Singapore markets open in 4 hours 31 minutes
  • Straits Times Index

    3,134.87
    -5.34 (-0.17%)
     
  • S&P 500

    3,818.83
    -2.72 (-0.07%)
     
  • Dow

    31,029.31
    +82.32 (+0.27%)
     
  • Nasdaq

    11,177.89
    -3.65 (-0.03%)
     
  • BTC-USD

    20,282.94
    +29.00 (+0.14%)
     
  • CMC Crypto 200

    437.23
    -2.44 (-0.55%)
     
  • FTSE 100

    7,312.32
    -11.09 (-0.15%)
     
  • Gold

    1,820.20
    -1.00 (-0.05%)
     
  • Crude Oil

    109.47
    -2.29 (-2.05%)
     
  • 10-Yr Bond

    3.0930
    -0.1130 (-3.52%)
     
  • Nikkei

    26,804.60
    -244.87 (-0.91%)
     
  • Hang Seng

    21,996.89
    -422.08 (-1.88%)
     
  • FTSE Bursa Malaysia

    1,451.48
    -3.26 (-0.22%)
     
  • Jakarta Composite Index

    6,942.35
    -54.10 (-0.77%)
     
  • PSE Index

    6,303.19
    -42.22 (-0.67%)
     

Allegiant (ALGT) Incurs Loss in Q1, Revenues Surge 79% Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Allegiant Travel Company ALGT incurred an adjusted loss of 12 cents per share in the first quarter of 2022 that compared unfavorably with the Zacks Consensus Estimate of earnings of 10 cents. In the year-ago period, the company had incurred an adjusted loss of $3.58 per share due to the coronavirus-led significantly suppressed air-travel demand.

Operating revenues of $500 million outperformed the Zacks Consensus Estimate of $495 million and increased 79.2% year over year. The same climbed 10.7% from the first quarter of 2019.

Quarter in Details

Passenger revenues, which accounted for a bulk (92.8%) of the top line, surged 80.7% on a year-over-year basis (up 10.5% from the 2019 level). The upside can be attributed to improvement in air-travel demand.

Allegiant Travel Company Price, Consensus and EPS Surprise

Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company Price, Consensus and EPS Surprise

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

Air traffic (measured in revenue passenger miles or RPMs) for scheduled service surged 64.2% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) increased 15.1% year over year. Load factor (percentage of seats filled by passengers) widened 2360 basis points to 78.9% in the reported quarter, as traffic surge outweighed capacity expansion.

Operating cost per available seat miles (CASM), excluding fuel, surged 66.4% year over year to 7.12 cents. Average fuel cost per gallon (scheduled) surged 65.1% to $3.07 in the quarter. Total scheduled service passenger revenue per available seat miles (TRASM) rose 56.5% to 10.78 cents.

Liquidity

As of Mar 31, 2022, Allegiant’s unrestricted cash and investments totaled $1,212 million compared with $1,182.8 million at the end of December 2021. Long-term debt and finance lease obligations (net of current maturities and related costs) came in at $1,634.5 million compared with $1,612.5 million at the end of 2021.

Q2 Guidance

Allegiant, carrying a Zacks Rank #5 (Strong Sell), expects total system capacity to increase 9-13% in the second quarter of 2022 from the comparable period in 2019. Scheduled service capacity is estimated to rise 10-14% from the 2019 level. Total operating revenues are predicted to climb 28-32% from the comparable period in 2019. CASM, excluding fuel, is forecast to rise 12-16% from the second quarter of 2019. Fuel cost per gallon is estimated to be $4.

2022 Guidance

For 2022, Allegiant expects capital expenditures for aircraft, engines, induction costs and pre-delivery deposits to be $255-$265 million. Interest expenses are forecast to be $85-$95 million in 2022.

Performance of Other Airline Stocks

Alaska Air Group ALK, carrying a Zacks Rank #3 (Hold), incurred a loss (excluding 19 cents from non-recurring items) of $1.33 per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.58.

Alaska Air’s operating revenues of $1,681 million outperformed the Zacks Consensus Estimate of $1,669.3 million. The top line surged more than 100% year over year, with passenger revenues soaring more than 100% owing to an improvement in air-travel demand from the pandemic-induced lows.

Southwest Airlines LUV, carrying a Zacks Rank #2 (Buy), incurred a loss (excluding 15 cents from non-recurring items) of 32 cents per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 34 cents. Results were hurt by Omicron-induced woes in January and February. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Southwest’s operating revenues of $4694 million outperformed the Zacks Consensus Estimate of $4,663.8 million and jumped more than 100% year over year. Passenger revenues improved more than 100% year over year.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Southwest Airlines Co. (LUV) : Free Stock Analysis Report

Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report

Allegiant Travel Company (ALGT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting