Airline Stock Roundup: ALGT Reports Rosy October Move, AAL, DAL In Focus – November 24, 2022

last week, Elegant Travel Company (ALGT Free Report) on the upbeat traffic numbers for October. To highlight the strength of demand for air travel, Allegiant carried 12.9% more passengers in October 2022 than in October 2019 (the pre-coronavirus era).

Based on the optimistic air travel demand scenario, US airlines are expected to do very well this Thanksgiving week. An upbeat forecast for traffic during the Thanksgiving travel period was also mentioned in the previous week’s writing. American Airlines (AAL Free Report) to add flights to Phoenix over Super Bowl weekend in February 2023, with high passenger numbers expected. Delta Airlines (DAL Free Report) and its partner LATAM Airlines that a non-stop flight connecting Sao Paulo and Los Angeles will operate from July 1, 2023.

Summary of the latest news

1. In October 2022, Allegiant carried 1.25 million passengers, an increase of 12.9% over the actual October 2019 numbers. Revenue for passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 20.3% and 17%, respectively, from October 2019 levels. Load factor (% of seats filled) increased 2.4 points to 85.5% in October 2022, Where the traffic increase was greater than the capacity expansion. In October 2022, Allegiant carried 7.3% more passengers (systemwide) than in October 2021. Capacity contracted 2.4% compared to a year ago’s comparable month reading. The average fuel cost per gallon (estimated) was $3.91 in October 2022.

2. To meet the expected increased demand during the upcoming February Super Bowl weekend, American Airlines will reportedly add 91 flights to Phoenix Sky Harbor International Airport from February 9 to February 14. The Super Bowl will be held on February 12 at State Farm Stadium in Glendale. During the five-day period, AAL will operate more than 3,000 flights to/from Phoenix. The day after the Super Bowl (February 13) is expected to be very busy, with 548 flights arriving/departing from Phoenix Sky Harbor International Airport. American Airlines currently holds the Zacks No. 3 (Hold) rank.

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3. The first new market for the Delta-LATAM joint venture will be São Paulo, Brazil. Currently, DAL does not operate flights connecting Los Angeles and São Paulo. From July 1, the ride will operate three times a week on the road. The Boeing 777-300ER will be used to operate the flights on the Sao Paulo-Los Angeles route. The aircraft can accommodate 410 passengers (38 in Premium Business cabin, 50 in Economy + and 322 in Economy). The new route will provide customers with access to the largest US-South American market from Los Angeles.

performance

The following table shows the price movement of major airlines over the past week and over the past six months.

Zacks Investment Research
Image source: Zacks Investment Research

The table above shows the trading of all airline stocks in green during the five trading days. Obviously, the NYSE ARCA Airline Index has gained 1.5% to $61.06 over the past 5 trading days. Over the past six months, the NYSE ARCA Airline Index has fallen 9.5%.

What’s next in aviation?

With earnings season over, watch this space for our regular news updates.

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