Category Archives: Allegiant Air

Allegiant retires the last MD-80, is now all-Airbus

Type Retired: November 28, 2018 (flight AAY 3 FAT - LAS with N417NV)

Allegiant Air yesterday (November 28, 2018) retired its last McDonnell Douglas DC-9-82/83/87 and MD-88 (MD-80 series) from revenue service as it retraced its first route between Fresno and Las Vegas.

The aircraft landed at Las Vegas at 3:29 pm PST and received a water cannon salute at LAS ending an era for the company.

The pictured (top) McDonnell Douglas DC-9-83 (MD-83) N417NV flew flight AAY 3 from FAT to LAS.

Top Copyright Photo (all others by the airline): Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N417NV (msn 53347) LGB (Michael B. Ing). Image: 907039.

Allegiant aircraft slide show:

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Allegiant to add 9 new routes from Sarasota/Bradenton

Allegiant Air Airbus A319-111 N317NV (msn 2477) LAX (Michael B. Ing). Image: 944028.

Allegiant Air is adding 9 new routes from Sarasota-Bradenton International Airport for this winter/spring season.

Allegiant Air is also adding a new nonstop seasonal service between Louisville (Louisville International Airport – SDF) and New Orleans (Louis Armstrong New Orleans International Airport).

Starting on February 22, 2019 Sarasota-Bradenton passengers will be able to fly nonstop to Asheville, North Carolina, and Baltimore, Maryland.

Starting in April, 2019, the carrier will offer twice-weekly nonstop service to Syracuse, New York; Harrisburg, Pennsylvania; Richmond, Virginia; Columbus, Ohio; Cleveland, Ohio; Grand Rapids, Michigan; and Nashville, Tennessee.

Top Copyright Photo: Allegiant Air Airbus A319-111 N317NV (msn 2477) LAX (Michael B. Ing). Image: 944028.

Allegiant aircraft slide show:

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Allegiant Travel Company releases its third quarter 2018 financial results, the last MD-80 to be retired after Thanksgiving holiday period

Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N411NV (msn 53245) RDU (Ton Jochems). Image: 944220.

Allegiant Travel Company (Allegiant Air) has reported the following financial results for the third quarter 2018, as well as comparisons to the prior year:

Three Months Ended September 30, Nine Months Ended September 30,
Unaudited 2018 2017 Change 2018 2017 Change
Total operating revenue (millions) $ 393.1 $ 350.2 12.3 % $ 1,255.3 $ 1,132.0 10.9 %
Operating income (millions) 26.2 44.3 (41.0 ) 180.4 203.9 (11.5 )
Net income (millions) 15.1 23.4 (35.2 ) 120.4 114.8 4.9
Diluted earnings per share $ 0.94 $ 1.45 (35.2 ) $ 7.45 $ 6.99 6.6

“We are proud to announce our 63rd consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company.  “Our transition to an all-Airbus fleet is nearly complete.  Our decision to move the transition up by a year from 2019 to 2018 has proven to be an excellent one given the higher fuel cost environment.  Compared to our all-MD-80 fleet from 2010, we expect our ASMs per gallon to increase by almost 40 percent in 2019, from 59 ASMs per gallon to the low 80s.

“This has been a busy couple of years across the Company as we transitioned our fleet.  Since the end of 2016:

We will have purchased and inducted 43 Airbus aircraft, while retiring 47 MDs.  We will have trained more than 350 Airbus pilots and 300 maintenance technicians as well as our flight attendants, ground staff and other operations personnel by the time we fly the final MD-80 flight at the end of November.

We have grown the Company 20 percent in capacity (ASMs), adding 51 routes and carrying 13.6 million passengers during the last twelve months, an increase of 1.64 million passengers over 2016.

We have dramatically improved our operations.  Since last October, we have led the industry in monthly completion factor six times and have been among the top three except for a few months.  Our on-time performance is improving nicely as well; this September we were up ten percentage points in A14, from 72 percent to 82 percent.

“I couldn’t be more excited about where we are at this point in our history.  As we outlined in our Sunseeker Resort investor day, we are ready for Allegiant 2.0.  Stay tuned!

“Needless to say, we couldn’t have accomplished this difficult transition without our great group of team members.  They have done an amazing job this quarter – as well as over this entire past year – with the highly complex effort to transition our fleet and improve our operations.  Hats off to the entire team for their tireless professionalism in any environment.”

Shareholder returns

  • 2018 shareholder returns – over $33 million in the first three quarters of the year through dividends
    ° Will pay dividends of $0.70 per share on December 5, 2018 to shareholders of record as of November 23, 2018

2018 outlook

  • Fourth quarter scheduled and system ASMs are expected to grow between four and six percent vs last year
    ° The remaining MD-80s will be retired immediately after the Thanksgiving travel period
  • 2018 full year ASM growth is expected to be between 9.5 and 10.5 percent
  • 2018 full year tax rate is expected to be between 18 and 19 percent
  • 2018 full year average fuel cost is expected to be $2.38 per gallon using the forward curve as of October 23, 2018
  • Due to several one-time maintenance events, 2018 maintenance per aircraft per month is expected to be between $90 and $95 thousand
  • 2018 EPS is expected to be between $9 and $10 per share even with the higher than expected fuel cost
Guidance, subject to revision
Full year 2018 guidance Previous* Current
Fuel cost per gallon $2.35 $2.38
Available seat miles (ASMs) / gallon 77.5 to 78.5 77.5 to 78.5
Interest expense (millions) $50 to $60 $50 to $60
Tax rate 21 to 22% 18 to 19%
Share count (millions)  15.9  15.9
Earnings per share $9 to $10 $9 to $10
System ASMs – year over year change 9 to 11% 9.5 to 10.5%
Scheduled service ASMs – year over year change 9 to 11% 9.5 to 10.5%
Depreciation expense / aircraft / month (thousands) $115 to $120 $115 to $120
Maintenance expense / aircraft / month (thousands) $80 to $85 $90 to $95
Full year 2018 CAPEX guidance
Capital expenditures (millions) ** $300 $300
Capitalized Airbus deferred heavy maintenance (millions) *** $45 $45
Sunseeker CAPEX
2018 year to date (millions) $15
Project since inception (millions) $46

* – Previous guidance as of July 25, 2018
** – Excludes Sunseeker Resorts
*** – Not included in capital expenditure total

Aircraft fleet plan by end of period
Aircraft – (seats per AC) 1Q18 2Q18 3Q18 YE18
MD-80 (166 seats) 32 27 19
A319 (156 seats) 26 31 31 32
A320 (177/186 seats) 30 35 43 44
Total 88 93 93 76

Aircraft listed in table above include only in-service aircraft, planned retirements and future aircraft under contract (subject to change).

Top Copyright Photo: Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N411NV (msn 53245) RDU (Ton Jochems). Image: 944220.

Allegiant aircraft slide show:

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Allegiant and Vegas Golden Knights announce multi-year partnership agreement

Ex EC-HHA, delivered on April 20, 2018

Allegiant Air and the Vegas Golden Knights announced today an unprecedented multi-year partnership, designating Allegiant as the “Official Domestic Airline Partner of the Vegas Golden Knights.”  The partnership – in Allegiant’s hometown of Las Vegas – promises to engage hockey fans across North America through key activations and sponsored content.

In addition to the exclusive designation as the “Official Domestic Airline Partner of the Vegas Golden Knights,” Allegiant will engage hockey fans at various touchpoints throughout T-Mobile Arena, through on-site activations on Toshiba Plaza and via digital and social media. Fans can expect big fun from Allegiant throughout the season including Vegas Golden Knights tickets and autographed gear giveaways and much more.

The Vegas Golden Knights are a National Hockey League franchise owned and operated by Black Knight Sports and Entertainment LLC. The Vegas Golden Knights were established by founding partners William Foley and his family and the Maloof family.

Copyright Photo: Allegiant Air Airbus A320-214 N214NV (msn 1221) (Vueling colors) BWI (Tony Storck). Image: 943456.

Allegiant Air aircraft slide show:

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Allegiant reports its second quarter results

Allegiant Air Airbus A320-214 WL N248NV (msn 7781) BWI (Brian McDonough). Image: 941699.

Allegiant Travel Company has reported the following financial results for the second quarter 2018, as well as comparisons to the prior year:

Three Months Ended
June 30,
Six Months Ended
June 30,
Unaudited 2018 2017 Change 2018 2017 Change
Total operating revenue (millions) $ 436.8 $ 401.8 8.7% $ 862.2 $ 781.9 10.3%
Operating income (millions) 74.2 85.8 (13.5) 154.2 159.5 (3.3)
Net income (millions) 50.0 49.0 2.0 105.2 91.4 15.1
Diluted earnings per share $ 3.10 $ 2.97 4.4 $ 6.52 $ 5.51 18.3

“We are proud to announce our 62nd consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “This is the second consecutive quarter of EPS growth, despite seeing our fuel cost per gallon increase by over 39 percent in the second quarter. This is a wonderful testament to the hard work of our team members as we navigate another busy summer.

“We are continuing our transition to an all-Airbus fleet. We have done an excellent job year-to-date but this summer was the critical period in this transition, including the timely delivery and induction of fifteen Airbus aircraft, and retirement of six MD-80s.

Today we are on our schedule as planned, though some delayed deliveries in late May impacted our peak June period, in terms of top line and operations reliability.  Looking forward, we should complete our transition at the end of November as scheduled.

“Our CASM-ex fuel results came in nicely. Our improved operational results as well as efficiencies from the Airbus fleet are beginning to pay dividends, and we are pleased with where the cost trend line is headed. Additionally, fuel efficiency continues to improve with the transition, with 76 vs. 72 ASMs per gallon this year compared to the same period last year.

“The Sunseeker resort project continues to move ahead. We are closing in on a financing plan and hope to announce the specifics in the next 60 to 90 days. We continue to be impressed with the many synergies and business alignments between Sunseeker and our air service presence on the west coast of Florida. Our Punta Gordadestination – a 15 minute drive from our Sunseeker location, grew over 30 percent in capacity on a trailing twelve month basis. We are on a pace to carry over 1.5 million passengers in and out of Punta Gorda this year.”

Shareholder returns

  • 2018 shareholder returns – over $22 million in the first half of the year through dividends
    • Will pay dividends of $0.70 per share on August 31, 2018 to shareholders of record as of August 17, 2018
    • Current share repurchase authority of $100 million as of July 25, 2018

2018 outlook

  • Third quarter scheduled and system ASMs are expected to grow between thirteen and fifteen percent vs last year
  • 2018 full year ASM growth is expected to be between nine and eleven percent due to slower than expected aircraft deliveries
  • 2018 fuel cost is expected to be $2.35 per gallon using the forward curve as of July 24, 2018
  • 2018 EPS is expected to be between $9 and $10 per share due to the expected higher fuel cost
    • Fuel expense is expected to increase approximately $35 million from when guided in November 2017
Guidance, subject to revision
Full year 2018 guidance Previous* Current
Fuel cost per gallon $2.20 $2.35
Available seat miles (ASMs) / gallon 77.5 to 79.5 77.5 to 78.5
Interest expense (millions) $50 to $60 $50 to $60
Tax rate 21 to 22% 21 to 22%
Share count (millions) 15.9 15.9
Earnings per share $10 to $12 $9 to $10
System ASMs – year over year change 11 to 15% 9 to 11%
Scheduled service ASMs – year over year change 11 to 15% 9 to 11%
Depreciation expense / aircraft / month (thousands) $120 to $130 $115 to $120
Maintenance expense / aircraft / month (thousands) $95 to $105 $80 to $85
Full year 2018 CAPEX guidance
Capital expenditures (millions) ** $300 $300
Capitalized Airbus deferred heavy maintenance (millions) *** $45 $45
* – Previous guidance as of April 25, 2018
** – Excludes Sunseeker Resorts
*** – Not included in capital expenditure total
Aircraft fleet plan by end of period
Aircraft – (seats per AC) 1Q18 2Q18 3Q18 YE18
MD-80 (166 seats) 32 27 19
A319 (156 seats) 26 31 31 32
A320 (177/186 seats) 30 35 44 45
Total 88 93 94 77
Aircraft listed in table above include only in-service aircraft, planned retirements and future aircraft under contract (subject to change)

Top Copyright Photo: Allegiant Air Airbus A320-214 WL N248NV (msn 7781) BWI (Brian McDonough). Image: 941699.

Allegiant Air aircraft slide show:

Allegiant and Minor League Baseball announce multiyear national partnership

Allegiant Air Airbus A320-214 WL N248NV (msn 7781) BWI (Tony Storck). Image: 941921.

Allegiant Air and Minor League Baseball™ announced a national partnership agreement designating Allegiant as the “Official Airline of Minor League Baseball.” With more than 115 current overlapping markets in the U.S., the hometown airline of cities across the country is now the official airline of America’s hometown baseball teams.

In addition to the designation as the “Official Airline of Minor League Baseball,” Allegiant will engage with fans through various touchpoints in the ballpark as they cheer on their favorite MiLB teams. At select games, fans can participate in Friday Fly Away giveaways for a chance to win nonstop flights to great destinations all across the U.S. Allegiant will also serve as the naming rights partner of a digital advertising network that spans multiple MiLB markets across the country.

Other aspects of the partnership consist of inclusion in the MiLB Charities CommUNITY initiative, an ongoing program to promote unity, understanding, acceptance and inclusion at MiLB ballparks, and serving as a Presenting Partner at the 2018 Baseball Winter Meetings, the largest gathering of baseball executives in the country, December 9–13, in Las Vegas.

Top Copyright Photo (all others by Allegiant): Allegiant Air Airbus A320-214 WL N248NV (msn 7781) BWI (Tony Storck). Image: 941921.

Allegiant aircraft slide show: