Allegiant Travel Company ALGT reported impressive traffic figures for September 2018. Traffic for the total system (including scheduled service and fixed fee contract), measured in revenue passenger miles (RPMs), increased 16.4% on a year-over-year basis to 699.08 million. System capacity, calculated in available seat miles (ASMs), expanded 11.2% to 888.48 million.
Owing to traffic growth outpacing capacity expansion, load factor (percentage of seats filled with passengers) improved 350 basis points (bps) year over year to 78.7%. Allegiant's passenger count rose 17.4% in the month. The company's system-wide average fuel cost per gallon was approximately $2.48.
In spite of reporting impressive traffic figures, the company has been struggling with rising fuel costs, which were roughly $2.48 per gallon (systemwide) in September. We expect high fuel costs to hurt the company's bottom line in the third quarter of 2018. Detailed results are expected be released on Oct 24. This Las Vegas, NV-based company expects fuel cost per gallon of $2.41 in the soon-to-be-reported quarter.
Shares of Allegiant have performed disappointingly so far this year, mainly due to high fuel costs. The stock has lost more than 23% of its value year to date compared with the industry 's decline of 19.2%.
Zacks Rank & Key Picks
Allegiant carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader Transportation Sector are ArcBest Corporation ARCB , CSX Corporation CSX and Trinity Industries, Inc. TRN . While CSX carries a Zacks Rank #2 (Buy), ArcBest and Trinity sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of ArcBest, CSX Corporation and Trinity have gained 29.8%, 35.6% and 22% in the past six months, respectively.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report ArcBest Corporation (ARCB): Free Stock Analysis Report To read this article on Zacks.com click here.