Allegiant Travel Company (ALGT) - Scheduled traffic increased by 10.3% year-over-year in July 2025, while capacity rose by 11.5% [1] - Load factor decreased to 86.6% from 87.5% a year ago due to capacity expansion outpacing traffic growth [1] - Total departures grew by 11.8% year-over-year in July 2025, but average stage length fell by 0.4% [2] - Allegiant carried 10.1% more passengers system-wide in July 2025 compared to the previous year, with system-wide capacity improving by 10.8% [2] - Estimated fuel price per gallon in July 2025 was $2.58 [2] - Allegiant currently holds a Zacks Rank 5 (Strong Sell) [2] LATAM Airlines - LATAM Airlines reported a 10% year-over-year increase in consolidated capacity for July 2025, driven by a 12.2% increase in international operations and an 11.8% increase in domestic operations in Brazil [5] - Consolidated traffic increased by 10.4% year-over-year, with load factor growing by 0.4 percentage points to 86.7% [6] - LATAM transported almost 8 million passengers in July 2025, a 7.9% increase year-over-year, and has transported 49.5 million passengers year-to-date [7] Ryanair Holdings - Ryanair transported 20.7 million passengers in July 2025, reflecting a 3% year-over-year increase [8] - July traffic marked a continuous improvement over seven months, with July traffic exceeding previous months' figures [9] - Load factor remained flat at 96% year-over-year, showing consistent passenger demand [10] - Despite 680 flight cancellations due to French air traffic control strikes, Ryanair operated over 113,000 flights in July 2025, an increase from previous months [11]

Core Insights - Ryanair's CEO Michael O'Leary revealed that Boeing has committed to increasing the monthly production of the 737 series from 38 to 42 aircraft by October [2] - Ryanair has placed firm orders for 150 Boeing 737 MAX 10 aircraft, which are expected to complete certification by early next year [2] - Boeing is projected to deliver the 737 MAX 10 jets by early 2027, and O'Leary expressed optimism regarding this timeline [2] - Ryanair has reached an agreement with Boeing to expedite the delivery of 25 new MAX 8 aircraft to October 2025 [2]

Key Takeaways Ryanair shares have surged 44.3% in 2025, outpacing the industry's 12% gain.Ryanair rides on upbeat passenger traffic, fleet expansion, and debt reduction efforts.Ryanair flew over 200 million passengers in fiscal 2025, a first among European airlines.Ryanair Holdings plc (RYAAY) ) is benefiting from the improvement in traffic from the pandemic-led slump. Measures to expand its fleet and bring down debt levels are encouraging.Against this backdrop, let’s look at the factors that make this stoc ...

Company Performance - LATAM Airlines Group reported a year-over-year increase in revenue passenger-kilometers (RPK) of 10.4% for July 2025, indicating strong demand for air travel [2][9] - The company achieved a 10% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK), driven by a 12.2% increase in international operations and an 11.8% increase in domestic operations in Brazil [1][9] - LATAM Airlines transported almost 8 million passengers in July 2025, reflecting a 7.9% year-over-year increase, with a year-to-date total of 49.5 million passengers [3][9] Load Factor and Capacity - The consolidated load factor for LATAM Airlines increased by 0.4 percentage points to 86.7% in July 2025, as traffic growth outpaced capacity expansion [2][9] - The increase in load factor indicates healthy demand across all business segments of the airline [2] Industry Context - Other airlines, such as Ryanair and Volaris, also reported traffic increases in July 2025, with Ryanair transporting 20.7 million passengers (up 3% year-over-year) and Volaris transporting 2.76 million passengers (up 3% year-over-year) [5][10] - Ryanair's load factor remained flat at 96%, while Volaris experienced a decrease in load factor by 4.9 percentage points to 84.9% due to capacity expansion outpacing traffic growth [7][10]

Ryanair embracing the BOSS meme and adding a new "Fee"This may be more viral than I realized...Ryanair (@Ryanair):https://t.co/CUT1x9OzdU ...

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, outperforming the S&P 500 [7] - There can be over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for optimal investment potential [9] - Stocks rated 4 (Sell) or 5 (Strong Sell) are less favorable, even if they have high Style Scores, due to declining earnings forecasts [10] Company Spotlight: Ryanair - Ryanair Holdings, incorporated in 1996 and headquartered in Swords, Ireland, is currently rated 3 (Hold) with a VGM Score of A [11] - The company has a Momentum Style Score of B, with shares increasing by 7.5% over the past four weeks [11] - For fiscal 2026, Ryanair's earnings estimate has been revised upwards by three analysts, with the consensus estimate rising by $0.45 to $4.52 per share, and an average earnings surprise of +61.2% [12]

Core Viewpoint - Ryanair has announced its decision to withdraw operations from three French airports due to the high ticket tax imposed by the French government, urging for adjustments to avoid shifting investments to other European countries [1]. Group 1: Business Operations - Ryanair will cease operations at airports in Brive, Bergerac, and Strasbourg, which currently serve routes to Portugal and Scotland [1]. - Earlier this year, Ryanair also withdrew from operations at Vittel airport in northeastern France [1]. Group 2: Financial Impact - The French government increased the ticket tax by 180% in March, leading Ryanair to reduce its winter capacity for 2025 by 13%, equating to the cancellation of 25 routes [1]. - Following the tax hike, the "ticket solidarity tax" for economy class passengers on domestic and European flights rose from €2.63 to €7.4 per person [1]. Group 3: Competitive Landscape - Ryanair highlighted that the increased tax could render many French routes unprofitable, particularly affecting regional airports and winter operations [1]. - The company criticized the tax as detrimental to France's competitiveness compared to other EU countries like Ireland, Spain, and Poland, which do not impose such taxes [1]. Group 4: Future Plans - Ryanair has indicated that if the French government cancels the tax, it would invest $2.5 billion and introduce 25 new aircraft, increasing its annual capacity to over 30 million passengers and creating 750 new jobs [1].

Company Performance - LATAM (LTM) has returned approximately 50.3% since the beginning of the calendar year, significantly outperforming the Transportation sector, which has returned an average of -2.7% year-to-date [4] - The Zacks Consensus Estimate for LATAM's full-year earnings has increased by 28.8% over the past 90 days, indicating improved analyst sentiment and a more positive earnings outlook [3] Industry Context - LATAM is part of the Transportation - Airline industry, which consists of 25 individual companies and currently ranks 87 in the Zacks Industry Rank. The average gain for stocks in this group is 6.1% this year, highlighting LATAM's superior performance [5] - Another notable performer in the Transportation sector is Ryanair (RYAAY), which has returned 41.6% year-to-date and has a consensus EPS estimate that has increased by 9.2% over the past three months [4][5] Sector Ranking - The Transportation sector, which includes LATAM, is ranked 9 in the Zacks Sector Rank, which evaluates the strength of 16 individual sector groups based on the average Zacks Rank of the stocks within those groups [2]

Group 1 - Ryanair has released strong earnings results, prompting a resumption of coverage and a fresh analysis of the outcomes and key takeaways [1] - The company's Buy rating is supported by its resilient traffic performance [1] Group 2 - The analysis is aimed at buy-side hedge professionals focusing on fundamental, income-oriented, long-term investment strategies across developed markets [1]

Group 1 - Ryanair is considering registering newly purchased Boeing aircraft in the UK to avoid potential tariffs from the US [1]