Las Vegas-based Allegiant Travel Company ALGT shares are trading higher in Wednesday's after-hours session after the company reported better-than-expected financial results.
What Happened: Allegiant Travel said fourth-quarter revenue increased 32.6% year-over-year to $611.55 million, which beat average analyst estimates of $578.05 million, according to Benzinga Pro.
The air travel company reported quarterly adjusted earnings of $3.17 per share, which flew past consensus estimates of 69 cents per share. However, earnings excluded a recognition bonus and Sunseeker special charges of $3.13.
Allegiant ended the quarter with $1.4 billion in total liquidity.
"The demand environment continues to surpass expectations. Fourth quarter TRASM [total passenger revenue per available seat miles] was 14.03 cents, the highest quarterly TRASM in company history, on scheduled service growth of 11.9 percent. This revenue strength coupled with better than expected cost performance and a more favorable fuel environment resulted in an adjusted operating margin of nearly 16 percent for the quarter," said John Redmond, CEO of Allegiant Travel.
Why It Matters: Allegiant expects 2023 to be a transformational year. The company said it would begin taking delivery of its Boeing Co BA MAX 737 fleet during the fourth quarter, with deliveries expected to pick up in early 2024.
Allegiant anticipates 2023 airline earnings of $5 to $9 per share.
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ALGT Price Action: Allegiant has a 52-week high of $186.86 and a 52-week low of $62.94.
The stock was up 3.09% in after hours at $84.39 at the time of publication, according to Benzinga Pro.
Photo: Courtesy of Boeing.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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