Allegiant Travel Company (NASDAQ: ALGT) announced its preliminary passenger traffic results for November 2024, highlighting stronger-than-expected demand and operational updates.
“Booking Trends Surpass Expectations,” says Chief Commercial Officer
“Booking trends following the election have exceeded our initial projections,” said Drew Wells, Chief Commercial Officer of Allegiant Travel Company. “Recovery in demand for hurricane-impacted destinations has been faster than anticipated, with demand in most affected regions returning to normal levels. Additionally, holiday travel during November surpassed our forecasts, with total revenue per available seat mile (TRASM) performing in line with last year’s figures during Thanksgiving week.
Looking ahead, December capacity is projected to grow by 17% year-over-year, supported by robust bookings for the holiday season, which are exceeding our early expectations. Based on recent trends, we now anticipate fourth-quarter TRASM to decline approximately 1.5% year-over-year on a capacity increase of 1.8%, a significant improvement from our initial expectation of a 4.5% decline.”
Fleet Expansion and Cost Savings Update from CFO
Chief Financial Officer Robert Neal provided an update on Allegiant’s fleet and financial performance. “In November, we took delivery of two additional 737-MAX aircraft, bringing our total to four MAX planes expected in service by year-end, compared to the initial forecast of one. This will bring our year-end fleet count to 125 aircraft.”
Neal also noted a strategic sale of underutilized CFM engines, which generated a $15 million gain in the fourth quarter. “With these gains, we now project fourth-quarter cost per available seat mile (CASM), excluding fuel and special charges, to decrease 3.5% year-over-year.”
Updated Guidance
The updated fourth-quarter guidance reflects Allegiant’s ability to adapt to changing market conditions. While the company has provided non-GAAP financial figures for stakeholders, it noted that reconciling these metrics to GAAP measures is not feasible due to the variability of special charges.
About Allegiant Travel Company
Based in Las Vegas, Allegiant Travel Company (NASDAQ: ALGT) is a leading integrated travel provider. At its core is Allegiant Air, which has been connecting travelers in small-to-medium cities with top vacation destinations since 1999. Known for its all-nonstop flights and low fares—less than half the average domestic roundtrip ticket price—Allegiant serves communities across the U.S. with unmatched value.