Allegiant (ALGT) is a low cost airline that has carved out an interesting niche

Instead of focusing on keeping its planes in the air as much as possible it targets small airports with underserved routes that provide a much better return and, according to management, has loads of room to grow routes to mid sized cities. ALGT has no competitor on 80% of routes.

Also interesting is that the firm is on schedule to complete its airline upgrade this year from pretty ancient McDonnell Douglas MD-80s to Airbus A320. That should boost margins over the next couple of years as the new planes are more efficient, have lower maintainance costs and (having just one type of aircraft in your fleet) means the company can significantly reduce the amount of pilots it employs.

This is not a recommendation to buy or sell. Stocks are not suitable investments for everyone. Please do your own research.

Submitted December 05, 2018 at 04:27AM by InterestingNews1 https://ift.tt/2RBjzhV