Benzinga  Oct 7  Comment 
Imperial Capital has started coverage of Allegiant Travel Company (NASDAQ: ALGT) with an Outperform rating and $164 price target, citing the company's differentiated low cost business model with strong growth prospects. Allegiant is focusing on...
Forbes  Sep 27  Comment 
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in LinkedIn Corp (NYSE: LNKD), where a total volume of 5,586 contracts has been traded thus far today, a contract volume which is...
Benzinga  Sep 23  Comment 
  Barclays upgraded Wal-Mart Stores, Inc. (NYSE: WMT) from Equal-weight to Overweight. The price target for Wal-Mart has been raised from $70 to $87. Wal-Mart shares rose 0.42 percent to $72.57 in pre-market trading. Analysts at...
Forbes  Sep 7  Comment 
In trading on Wednesday, airlines shares were relative leaders, up on the day by about 1.9% as a group, led by Allegiant Travel (ALGT), trading up by about 7.3% and American Airlines Group (AAL), trading up by about 6.3% on Wednesday.
Benzinga  Sep 7  Comment 
At 10:30 am, the Dow fell 0.10 percent to 18,518.84, the broader Standard & Poor's 500 index moved down 0.01 percent to 2,186.39 and the NASDAQ composite index climbed 0.16 percent to 5,284.46. The industries that are supporting the market...
Clusterstock  Aug 18  Comment 
(Reuters) - United Continental Holdings Inc said on Thursday it appointed a new chief financial officer and chief commercial officer in the first major management shakeup since Oscar Munoz took over as chief executive officer last...


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Allegiant Travel Company focuses on transporting residents of small under-served cities within the U.S. Allegiant makes money by selling air travel from their low-cost passenger airline both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services. Building on the concept of relationships with premier leisure companies, Allegiant is designed to appeal to leisure travelers rather than business travelers.[1] With the consolidation of the airline industry and a market that does not consist of fragmented small airlines as in Europe, Allegiant is dependent upon the relationships it can leverage rather than mass-marketing.

Business Segments

  • Scheduled Service Revenue - 64.5% of total sales
  • Ancillary Revenue - 29.2% of total sales
  • Fixed Contract Revenue and Other - 6.3% of total sales

Allegiant separates revenue into three main categories as shown above. Allegiant recently implemented an open seating policy, which drove the take rate and additional revenue on priority boarding and assigned seat assignments since its implementation.[2] Further, Allegiant continues to add strategic hotel, ski resort, cruise line and other product partners to enhance our offerings to our leisure customer base.

Trends and Forces

High Unemployment and Rising Commodity Prices Drive a Continued Lag in Leisure Air Travel

Because Allegiant operates solely in the leisure travel industry, the demand and average fare the company can charge is more dependent upon commodity prices such as oil and unemployment than other larger airlines that serve other market segments such as business travelers or cargo. Allegiant does not hedge fuel price risk, but had entered into forward contracts to reduce exposure to fuel price volatility in the past.

No cmolpanits on this end, simply a good piece.

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