(Bloomberg) -- Allegiant Travel Co. shares tumbled after the discount airline forecast a worse-than-expected profit for the current quarter, citing hurricanes that devastated parts of Florida and North Carolina.
Adjusted fourth-quarter earnings will be about 50 cents a share at the midpoint of its forecast, the company said Wednesday. Analysts had expected 67 cents, according to the average of estimates compiled by Bloomberg. Effects from the storms will reduce fourth-quarter revenue by as much as $40 million, Allegiant said.
The outlook reflects the extent of lingering damage to areas where Allegiant has extensive service. The carrier has canceled or pulled from its schedule nearly 1,000 flights from the end of September to January because of immediate or residual hurricane damage, executives said on a conference call Wednesday.
The airline’s shares fell 13% in after-hours trading in New York on Wednesday.
Allegiant’s adjusted third-quarter loss of $2.02 a share was also worse than the $1.86 deficit expected by analysts. Revenue of $562.2 million topped estimates for $560.4 million.
The carrier also said it’s in “early discussions” with a strategic capital partner for the Sunseeker Resort, after hiring advisers to explore options for the facility. The property suffered some damage from Hurricane Helene in September and Milton in October.
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