Allegiant Travel reports Q3 adjusted EPS 9c, consensus 8c

Reports Q3 revenue $565.4M, consensus $580.05M. CEO Maurice Gallagher, Jr., said, “Q3 marked another quarter of airline operating profits, excluding special charges. Year to date we have delivered industry-leading financial performance yielding an adjusted airline-only operating margin of 13%. As we move into Q4, we are all but done with the completion of Sunseeker Resort, and we expect the property to open on December 15…Year to date, we have received $88M in remuneration from our partner, Bank of America. We expect this number to continue growing…Despite fuel costs rising nearly 30 percent intra-quarter, the team delivered an airline-only adjusted earnings per share of 31c driven by an increase in TRASM of 1.4% over the prior year…Our ability to match capacity with leisure demand trends was nicely put on display as we reduced capacity by 45% during the off-peak period of September versus the peak season of July. We are continuing to strengthen our foundation by reinvesting back into the airline’s future. During the third quarter, we successfully launched SAP and Navitaire – technology enhancements that will support our planned growth for years to come. Furthermore, we have readied ourselves for the delivery of our first Boeing 737 MAX aircraft in early 2024. This aircraft will strengthen our flexibility by providing more diversity in fleet composition further enabling us to deploy the right gauge aircraft in the right markets at the right times.”