Allegiant's April 2025 Traffic Numbers Improve Year Over Year

Allegiant Travel Company ALGT recently reported encouraging traffic numbers for May 2025.

Scheduled traffic (measured in revenue passenger miles) rose 10.2% from the May 2024 levels. Capacity (measured in available seat miles) for scheduled service rose 16.3% year over year. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor (the percentage of seats filled by passengers) in May 2025 declined to 80.3% from 84.8% a year ago.

Total departures (scheduled services) rose 16.2% in May 2025 from a year ago. Moreover, the company’s average stage length (miles) grew 0.2% year over year.

For the total system (including scheduled service and fixed-fee contracts), Allegiant carried 9.4% more passengers in May 2025 than the year-ago levels. System-wide capacity improved 16.5% in May 2025 on a year-over-year basis.

The fuel price per gallon in May 2025 is estimated to have been $2.37.

Apart from ALGT, other airline companies like Copa Holdings, S.A. CPA, Controladora Vuela Compañía de Aviación VLRS and LATAM Airlines Group LTM have also reported May traffic numbers.

Copa Holdings reported robust traffic numbers for May 2025, driven by upbeat air travel demand. Due to high passenger volumes, revenue passenger miles (RPM: a measure of traffic) improved on a year-over-year basis in May.

To match the demand swell, CPA is increasing its capacity. In May, available seat miles (ASM: a measure of capacity) increased 7% year over year. RPM surged 7.5% year over year. Since traffic outpaced capacity expansion, the load factor (the percentage of seats filled by passengers) rose to 87.6% from 87.3% in May 2024.

Mexican carrier Controladora Vuela Compañía de Aviación, or Volaris, recently reported a year-over-year increase in RPM for May.

Volaris reported a 9% year-over-year increase in consolidated capacity (measured in available seat miles). The load factor (% of seats filled by passengers) decreased 4.3 percentage points to 81.8% on a consolidated basis. The metric fell as the increase in consolidated traffic (3.5%) was less than the increase in consolidated capacity. During May, Volaris transported 2.5 million passengers, up 4.2% year over year.

On the domestic front, RPMs and ASMs increased 5.7% and 10.4%, respectively, from the May 2024 levels. The domestic load factor in May was 86.5%, a decrease of 3.8 percentage points from the year-ago levels. In international markets, RPM declined 0.2% year over year, while ASM rose 6.8% year over year. The international load factor decreased by 5.2 percentage points on a year-over-year basis to 74.7%.

LATAM Airlines Group reported a year-over-year increase in revenue passenger kilometers (RPK: a measure of air traffic) for May 2025.

LATAM Airlines reported a 7.2% year-over-year increase in consolidated capacity, measured in available seat kilometers (ASK). The uptick was driven by a 13% increase in LATAM Airlines Brazil’s domestic capacity. Additionally, a new route from Sao Paulo (Guarulhos) to Fernando de Noronha was launched in May, strengthening domestic connectivity within Brazil.

LTM’s consolidated traffic, measured in revenue passenger kilometers (RPK), increased 9.6% year over year. As traffic outpaced capacity expansion, the consolidated load factor (percentage of seats filled by passengers) rose 1.8 percentage points from May 2024 to 83.1% in May 2025, maintaining healthy load factors across all business segments.

ALGT’s Zacks Rank

ALGT currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.

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This article originally published on Zacks Investment Research (zacks.com).

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