Allegiant Travel Company ALGT reported a third-quarter 2024 loss of $2.02 per share (excluding three cents from non-recurring items), which was wider than the Zacks Consensus Estimate of a loss of $1.85. The company reported earnings of 9 cents per share in the year-ago quarter.

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Operating revenues of $562.2 million marginally surpassed the Zacks Consensus Estimate of $561.2 million. However, the top line fell by 0.6% on a year-over-year basis.

Passenger revenues, which accounted for the bulk (87%) of the top line, fell 5.3% on a year-over-year basis. Air traffic (measured in revenue passenger miles) for scheduled services dropped 1.1% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) grew 1.1% from the year-ago number. The load factor (percentage of seats filled by passengers) decreased to 85.6% from 87.5% in the reported quarter, as traffic did not outperform capacity.

Operating costs per available seat miles, excluding fuel, jumped 8.1% year over year to 8.65 cents. The average fuel cost per gallon (scheduled) decreased 6.6% to $2.85. Total scheduled service passenger revenue per available seat miles fell to 12.21 cents from 12.78 cents a year ago.

Allegiant Travel Company Price, Consensus and EPS Surprise

Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote

ALGT’s Liquidity

As of Sept. 30, 2024, Allegiant’s total unrestricted cash and investments were $804.6 million compared with $870.7 million at the fourth-quarter end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1.77 billion compared with $1.82 billion at the prior-quarter end.

Allegiant’s Guidance for Q4 & 2024

For the fourth quarter of 2024, ASM (for scheduled service) is expected to increase 1.5% on a year-over-year basis. Total system ASM is projected to gain 1.5% on a year-over-year basis.

The operating margin is expected between 6% and 8%. EPS (airline) is anticipated in the $0.50-$1.50 range.  Fourth-quarter consolidated earnings per share, excluding special items, are expected to either break even or increase up to 1 per share. The fuel cost per gallon is suggested to be $2.50.

For 2024, ASM (for scheduled service) is now expected to increase 0.5% on a year-over-year basis. Total system ASM is now projected to rise 0.5% on a year-over-year basis.

Interest expenses are now forecasted to be in the range of $150-$160 million (the prior view was in the $130-$140 million band).

Under airline capex, aircraft, engines, induction costs and pre-delivery deposits are now expected in the $105-$125 million band (the prior view was in the $180-$200 million range). Capitalized deferred heavy maintenance is still envisioned between $80 million and $90 million. Other airline capital expenditures are expected between $105 and $115 million (the prior view was in the $120-$130 million range).

The company aims to expand its fleet size to 122 at the end of 2024 (the previous expectation was 124).

Allegiant currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q3 Performances of Other Transportation Companies

Delta Air Lines DAL reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.

Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year. This included the $380 million impact of the outage caused by CrowdStrike CRWD.

Norfolk Southern Corporation’s NSC third-quarter 2024 earnings (excluding $1.6 from non-recurring items) of $3.25 per share beat the Zacks Consensus Estimate of $3.10 and increased 22.6% year over year due to lower costs.

Railway operating revenues were $3.05 billion in the quarter under review, lagging the Zacks Consensus Estimate of $3.09 billion. The top line increased 2.7% year over year, with the Merchandise and Intermodal segments registering an improvement in revenues.

J.B. Hunt Transport Services’ JBHT third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.

Total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The operating income for the September quarter decreased 7% year over year to $224.1 million.

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