, Jun. 18, 5:36 PM
    | Thu, Jun. 18, 5:36 PM | 4 Comments
  • Thu, Jun. 18, 9:06 AM
    • Airline fares rose 5.7% in May on a seasonally adjusted basis, according to the Bureau of Labor Statistics.
    • The average fare was still down 6.6% from last year on an unadjusted basis after the sector ran off a string of months with decreases.
    • Fares fell 1.3% in April and 1.7% in March.
    • If the bump in fares extends it could alleviate some concerns in the industry over capacity growth.
    • Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
    • BLS CPI data
    | Thu, Jun. 18, 9:06 AM | 14 Comments
  • Tue, Jun. 9, 10:58 AM
    • The jittery airline sector is having a volatile day once again.
    • Capacity concerns have been the major focus of sellers, although the strong move higher of oil prices today is also in the background.
    • American Airlines Group reported a drop in its load factor earlier as capacity growth came in ahead of revenue passenger miles.
    • Though Raymond James issued a biting downgrade on American, United Continental, and Delta yesterday - some analysts such as Sterne Agee CRT's Michael Derchin think the pessimism is overdone.
    • Q2 conference calls could calm fears on capacity running hot, reasons the analyst.
    • A higher level of buybacks in the sector and reasonable valuations based on earnings projections are also factors.
    • Sector watch: Alaska Air Group (ALK -6.4%), Southwest Airlines (LUV -5.8%), SkyWest (SKYW -3.4%), Hawaiian Holdings (HA -4.7%), Spirit Airline (SAVE -4.4%), Delta Air Lines (DAL -3.7%), Allegiant Travel (ALGT -3.6%), Republic Airways (RJET -2.9%), Virgin America (VA -2.6%), United Continental (UAL -1.8%), American Airlines Group (AAL -2%), JetBlue (JBLU -1.9%).
    • The U.S. Global Jets ETF (NYSE:JETS) is down 2.96% on the day.
    • Previously: American Airlines Group's capacity up 2% in May
    | Tue, Jun. 9, 10:58 AM | 19 Comments
  • Mon, Jun. 8, 3:33 PM
    • Allegiant Travel (ALGT -3.2%) wins a court battle in Nevada when an appeals court reversed a ruling from a lower court that limited the airline company from making changes to work rules amid contract negotiations with a Teamsters union.
    • A three-judge panel determined Allegiant can begin collective bargaining agreement negotiations again with the case out of appeal.
    | Mon, Jun. 8, 3:33 PM | Comment!
  • Sat, May 30, 10:43 AM
    • The airline sector has been rattled this month by an indication from Southwest Airlines of a slight increase in capacity and some RevPAR tallies below expectations.
    • Concerns on pricing and capacity have held back some analysts from setting higher price targets on the group for the next year.
    • Over the last year, most airline stocks have showed a high degree of correlation with oil prices despite all the other factors that impact profits in the sector.
    • Southwest Airlines (NYSE:LUV), United Continental (NYSE:UAL), Alaska Airlines Group (NYSE:ALK), and Allegiant Travel (NASDAQ:ALGT) all had a correlation coefficient of -0.90 or lower between their daily closing share price and the level of oil. A mark of -1.0 indicates perfect negative correlation - while 0.0 indicates no correlation and +1.0 is perfect positive correlation.
    • American Airlines Group (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), JetBlue (NASDAQ:JBLU), Republic Airways (NASDAQ:RJET), and Hawaiian Airlines (NASDAQ:HA) were all at -0.80 or lower.
    • Over a shorter period due to its IPO launch, the correlation coefficient on Virgin America (NASDAQ:VA) vs. oil came in at -0.733.
    • The U.S. carriers marching with the most independence from oil prices were Spirit Airlines (NASDAQ:SAVE) at -0.622 and SkyWest (NASDAQ:SKYW) at -0.701.
    • Pricing data and correlation coefficients
    | Sat, May 30, 10:43 AM | 16 Comments
  • Fri, May 22, 9:02 AM
    | Fri, May 22, 9:02 AM | 14 Comments
  • Wed, May 20, 10:42 AM
    • Airline stocks are making a strong move lower after oil prices react to supply data out of the U.S. and Japan along with renewed tension in Yemen.
    • Some sector analysts have noted the swings in airline share prices (up/down) are outsized compared to the impact on jet fuel prices of daily developments in the crude oil market.
    • Platts has a breakdown of how supply and demand forces in the jet fuel market bring other factors into play.
    • Leading airline decliners: Southwest Airlines (LUV -6.8%), American Airlines Group (AAL -6.1%), JetBlue (JBLU -6.3%), United Continental (UAL -6%), Spirit Airline (SAVE -5.3%), Delta Air Lines (DAL -4.9%), Alaska Air Group (ALK -3.9%), Hawaiian Holdings (HA -4.6%), Republic Airways (RJET -3.5%), Allegiant Travel (ALGT -3.8%).
    • Related ETFs: JETS.
    | Wed, May 20, 10:42 AM | 60 Comments
  • Mon, May 18, 5:24 AM
    | Mon, May 18, 5:24 AM | 20 Comments
  • Fri, May 8, 9:58 AM
    • Allegiant Travel Company (NASDAQ:ALGT) declares $0.25/share quarterly dividend, in line with previous.
    • Forward yield 0.62%
    • Payable June 4; for shareholders of record May 20; ex-div May 18.
    | Fri, May 8, 9:58 AM | Comment!
  • Sat, Apr. 25, 5:53 PM
    | Sat, Apr. 25, 5:53 PM | 17 Comments
  • Wed, Apr. 22, 4:02 PM
    • Allegiant Travel Company (NASDAQ:ALGT): Q1 EPS of $3.74 beats by $0.21.
    • Revenue of $329.24M (+8.8% Y/Y) beats by $6.73M.
    • Press Release
    | Wed, Apr. 22, 4:02 PM | Comment!
  • Tue, Apr. 21, 5:35 PM
  • Fri, Apr. 17, 8:40 AM
    • Airline fares fell 1.7% M/M in March on a seasonally adjusted basis, according to the Bureau of Labor Statistics.
    • The average fare was down 5% from last year on an adjusted basis.
    • The decrease in fares is due in part to the lag factor of dropping oil prices from the fall and competitive activity in some key markets.
    • Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
    • BLS CPI data
    | Fri, Apr. 17, 8:40 AM | 6 Comments
ALGT vs. ETF Alternatives
Company Description
Allegiant Travel Co LLC a leisure travel company, engaged in transporting travelers in small cities to leisure destinations. The Company provides air-related services and products along with air transportation.
Sector: Services
Country: United States