July Traffic

A couple interesting things regarding July traffic:

1. Allegiant posted a ridiclious 95% load factor for July up from 91% year over year. That is a crazy number. The stock is up 14% up over the past week, jumping 11% today.

2. You might be seeing this headline out there: Traffic rises at AirTran, falls at Southwest. So you get the gist of it. However, I find the crucial number in this report to be Southwest's load factor which dropped 5.1 percentage points year over year, as LUV's capacity went up and it carried less passengers. Hey, they are paying below market value on fuel, but it is something to keep an eye on.

Oil Isn't Everything

As crude oil prices climbed last week, the airline sector took a hit across the board. Nothing new here. But, then you see news that Allegiant filled 94% of its seats in June, up 5.4 points from the previous year, and you wonder if the stock should really should have fallen 17% over the last five days?