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July 9, 2020, 9:22 a.m. EDT

Allegiant Travel's stock rises after upbeat June bookings, cash burn results

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By Tomi Kilgore

Shares of Allegiant Travel Co. /zigman2/quotes/208507686/composite ALGT -2.90% rose 1.0% in premarket trading Thursday, after the air-related travel services company reported June bookings that exceeded its expectations, resulting in improved load factor and cash burn. Allegiant said average bookings for June were more than $4 million per day, which "exceeded our expectations," to lift the average daily gross bookings for the second quarter to over $2.5 million. That helped bring the average daily cash burn rate for the quarter to $900,000, compared with the previous forecast of $1.75 million. Meanwhile, bookings were negatively impacted over the last two weeks after several states reported increases in COVID-19 cases, which has "tempered expectations into the third quarter." The company said June load factor was 57.3%, up nearly 10 percentage points from May. For the third quarter, average daily cash burn is expected to be about $750,000 and the company expects to operate about 75% of its schedule. The stock has dropped 36.7% year to date through Wednesday, while the U.S. Global Jets ETF /zigman2/quotes/207744796/composite JETS -2.89% has shed 48.2% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.12% has eased 1.9%.

/zigman2/quotes/208507686/composite
US : U.S.: Nasdaq
$ 134.50
-4.01 -2.90%
Volume: 372,801
Sept. 18, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$2.25 billion
Rev. per Employee
$427,441
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/zigman2/quotes/207744796/composite
US : U.S.: NYSE Arca
$ 18.15
-0.54 -2.89%
Volume: 4.33M
Sept. 18, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,319.47
-37.54 -1.12%
Volume: 4.09B
Sept. 18, 2020 5:15p
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