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Allegiant Travel Plummets 12.62% on Q4 Revenue Miss and Investor Concerns

Allegiant Travel Co (ALGT) is experiencing a significant drop in its stock price following the release of its fourth-quarter earnings report, which revealed operating revenue figures that fell short of analysts' expectations. Despite some positive developments, such as an adjusted operating margin of over 13% for the December quarter and a 16% increase in capacity, the company's airline revenue for 2024 was approximately 2.6% below the previous year. This shortfall in revenue has overshadowed the improvements in margins and capacity, leading to concerns among investors.

The company's fourth-quarter airline revenue was nearly $610 million, showing only a slight year-over-year increase, which was not enough to meet market expectations. Additionally, Allegiant reported a full-year net income of $45.7 million, with a consolidated EPS of $2.48, which may have contributed to the negative sentiment. The challenges faced by Allegiant, including the need for a new capital partner for its Sunseeker resort project, have further compounded investor concerns.

Allegiant Travel's stock is currently trading at $86.6, down 12.62% from its previous close of $99.11 on February 4th.