Category Archives: Allegiant Air

Allegiant announces its first agreement with the Teamsters

Allegiant Air Airbus A320-214 WL N252NV (msn 7868) BFI (Nick Dean). Image: 949885.

Allegiant Air today announced that the company and the International Brotherhood of Teamsters (IBT), representing Allegiant’s workforce of maintenance technician and related employees, have reached an agreement in principle on all remaining open issues for the first collective bargaining agreement between the parties. The agreement in principle is subject to finalization between the parties and ratification by the employee group, which includes line and heavy maintenance technicians as well as stores employees and some administrative maintenance staff.  A ratification vote is expected to occur by the end of July, 2021. Allegiant currently employs 415 maintenance technician and related employees.

The process of negotiating a first collective bargaining agreement for Allegiant maintenance technician and related employees began in January 2019. The parties had temporarily suspended negotiations early in 2020 due to the COVID-19 pandemic, but talks resumed in September.  The International Brotherhood of Teamsters was most recently certified as the group’s exclusive representative on March 7, 2018.

Top Copyright Photo: Allegiant Air Airbus A320-214 WL N252NV (msn 7868) BFI (Nick Dean). Image: 949885.

Allegiant Air aircraft slide show:

Allegiant is encouraged by an uptick in demand in March, traffic is down by 26.2% from 2019

Allegiant Air Airbus A319-112 N302NV (msn 2387)  (Vegas Golden Knights) LAS (Gunter Mayer). Image: 953312.

Allegiant Travel Company reported its preliminary passenger traffic results for March 2021 as well as first quarter 2021.

“We are encouraged by the meaningful improvement in customer demand throughout the month of March,” stated Gregory Anderson, executive vice president and chief financial officer. “Average daily bookings for the month exceeded average daily bookings during the same time period in 2019. The significant improvement in March demand coupled with our industry-leading cost structure enabled us to generate positive EPS and EBITDA for the month of March, excluding the benefit from the payroll support grant. For the March quarter, we expect adjusted1 CASM, excluding fuel, to be down 3 to 4 percent, year over two-year.”

Capacity was up roughly three percent, when compared to 2019, with March capacity up 14 percent,” stated Drew Wells, senior vice president, revenue. “Although this caused some load pressure, our focus remains on generating positive cash flows and optimizing profits. We continue to expect first quarter total revenue to fall in the middle of our previous guide of down 35 to 40 percent, when compared with 2019. We remain optimistic about peak summer travel. With national vaccination rates steadily increasing and average daily bookings trending in the right direction, we expect sequential revenue improvements into the second quarter.”

1 Adjusted to exclude the impact of the payroll support grant.

Scheduled Service – Year Over Two-Year Comparison
March 2021 March 2019 Change
Passengers 1,095,572 1,484,326 (26.2%)
Revenue passenger miles (000) 1,022,480 1,386,501 (26.3%)
Available seat miles (000) 1,832,250 1,610,575 13.8%
Load factor 55.8% 86.1% (30.3 pts)
Departures 11,710 10,297 13.7%
Average stage length (miles) 899 914 (1.6%)
1st Quarter 2021 1st Quarter 2019 Change
Passengers 2,323,302 3,421,538 (32.1%)
Revenue passenger miles (000) 2,166,417 3,191,045 (32.1%)
Available seat miles (000) 3,921,090 3,802,132 3.1%
Load factor 55.3% 83.9% (28.6pts)
Departures 24,947 24,344 2.5%
Average stage length (miles) 902 908 (0.7%)

 

Total System* – Year Over Two-Year Comparison
March 2021 March 2019 Change
Passengers 1,102,869 1,499,688 (26.5%)
Available seat miles (000) 1,884,130 1,655,330 13.8%
Departures 12,144 10,660 13.9%
Average stage length (miles) 892 908 (1.8%)

 

1st Quarter 2021 1st Quarter 2019 Change
Passengers 2,334,503 3,450,278 (32.3%)
Available seat miles (000) 4,013,989 3,910,239 2.7%
Departures 25,684 25,200 1.9%
Average stage length (miles) 898 904 (0.7%)

 

Scheduled Service – Year Over Year Comparison
March 2021 March 2020 Change
Passengers 1,095,572 892,966 22.7%
Revenue passenger miles (000) 1,022,480 839,766 21.8%
Available seat miles (000) 1,832,250 1,413,348 29.6%
Load factor 55.8% 59.4% (3.6 pts)
Departures 11,710 8,926 31.2%
Average stage length (miles) 899 914 (1.6%)
1st Quarter 2021 1st Quarter 2020 Change
Passengers 2,323,302 3,154,606 (26.4%)
Revenue passenger miles (000) 2,166,417 2,925,482 (25.9%)
Available seat miles (000) 3,921,090 3,964,009 (1.1%)
Load factor 55.3% 73.8% (18.5pts)
Departures 24,947 25,484 (2.1%)
Average stage length (miles) 902 900 0.2%

 

Total System* – Year Over Year Comparison
March 2021 March 2020 Change
Passengers 1,102,869 898,986 22.7%
Available seat miles (000) 1,884,130 1,441,144 30.7%
Departures 12,144 9,172 32.4%
Average stage length (miles) 892 908

 

(1.8%)

 

 

1st Quarter 2021 1st Quarter 2020 Change
Passengers 2,334,503 3,175,450 (26.5%)
Available seat miles (000) 4,013,989 4,067,671 (1.3%)
Departures 25,684 26,312 (2.4%)
Average stage length (miles) 898 895 0.3%

 

*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
March 2021 estimated average fuel cost per gallon – system $1.99
$ per gallon
1st quarter 2021 estimated average fuel cost per gallon – system $1.86

Top Copyright Photo: Allegiant Air Airbus A319-112 N302NV (msn 2387) (Vegas Golden Knights) LAS (Gunter Mayer). Image: 953312.

Allegiant Air aircraft slide show:

Allegiant announces a new base at Austin

Allegiant Travel Company today announced plans to establish a base of operations at the South Terminal at Austin-Bergstrom International Airport (AUS). The Las Vegas-based company will invest $75 million to establish the new base in Austin, creating at least 89 high-wage jobs and housIng three Airbus A320 aircraft.

The company plans to begin its base operations in Austin on November 18, 2021.

Allegiant began operating at AUS in October 2013 with service from Austin to Las Vegas and currently offers 14 nonstop routes – to Orlando-Sanford and Destin-Fort Walton Beach, Fla.; Cincinnati, Ohio; Memphis and Knoxville, Tenn.; Albuquerque, N.M.; Pittsburgh, Pa.; Indianapolis, Ind.; Des Moines, Iowa; Asheville, N.C.; Grand Rapids, Mich.; Bozeman, Mont. (new service starting May 27, 2021) and Bentonville, Ark. (new service starting July 2, 2021) as well as Las Vegas. 

Since establishing service, Allegiant has flown more than 1.1 million passengers through Austin.

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

 

Allegiant sees a “moderate increase in travel demand” in February

Allegiant Travel Company today reported preliminary passenger traffic results for February 2021.

“Over the last month, we have been pleased to see a moderate increase in travel demand,” stated Drew Wells, senior vice president, revenue. “We met the increase in demand with increased supply, with February ASMs up roughly 6 percent from February of 2019, focusing on total revenue and profitability rather than unit metrics like load factor. We expect first quarter total revenue to be down between 35 and 40 percent on a year over two-year basis, a significant improvement over the fourth quarter. First quarter capacity is expected to be up between 2.0 and 4.5 percent, when compared to the first quarter of 2019, but we will continue to refine as dictated by demand.”

Scheduled Service

February 2021 February 2020 Change
Passengers 679,906 1,200,606 (43.4%)
Revenue passenger miles (000) 636,119 1,120,943 (43.3%)
Available seat miles (000) 1,203,720 1,370,619 (12.2%)
Load factor 52.8% 81.8% (29.0pts)
Departures 7,630 8,784 (13.1%)
Average stage length (miles) 907 902 0.6%

 

 

Total System*

February 2021 February 2020 Change
Passengers 680,930 1,207,325 (43.6%)
Available seat miles (000) 1,223,407 1,405,458 (13.0%)
Departures 7,783 9,059 (14.1%)
Average stage length (miles) 904 898 0.7%

 

*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
February 2021 estimated average fuel cost per gallon – system $1.83

Allegiant announces two new routes from Key West

Allegiant Air announced two new nonstop routes connecting Key West with Pittsburgh and St. Petersburg-Clearwater.

The new routes come just a week after Allegiant announced its second largest network expansion in company history. The additions came in response to customer demand.

Also, Allegiant announced it is expanding the special limited route connecting Punta Gorda, Fla. via Punta Gorda Airport (PGD) and Rapid City, SD via Rapid City Regional Airport (RAP).

New logo jet for the Vegas Golden Knights:

The route was originally planned to operate for two weeks in August, to coincide with the Sturgis Motorcycle Rally in South Dakota. It proved so popular, the airline quickly expanded service for the entire summer. The new route begins June 4 and will operate twice weekly.

The new nonstop service to Key West International Airport (EYW) in Key West, Fla. from Pittsburgh, Pa. via Pittsburgh International Airport (PIT) begins June 3, 2021.

The nonstop service to St. Pete–Clearwater, Fla. via St. Pete-Clearwater International Airport (PIE) from Portsmouth, New Hampshire via Portsmouth International Airport (PSM) begins June 2, 2021.

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

Allegiant announces a major expansion with 34 new nonstop routes

Allegiant Air today announced 34 new nonstop routes, including nine special limited routes for the Sturgis Rally 2021.

Additionally, Allegiant will offer nine special limited routes to Rapid City, S.D. via Rapid City Regional Airport (RAP) with one-way fares as low as $99.* The routes will provide an affordable option to those who plan to attend the annual City of Sturgis Motorcycle Rally in August.

The new routes to Austin-Bergstrom International Airport (AUS) include:

  1. Bentonville, Arkansas via Northwest Arkansas National Airport (XNA) – beginning July 2, 2021 with one-way fares as low as $49.*
  2. Bozeman, Montana via Bozeman Yellowstone International Airport (BZN) – beginning May 27, 2021 with one-way fares as low as $59.*

The new routes to Boston Logan International Airport (BOS) include:

  1. Norfolk, Virginia via Norfolk International Airport (ORF) – beginning May 28, 2021 with one-way fares as low as $39.*
  2. Indianapolis, Indiana via Indianapolis International Airport (IND) – beginning May 28, 2021 with one-way fares as low as $49.*

The new routes to Bozeman Yellowstone International Airport (BZN) include:

  1. Austin, Texas via Austin-Bergstrom International Airport (AUS) – beginning May 27, 2021 with one-way fares as low as $59.
  2. Oakland, California via Oakland International Airport (OAK) – beginning May 28, 2021 with one-way fares as low as $49.
  3. San Diego, California via San Diego International Airport (SAN) – beginning June 3, 2021 with one-way fares as low as $49.

The new routes from Des Moines International Airport (DSM) include:

  1. Houston, Texas via William P. Hobby Airport (HOU) – beginning July 1, 2021 with fares as low as $59.*
  2. San Diego, California via San Diego International Airport (SAN) – beginning July 1, 2021 with fares as low as $59.*
  3. Portland, Oregon via Portland International Airport (PDX) – beginning July 1, 2021 with fares as low as $59.*

The new routes to Destin-Fort Walton Beach Airport (VPS) include:

  1. Asheville, North Carolina via Asheville Regional Airport (AVL) – beginning May 27, 2021 with fares as low as $39.*
  2. St. Cloud, Minnesota via St. Cloud Regional Airport (STC) – beginning June 6, 2021 with one-way fares as low as $79.*
  3. Clarksburg, West Virginia via North Central West Virginia Airport (CKB) – beginning May 26, 2021 with one-way fares as low as $49.*

The new routes to William P. Hobby Airport (HOU) include:

  1. Springfield, Missouri via Springfield-Branson National Airport (SGF) – beginning May 28, 2021 with one-way fares as low as $59.*
  2. Lexington, Kentucky via Blue Grass Airport (LEX) – beginning June 3, 2021 with one-way fares as low as $59.*

The new routes from Indianapolis International Airport (IND) include:

  1. Boston, Massachusetts via Boston Logan International Airport (BOS) – beginning May 28, 2021 with fares as low as $49.*
  2. Los Angeles, California via Los Angeles International Airport (LAX) – beginning May 28, 2021 with fares as low as $69.*

The new routes to Los Angeles International Airport (LAX) include:

  1. Indianapolis, Indiana via Indianapolis International Airport (IND) – beginning May 28, 2021 with fares as low as $69.*
  2. Omaha, Nebraska via Omaha Eppley Airfield (OMA) – beginning June 4, 2021 with fares as low as $69.*
  3. Rapid City, South Dakota via Rapid City Regional Airport (RAP) – beginning June 4, 2021 with fares as low as $79.*
  4. Shreveport, Louisiana via Shreveport Regional Airport (SHV) – beginning July 2, 2021 with fares as low as $79.*

The new routes to Nashville International Airport (BNA) include:

  1. Albany, New York via Albany International Airport (ALB) – beginning May 14, 2021 with one-way fares as low as $49.*
  2. McAllen, Texas via McAllen International Airport (MFE) – beginning May 27, 2021 with one-way fares as low as $69.*
  3. Portsmouth, New Hampshire via Portsmouth International Airport (PSM) – beginning May 27, 2021 with one-way fares as low as $69.*
  4. Boise, Idaho via Boise International Airport (BOI) – beginning May 28, 2021 with one-way fares as low as $69.* 

The new routes to Portland International Airport (PDX) include:

  1. Billings, Montana via Billings Logan International Airport (BIL) – beginning May 7, 2021 with fares as low as $59.*
  2. Missoula, Montana via Missoula International Airport (MSO) – beginning May 7, 2021 with fares as low as $59.*
  3. Grand Rapids, Michigan via Gerald R. Ford International Airport (GRR) – beginning June 4, 2021 with fares as low as $79.*
  4. Des Moines, Iowa via Des Moines International Airport (DSM) – beginning July 1, 2021 with one-way fares as low as $59.*

The new routes to San Diego International Airport (SAN) include:

  1. Bozeman, Montana via Bozeman Yellowstone International Airport (BZN) – beginning June 3, 2021 with one-way fares as low as $49.* 
  2. Kalispell, Montana via Glacier Park International Airport (FCA) – beginning May 28, 2021 with one-way fares as low as $49.*
  3. Mesa, Arizona via Phoenix-Mesa Gateway Airport (AZA) – beginning May 27, 2021 with one-way fares as low as $39. *
  4. Pasco, Washington via Tri-Cities Airport (PSC) – beginning May 28, 2021 with one-way fares as low as $59.*
  5. Des Moines, Iowa via Des Moines International Airport (DSM) – beginning July 1, 2021 with one-way fares as low as $59.*

The new routes from North Central West Virginia Airport (CKB) include:

  1. Destin, Florida via Destin-Fort Walton Beach Airport (VPS) – beginning May 26, 2021 with one-way fares as low as $49.*
  2. Chicago, Illinois via Midway International Airport (MDW) – beginning June 3, 2021 with one-way fares as low as $39.*

The new route from Appleton, Wis. via Appleton International Airport to Savannah, Ga. via Savannah/Hilton Head International Airport (SAV) begins May 28, 2021 with fares as low as $49.*

The new route from Concord, N.C. via Concord-Padgett Regional Airport (USA) to Sarasota, Fla. via Sarasota-Bradenton International Airport (SRQ) begins May 28, 2021 with fares as low as $49.*

The new route from Bangor, Maine via Bangor International Airport (BGR) to Fort Lauderdale, Fla. via Fort Lauderdale-Hollywood International Airport (FLL) begins May 28, 2021 with fares as low as $79.*

The new route from Cincinnati/Northern Kentucky International Airport (CVG) to Key West, Fla. via Key West International Airport (EYW) begins June 9, 2021 with fares as low as $59.*

The new nonstop route from Bill and Hillary Clinton National Airport (LIT) to St. Petersburg, Fla., via St. Pete–Clearwater International Airport (PIE) begins May 27, 2021 with fares as low as $59.*

Special limited routes to Rapid City Regional Airport (RAP) for Sturgis Rally 2021 include:

  1. Appleton, Wisconsin via Appleton International Airport (ATW) – beginning Aug. 4, 2021 with fares as low as $99.*
  2. Indianapolis, Indiana via Indianapolis International Airport (IND) – beginning Aug. 4, 2021 with fares as low as $99.*
  3. Peoria, Illinois via General Wayne A. Downing Peoria International Airport (PIA) – beginning Aug. 4, 2021 with fares as low as $99.*
  4. Nashville, Tennessee via Nashville International Airport (BNA) – beginning Aug. 4, 2021 with fares as low as $99.*
  5. Pittsburgh, Pennsylvania via Pittsburgh International Airport (PIT) – beginning Aug. 5, 2021 with fares as low as $99.*
  6. Grand Rapids, Michigan via Gerald R. Ford International Airport (GRR) – beginning Aug. 4, 2021 with fares as low as $99.*
  7. Orlando/Sanford, Florida via Orlando Sanford International Airport (SFB) – beginning Aug. 5, 2021 with fares as low as $99.*
  8. Knoxville, Tennessee via McGhee Tyson Airport (TYS) – beginning Aug. 4, 2021 with fares as low as $99.*
  9. Punta Gorda, Florida via Punta Gorda Airport (PGD) – beginning Aug. 6, 2021 with fares as low as $99.*

*About the introductory one-way fares:

Seats and dates are limited and fares are not available on all flights. Flights must be purchased by Feb. 10, 2021 for travel by Aug. 16, 2021. Price displayed includes taxes, carrier charges & government fees. Fare rules, routes and schedules are subject to change without notice. Optional baggage charges and additional restrictions may apply.

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

Allegiant reports 4Q and 2020 financial results

Allegiant Travel Company issued this report:

Allegiant Travel Company today reported the following financial results for the fourth quarter and full year 2020, as well as comparisons to the prior year:

Consolidated Three Months Ended
December 31,
Percent
Change
Twelve Months Ended
December 31,
Percent
Change
(unaudited) (in millions, except per
share amounts)
2020 2019 2020 2019
Total operating revenue $ 246.6 $ 461.1 (46.5) $ 990.1 $ 1,841.0 (46.2)
Operating income (loss) (23.6) 92.7 (125.5) (281.0) 364.0 (177.2)
Income (loss) before income taxes (39.2) 78.6 (149.9) (361.1) 301.2 (219.9)
Net income (loss) (28.8) 60.5 (147.6) (184.1) 232.1 (179.3)
Diluted earnings (loss) per share $ (1.79) $ 3.72 (148.1) $ (11.53) $ 14.26 (180.9)

 

Consolidated – adjusted Three Months Ended
December 31,
Percent
Change
Twelve Months Ended
December 31,
Percent
Change
(unaudited) (in millions, except per
share amounts)
2020 2019 2020 2019
Adjusted operating income (loss) (1) (2) $ (7.8) $ 92.7 (108.4) $ (140.1) $ 364.0 (138.5)
Adjusted income (loss) before income
taxes(1) (2)
(23.4) 78.6 (129.8) (193.6) 301.2 (164.3)
Adjusted net income (loss)(1) (2) (18.0) 60.5 (129.8) (149.1) 231.9 (164.3)
Adjusted diluted earnings (loss) per
share (1) (2)
$ (1.12) $ 3.72 (130.1) $ (9.33) $ 14.42 (164.7)
(1) Adjusted numbers exclude COVID related special charges, the benefit from the CARES Act payroll support program (as applicable), the benefit from the Employee Retention Credit (as applicable) and the portion of the tax benefit attributable to the CARES Act (as applicable).
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.

“With the close of the fourth quarter, we completed the most challenging year the industry has faced in its history,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “We still have a long road ahead to a full recovery, but we are gaining momentum and moving in the right direction. We finished the quarter with an adjusted loss per share of $1.12 – an improvement of 81 percent when compared to our second quarter lows. The fourth quarter continued the trend of sequential improvement to total revenue, which came in at $247 million, up 85 percent from the second quarter. Similar improvements were seen in load factor at 58.2 percent. Booking trends suggest we will continue to see both revenue and load improvements into the first quarter.

Although the exact timing of a full recovery is unknown, the improvements observed in the fourth quarter coupled with the vaccine rollout suggest recovery is on the horizon. Furthermore, our internal weekly tracking surveys indicate customer travel intention has been improving for the last several weeks. Our 100 percent domestic network focusing on the leisure traveler and predicated around a low cost, low utilization model positions us favorably for a quick recovery.

From the onset of the pandemic, we have worked diligently to strengthen the balance sheet and improve cash balances. Arguably, our balance sheet is stronger today than a year ago. We are well positioned to be opportunistic related to our network and fleet as conditions improve. In early January, we announced service on 21 new routes, including three new cities. Preliminary booking trends on those routes have exceeded our expectations. Our current runway to grow the network has expanded to include over 1000 incremental routes. The flexibility of our model along with structural cost savings will enable us to continue improving the network in the months ahead.

The last ten months have been challenging, but I remain optimistic about 2021. I have been continually reminded of the quality of our team members throughout the pandemic. They have executed flawlessly, enabling us to lead the industry in the percentage of our schedule made available for sale and flown in 2020, with some of the highest load factors in the industry. They have assisted in removing structural costs from the business, enabling us to improve upon our already industry leading cost structure. Because of their efforts, I believe we will be among the first to return to profitability. I am very proud of the work they have done.”

Fourth Quarter 2020 Results

  • Adjusted loss per share(1) of $1.12, an improvement of 81 percent versus the second quarter and 74 percent as compared with the third quarter
  • Total revenue for the quarter was $246.6 million, down 47 percent versus the prior year, the lowest year over year reduction since the onset of the pandemic
    • Sequential quarterly improvement in total revenue with fourth quarter total revenue up 85 percent from the second quarter and 23 percent from the third quarter
    • Completed the quarter with a load factor of 58.2 percent, the highest quarter since the onset of the pandemic
    • Average total ancillary revenue per passenger (includes air-related and third party products) continues to remain strong at $57.18, nearly flat from prior year
  • Adjusted Operating CASM, excluding fuel(1) of 6.07 cents, down 10 percent from the prior year, on capacity reductions of 16 percent
  • Recognized total one-time, non-recurring, special charges related to COVID-19 of $25.4 million during the fourth quarter
  • Recognized a CARES Act employee retention credit of $9.6 million, which is recorded as an offset to salary and benefits expense
  • Announced 15 new non-stop routes including two new cities during the fourth quarter and another 21 new non-stop routes including three new cities in early January bringing total routes served to 543 and 129 cities

Full Year 2020 Update

  • Reported total revenue of $990.1 million, down 46 percent versus prior year, among the lowest revenue reductions in the industry
    • Reduced full year capacity by 19 percent, the smallest reduction in the industry, with reported load factors of 59.5 percent
    • Average total ancillary revenue per passenger (includes air-related and third party products) increased 3 percent versus 2019 to $58.46
  • Adjusted Operating CASM, excluding fuel(1) of 6.92 cents, up 7 percent from prior year on capacity reductions of 19 percent.
  • Employed a surgical approach to marketing efforts, which resulted in a full year decrease in cost per booking of 46 percent

(1) Adjusted numbers exclude COVID related special charges, the benefit from the CARES Act payroll support program (as applicable), the benefit from the Employee Retention Credit (as applicable) and the portion of the tax benefit attributable to the CARES Act (as applicable).

Balance Sheet, Cash and Liquidity

  • Total cash and investments at December 31, 2020 were $685 million
  • Total sources of liquidity received during the fourth quarter were $160 million
    • Issued $150 million of senior secured notes backed by same collateral package pledged to existing Term Loan
    • Received remaining $10 million related to a sale leaseback transaction that closed during the third quarter
  • Total sources of liquidity received during full year 2020 were $724 million
    • Includes $177 million related to the CARES Act payroll support program, $150 million in senior secured notes, $115 million in secured financings backed by aircraft and engines, $100 million upsize of Term Loan B, $94 million in tax refunds related to net operating loss carry backs, and $88 million in proceeds from sale leasebacks
    • Repaid $182 million in net principal payments during full year 2020
    • Total debt increased $237 million versus year end 2019 with debt, net of liquidity, as of December 31, 2020 at $974 million, roughly unchanged from December 31, 2019
  • Fourth quarter interest expense of $16 million, down 11 percent from prior year
  • $268 million in additional liquidity expected to be received during 1H21, none of which will increase debt balances
    • $92 million related to the extension of the CARES Act payroll support program, of which $45.9 million has been received
      • Entire $92 million will be recognized as a payroll expense offset during the first quarter of 2021
    • $147 million in federal income tax refunds related to 2019 and 2020 net operating losses
    • $29 million in various other tax refunds
  • Air traffic liability at December 31st was $308 million
    • Balance related to future scheduled flights is $86 million
    • Balance related to travel vouchers issued for future use is $222 million

Capital Expenditures

  • Fourth quarter spend was $105 million, which included $94 million for the acquisition of three aircraft and three engines along with induction costs, $6 million in other airline capital expenditures and $5 million in deferred heavy maintenance
    • Two aircraft initially intended to be purchased during the fourth quarter were delayed until the first quarter of 2021
  • Full year 2020 capital expenditures were $335 million, comprised of $206 million in aircraft and engine purchases, $45 million in deferred heavy maintenance, $38 million in other airline capital expenditures, and $46 million in non-airline projects
  • Full year 2021 capital expenditures, including deferred heavy maintenance, expected to be roughly $200 million
  • Includes two outstanding purchase agreements, two aircraft initially planned to be purchased during the fourth quarter of 2020, and newly signed purchase agreements for two aircraft
Guidance, subject to revision
First Quarter 2021 guidance
System ASMs – year over year change(1) 0.5 to 5.5%
Scheduled Service  ASMs – year over year change(1) 0.5 to 5.5%
Full year 2021 guidance
CAPEX
Aircraft, engines and induction costs (millions) $115 to $125
Capitalized Airbus deferred heavy maintenance (millions) $50 to $60
Other capital expenditures (millions) $20 to $30
Interest expense $50 to $55
Principal payments(2) $170 to $180
(1) Year over year percentage changes compare 2021 to 2019
(2) Excludes $46 million repayment of revolving credit facility as we expect to enter into an agreement for a new facility during 2021

Aircraft Fleet Plan by End of Period

Aircraft – (seats per AC) YE20 1Q21 2Q21 3Q21 YE21
A319 (156 seats) 34 35 35 35 35
A320 (177 seats) 25 27 23 20 19
A320 (186 seats) 36 39 47 53 54
Total 95 101 105 108 108
Aircraft listed in table above include return to service aircraft previously in storage and future purchase and lease aircraft under contract (subject to change)

Allegiant reports December 2020 traffic

Allegiant Travel Company reported preliminary passenger traffic results for December 2020.

“As expected, the fourth quarter highlighted the divergence in strength between peak travel periods and non-peak periods,” stated Drew Wells, vice president of revenue. “Demand remained soft throughout much of December before accelerating during the peak holiday travel period at the end of the month. Load factors during the peak period came in at nearly 60 percent, which aided in completing the quarter with a load factor of 58.2 percent, the best since the onset of the pandemic. Over the last several weeks, we have been encouraged by favorable forward booking trends as flight volumes begin to pick up mid-February and into peak Spring Break travel. We remain cognizant that the situation is fluid and will continue to manage capacity to meet the changing demand environment.”

Scheduled Service
December 2020 December 2019 Change
Passengers 673,041 1,308,341 (48.6%)
Revenue passenger miles (000) 611,429 1,165,902 (47.6%)
Available seat miles (000) 1,128,200 1,411,107 (20.0%)
Load factor 54.2% 82.6% (28.4pts)
Departures 7,281 9,423 (22.7%)
Average stage length (miles) 891 871 2.3%
4th Quarter 2020 4th Quarter 2019 Change
Passengers 2,129,292 3,516,263 (39.4%)
Revenue passenger miles (000) 1,878,831 3,073,055 (38.9%)
Available seat miles (000) 3,226,050 3,745,031 (13.9%)
Load factor 58.2% 82.1% (23.9 pts)
Departures 21,399 25,541 (16.2%)
Average stage length (miles) 868 856 1.4%
YTD 2020 YTD 2019 Change
Passengers 8,553,623 14,823,267 (42.3%)
Revenue passenger miles (000) 7,626,470 13,038,003 (41.5%)
Available seat miles (000) 12,814,080 15,545,818 (17.6%)
Load factor 59.5% 83.9% (24.4 pts)
Departures 85,276 105,690 (19.3%)
Average stage length (miles) 867 859 0.9%

 

Total System*
December 2020 December 2019 Change
Passengers 679,424 1,318,872 (48.5%)
Available seat miles (000) 1,147,534 1,453,592 (21.1%)
Departures 7,471 9,742 (23.3%)
Average stage length (miles) 883 868 1.7%
4th Quarter 2020 4th Quarter 2019 Change
Passengers 2,159,035 3,585,966 (39.8%)
Available seat miles (000) 3,315,599 3,928,536 (15.6%)
Departures 22,189 27,088 (18.1%)
Average stage length (miles) 860 846 1.7%
YTD 2020 YTD 2019 Change
Passengers 8,623,984 15,012,149 (42.6%)
Available seat miles (000) 13,125,533 16,174,240 (18.8%)
Departures 87,955 110,542 (20.4%)
Average stage length (miles) 862 855 0.8%

*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
December 2020 estimated average fuel cost per gallon – system $1.56
$ per gallon
4th quarter 2020 estimated average fuel cost per gallon – system $1.41

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

Allegiant announces nine new routes and three new destinations

Allegiant Air today announced 21 new nonstop routes, including nine routes to three new cities: Portland, Oregon; Key West, Florida, and Jackson Hole, Wyoming.

Included as part of today’s announcement are eight routes that were delayed in 2020 due to the COVID-19 pandemic.

New service from Jackson Hole Airport (JAC) includes:

  1. Los Angeles, California via Los Angeles International Airport (LAX) – beginning June 2, 2021 with fares as low as $59 each way.*
  2. Phoenix, Arizona via Phoenix Mesa Gateway Airport (AZA) – beginning June 2, 2021 with fares as low as $59 each way.*
  3. Las Vegas, Nevada via McCarran International Airport (LAS) – beginning June 4, 2021 with fares as low as $49 each way.*
  4. Reno, Nevada via Reno-Tahoe International Airport (RNO) – beginning June 4, 2021 with fares as low as $49 each way.*

New service from Key West International Airport (EYW) includes:

  1. Nashville, Tennessee via Nashville International Airport (BNA) – beginning June 2, 2021 with fares as low as $59 each way.*
  2. Sanford, Florida via Orlando Sanford International Airport (SFB) – beginning June 4, 2021 with fares as low as $49 each way.*

New service from Portland International Airport (PDX) includes:

  1. Santa Maria, California via Santa Maria Airport (SMX) – beginning April 15, 2021 with fares as low as $49 each way.*
  2. Monterey, California via Monterey Regional Airport (MRY) – beginning May 28, 2021 with fares as low as $49 each way.*
  3. Idaho Falls, Idaho via Idaho Falls Regional Airport (IDA) – beginning May 28, 2021 with fares as low as $49 each way.*

New service from General Wayne A. Downing International Airport (PIA) includes:

  1. Sarasota, Florida via Sarasota-Bradenton International Airport (SRQ) – beginning May 27, 2021 with fares as low as $59 each way.*
  2. Denver, Colorado via Denver International Airport (DEN) – beginning May 28, 2021 with fares as low as $39 each way.*

The new route to/from Charleston, South Carolina via Charleston International Airport (CHS) includes:

  1. Belleville, Illinois/ St. Louis, Missouri via MidAmerica St. Louis Airport (BLV) – beginning May 28, 2021 with fares as low as $49 each way.*  

The new route to/from Baltimore, Maryland via Baltimore/Washington International Thurgood Marshall Airport (BWI) includes:

  1. Punta Gorda, Florida via Punta Gorda Airport (PGD) – beginning May 27, 2021 with fares as low as $59 each way.*

In addition to these new routes, Allegiant is announcing new dates for eight routes that were postponed in 2020 due to the pandemic. Allegiant is offering one-way fares on those routes as low as $39.*

The rescheduled routes to Norfolk International Airport (ORF) include:

  1. Pittsburgh, Pennsylvania via Pittsburgh International Airport (PIT) – beginning June 3, 2021 with fares as low as $49.*
  2. Columbus, Ohio via Rickenbacker International Airport (LCK) – beginning June 3, 2021 with one-way fares as low as $49.*

The rescheduled route to Nashville, Tennessee via Nashville International Airport (BNA) includes:

  1. Greensboro, North Carolina via Piedmont Triad International Airport (GSO) – beginning June 3, 2021 with fares as low as $39 each way.*

The rescheduled route to/from Boston, Massachusetts via Boston Logan International Airport (BOS) includes:

  1. Grand Rapids, Michigan via Gerald R. Ford Airport (GRR) – beginning March 5, 2021 with fares as low as $49 each way.*

The rescheduled route to/from Louisville, Kentucky via Louisville International Airport (SDF) includes:

  1. Charleston, South Carolina via Charleston International Airport (CHS) – beginning May 28, 2021 with fares as low as $49 each way.*

The rescheduled route to/from Myrtle Beach, Florida via Myrtle Beach International Airport (MYR) includes:

  1. Knoxville, Tennessee via McGhee Tyson Airport (TYS) – beginning June 2, 2021 with fares as low as $39 each way.*

The rescheduled routes to/from Hudson Valley, New York via New York Stewart International Airport (SWF) include:

  1. Destin, Florida via Destin-Fort Walton Beach Airport (VPS) – beginning June 13, 2021 with fares as low as $59 each way.*
  2. Savannah, Georgia via Savannah International Airport (SAV) – beginning May 26, 2021 with fares as low as $59 each way.*

Allegiant reports a decline in bookings and an increase in cancellations

Allegiant Air is reporting a softening in traffic due to rising COVID-19 cases:

Allegiant Travel Company reported preliminary passenger traffic results for November 2020.

“Over the course of the last several weeks, we have seen a deceleration of bookings coupled with an increase in cancellations related to recent surges in COVID-19 cases and new travel restrictions,” stated Drew Wells, vice president of revenue.

“Average daily bookings were roughly $3 million during the month of October, whereas November daily bookings averaged roughly $2.2 million. There continues to be a divergence in terms of strength between peak travel periods and non-peak periods, with peak days showing far more resiliency, a trend expected to hold through the Christmas holiday. We continue to approach demand as we have since the onset of the pandemic by maintaining a wide selling presence and cutting capacity as dictated by demand trends.

Despite recent booking weakness, fourth quarter capacity reductions are still expected to be roughly 15 percent as compared with prior year.”  

Scheduled Service
November 2020 November 2019 Change
Passengers 682,976 1,101,346 (38.0%)
Revenue passenger miles (000) 596,377 962,614 (38.0%)
Available seat miles (000) 1,034,482 1,197,831 (13.6%)
Load factor 57.6% 80.4% (22.8pts)
Departures 6,940 8,189 (15.3%)
Average stage length (miles) 861 857 0.5%
Total System*
November 2020 November 2019 Change
Passengers 692,327 1,129,065 (38.7%)
Available seat miles (000) 1,065,731 1,255,381 (15.1%)
Departures 7,201 8,739 (17.6%)
Average stage length (miles) 854 841 1.5%

*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
November 2020 estimated average fuel cost per gallon – system $1.39

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show: