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ALGT Nasdaq· Allegiant Travel Company
Earnings report Q3 2023

Allegiant Travel Company Reports Consistent Passenger Revenue and Increase in Third Party Products Revenue in Q3 2023

Segments of Revenue

  • Passenger revenue for Q3 2023 remained consistent compared to the same period in 2022, despite a 0.8% decrease in scheduled service available seat miles (ASMs). The company experienced a 6.3% decrease in average base fare and a 1.9% decrease in the number of scheduled service passengers. However, this was offset by a 10.4% increase in average ancillary air-related fare, driven by the overall strength in core products and the rollout of Allegiant Extra.
  • Third party products revenue for Q3 2023 increased by 14.0% compared to Q3 2022. This growth is primarily attributed to a significant 41.5% increase in revenue from third party products.

Strengths

  • Despite a slight decrease in capacity, Allegiant Travel Company managed to maintain consistent passenger revenue in Q3 2023. This stability can be attributed to the company's focus on ancillary air-related fare, which saw a notable increase of 10.4% compared to the same period last year. The strength in core products and the successful rollout of Allegiant Extra contributed to this growth.
  • The company's third party products revenue also experienced significant growth, with a 14.0% increase in Q3 2023 compared to the previous year. This demonstrates the company's ability to diversify its revenue streams and capitalize on ancillary offerings beyond its core passenger services.

Challenges

  • Allegiant Travel Company faced challenges in Q3 2023 with a decrease in average base fare and the number of scheduled service passengers. The 6.3% decrease in average base fare indicates potential pricing pressures or competitive factors in the market. The 1.9% decrease in scheduled service passengers may be attributed to various factors such as changes in travel demand or customer preferences.

Noteworthy

  • The company's third party products revenue showed exceptional growth, increasing by 14.0% in Q3 2023 compared to the same period last year. This significant increase of 41.5% in revenue from third party products indicates successful partnerships and effective marketing strategies in promoting ancillary offerings.

Summary

Allegiant Travel Company reported consistent passenger revenue in Q3 2023, despite a slight decrease in capacity. The company's focus on ancillary air-related fare, including core products and the Allegiant Extra rollout, contributed to this stability. Additionally, the company experienced significant growth in third party products revenue, showcasing its ability to diversify revenue streams. However, challenges were observed with a decrease in average base fare and the number of scheduled service passengers. Overall, Allegiant Travel Company's performance in Q3 2023 demonstrates strengths in ancillary revenue and successful partnerships, while also highlighting challenges in pricing and passenger demand.

Source documents

Form 10-Q  filed on Nov 08, 2023
53 pages scanned

Reference data

Company financials Q3 revenue 656M
Analyst estimates Q3 EPS missed by -382.74%
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