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Allegiant (ALGT) Stock Gains in Thursday's Trading: Here's Why

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Shares of Allegiant Travel Company (ALGT - Free Report) inched up in Thursday’s (Apr 13) trading, gaining 1.67% from Wednesday’s closing. The elevation led the stock to close the session at $95.73.

It seems that investors were pleased by the total traffic numbers (scheduled) for the January-March period (first-quarter 2023).

Revenue passenger miles, a measure of traffic, increased 10.3% in the three-month period. Available seat miles (a measure of capacity) expanded 1.4%. Load factor (% of seats filled by passengers) improved 6.9 points to 85.8%. Departures increased 2.3%.

For the total system, in the January-March period, 11.1% more passengers were transported on ALGT flights than a year ago. Available seat miles (system-wide) expanded 1.2%.

For March, scheduled load factor improved 1.7 points to 88.2%. In March, 0.6% more passengers availed ALGT’s scheduled flights than a year ago. System-wide, the number of passengers ferried in March improved 0.7% year over year.

Zacks Rank & Key Picks

Allegiant currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Airline industry are Copa Holdings (CPA - Free Report) and American Airlines (AAL - Free Report) .

Copa Holdings is benefiting from the improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5% due to higher yields.

CPA’s focus on its cargo segment is encouraging. In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable.

The above-mentioned tailwinds are likely to continue aiding this Latin American carrier, currently sporting a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s current-year earnings has been revised 10% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Airlines, currently carrying a Zacks Rank #2 (Buy), is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are affecting the bottom line.

Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 18.1% upward. The stock has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters (missed once). The average beat is 7.79%.


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Copa Holdings, S.A. (CPA) - free report >>

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