Below is an excerpt from a complimentary research note by our Gaming, Lodging & Leisure analysts Todd Jordan and Sean Jenkins. For more GLL research, check out Gaming, Lodging & Leisure Pro.
Air capacity growth forecasted by officials at Harry Reid Airport in Las Vegas has shown a steady level of acceleration and by October / November, capacity could exceed ’19 levels by close to 15%.
There’s been tons of flight disruptions all across the country, but leisure destinations and now recovering convention markets like Vegas seems to be getting more than ther fair share of the attention.
So far, the quarterly outlooks have been pretty accurate and actualized capacity has been roughly in line.
More capacity being added into the fall suggests strong convention and group demand that we had already been forecasting to accelerate (see convention tracker HERE).
For now, names like MGM and CZR reside on our Long Bias list as the valuations are compelling, but the durability of the Strip gaming and leisure customer may not hold up as well as the regional gaming customer.
However, this flight capacity data does offer a positive forward looking data point for the bulls.