Aircraft Utilization & Operations - Aircraft utilization was approximately 20% below 2019 levels during July [4] - December aircraft utilization is scheduled to be within 6% of 2019 levels [4, 8] - March aircraft utilization is expected to be within 5% of 2019 levels [4, 8] - The company received its first Boeing 737 MAX in September 2024 and entered revenue service in mid-October 2024 [4, 14] Financial Performance & Outlook - The company expects 2024 cobrand remuneration to exceed $140 million with continued growth in 2025 [4] - Hurricane impact is expected to reduce 4Q24 Airline EPS by $1.25, from $2.25 to $1.00 [17] - Total liquidity at the end of the quarter was $1.1 billion, including $805 million in cash and investments and $275 million in undrawn revolver capacity [24] - The company made principal payments totaling $107 million, including $60.6 million prepayment of debt on PDP loans [24] - The company anticipates interest expense between $150 million and $160 million for FY 2024 [26] Fleet & Efficiency - The 737-8200 offers a 26% increase in ASMs per gallon compared to the A320 [12] - The 737-8200 adds 10 seats per departure compared to the A320 [12] Sunseeker Resort - Sunseeker is expected to have an EBITDA loss between $(25) million and $(30) million for FY 2024, excluding special charges [29]

Industry Overview - The overall air travel demand in the United States remains strong despite some tariff-related challenges, supported by declining oil prices and easing geopolitical tensions [1][2] - The airline industry has experienced a price increase of over 34% in the past three months, outperforming the S&P 500 Index [3] Upcoming Travel Trends - The Transportation Security Administration (TSA) projects over 18.5 million passengers will be screened during the July 4 holiday weekend, with July 6 expected to be the busiest day [7][9] - U.S. airlines will operate 4% more flights compared to the previous year, translating to approximately 27,000 daily scheduled flights [7][9] Airline Stock Highlights - SkyWest (SKYW) has seen a stock gain of 32% over the past three months, with earnings surpassing estimates by an average of 17.1% in the last four quarters [11] - Delta Air Lines (DAL) has experienced a 34% stock increase in the last three months, with a recent 25% hike in quarterly dividend payouts [12][13] - Allegiant Travel Company (ALGT) is benefiting from strong air travel demand and aims to expand its fleet to 122 by the end of 2025, with an average earnings beat of 32.7% in the last four quarters [13][14]

Company Performance - Allegiant Travel (ALGT) shares increased by 6.2% to close at $58.37, with notable trading volume compared to typical sessions, contrasting with a 0.4% loss over the past four weeks [1] - Scheduled traffic for May rose by 10.2% year over year, while capacity increased by 16.3% year over year, and total departures rose by 16.2% compared to the previous year [2] - The company is expected to report quarterly earnings of $0.84 per share, reflecting a year-over-year decline of 52.5%, with revenues projected at $697.4 million, up 4.7% from the same quarter last year [3] Earnings Estimates and Trends - The consensus EPS estimate for Allegiant Travel has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [5] Industry Context - Allegiant Travel operates within the Zacks Transportation - Airline industry, where another competitor, Southwest Airlines (LUV), saw a 3% increase in stock price, closing at $33.41, despite a -2% return over the past month [5] - Southwest Airlines has a consensus EPS estimate of $0.52, which is a 10.3% decline from the previous year, and also holds a Zacks Rank of 3 (Hold) [6]

Core Insights - Allegiant Travel Company reported a 9.2% increase in scheduled service passengers for May 2025 compared to May 2024, totaling 1,545,033 passengers [2] - The company experienced a 10.2% rise in revenue passenger miles, reaching 1,391,969 thousand miles, while available seat miles increased by 16.3% to 1,732,505 thousand miles [2] - The load factor decreased by 4.5 percentage points to 80.3%, indicating a slight decline in seat occupancy [2] - Total system passengers also rose by 9.4% year-over-year, totaling 1,563,294 passengers, with available seat miles increasing by 16.5% [2] - The average fuel cost per gallon for May 2025 was estimated at $2.37 [4] Scheduled Service – Year Over Year Comparison - Passengers increased from 1,414,692 in May 2024 to 1,545,033 in May 2025, a change of 9.2% [2] - Revenue passenger miles rose from 1,263,087 thousand miles to 1,391,969 thousand miles, reflecting a 10.2% increase [2] - Available seat miles grew from 1,489,477 thousand miles to 1,732,505 thousand miles, marking a 16.3% increase [2] - The load factor decreased from 84.8% to 80.3%, a decline of 4.5 percentage points [2] - Departures increased from 9,615 to 11,174, a rise of 16.2% [2] - Average stage length remained relatively stable, increasing slightly from 882 miles to 884 miles [2] Total System – Year Over Year Comparison - Total system passengers increased from 1,428,599 in May 2024 to 1,563,294 in May 2025, a 9.4% increase [2] - Available seat miles for the total system rose from 1,538,208 thousand miles to 1,791,988 thousand miles, a 16.5% increase [2] - Departures for the total system increased from 9,976 to 11,641, a rise of 16.7% [2] - Average stage length for the total system increased slightly from 877 miles to 878 miles [2]

Core Viewpoint - Allegiant Travel Company (ALGT) has experienced a significant decline in share price, underperforming compared to its industry peers and facing multiple headwinds impacting its financial outlook [1][3][7]. Group 1: Stock Performance and Market Position - ALGT shares have declined in double digits this year, leading to underperformance relative to industry competitors such as Southwest Airlines and Ryanair [1]. - The company has withdrawn its 2025 guidance due to weak macroeconomic trends, fleet delays, and unpredictable travel demand [3][7]. Group 2: Operational Challenges - ALGT is facing challenges from tariff-induced economic uncertainties, which may reduce domestic air travel demand and consumer confidence [3]. - Production delays at Boeing are affecting ALGT's fleet expansion plans, leading to increased maintenance costs and limiting capacity growth [4]. - Labor costs are projected to increase by 19.2% in 2024, overshadowing a decrease in aircraft fuel costs by 9.8% [5]. Group 3: Financial Performance and Outlook - Despite challenges, ALGT reported a 6.5% year-over-year revenue growth in Q1 2025, primarily driven by a 6.3% rise in passenger revenues [7]. - The company ended Q1 2025 with cash and cash equivalents of $897.6 million, significantly higher than its current debt level of $266.6 million, indicating a strong liquidity position [15]. - ALGT's balance sheet allows for shareholder returns, with $21.9 million in dividends and $6 million in share repurchases in 2024, and $11.1 million in share repurchases in Q1 2025 [16]. Group 4: Fleet Modernization and Capacity Growth - ALGT is modernizing its fleet, transitioning to an all-Airbus fleet and incorporating new Boeing 737 MAX aircraft, which are expected to improve fuel efficiency [10][11]. - The company aims to increase its capacity by 15.5% year-over-year for scheduled service in Q2 2025, despite current operational challenges [9]. Group 5: Valuation and Investment Considerations - ALGT is currently trading at a discount compared to the industry based on its forward price-to-sales ratio, indicating an attractive valuation [17]. - The company has a Value Score of A, reflecting its potential for future growth despite current headwinds [17].

Core Points - Allegiant Travel Company has been awarded the title of Best Low-Cost Airline in North America for 2025 by Skytrax, marking the second consecutive year for this recognition [1][2] - The award was presented during the World Airline Awards ceremony at the Paris Air Show, which is known for honoring airlines globally for exceptional customer service [2][5] - Allegiant's CEO, Gregory C. Anderson, emphasized the airline's commitment to providing a seamless and convenient travel experience, highlighting its unique business model that connects small-to-medium sized cities to major vacation destinations [3][4] Customer Satisfaction and Survey Details - Skytrax conducted the largest airline passenger satisfaction survey, collecting feedback from 22.3 million travelers worldwide for the 2025 results, with research conducted between September 2024 and May 2025 [5][6] - The survey included participation from over 100 nationalities, ensuring a diverse representation of customer opinions, with measures taken to eliminate duplicate or ineligible entries [6] Business Model and Market Position - Allegiant operates a network of all-nonstop flights, focusing on underserved communities, which differentiates it from other airlines in the leisure travel sector [3][7] - The airline's average base airfares are reported to be less than half the cost of the average domestic roundtrip ticket, reinforcing its value proposition for leisure travelers [7]

Economic Overview - Inflation is showing signs of cooling, with U.S. consumer prices increasing less than expected in May, primarily due to cheaper gasoline offsetting higher rents. This marks the fourth consecutive month of lower-than-expected core inflation rises. Consumer confidence rebounded in May, indicating increased faith in the economy's prospects [1][8]. Stock Recommendations - Broker-favorite stocks include BrightSpring Health Services (BTSG), Allegiant Travel (ALGT), CVR Energy (CVI), Alta Equipment Group (ALTG), and Cracker Barrel Old Country Store (CBRL) amid improving economic conditions [2][8]. - A screening strategy was designed to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks, incorporating price/sales ratio as a valuation metric [3][4]. Company Insights - **BrightSpring Health Services (BTSG)**: Provides integrated health solutions for complex populations, with a projected earnings growth rate of 96.4% for 2025 and a sales increase of 9.1% from 2024 [6][7]. - **Allegiant Travel (ALGT)**: Benefiting from strong air travel demand, with a fleet upgrade plan aiming for 122 aircraft by the end of 2025. The company has surpassed earnings estimates in three of the last four quarters, with an average beat of 32.7% [7][9]. - **CVR Energy (CVI)**: Engaged in renewable energy and petroleum refining, with a focus on developing renewable biofuels. The company has beaten earnings estimates in three of the last four quarters [9][10]. - **Alta Equipment Group (ALTG)**: A leading provider of material handling and construction equipment, with an expected earnings growth rate of 27.6% for the current year and a 10% upward revision in earnings estimates for the June quarter [10][11]. - **Cracker Barrel Old Country Store (CBRL)**: Focused on menu innovation and pricing strategies to drive growth, with an average earnings beat of 68.5% over the last four quarters and a 7.4% share price increase over the past six months [11][12].

Core Viewpoint - Allegiant Travel (ALGT) shares have increased by approximately 10.1% over the past month, outperforming the S&P 500, but estimates have trended downward, indicating potential challenges ahead [1][2]. Earnings Report Summary - The most recent earnings report for Allegiant Travel has shown a significant downward shift in consensus estimates, with a change of -63.19% over the past month [2]. VGM Scores - Allegiant Travel currently holds a strong Growth Score of A, but has a lower Momentum Score of D. The stock has a value grade of B, placing it in the second quintile for this investment strategy. The aggregate VGM Score for the stock is A, which is relevant for investors not focused on a single strategy [3]. Outlook - The overall trend for estimates has been downward, leading to a Zacks Rank of 5 (Strong Sell) for Allegiant Travel, suggesting expectations of below-average returns in the coming months [4]. Industry Performance - Allegiant Travel is part of the Zacks Transportation - Airline industry. SkyWest (SKYW), a competitor in the same industry, has seen a gain of 3.7% over the past month and reported revenues of $948.46 million for the last quarter, reflecting an 18% year-over-year increase [5]. - SkyWest's expected earnings for the current quarter are $2.31 per share, indicating a year-over-year growth of 26.9%. The Zacks Consensus Estimate for SkyWest has remained unchanged over the last 30 days, and it holds a Zacks Rank of 2 (Buy) with a VGM Score of A [6].

Core Insights - Allegiant Travel Company (ALGT) reported positive traffic numbers for April 2025, with scheduled traffic increasing by 17.4% compared to April 2024 [1][11] - Despite the increase in traffic, capacity growth outpaced traffic growth, leading to a decline in load factor to 80.3% from 82.4% year-over-year [2][11] Traffic and Capacity - Scheduled traffic, measured in revenue passenger miles, rose by 17.4% year-over-year [2][11] - Capacity, measured in available seat miles, increased by 20.5% year-over-year [2][11] - Total departures for scheduled services increased by 18.4% compared to the previous year [3] - The average stage length grew by 2.5% year-over-year [3] Passenger Metrics - Allegiant carried 14.9% more passengers in April 2025 compared to the same month last year [3][11] - System-wide capacity improved by 20.8% year-over-year [3] Fuel Prices - The estimated fuel price per gallon in April 2025 was $2.51 [3] Comparisons with Other Airlines - Ryanair reported an 18.3 million passenger count in April 2025, reflecting a 6% year-over-year increase, with a load factor of 93% [5] - Volaris (VLRS) saw a 14.8% increase in passengers, with a load factor decrease to 81.6% [7] - LATAM Airlines (LTM) reported a 9.9% increase in consolidated traffic, with a load factor rise to 83.4% [9]

Core Viewpoint - Allegiant Travel Company reported a significant increase in passenger traffic and operational metrics for April 2025 compared to April 2024, indicating a strong recovery and growth in demand for air travel [1][2]. Passenger Traffic Results - Scheduled service passengers increased to 1,526,823 in April 2025 from 1,328,010 in April 2024, reflecting a growth of 15.0% [2]. - Revenue passenger miles rose by 17.4%, reaching 1,447,242 thousand miles in April 2025 compared to 1,232,419 thousand miles in April 2024 [2]. - Available seat miles increased by 20.5%, totaling 1,802,989 thousand miles in April 2025, up from 1,495,665 thousand miles in April 2024 [2]. - The load factor for scheduled service was 82.4%, a decrease of 2.1 percentage points from 80.3% in April 2024 [2]. - Departures decreased by 18.4%, with 9,296 flights in April 2025 compared to 11,010 in April 2024 [2]. - The average stage length was 911 miles, a slight increase of 2.5% from 934 miles in April 2024 [2]. Total System Results - Total system passengers were 1,344,077 in April 2025, down from 1,543,689 in April 2024, marking a decrease of 14.9% [2]. - Total system available seat miles decreased by 20.8%, totaling 1,543,609 thousand miles in April 2025 compared to 1,865,323 thousand miles in April 2024 [2]. - Total system departures also fell by 18.6%, with 9,637 flights in April 2025 compared to 11,433 in April 2024 [2]. - The average stage length for the total system was 907 miles, an increase of 2.6% from 930 miles in April 2024 [2]. Financial Metrics - The estimated average fuel cost per gallon for the system in April 2025 was $2.51 [3].