Allegiant Travel Company Approved for Ultra-Low Cost Alliance with Mexico

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Allegiant Travel Company, a US-based low-cost carrier, has been granted approval for an ultra-low cost alliance for travel between Mexico and the United States. In a statement released on Monday, Allegiant said that its commercial alliance with the Mexico City-based Viva Aerobus was approved by the Federal Economic Competition Commission in Mexico. The carrier highlighted the approval as an important step towards full approval by the US Department of Transportation and the start of routes between the two nations via the value-focused combination of both airlines. Allegiant Travel Company offers a unique travel experience with low fares and a focus on leisure travel.

The company has been growing rapidly in recent years, and the approval of this alliance is a significant step forward in expanding its reach. The alliance with Viva Aerobus will allow Allegiant to offer competitive fares to destinations in Mexico, while also providing a high level of service. This is a win-win for both airlines, and we look forward to seeing the benefits for travelers.

Share Price

Allegiant Travel Intrinsic Value – On Monday, ALLEGIANT TRAVEL ($NASDAQ:ALGT) stock opened at $68.1 and closed at $67.4, up 1.1% from its last closing price of 66.7. The company’s share price has been on a steady upward trend since the announcement of the alliance, as investors bet on the success of the partnership. Allegiant Travel is the latest airline to enter into the Mexican market, which is already served by a number of low-cost carriers. The move is part of the company’s strategy to expand its international footprint and tap into the growing demand for low-cost travel to and from Mexico.

The alliance is also seen as a way to hedge against the potential impact of the Trump administration’s policies on the airline industry. So far, details of the alliance are still being worked out, but it is expected to be operational by the end of the year. The move is sure to intensify competition in the already competitive Mexican market, but Allegiant Travel is confident that its low-cost model will allow it to succeed.

VI Analysis – Allegiant Travel Intrinsic Value Calculator

Fundamentals are key to understanding a company’s long term potential. The VI app makes analyzing a company’s fundamentals easy. The intrinsic value of an ALLEGIANT TRAVEL share is around $215.1, calculated by VI Line. The stock is currently trading at $67.4, which means it is undervalued by 69%.

VI Peers

The competition among Allegiant Travel Co, Korean Air Lines Co Ltd, Cebu Air Inc, and InterGlobe Aviation Ltd is fierce. All four companies are striving to provide the best possible service to their customers. Each company has its own strengths and weaknesses, and it is up to the customer to decide which airline best meets their needs.

– Korean Air Lines Co Ltd ($KOSE:003490)

Korean Air Lines Co Ltd is a major airline company headquartered in Seoul, South Korea. It is the flag carrier of South Korea and operates a fleet of over 150 aircraft. The company has a market cap of 7.89T as of 2022 and a Return on Equity of 20.57%. Korean Air Lines is one of the world’s largest airlines and is a member of the SkyTeam alliance. The company offers a wide array of domestic and international flight routes and provides a high level of customer service.

– Cebu Air Inc ($PSE:CEB)

Cebu Air Inc is a leading low-cost carrier in the Philippines. It has a strong presence in the domestic market and offers services to over 60 destinations across the country. The company has a market cap of 22.34B as of 2022 and a Return on Equity of -580.13%. Cebu Air is committed to providing affordable, convenient, and reliable air travel services to its customers. It has a modern fleet of aircraft and a strong network of domestic and international routes. The company is continuously expanding its operations and has plans to further grow its market share in the coming years.

– InterGlobe Aviation Ltd ($BSE:539448)

InterGlobe Aviation Ltd, the owner of India’s largest airline by market share, IndiGo, has a market cap of 672.27B as of 2022. The company has a strong financial performance, with a return on equity of 16.73%. IndiGo is a low-cost carrier that offers affordable air travel to passengers in India and across the world. The company has a fleet of over 250 aircraft and operates more than 1,200 flights daily. InterGlobe Aviation is a publicly traded company listed on the Bombay Stock Exchange and the National Stock Exchange of India.

Summary

Investing in Allegiant Travel may be a good idea for those looking for an affordable way to travel. The company offers ultra-low cost flights to many popular destinations, making it a great option for budget-minded travelers. Allegiant also has a good reputation for safety and customer service, which can give investors peace of mind.