Allegiant Travel Clocks ~17% Growth In May Capacity

Allegiant Travel Company ALGT May 2022 Scheduled Service capacity grew by ~16% and completed the month with a load factor of 87%, up 3.0pts, compared to 2019 numbers.
"The average cost per fuel gallon in May was $4.41 and we now expect to finish the quarter at an average cost per gallon of $4.30," stated CFO Gregory Anderson.
May Traffic: Total System Passengers increased 40%, and Available seat miles increased 17.1% Y/Y.
Scheduled Service Passengers increased 39.8% Y/Y; Revenue passenger miles increased 47.3%, and Available seat miles increased 16.9% Y/Y.
The company stated that the increased fuel cost resulted in roughly $18 million in excess expense throughout the quarter.
"Due to heightened cancelations, we expect total revenue for the quarter to come in on the low end of our previous guide, at up roughly 28 percent compared with 2019. In addition, we now expect total system capacity to be up roughly 11.5 percent for the quarter, year over three-year," commented Drew Wells, SVP, revenue.
2Q22 Outlook (compared with year over three-year change): The company expects System ASMs of up ~11.5%, Scheduled service ASMs to be Up ~12.5%, Operating CASM Up ~15%, and Fuel cost per gallon of $4.30.
ALGT expects total operating revenue to grow by ~28% in Q2.
Price Action: ALGT shares are trading lower by 2.75% at $110.92 on the last check Friday.