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.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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).