Category Archives: Allegiant Air

Allegiant announces seven new routes

Allegiant Air has announced seven new nonstop routes beginning service as soon as August.

The new routes from Provo, Utah via Provo Airport (PVU) include:

  1. Las Vegas, Nevada via Harry Reid International Airport (LAS) – beginning August 18, 2022 with one-way fares as low as $29.*
  2. San Diego, California via San Diego International Airport (SAN) – beginning August 18, 2022 with one-way fares as low as $38.*
  3. Portland, Oregon via Portland International Airport (PDX) – beginning September 2, 2022 with one-way fares as low as $38.*
  4. Sanford, Florida via Orlando Sanford International Airport (SFB) – beginning December 15, 2022 with one-way fares as low as $79.*

The new routes to Akron, Ohio via Akron-Canton Airport (CAK) include:

  1. Sanford, Florida via Orlando Sanford International Airport (SFB) – beginning October 6, 2022 with one-way fares as low as $38.*
  2. Fort Lauderdale, Florida via Fort Lauderdale-Hollywood International Airport (FLL) – beginning November 19, 2022 with one-way fares as low as $38.*

The new route to Minneapolis, Minnesota via Minneapolis-Saint Paul International Airport (MSP) includes:

  1. Sarasota, Florida via Sarasota Bradenton International Airport (SRQ) – beginning October 6, 2022 with one-way fares as low as $49.*

Allegiant Air aircraft photo gallery:

Allegiant reports a loss in the first quarter

First quarter 2022 GAAP diluted (loss) per share of $(0.44)

First quarter 2022 diluted (loss) per share, excluding recognition bonus(1) of $(0.12)(1)(2)

Allegiant Travel Company has reported the following financial results for the first quarter 2022, as well as comparisons to prior years:

Consolidated Three Months Ended March 31, Percent Change
(unaudited) (in millions, except per share amounts) 2022 2021 2019 YoY Yo3Y
Total operating revenue $           500.1 $           279.1 $            451.6 79.2% 10.7%
Total operating expense 492.9 254.5 360.5 93.6 36.7
Operating income 7.2 24.6 91.1 (70.6) (92.1)
Income (loss) before income taxes (10.6) 8.7 73.9 (221.9) (114.3)
Net income (loss) (7.9) 6.9 57.1 (214.7) (113.8)
Diluted earnings (loss) per share $            (0.44) $              0.42 $              3.52 (204.8) (112.5)
(1) Recognition bonus awarded despite not meeting internal profit-sharing targets
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

The first quarter marked a sizable shift in the demand environment,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “For the first time since the onset of the pandemic, we observed both load factor and TRASM improvements over 2019 during the month of March. Despite a nearly 40 percent increase in the cost per fuel gallon throughout the quarter, we recognized a more than 21 percent operating margin during March. These demand trends have persisted, and we now expect second quarter total revenue to be up as much as 30 percent compared to 2019 revenue.

“We continue making progress on further expanding our Allegiant 2.0 strategy. We are awaiting DOT approval for our joint venture with Viva Aerobus and are on track to begin selling flights to Mexico by the end of the year. Our Allways Allegiant World Mastercard continues to exceed expectations. New cardholders were up 99 percent compared to the first quarter of 2019. During 2021 we averaged 10,000 new cardholders per month while in this most recent quarter we added 45 thousand (March was the first month with more than 18 thousand cardholders acquired). Our Allways Rewards program now has more than one million active members. Rewards members average more total itineraries annually as well as higher ancillary and third-party take rates compared to non-members. Overall our total ancillary fare per passenger was nearly $68 for the quarter. During the quarter we began accepting reservations for our Sunseeker Resort which is due to open this time next year. Although too early to determine trends, the average daily rate for bookings to date is more than 50 percent higher than the average daily rate we used in our model.

“We have adjusted our growth rate for the second quarter to better align with the high fuel cost environment and prioritize operational performance. We now expect capacity to increase roughly 12 percent year-over-three year. We expect these capacity adjustments will help drive TRASM increases of nearly 20 percent during the second quarter. Additionally, I have been encouraged by improvements in operational performance the past several weeks. While we are mindful of future slowdowns in the economy as the Fed begins its necessary tightening, we are bullish our historic industry leading performances in difficult times will continue as well as the substantial opportunities we see for new routes and continued growth in the coming years.

“In closing I want to thank our more than five thousand team members for their efforts throughout the quarter. The operating environment continues to be a challenge. In recognition of their hard work, we approved a special bonus accrual consistent with levels paid to our team members during 2019, despite not meeting internal profit-sharing targets during the quarter.”

First Quarter 2022 Results
  • Loss before income taxes of $10.6 million
  • GAAP operating income of $7.2 million, yielding an operating margin of 1.4 percent
  • Achieved a 21 percent operating margin during the month of March, despite a more than 40 percent increase in the average fuel cost per gallon throughout the quarter
  • Consolidated EBITDA(2) of $53.5 million, yielding an EBITDA margin of 10.7 percent
  • Total operating revenue was $500.1 million, up 10.7 percent year over three-year
  • Scheduled capacity up 18.7 percent year over three-year
  • Continued sequential improvement in load factor, with March loads exceeding March of 2019, the first load factor improvement over 2019 since the onset of the pandemic
  • Fixed fee revenue of $13.4 million, up 26.6 percent year over three-year, with March being the third highest performing month for fixed fee revenue in company history
  • TRASM down 6.3 percent for the quarter versus 2019, but March TRASM in excess of March of 2019 on capacity growth of 14.4 percent
  • Total average fare of $131.15, up 2.7 percent from the first quarter of 2019
  • Total average fare – third party products of $6.06, up 21.0 percent year over three-year driven by Allways Allegiant World Mastercard strength
  • 131 percent growth in Allways Allegiant World Mastercard cash compensation during the quarter, as compared with 2019
  • 11 of the past 12 months have been top performing months for new cardholder acquisitions with March activity a program record of 18 thousand new cardholders
  •  Operating CASM, excluding fuel and recognition bonus (1) (2) of 6.95 cents, up 4.2 percent when compared with the first quarter of 2019, driven primarily by costs related to increased irregular operations
  • Expanded the network by announcing 12 new routes and one new aircraft base in Provo, Utah, bringing total routes served to 617 and 132 cities
(1) Recognition bonus awarded despite not meeting internal profit-sharing targets
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information
Balance Sheet, Cash and Liquidity
  • Total cash and investments at March 31, 2022 were $1.2 billion
  • $176.0 million in total operating cash inflow for the first quarter 2022
  • Total debt at March 31, 2022 was $1.8 billion
  • Net debt at March 31, 2022 was $563.0 million, a more than 40 percent reduction from pre-pandemic levels
  • Debt principal payments of $37.3 million during the quarter
  • Air traffic liability at March 31, 2022 was $453 million
  • Balance related to future scheduled flights is $394 million
  • Balance related to travel vouchers issued for future use is $59 million
Airline Capital Expenditures
  • First quarter capital expenditures of $74 million, which included $56 million for aircraft pre-delivery deposits, used aircraft induction costs, and other related costs, as well as $18 million in other airline capital expenditures
  • First quarter deferred heavy maintenance spend was $7 million
Sunseeker Resort
  • Updated budget to $618 million, primarily due to inflationary pressures on materials as well as supply chain delays
  • Anticipated opening second quarter 2023
  • Total project spend as of March 31, 2022 was $275 million with $87 million funded by debt and the remaining $188 million funded by Allegiant
  • First quarter capital expenditures were $64 million, of which 100 percent was funded by debt

 

Guidance, subject to revision Previous Current
Second Quarter 2022 guidance
System ASMs – year over three-year change(1) 9.0 to 13.0%
Scheduled Service  ASMs – year over three-year change(1) 10.0 to 14.0%
Total operating revenue – year over three-year change(1) 28 to 32%
Operating CASM, excluding fuel – year over three-year change(1) 12.0 to 16.0%
Fuel cost per gallon $4.00
Full year 2022 guidance
Airline CAPEX
    Aircraft, engines, induction costs, and pre-delivery deposits (millions) $255 to $265
    Capitalized deferred heavy maintenance (millions) $85 to $95
    Other airline capital expenditures (millions) $95 to $105
Interest expense (millions) (2) $85 to $95
Recurring principal payments (millions) $150 to $160
Sunseeker Resorts – Charlotte Harbor Project  (millions)
Total projected project spend $618
Allegiant contributions through March 31, 2022 $188
Allegiant contributions remaining to be spent $80
Project spend funded by debt through March 31, 2022 $87
Remaining project spend expected to be funded by debt $263
(1) Year over three-year percentage changes compare 2022 to 2019
(2) Includes capitalized interest related to pre-delivery deposits on new aircraft as well as the construction of Sunseeker Resorts – Charlotte Harbor

Aircraft Fleet Plan by End of Period

  • Updated fleet count shifting three aircraft inductions into 2023 due to labor and supply chain constraints
Aircraft – (seats per AC) 1Q22 2Q22 3Q22 YE22
A319 (156 seats) 35 35 35 35
A320 (177 seats) 22 22 22 22
A320 (186 seats) 55 58 64 67
Total 112 115 121 124

The table above is provided based on the company’s current plans and is subject to change

Allegiant Air aircraft photo gallery:

Allegiant to establish a new base at Provo, UT

2021 "Ron's Gone Wrong" promotional livery

Allegiant Travel Company (Allegiant Air) today announced plans to establish a four-aircraft base at Provo Airport (PVU). The Las Vegas-based company will invest approximately $95 million to establish the new base of operations, creating at least 157 new, high-wage jobs.

The company, which focuses on linking travelers in small-to-medium cities to world-class leisure destinations, plans to begin its base operations in Provo on Nov. 16, 2022.

Allegiant began operating at PVU in 2013 and currently offers eight non-stop routes – Austin and Houston, Texas; St. Pete-Clearwater, Florida; Phoenix and Mesa, Arizona; and Palm Springs, Los Angeles and Orange County, California. To date, Allegiant has flown more than 700,000 passengers through Provo.

The formula appears to be working as Provo is now the second busiest airport in Utah.

Allegiant, which employs more than 4,300 team members across the U.S., plans to immediately begin hiring pilots, flight attendants, mechanics and ground personnel to support the operations.

Top Copyright Photo: Allegiant Air Airbus A320-214 N220NV (msn 1262) (Ron’s Gone Wrong) SFB (Keith Sommer). Image: 956584.

Allegiant aircraft slide show:

Allegiant aircraft photo gallery:

Allegiant reports its traffic in March was up 12.3% over 2019

Allegiant Travel Company (Allegiant Air) today reported preliminary passenger traffic results for March 2022 as well as first quarter 2022.

“We finished the quarter with total revenue in excess of $500 million, a 10.7 percent increase from 2019,” stated Drew Wells, senior vice president, revenue. “Demand began picking up in earnest mid-February resulting in load factors for the month of March above levels observed in 2019. TRASM during the month of March exceeded March of 2019 on capacity growth of over 14 percent. Demand strength has continued into the second quarter with booking growth exceeding planned forward capacity growth for the quarter. We expect second quarter load factors to exceed 2019 levels, with a more than ten percent increase in TRASM on double-digit anticipated capacity growth.”

“‘Our average fuel cost per gallon was $3.07, which was further pressured as we closed out the quarter by paying $3.46 during the month of March,” stated Gregory Anderson, executive vice president, chief financial officer. “The sudden spike in fuel resulted in $22 million more in fuel expense than expected during the quarter and was the primary driver of our loss per share of $0.44 cents. Additionally, this loss includes the impact of ‘profit sharing’, consistent with 2019 amounts. Excluding this ‘profit share’ component, the loss per share was roughly $0.12 cents. These results generally would not trigger profit sharing. However, given the challenging environment and the continued efforts of our team members, we are pleased to award a 2022 recognition bonus.

“Our unit cost, excluding fuel and ‘profit sharing’ was up 4.2 percent year over three-year, in line with our initial guide despite lower-than-expected capacity growth. As we head into the second quarter, we have optimized our planned capacity growth to prioritize operational integrity, better align with a high-fuel environment, and enhance profitability.”

Scheduled Service – Year Over Three-Year Comparison
March 2022 March 2019 Change
Passengers 1,666,336 1,484,326 12.3%
Revenue passenger miles (000) 1,594,614 1,386,501 15.0%
Available seat miles (000) 1,843,102 1,610,575 14.4%
Load factor 86.5% 86.1% 0.4pts
Departures 11,258 10,297 9.3%
Average stage length (miles) 927 914 1.4%
1st Quarter 2022 1st Quarter 2019 Change
Passengers 3,709,104 3,421,538 8.4%
Revenue passenger miles (000) 3,558,045 3,191,045 11.5%
Available seat miles (000) 4,512,315 3,802,132 18.7%
Load factor 78.9% 83.9% (5.0pts)
Departures 27,637 24,344 13.5%
Average stage length (miles) 926 908 2.0%

 

Total System* – Year Over Three-Year Comparison
March 2022 March 2019 Change
Passengers 1,679,945 1,499,688 12.0%
Available seat miles (000) 1,893,962 1,655,330 14.4%
Departures 11,700 10,660 9.8%
Average stage length (miles) 918 908 1.1%
1st Quarter 2022 1st Quarter 2019 Change
Passengers 3,734,262 3,450,278 8.2%
Available seat miles (000) 4,620,144 3,910,239 18.2%
Departures 28,494 25,200 13.1%
Average stage length (miles) 920 904 1.8%

 

Scheduled Service – Year Over Year Comparison
March 2022 March 2021 Change
Passengers 1,666,336 1,095,572 52.1%
Revenue passenger miles (000) 1,594,614 1,022,480 56.0%
Available seat miles (000) 1,843,102 1,832,250 0.6%
Load factor 86.5% 55.8% 30.7pts
Departures 11,258 11,710 (3.9%)
Average stage length (miles) 927 899 3.1%
1st Quarter 2022 1st Quarter 2021 Change
Passengers 3,709,104 2,323,302 59.6%
Revenue passenger miles (000) 3,558,045 2,166,417 64.2%
Available seat miles (000) 4,512,315 3,921,090 15.1%
Load factor 78.9% 55.3% 23.6pts
Departures 27,637 24,947 10.8%
Average stage length (miles) 926 902 2.7%

 

Total System* – Year Over Year Comparison
March 2022 March 2021 Change
Passengers 1,679,945 1,102,869 52.3%
Available seat miles (000) 1,893,962 1,884,130 0.5%
Departures 11,700 12,144 (3.7%)
Average stage length (miles) 918 892 2.9%
1st Quarter 2022 1st Quarter 2021 Change
Passengers 3,734,262 2,334,503 60.0%
Available seat miles (000) 4,620,144 4,013,989 15.1%
Departures 28,494 25,684 10.9%
Average stage length (miles) 920 898 2.4%

 

*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
March 2022 estimated average fuel cost per gallon – system $3.46
$ per gallon
1st quarter 2022 estimated average fuel cost per gallon – system $3.07

 

Allegiant teams up with DreamWorks to promote ‘The Bad Guys’, N205NV becomes a new logo jet

Allegiant Air is celebrating the release of the new DreamWorks Animation film The Bad Guys, an action-packed comedy based on the best-selling New York Times books series, arriving in  theaters April 22, 2022.

Throughout the month of April, Allegiant customers can join alongside The Bad Guys—Wolf, Snake, Piranha, Shark and Tarantula —as the crackerjack crew of animal outlaws embark on their most challenging heist yet: being model citizens.

 

Allegiant will sponsor The Bad Guys Family Flyaway Sweepstakes from April 12 – May 2, 2022,offering participants a chance to win a grand prize of a Universal Parks and Resorts vacation in Hollywood or Orlando. Ten second place prize winners will receive a $500 Allegiant voucher and a $60 Fandango gift card to see The Bad Guys in theaters.

Fans can also watch out for a special themed aircraft, which features characters from the movie trying to steal Allegiant’s logo.

Airbus A320-214 N205NV now wears a special livery.

On board every Allegiant flight, passengers can go behind-the-scenes with The Bad Guysfilmmakers, including director Pierre Perifel and producers Damon Ross and Rebecca Huntley, in exclusive interviews featured in the airline’s Sunseeker Magazine. Passengers will also enjoy fun surprises like movie-themed napkins and special giveaways at the Orlando, Phoenix and Las Vegas gates.

 

About The Bad Guys Family Flyover Sweepstakes

NO PURCHASE OR PAYMENT OF ANY KIND IS NECESSARY TO ENTER OR WIN. PURCHASE OR PAYMENT DOES NOT IMPROVE YOUR CHANCE OF WINNING. The Flyaway Sweepstakes is open only to legal residents of the 50 United States and the District of Columbia, excluding residents of the State of New York, who have reached the age of majority. Void elsewhere and where prohibited. Promotion ends May 2, 2022. Subject to complete Official Rules at www.allegiant.com/thebadguysofficialrules.

About The Bad Guys

Nobody has ever failed so hard at trying to be good as The Bad Guys.

In the new action comedy from DreamWorks Animation, based on the New York Times best-selling book series, a crackerjack criminal crew of animal outlaws are about to attempt their most challenging con yet—becoming model citizens.

Never have there been five friends as infamous as The Bad Guys—dashing pickpocket Wolf (Academy Award® winner Sam Rockwell, Three Billboards Outside Ebbing, Missouri), seen-it-all safecracker Snake (Marc Maron, GLOW), chill master-of-disguise Shark (Craig Robinson, Hot Tub Time Machine franchise), short-fused “muscle” Piranha (Anthony Ramos, In the Heights) and sharp-tongued expert hacker Tarantula (Awkwafina, Crazy Rich Asians), aka “Webs.”

But when, after years of countless heists and being the world’s most-wanted villains, the gang is finally caught, Wolf brokers a deal (that he has no intention of keeping) to save them all from prison: The Bad Guys will go good.

Under the tutelage of their mentor Professor Marmalade (Richard Ayoade, Paddington 2), an arrogant (but adorable!) guinea pig, The Bad Guys set out to fool the world that they’ve been transformed. Along the way, though, Wolf begins to suspect that doing good for real may give him what he’s always secretly longed for: acceptance. So when a new villain threatens the city, can Wolf persuade the rest of the gang to become … The Good Guys?

The film co-stars Zazie Beetz (Joker), Lilly Singh (Bad Moms) and Emmy winner Alex Borstein (The Marvelous Mrs. Maisel).

From a screenplay by Etan Cohen (Tropic Thunder, Madagascar: Escape 2 Africa) based on the blockbuster Scholastic books by Aaron Blabey, The Bad Guys is directed by Pierre Perifel (animator, the Kung Fu Panda films), making his feature-directing debut. The film is produced by Damon Rossp.g.a. (development executive Trolls, The Boss Baby, co-producer Nacho Libre) and Rebecca Huntley p.g.a. (associate producer, The Boss Baby). The executive producers are Etan Cohen, Aaron Blabey and Patrick Hughes.

Video:

Allegiant sees a significant step-up in leisure demand beginning mid-February and persisting into March

Allegiant Travel Company (Allegiant Air) reported its preliminary passenger traffic results for February 2022.

“After a slow start to the quarter, attributable to the Omicron variant, we saw a significant step-up in leisure demand beginning mid-February and persisting into March,” stated Drew Wells, senior vice president, revenue. “We finished February with a load factor of 77.8 percent, a more than eight-point improvement over January. Load factor during the month of March is currently trending above levels observed in 2019, with several weeks exceeding 90 percent booked loads, marking the first time we’ve seen loads at this level since the onset of the pandemic. In addition, yields are strong with March TRASM tracking in line with March of 2019. Due to recent weather events and staffing challenges, we have lowered our quarterly capacity guidance and now expect ASMs to be up roughly 18 percent year over three-year. Given yield strength, we expect total revenue to come in on the high-end of our initial revenue guide.”

“Despite decreased capacity for the quarter, we continue to expect CASM, excluding fuel, to fall within our initial range,” stated Gregory Anderson, executive vice president, chief financial officer. “Recent spikes in jet fuel prices have resulted in an updated fuel cost per gallon for the first quarter of roughly $3.05. Due predominantly to the volatile fuel environment as well as some staffing challenges, we expect to reduce planned capacity by roughly ten percent for the second quarter. We will continue to manage capacity to maximize profitability.”

Previous Current
System ASMs – year over three-year change1 Up 19.0 to 23.0% Up 17.0 to 19.0%
Scheduled service ASMs – year over three-year change¹ Up 19.0 to 23.0% Up 17.0 to 19.0%
Total operating revenue – year over three-year change¹ Up 5.0 to 9.5% Up 7.5 to 9.5%
Operating CASM, excluding fuel – year over three-year change¹ 2 Up 1.0 to 5.0% Up 3.0 to 5.0%
Fuel cost per gallon $2.67 $3.05

 

Scheduled Service – Year Over Three-Year Comparison
February 2022 February 2019 Change
Passengers 1,099,911 1,012,255 8.7%
Revenue passenger miles (000) 1,060,497 947,536 11.9%
Available seat miles (000) 1,362,381 1,137,059 19.8%
Load factor 77.8% 83.3% (5.5pts)
Departures 8,277 7,265 13.9%
Average stage length (miles) 932 908 2.6%

 

Total System* – Year Over Three-Year Comparison
February 2022 February 2019 Change
Passengers 1,105,652 1,020,352 8.4%
Available seat miles (000) 1,392,157 1,174,082 18.6%
Departures 8,503 7,559 12.5%
Average stage length (miles) 928 903 2.8%

 

Scheduled Service – Year Over Year Comparison
February 2022 February 2021 Change
Passengers 1,099,911 679,906 61.8%
Revenue passenger miles (000) 1,060,497 636,119 66.7%
Available seat miles (000) 1,362,381 1,203,720 13.2%
Load factor 77.8% 52.8% 25.0pts
Departures 8,277 7,630 8.5%

 

Total System* – Year Over Year Comparison
February 2022 February 2021 Change
Passengers 1,105,652 680,930 62.4%
Available seat miles (000) 1,392,157 1,223,407 13.8%
Departures 8,503 7,783 9.3%
Average stage length (miles) 928 904 2.

*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 2022 estimated average fuel cost per gallon – system $2.92

Allegiant to add three more routes in May

Allegiant Air is adding three new routes in May including Orange County and Newark:

Orange County (Santa Ana) – Idaho Falls, ID starting on May 18, 2022

Newark – Des Moines starting on May 20, 2022

Sanford (near Orlando) – Las Vegas starting on May 27, 2022

 

Allegiant opens a new base at Flint, MI

Flint Bishop Airport (FNT) made this announcement:

Flint Bishop Airport is now a base operation for Allegiant! It is the first time in FNT history a major commercial airline opens a base! In true FNT fashion, we celebrated big with our community partners who helped make this happen!

 

Allegiant turns to the black, produces a profit in the fourth quarter and 2021

Allegiant Travel Company (Allegiant Air) today reported the following financial results for the fourth quarter and full year 2021, as well as comparisons to prior years:

 

Consolidated Three Months Ended December 31, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 496.9 $ 246.6 $ 461.1 101.5 % 7.8 %
Total operating expense 463.6 270.2 368.4 71.6 25.8
Operating income (loss) 33.3 (23.6) 92.7 241.0 (64.0)
Income (loss) before income taxes 15.1 (39.2) 78.6 138.6 (80.7)
Net income (loss) 10.7 (28.8) 60.5 137.1 (82.3)
Diluted earnings (loss) per share $ 0.59 $ (1.79) $ 3.72 133.0 (84.1)

 

Twelve Months Ended December 31, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 1,707.9 $ 990.1 $ 1,841.0 72.5 % (7.2) %
Total operating expense 1,444.8 1,271.1 1,477.0 13.7 (2.2)
Operating income (loss) 263.1 (281.0) 364.0 193.6 (27.7)
Income (loss) before income taxes 196.6 (361.1) 301.2 154.5 (34.7)
Net income (loss) 151.9 (184.1) 232.1 182.5 (34.6)
Diluted earnings (loss) per share $ 8.68 $ (11.53) $ 14.26 175.3 (39.1)

 

Consolidated – adjusted Three Months Ended December 31, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 451.2 $ 254.4 $ 368.4 77.4 % 22.5 %
Adjusted operating income (loss) (1) (2) 45.7 (7.8) 92.7 685.9 (50.7)
Adjusted income (loss) before income taxes (1) (2) 27.5 (23.4) 78.6 217.5 (65.0)
Adjusted net income (loss) (1) (2) 21.3 (18.0) 60.5 218.3 (64.8)
Adjusted diluted earnings (loss) per share (1) (2) $ 1.18 $ (1.12) $ 3.72 205.4 (68.3)

 

Twelve Months Ended December 31, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 1,595.7 $ 1,130.2 $ 1,477.0 41.2 % 8.0 %
Adjusted operating income (loss) (1) (2) 112.2 (140.1) 364.0 180.1 (69.2)
Adjusted income (loss) before income taxes (1) (2) 45.7 (193.6) 301.2 123.6 (84.8)
Adjusted net income (loss) (1) (2) 35.1 (149.1) 232.1 123.5 (84.9)
Adjusted diluted earnings (loss) per share (1) (2) $ 2.04 $ (9.33) $ 14.26 121.9 (85.7)
(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, when applicable, and profit sharing bonus accruals
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

We finished the year with adjusted earnings per share(1) of $2.04, one of the only domestic carriers to record a full-year adjusted profit,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “This is a remarkable feat and could not have been accomplished without the support of our team members. 2021 was a challenging year, yet we remained nimble and continued to learn and adapt. Despite impacts from multiple variants throughout the year, we grew scheduled capacity more than eight percent when compared to 2019. Load factors sequentially improved throughout the year with fourth quarter loads of 77.1 percent, a more than twenty-point increase from the first quarter. We grew fourth quarter revenue by 7.8 percent when compared with 2019, finishing the year with total operating revenue of $1.7 billion, just seven percent below 2019.

“As we exited 2021, the operation was challenged by impacts from the Omicron variant. We saw unprecedented crew shortages due to COVID, resulting in cancelled flights during the peak holiday travel season and persisting throughout January. Case counts have started to recede, thus the worst should be behind us. I expect the operation to return to a more normalized state in time for peak March travel. Given the cancellations from Covid, irregular operations expenses were $23 million during the fourth quarter. As noted last quarter, it is imperative and good business practice to reimburse our customers for the inconvenience we have caused, in addition to refunding the ticket price.

“Despite the Omicron variant, forward bookings are strong for upcoming peak leisure travel periods. Spring break bookings have been particularly strong. Over the past several months, the booking curve has normalized to its pre-COVID state, and although early, we are beginning to see positive demand trends into early summer. In addition, third-party revenues have outperformed 2019 due primarily to strength with our cobrand credit card program. We acquired more than 100 thousand new cardholders in 2021, a program record. This trend continues in 2022, with January now the program’s best month for new cardholder acquisitions.

“The future of Allegiant is bright. We expect to end 2022 with 127 aircraft. All incoming aircraft will have 186 seats, increasing our seats per departure. The recently announced Boeing transaction will increase incremental route opportunities to 1,400, which represents more than ten years of growth. Additionally, progress on Sunseeker is on track to open in early 2023. This project will diversify our ecosystem of travel offerings available to our customers.

“Once again our team members have shown their mettle in the past 90 days.  They have been on the front lines in one of the worst periods I have seen with regard to the uncertainty and fear we are all experiencing from Covid.  I want to personally thank each and every one of them.”

Fourth Quarter 2021 Results

  • GAAP income before income taxes of $15.1 million
    • Adjusted income before income taxes(1) (2) (3)of $27.5 million, yielding a pre-tax margin of 5.5 percent
  • Consolidated EBITDA(2) (3) of $80.0 million, yielding an EBITDA margin of 16.1 percent
    • Adjusted EBITDA(1) (2) (3) of $92.4 million, yielding an adjusted EBITDA margin of 18.6 percent
  • Total operating revenue was $496.9 million, up 7.8 percent when compared with the fourth quarter of 2019
    • Scheduled capacity up 14.5 percent year over two-year
    • Continued sequential improvement in load factor, which came in at 77.1 percent
    • Peak holiday travel load factor mirrored levels observed in 2019 for the same time period
  • Total average fare – third party products of $6.90, up 47.4 percent year over two-year driven primarily by cobrand strength
  • Adjusted operating CASM, excluding fuel (1) of 7.24 cents, up 7.4 percent when compared with the fourth quarter of 2019, driven primarily by costs related to increased irregular operations
  • Expanded the network by adding 13 new routes with one new city, Canton, Ohio, bringing total routes served to 608 and 133 cities
    • List of incremental, domestic-route opportunities in excess of 1,400
      • Route profile similar to current network structure – roughly 80 percent of opportunities currently have no direct, non-stop competition
  • Announced plans for a fully-integrated Commercial Alliance Agreement with Viva Aerobus to expand options for nonstop leisure air travel between the United States and Mexico
    • First-of-its-kind alliance between two ultra low-cost carriers
  • Partnered with Boeing to purchase 50 737 MAX aircraft, powered by CFM LEAP 1-B engines, with deliveries beginning mid-2023

Full-Year 2021 Results

  • GAAP income before income taxes of $196.6 million
    • Adjusted income before income taxes(1) (2) (3)of $45.7 million, yielding a pre-tax margin of 2.7 percent
    • One of the only domestic carriers to achieve full-year profitability on an adjusted basis
  • Consolidated EBITDA of $444.1 million, yielding an EBITDA margin of 26.0 percent
    • Adjusted EBITDA of $293.2 million, yielding an adjusted EBITDA margin of 17.2 percent
  • Total system capacity increased 8.1 percent when compared with 2019
  • Total operating revenue was $1.7 billion, 7.2 percent below 2019
    • Total average fare of $123.24, up 4.2 percent from 2019
    • Total ancillary average fare of $64.73, up 14.2 percent from 2019 driven by air ancillary bundles, website redesign, and increased cobrand activity
  • Available seat miles per fuel gallon of 85.4, a 3.7 percent improvement from 2019
  • Record-setting year for the cobrand program with more than 100 thousand new cardholders acquired
  • Ended 2021 with nearly 800 thousand active Allways Rewards members

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, when applicable, and profit sharing bonus accruals

(2) Denotes a non-GAAP financial measure

(3) Refer to the Non-GAAP Presentation section within this document for further information

 

Balance Sheet, Cash and Liquidity

  • Total cash and investments at December 31, 2021 were $1.2 billion
    • Received $116 million in federal tax refunds in October related to 2020 net operating losses
    • Received $204 million in payroll support program funds during 2021
  • $488.2 million in total operating cash inflow for 2021, including payroll support program funds received as well as federal tax refunds related to net operating losses
  • Total debt at December 31, 2021 was $1.7 billion
    • Net debt at December 31, 2021 was $559.8 million, a 42.5 percent decrease from year-end 2020
  • Debt principal payments of $62 million during the quarter
  • Full year Interest expense of $68 million, down 10.9 percent year over two-year
  • Air traffic liability at December 31, 2021 was $307 million
    • Balance related to future scheduled flights is $240 million
    • Balance related to travel vouchers issued for future use is $67 million

Airline Capital Expenditures

  • Fourth quarter spend was $56 million, which included $29 million for the acquisition of two aircraft as well as induction costs and $27 million in other airline capital expenditures
    • Fourth quarter deferred heavy maintenance spend was $12 million
  • Full year 2021 capital expenditures were $205 million, which included $136 million for the acquisition of seven aircraft and one engine as well as induction costs and $69 million in other airline capital expenditures
    • Full year deferred heavy maintenance spend was $61 million

Sunseeker Resort

  • Anticipated opening remains unchanged at first quarter 2023
  • Total project spend as of December 31, 2021 was $211 million with $23 million funded by debt and the remaining $188 million funded by Allegiant
    • Fourth quarter capital expenditures related to the project were $38 million
    • 2021 capital expenditures were $51 million

 

 

Guidance, subject to revision Previous Current
First Quarter 2022 guidance
System ASMs – year over three-year change(1) 19.0 to 23.0%
Scheduled Service  ASMs – year over three-year change(1) 19.0 to 23.0%
Total operating revenue – year over three-year change(1) 5.0 to 9.5%
Operating CASM, excluding fuel – year over three-year change(1) 1.0 to 5.0%
Fuel cost per gallon $2.67
Full year 2022 guidance
Airline CAPEX
Aircraft, engines, induction costs, and pre-delivery deposits (millions) $255 to $265
Capitalized deferred heavy maintenance (millions) $85 to $95
Other airline capital expenditures (millions) $95 to $105
Interest expense (2) $85 to $95
Recurring principal payments $185 to $195
Sunseeker Resorts – Charlotte Harbor Project 
Total projected project spend (millions) $560 to $585
Percent of project to be financed 60 to 63%
Percent of total project spend already funded by Allegiant contributions 32 to 34%
Percent of project spend remaining – to be funded by Allegiant contributions 4 to 8%

 

(1) Year over three-year percentage changes compare 2022 to 2019
(2) Includes capitalized interest related to pre-delivery deposits on new aircraft as well as the construction of Sunseeker Resorts – Charlotte Harbor

Aircraft Fleet Plan by End of Period

Aircraft – (seats per AC) 1Q22 2Q22 3Q22 YE22
A319 (156 seats) 35 35 35 35
A320 (177 seats) 22 22 22 22
A320 (186 seats) 56 58 65 70
Total 113 115 122 127
The table above is provided based on the company’s current plans and is subject to change

Allegiant announces nine new nonstop routes

Allegiant Air today announces nine new nonstop routes beginning service this spring. 

“We’re thrilled to kick off 2022 with a network expansion in twelve of our markets,” said Drew Wells, Allegiant’s senior vice president of revenue and planning. “These new routes will grow our presence in Austin, where we recently opened a base, while connecting travelers in some of the smaller cities we serve to several popular vacation destinations such as Nashville, Savannah, Roanoke and San Diego.”

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

  1. Sarasota, Florida via Sarasota Bradenton International Airport (SRQ) – beginning April 14, 2022 with one-way fares as low as $49.*
  2. San Diego, California via San Diego International Airport (SAN) – beginning April 20, 2022 with one-way fares as low as $49.*
  3. Washington, D.C. via Dulles International Airport (IAD) – beginning April 21, 2022 with one-way fares as low as $49.*

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

  1. Providence, Rhode Island via Rhode Island T.F. Green International Airport (PVD– beginning April 21, 2022 with one-way fares as low as $49.*
  2. Roanoke, Virginia via Roanoke-Blacksburg Regional Airport (ROA) – beginning April 21, 2022 with one-way fares as low as $39.*
  3. Washington, D.C. via Dulles International Airport (IAD) – beginning April 21, 2022 with one-way fares as low as $39.*

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

  1. Austin, Texas via Austin-Bergstrom International Airport (AUS) – beginning April 20, 2022 with one-way fares as low as $49.*
  2. Sioux Falls, South Dakota via Sioux Falls Regional Airport (FSD) – beginning May 19, 2022 with one-way fares as low as $59.*

The new route to Orange County, California via John Wayne Airport (SNA) includes:

  1. Des Moines, Iowa via Des Moines International Airport (DSM) – beginning April 14, 2022 with one-way fares as low as $59.*

The new route to Savannah, Georgia via Savannah/Hilton Head International Airport (SAV) includes:

  1. Flint Michigan via Flint Bishop International Airport (FNT) – beginning April 15, 2022 with fares as low as $39.*