Allegiant Air provides a positive signal to domestic U.S. demand as the aviation industry fills the impact of recent economic disruptions on consumer behavior.
In particular, Allegiant's operational statistics provide a snapshot of air traffic before introducing sudden tariffs in most countries around the world on April 2nd.
Allegiant Travel Company, the parent of Las Vegas-based Ultra Low Cost Carrier (ULCC), was released in March in reserve traffic results on April 21, with a 14% increase in total passenger volume in the same month in 2024.
Airlines increased 21% year-on-year in March, but passenger capacity measured in available seat kilometers (ASKS) increased by roughly the same percentage.
For the first three months of the year, Allegiant's demands rose by about 14% compared to the first quarter of 2024, as well as the departure.
Allegiant points out that the numbers include scheduled services and “fixed fee agreements” flights.
Meanwhile, jet fuel prices remained relatively low at an average of $2.52 per gallon in the first quarter, providing a favorable cost tailwind for ULCC.
Aviation industry watchers await first quarter revenue results for American Airlines, Alaska Airlines and Southwest Airlines.
Earlier this month, Delta and United reported weakening demand for low-cost airfares on domestic routes and slow demand for international flights sent outside the US. United will cut capabilities from its domestic network later this year. However, both these airlines reported strong profits in the first quarter, with international and premium demand humming.
Some analysts agree with United's Chief Scott Kirby's prediction that a US carrier not named Delta probably couldn't operate profitably in the first quarter.
Allegiant executives will provide details on the company's market outlook during a conference call with investors and analysts on May 6th.
