Allegiant reports its September traffic in the wake of Hurricane Ian

Allegiant Travel Company (Allegiant Air) reported its preliminary passenger traffic results for September 2022 as well as third quarter 2022.

“We ended the quarter with adjusted1 earnings, excluding 2022 employee recognition bonus in-line with our updated guidance,” stated Gregory Anderson, president and chief financial officer. “Demand remained strong throughout the quarter with strength continuing into the upcoming holiday season. Third quarter loads were more than 88 percent, 2.5 points higher than the third quarter of 2019, on 17 percent more capacity. As expected, incremental operating costs associated with Hurricane Ian in addition to reducing capacity by roughly 1.5 percent, contributed to a roughly 13.9 percent increase in CASM, excluding fuel and employee recognition bonus, as compared with the third quarter of 2019. Third quarter results are summarized in the table below.

“Although we are still assessing the impacts of Hurricane Ian, as of October 6, air service has been restored to all airports that we serve in Florida. While airports have resumed normal operations and demand shows good promise, we do expect a revenue headwind related to our Florida markets in the fourth quarter. Additionally, we are in the process of working with our insurance partners to measure the financial impact to Sunseeker Resorts. The physical damage to the structures was predominantly caused by several cranes collapsing onto the building. Based on limited information available to us today, we are currently estimating this damage to be approximately $35 million. However, because investigations are ongoing, and we continue to ascertain new information daily, this number is subject to change. The estimated physical damage of $35 million will be recorded as a one-time, special item on our third quarter income statement. As insurance proceeds are approved in subsequent quarters, these recoveries will offset the loss. I want to express my gratitude to our team members and partners for their efforts to safely restore our network.”

 

Actual Guidance
System ASMs – year over three-year change2 14.5 % ~14.5%
Scheduled service ASMs – year over three-year change2 17 % ~17%
Total operating revenue – year over three-year change2 28.4 % ~27.5%
Operating CASM, excluding fuel and 2022 employee recognition bonus – year over three-year change1 3 13.9 % 13 to 14%
Fuel cost per gallon $3.85 $3.87

 

Scheduled Service – Year Over Three-Year Comparison

 

September 2022 September 2019 Change
Passengers 1,005,535 770,768 30.5 %
Revenue passenger miles (000) 884,285 639,534 38.3 %
Available seat miles (000) 1,014,779 775,906 30.8 %
Load factor 87.1 % 82.4 % 4.7 pts
Departures 6,768 5,638 20.0 %
Average stage length (miles) 851 808 5.3 %
3rd Quarter 2022 3rd Quarter 2019 Change
Passengers 4,316,163 3,753,611 15.0 %
Revenue passenger miles (000) 3,820,339 3,170,826 20.5 %
Available seat miles (000) 4,315,984 3,687,473 17.0 %
Load factor 88.5 % 86.0 % 2.5 pts
Departures 28,436 26,238 8.4 %
Average stage length (miles) 860 824 4.4 %

 

Total System* – Year Over Three-Year Comparison
September 2022 September 2019 Change
Passengers 1,031,908 799,592 29.1 %
Available seat miles (000) 1,079,809 855,962 26.2 %
Departures 7,287 6,248 16.6 %
Average stage length (miles) 840 802 4.7 %

 

 3rd Quarter 2022 3rd Quarter 2019 Change
Passengers 4,359,417 3,806,369 14.5 %
Available seat miles (000) 4,450,595 3,888,400 14.5 %
Departures 29,432 27,707 6.2 %
Average stage length (miles) 857 823 4.1 %

Scheduled Service – Year Over Year Comparison
September 2022 September 2021 Change
Passengers 1,005,535 803,349 25.2 %
Revenue passenger miles (000) 884,285 689,600 28.2 %
Available seat miles (000) 1,014,779 977,759 3.8 %
Load factor 87.1 % 70.5 % 16.6 pts
Departures 6,768 6,714 0.8 %
Average stage length (miles) 851 834 2.0 %
3rd Quarter 2022 3rd Quarter 2021 Change
Passengers 4,316,163 3,834,956 12.5 %
Revenue passenger miles (000) 3,820,339 3,302,519 15.7 %
Available seat miles (000) 4,315,984 4,312,893 0.1 %
Load factor 88.5 % 76.6 % 11.9 pts
Departures 28,436 29,593 (3.9 %)
Average stage length (miles) 860 834 3.1 %

Total System* – Year Over Year Comparison

 

September 2022 September 2021 Change
Passengers 1,031,908 829,029 24.5 %
Available seat miles (000) 1,079,809 1,050,489 2.8 %
Departures 7,287 7,304 (0.2 %)
Average stage length (miles) 840 823 2.1 %

 

3rd Quarter 2022 3rd Quarter 2021 Change
Passengers 4,359,417 3,872,651 12.6 %
Available seat miles (000) 4,450,595 4,441,201 0.2 %
Departures 29,432 30,663 (4.0 %)
Average stage length (miles) 857 829 3.4 %
 

*Total system includes scheduled service and fixed fee contract. System revenue passenger miles and
system load factor are not useful statistics as system available seat miles include both ASMs flown by
fixed fee flying as well as non-revenue producing repositioning flights used for operational needs.
Fixed fee flying is better measured through dollar contribution versus operational statistics.

 

Preliminary Financial Results

 

$ per gallon
September 2022 estimated average fuel cost per gallon – system $3.75
$ per gallon
3rd quarter 2022 estimated average fuel cost per gallon – system $3.85

1 Adjusted to exclude a one-time loss of $35 million related to the impact of Hurricane Ian on Sunseeker Resorts
2 Year over three-year percentage changes compare 2022 to 2019
3 Operating CASM, excluding fuel, excludes the impact of excess profit sharing

Top Copyright Photo: Allegiant Air Airbus A320-214 WL N255NV (msn 7989) (Brian Worthington). Image: 959230.

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