Category Archives: Allegiant Air

ALC leases ten used Airbus A320s to Allegiant Air

Air Lease Corporation (ALC) announced on July 28 long-term lease placements for ten used Airbus A320-200 aircraft with Allegiant.

The aircraft are scheduled to be delivered to the airline beginning in the Fall 2021 through Summer 2022.

Allegiant reports a profit in the second quarter

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

Consolidated Three Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 472.4 $ 133.3 $ 491.8 254.3 (3.9)
Total operating expense 333.6 246.6 383.7 35.3 (13.1)
Operating income (loss) 138.9 (113.3) 108.1 222.6 28.4
Income (loss) before income taxes 122.6 (146.4) 91.8 183.7 33.5
Net income (loss) 95.0 (93.1) 70.5 202.1 34.7
Diluted earnings (loss) per share $ 5.49 $ (5.85) $ 4.33 193.8 26.8
Six Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 751.6 $ 542.5 $ 943.4 38.5 (20.3)
Total operating expense 588.1 766.8 744.2 (23.3) (21.0)
Operating income (loss) 163.5 (224.3) 199.2 172.9 (17.9)
Income (loss) before income taxes 131.2 (277.1) 165.7 147.4 (20.8)
Net income (loss) 101.9 (126.1) 127.7 180.8 (20.2)
Diluted earnings (loss) per share $ 6.04 $ (7.93) $ 7.84 176.2 (23.0)
Consolidated – adjusted Three Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 378.6 $ 239.9 $ 383.7 57.8 (1.3)
Adjusted operating income (loss) (1) (2) 93.9 (106.6) 108.1 188.1 (13.1)
Adjusted income (loss) before income taxes (1) (2) 77.6 (119.9) 91.8 164.7 (15.5)
Adjusted net income (loss) (1) (2) 60.0 (94.7) 70.5 163.4 (14.9)
Adjusted diluted earnings (loss) per share (1) (2) $ 3.46 $ (5.96) $ 4.33 158.1 (20.1)
Six Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 716.7 $ 594.0 $ 744.2 20.7 (3.7)
Adjusted operating income (loss) (1) (2) 34.9 (51.5) 199.2 167.8 (82.5)
Adjusted income (loss) before income taxes (1) (2) 2.6 (77.7) 165.7 103.3 (98.4)
Adjusted net income (loss) (1) (2) 2.0 (61.4) 127.7 103.3 (98.4)
Adjusted diluted earnings (loss) per share (1) (2) $ 0.12 $ (3.87) $ 7.84 103.1 (98.5)
(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs (PSPs), and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

“The second quarter marked the return of leisure demand to pre-pandemic levels,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “Earnings per share came in at $5.49 on a year over two-year revenue decline of just 3.9 percent, with total revenue in June exceeding 2019 levels. We made significant progress towards achieving pre-pandemic unit revenues with TRASM of 10.36 cents (on a load factor of 70.8 percent), up 50 percent from the first quarter. The revenue team did an outstanding job optimizing loads and unit revenues during the quarter. This strong revenue performance, coupled with continued cost discipline as evidenced by our adjusted CASM, excluding fuel (3), of 5.86 cents, led to our adjusted operating margin(1) of 20 percent for the quarter.

“These results suggest we are close if not back to ‘normal’, where we were in the early days of 2020.  We were the first domestic carrier to grow capacity from 2019 levels. Given the reduced operations of the past year, this ramp up came with challenges – delays in infrastructure preparedness at some of our airports, labor constraints, and severe weather. Our operations team has done a great job reacting and adapting to these headwinds. During the third quarter we will continue our growth – capacity will increase nearly 20 percent, year over two-year.

“Last year at this time I stressed the importance of strengthening our liquidity to both weather the storm and position us favorably for growth post-pandemic. The team has done just that. We currently have $1.2 billion of cash on hand, up 79 percent from a year ago. Our total net debt continues to improve at under $400 million, a 52 percent reduction from a year ago. This strong liquidity leaves us well positioned for future growth. The fleet team has executed agreements to acquire 21 additional aircraft since the beginning of the year. These airplanes will all be placed into service by the end of 2022, thus supporting the remainder of this year as well as most of next year’s growth plan.

“The next year will be an exciting one for the company. We are preparing the launch of our new loyalty program in the coming months, Allways Rewards. This program will enable us to further enhance the customer experience. We also recently announced a new partnership with Live Nation venues, Ticketmaster and music festivals – kicking off a multi-year, strategic relationship with the world’s premier live entertainment company. This partnership will ultimately unlock another layer of leisure offerings, further enhancing a one-stop shop for our customer. Finally, we will continue to grow and expand our network, connecting more customers to world-class vacation destinations.

“I cannot thank our 4,000 team members enough for their continued efforts in supporting growth while prioritizing customer safety. Ramping up the operation the past few months has been a challenge, but our team members continue to work hard to support the operation. I could not be more proud of their efforts.”

Second Quarter 2021 Results

  • GAAP earnings per share of $5.49
    • Adjusted earnings per share(1) (2) (3) of $3.46
  • Consolidated EBITDA(2) (3) of $183.3 million yielding an EBITDA margin of 38.8 percent
    • Adjusted EBITDA(1) (2) (3) of $138.3 million yielding an adjusted EBITDA margin of 29.3 percent
  • Total June revenue exceeded June of 2019
  • Total operating revenue was $472.4 million, up 69.3 percent from the first quarter and down 3.9 percent when compared to the second quarter of 2019
    • Sustained yield strength throughout the quarter with yield up 7.8 percent year over two-year on scheduled service capacity increases of 4.5 percent
  • Total average fare of $126.82, up 10.8 percent year over two-year
    • Total ancillary average fare $64.25, up 14.6 percent from 2019 driven primarily by bundled air ancillary offerings, rental car rate strength, and increased cobrand activity
  • TRASM of 10.36 cents, down 5.6 percent year over two-year, and up 50.3 percent from the first quarter 2021
  • Load factor of 70.8%, up nearly 16 percentage points from the first quarter
  • Record-breaking quarter for co-brand activity with June new cardholder acquisitions becoming the highest month in the program’s history and the highest month for cardholder spend, beating the prior monthly spend record by more than 40 percent
    • May marked the third highest acquisition of new cardholders in program history
  • Adjusted operating expense(1) (2) (3) of $378.6 million, down 1.3 percent from second quarter 2019 on total system capacity increase of 3.3 percent
    • Adjusted Operating CASM, excluding fuel (3) of 5.86 cents, flat when compared to the second quarter of 2019
  • Adjusted operating margin(1) of 19.9 percent
  • Expanded the network by adding 29 new routes with four new cities and complementary service in Phoenix with the addition of Phoenix Sky Harbor International Airport, bringing total routes served to 596 and 134 cities
  • Ranked number two among US airlines within the 2021 Airline Quality Ranking

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs
(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 June 30, 2021 were $1.2 billion, up from $728 million at March 31, 2021
    • Cash from operations of $237 million, including the benefit from the payroll support program and federal income tax refund of $12 million related to prior period tax net operating losses
      • Adjusted cash from operations of $176 million, which excludes the $49.2 million net benefit from the PSPs, and $12 million federal tax refund
    • Debt principal payments of $48 million during the quarter
      • Includes prepayment of debt secured by five aircraft
    • $65 million used for cash capital expenditures
    • Raised $335 million from issuance of 1.6 million shares at a price of $219 per share during the second quarter
  • Second quarter interest expense of $17 million, down 20 percent year over two-year
  • Expect to receive $136 million in federal tax refunds during the second half of the year related to 2020 net operating losses
  • Air traffic liability at June 30, 2021 was $437 million
    • Balance related to future scheduled flights is $305 million
    • Balance related to travel vouchers issued for future use is $132 million, a 26 percent reduction from March 31, 2021

Capital Expenditures

  • Second quarter capital expenditures related to aircraft, engines and induction costs were $46 million and $19 million in other airline capital expenditures
  • Second quarter capital expenditures related to deferred heavy maintenance were $23 million
  • Executed agreements to acquire 21 incremental aircraft year-to-date
Guidance, subject to revision Previous Current
Third Quarter 2021 guidance
System ASMs – year over two-year change(1) 16.0 to 20.0%
Scheduled Service  ASMs – year over two-year change(1) 16.0 to 20.0%
Total operating revenue – year over two-year change (1) Up 3.5% to 7.5%
Fuel cost per gallon $ 2.11
Full year 2021 guidance
CAPEX
Aircraft, engines and induction costs (millions) $115 to $125 $115 to $125
Capitalized Airbus deferred heavy maintenance (millions) $50 to $60 $50 to $60
Other capital expenditures (millions) $40 to $50 $40 to $50
Interest expense $65 to $70 $65 to $70
Recurring principal payments(2) $170 to $180 $170 to $180
(1) Year over two-year percentage changes compare 2021 to 2019
(2) Excludes $111 million of principal repayments related to the maturity of our revolving credit facility and the refinancing of three A320 aircraft during the first quarter 2021

Aircraft Fleet Plan by End of Period

Aircraft – (seats per AC) 2Q21 3Q21 YE21
A319 (156 seats) 35 35 35
A320 (177 seats) 23 23 22
A320 (186 seats) 45 49 51
Total 103 107 108
The table above is provided based on the company’s current plans and is subject to change

Allegiant announces 23 new nonstop routes

"Winter the Dolphin", promotional 2018 livery for  Clearwater Marine Aquarium

Allegiant Air today announces 23 new nonstop routes for fall vacation and holiday travel to destinations across the country, including 10 routes to four new cities: Melbourne, Fla.; Amarillo, Texas; Washington, D.C. and Minneapolis.

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

  1. Amarillo, Texas via Rick Husband Amarillo International Airport (AMA) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  2. Louisville, Kentucky via Louisville International Airport (SDF) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  3. Orange County, California via John Wayne Airport (SNA) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  4. Provo, Utah via Provo Airport (PVU) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  5. Sioux Falls, South Dakota via Sioux Falls Regional Airport (FSD) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  6. Springfield, Missouri via Springfield-Branson National Airport (SGF) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  7. Tulsa, Oklahoma via Tulsa International Airport (TUL) – beginning Nov. 18, 2021 with one-way fares as low as $39.*

The new nonstop routes to Amarillo, Texas via Rick Husband Amarillo International Airport (AMA) include:

  1. Las Vegas, Nevada via McCarran International Airport (LAS) – beginning Oct. 14, 2021 with one-way fares as low as $39.*
  2. Austin, Texas via Austin-Bergstrom International Airport (AUS) – beginning Nov. 18, 2021 with fares as low as $39.*

The new nonstop routes to Washington, D.C. via Dulles International Airport (IAD) include:

  1. Jacksonville, Florida via Jacksonville International Airport (JAX) – beginning Nov. 19, 2021 with one-way fares as low as $39.*
  2. Sarasota, Florida via Sarasota Bradenton International Airport (SRQ) –  beginning Dec. 18, 2021 with fares as low as $39.*

The new nonstop routes to Melbourne, Fla. via Melbourne Orlando International Airport (MLB) include:

  1. Pittsburgh, Pennsylvania via Pittsburgh International Airport (PIT) – beginning Nov. 11, 2021 with one-way fares as low as $49.*
  2. Nashville, Tennessee via Nashville International Airport (BNA) – beginning Nov. 18, 2021 with fares as low as $39.*
  3. Concord, North Carolina via Concord-Padgett Airport (USA) – beginning Nov. 18, 2021 with fares as low as $39.*

The new nonstop routes to Minneapolis, Minn. via Minneapolis-Saint Paul International Airport (MSP) include:

  1. Asheville, North Carolina via Asheville Regional Airport (AVL) – beginning Oct. 7, 2021 with fares as low as $49.*
  2. Punta Gorda, Florida via Punta Gorda Airport (PGD) – beginning Oct. 8, 2021 with one-way fares as low as $49.*
  3. Palm Beach, Florida via Palm Beach International Airport (PBI) – beginning Oct. 7, 2021 with one-way fares as low as $49.*

The new nonstop routes to Punta Gorda, Fla. via Punta Gorda Airport (PGD) include:

  1. Minneapolis, Minnesota via Minneapolis-Saint Paul International Airport (MSP) – beginning Oct. 8, 2021 with one-way fares as low as $49.*
  2. Springfield, Missouri via Springfield-Branson National Airport (SGF) – beginning Nov. 19, 2021 with fares as low as $49.*

The new nonstop routes to Orange County, Calif. via John Wayne Airport (SNA) include:

  1. Eugene, Oregon via Eugene Airport (EUG) – beginning Oct. 8, 2021 with one-way fares as low as $39.*
  2. Austin, Texas via Austin-Bergstrom International Airport (AUS) – beginning Nov. 18, 2021 with fares as low as $39.*

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

  1. Palm Springs, California via Palm Springs International Airport (PSP) – beginning Nov. 17, 2021 with one-way fares as low as $49.*
  2. Melbourne, Florida via Melbourne Orlando International Airport (MLB) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  3. Jacksonville, Florida via Jacksonville International Airport (JAX) – beginning Nov. 18, 2021 with one-way fares as low as $39.*

The new nonstop routes to Jacksonville, Fla. via Jacksonville International Airport (JAX) include:

  1. Nashville, Tennessee via Nashville International Airport (BNA) – beginning Nov. 18, 2021 with fares as low as $39.*
  2. Dulles, Virginia via Dulles International Airport (IAD) – beginning Nov. 19, 2021 with one-way fares as low as $39.*

The new nonstop route to Las Vegas via McCarran International Airport (LAS) from Amarillo, Texas via Rick Husband Amarillo International Airport (AMA) begins Oct. 14, 2021 with fares as low as $39.*

The new nonstop route from Houston, Texas via William P. Lobby Airport to Bentonville, Ark. via Bentonville Municipal Airport (XNA) begins Nov.19, 2021 with one-way fares as low as $39.*

The new nonstop route from Des Moines, Iowa via Des Moines International Airport (DSM) to Fort Lauderdale, Fla. via Fort Lauderdale-Hollywood International Airport (FLL) begins Oct. 6, 2021 with one-way fares as low as $69.*

The new nonstop route from Wichita, Kansas via Wichita Dwight D. Eisenhower National Airport (ICT) to St. Petersburg, Fla. via St. Pete-Clearwater International Airport (PIE) begins Nov. 19, 2021 with one-way fares as low as $49.*

Top Copyright Photo: Allegiant Air Airbus A320-214 N271NV (msn 2932) (Winter the Dolphin) LAX (Michael B. Ing). Image: 954240.

Allegiant Air aircraft slide show:

Allegiant sees a leisure travel demand recovery for May and into this month

Allegiant Travel Company has reported preliminary passenger traffic results for May 2021. 

“We have been pleased to see leisure demand recovery persist throughout May and into early June,” stated Drew Wells, senior vice president, revenue. “Average daily bookings since the beginning of March have continued to exceed 2019 levels. May saw a nearly five-point increase in load factor when compared with April, and peak Memorial Day travel days saw load factors of roughly 80 percent. We anticipate June loads will be in excess of 75 percent on year-over-two-year capacity increases of roughly 15 percent. We continue to expect second quarter scheduled service revenue, excluding fixed fee and other revenue, to be down six to ten percent when compared with the second quarter of 2019.”

Scheduled Service – Year Over Two-Year Comparison
May 2021 May 2019 Change
Passengers 1,040,590 1,269,429 (18.0%)
Revenue passenger miles (000) 888,735 1,093,781 (18.7%)
Available seat miles (000) 1,293,704 1,308,911 (1.2%)
Load factor 68.7% 83.6% (14.9pts)
Departures 8,939 9,086 (1.6%)
Average stage length (miles) 834 843 (1.1%)

Total System* – Year Over Two-Year Comparison
May 2021 May 2019 Change
Passengers 1,046,813 1,281,742 (18.3%)
Available seat miles (000) 1,326,062 1,357,963 (2.3%)
Departures 9,202 9,416 (2.3%)
Average stage length (miles) 831 844 (1.5%)

 

Scheduled Service – Year Over Year Comparison
May 2021 May 2020 Change
Passengers 1,040,590 362,528 187.0%
Revenue passenger miles (000) 888,735 326,748 172.0%
Available seat miles (000) 1,293,704 690,624 87.3%
Load factor 68.7% 47.3% 21.4pts
Departures 8,939 4,654 92.1%
Average stage length (miles) 834 856 (2.6%)

 

Total System* – Year Over Year Comparison
May 2021 May 2020 Change
Passengers 1,046,813 365,519 186.4%
Available seat miles (000) 1,326,062 710,712 86.6%
Departures 9,202 4,795 91.9%
Average stage length (miles) 831 855 (2.8%)

*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
May 2021 estimated average fuel cost per gallon – system $2.02

Allegiant Air aircraft slide show:

Allegiant announces six new routes for the summer including Phoenix

Ex EI-DSD, delivered on January 11, 2018

Allegiant Air today announced six new nonstop routes for summer and fall vacation travel to premier destinations in Florida and the west. The new offerings include two routes to Phoenix Sky Harbor International Airport (PHX), which Allegiant will serve for the first time in its history. 

The new routes to Phoenix Sky Harbor International Airport (PHX) include:

  1. Provo, Utah via Provo Airport (PVU) – beginning Oct. 8, 2021
  2. Stockton, Calif. via Stockton Metropolitan Airport (SCK) – beginning Oct. 15, 2021

The new route to Phoenix-Mesa Gateway Airport (AZA):

  1. Pittsburgh, Penn. via Pittsburgh International Airport (PIT) – beginning Aug. 19, 2021

The new routes to St. Petersburg-Clearwater International Airport (PIE) include:

  1. Bentonville, Ark. via Northwest Arkansas National Airport (XNA) – beginning July 2, 2021
  2. Provo, Utah via Provo Airport (PVU) – beginning Oct. 7, 2021

The new route to Fort Lauderdale-Hollywood International Airport (FLL):

  1. Bentonville, Ark. via Northwest Arkansas National Airport (XNA) – beginning Oct. 8, 2021

Top Copyright Photo: Allegiant Air Airbus A320-216 N273NV (msn 3076) LAX (Michael B. Ing). Image: 945314.

Allegiant Air aircraft slide show:

Terminal move sets the stage for Allegiant’s LAX expansion on May 19

Ex EI-DSD, delivered on January 11, 2018

Allegiant Travel Company (Allegiant Air) is setting the stage for its next phase of growth at Los Angeles International Airport (LAX). The Las Vegas-based airline, which has served LAX since 2009, will relocate its operations to Terminal 1 and the new, state-of-the-art West Gates at Tom Bradley. Allegiant will begin service from its new LAX location on Wednesday, May 19.

The move affords the leisure travel-focused carrier opportunity to offer even more of the affordable, nonstop flights which are its hallmark. Anticipating the busy summer travel season, Allegiant will increase its capacity in Southern California by locating a fourth Airbus A320 aircraft at LAX. Los Angeles has been a full-time base for Allegiant aircraft and crew since 2016. 

Allegiant’s all-nonstop network is unique among U.S.-based airlines, focused on bringing leisure travelers from small-to-medium sized cities to premier vacation destinations with convenient local access and affordable fares. Allegiant customers reach the people and places that matter most without the extra time and hassle of stops, connections and layovers.

Photo: LAX.

Allegiant currently serves 33 cities in 21 states from LAX, including new service to Indianapolis, Ind. beginning May 28; to Omaha, Neb. and Rapid City, S.D. beginning June 4; and to Shreveport, La. Beginning July 2.  More than half the cities Allegiant serves from LAX are unique to the airline. Since starting service in 2009, Allegiant has flown more than 4.2 million passengers through LAX.

Top Copyright Photo: Allegiant Air Airbus A320-216 N273NV (msn 3076) LAX (Michael B. Ing). Image: 945314.

Allegiant Air aircraft slide show:

Allegiant is hiring 184 pilots in response to increasing travel demand

Allegiant Air plans to hire 184 pilots in the coming months, a nearly 19 percent increase to the company’s current roster of approximately 1,000 pilots.

The new hires are part of the company’s growth strategy to meet increasing demand for air travel. The first group of pilots will begin training in July, with classes scheduled to run every few weeks through early 2022.

As states have eased pandemic restrictions and the COVID-19 vaccine has rolled out across the country, demand for travel has rebounded. Allegiant, which focuses on linking travelers in small-to-medium cities to world-class leisure destinations, was the first domestic carrier to restore capacity to pre-pandemic levels.

Allegiant loses $57.9 million in the first quarter

Allegiant Air Airbus A319-111 N319NV (msn 2503) LAX (Michael B. Ing). Image: 948907.

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

Consolidated Three Months Ended March 31, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 279.1 $ 409.2 $ 451.6 (31.8) (38.2)
Total operating expense 254.5 527.0 360.5 (51.7) (29.4)
Operating income (loss) 24.6 (117.8) 91.1 120.9 (73.0)
Income (loss) before income taxes 8.7 (130.7) 73.9 106.6 (88.3)
Net income (loss) 6.9 (33.0) 57.1 120.8 (88.0)
Diluted earnings (loss) per share $ 0.42 $ (2.08) $ 3.52 120.2 (88.1)
Consolidated – adjusted Three Months Ended March 31, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating income (loss) (1) (2) $ (59.0) $ 55.1 $ 91.1 (207.1) (164.8)
Adjusted operating expense (1) (2) 338.1 360.9 360.5 (6.3) (6.2)
Adjusted income (loss) before income taxes (1) (2) (74.9) 42.2 73.9 (277.5) (201.4)
Adjusted net income (loss) (1) (2) (57.9) 32.5 57.1 (278.2) (201.4)
Adjusted diluted earnings (loss) per share (1) (2) $ (3.58) $ 2.05 $ 3.52 (274.6) (201.7)
(1) Adjusted excludes COVID related special charges and the net benefit from the Payroll Support Program Extension Agreement (the “PSP2”)
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

 

“The momentum reported last quarter picked up in earnest towards the back half of the first quarter with booking trends showing meaningful improvement,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “We completed the quarter with earnings per share of $0.42 on year over two-year revenue declines of 38.2 percent, continuing the trend of sequential revenue improvement. We were the first domestic carrier to restore capacity to pre-pandemic levels, with first quarter scheduled capacity up 3.1 percent as compared to 2019. Booking trends have been particularly impressive with average daily bookings for the months of March and April exceeding the same time period in 2019. Furthermore, the booking curve appears to be normalizing and more closely resembling what we saw in 2019. April’s results came in as strong as March helped by a ten-point increase in load factor from 54 to 64 percent. We expect capacity in the coming months will be equal to or greater than our 2019 levels.

“During the past year, in the face of this terrible pandemic, we were focused on improving ourselves. I believe we have done that. We have improved our cost structure substantially. Our balance sheet is in excellent shape. As of March 31, our net debt has decreased. Our cash balances have increased, and by the end of the second quarter we expect to have total liquidity of $1 billion, or more than double our year-end 2019 balance. We were able to double our cash balances without an equity raise or substantial increases in debt. We benefited from the payroll support programs as well as federal income tax refunds of the substantial tax payments made in the past years. Our shareholders have seen their company’s balance sheet improve dramatically – perhaps more than any other company in this space – in spite of the setbacks and hardships imposed by this unprecedented event.

“I could not be more bullish on our outlook. Going forward our full-year, 2021 capacity should exceed 2019 capacity levels. We expect sequential scheduled service revenue improvement with revenue down just six to ten percent as compared with 2019 levels. This revenue growth should continue through the remainder of 2021. We continue to separate ourselves from the competition, operating more capacity and generating positive EBITDA and earnings. I believe now more than ever our low-cost, low-utilization model designed to provide affordable leisure travel is our competitive advantage, which will help drive us towards returning to our goal of $6 million in EBITDA per aircraft.

“We would not be in the favorable position we are today without the continued efforts of the 4,000 employees throughout our network. Their hard work has been integral to successfully navigating the most difficult year in the industry’s history. It is their efforts that have enabled us to effectively manage capacity while cutting costs from the business – both critical components to ensuring a sustained return to profitability.”

First Quarter 2021 Results

  • GAAP earnings per share of $0.42
    • Adjusted loss per share(1) (2) of $3.58, adjusted numbers exclude the impact from PSP2 and $1.7 million of COVID related special charges
  • Consolidated EBITDA(2) of $68.2 million yielding an EBITDA margin of 24.4 percent
    • Adjusted EBITDA(1) (2) of $(15.4) million
  • Restored capacity to pre-pandemic levels with scheduled service capacity up 3.1 percent versus first quarter of 2019
  • Total revenue for the quarter was $279.1 million, up 13.2 percent from the fourth quarter
    • Includes fixed fee revenue of $7.7 million, the strongest quarter since the onset of the pandemic
    • Total average fare was $116.35, down 8.9 percent as compared to 2019, with third party product average fare of $5.86, up 17.0 percent year over two-year
  • Adjusted operating expense(1) (2) of $338.1 million, down 6.3 percent from first quarter 2019 on total system capacity increase of 2.7 percent
    • Adjusted Operating CASM, excluding fuel(1)(2) of 6.36 cents, down 4.6 percent from first quarter of 2019
  • Announced the addition of a new base in Austin, Texas, beginning base operations in November 2021, which is expected to create 89 high-wage jobs and house three A320 aircraft
  • Expanded the network by adding 50 new routes, three new cities, and nine event-specific routes, bringing total routes served to 580 and 129 cities
  • Included on Forbes’ list of America’s Best Employers for Diversity in 2021
  • Partnered with The Smith Center for the Performing Arts as a sponsor of the annual Heart of Education Awards honoring outstanding teachers in Southern Nevada by awarding travel vouchers to more than 700 teachers

(1) Adjusted excludes COVID related special charges and the net benefit from the Payroll Support Program Extension Agreement (the “PSP2”)
(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, 2021 were $728 million, up from $685 million at December 31, 2020
    • Cash from operations of $168 million including the benefit from the payroll support program
      • Adjusted cash from operations of $68.2 million, which excludes the $91.8 million benefit from the PSP2 as well as excludes $8 million related to restricted cash balances
    • Received $105 million in debt proceeds
      • Net proceeds received of $50.2 million due to refinance of three A320 aircraft
    • Debt principal payments of $152 million during the quarter
      • Includes repayment of existing debt on three aircraft as well as repayment of existing revolver as the facility matured during the first quarter
      • Entered into a new secured revolving credit facility with a $50 million commitment, which is currently undrawn
    • $69 million used for cash capital expenditures during the first quarter with $13 million related to 2020 accrued capital expenditures
  • First quarter interest expense of $16.8 million, down 7.5 percent from first quarter in the prior year
      • Increased full year interest expense guide driven primarily by A320 refinance arrangement and an increase in LIBOR
  • Second quarter sources of liquidity expected to be received are $260.9 million
    • $112.2 million from the U.S. Treasury of which $13.8 million is related to the PSP2 and $98.4 million is related to Payroll Support Program 3 Agreement (the “PSP3”)
      • Additional PSP2 funds triggered a $1.7 million loan and issuance of 924 warrants at a strike price of $179.23
    • $148.7 million in tax refunds related to net operating losses
  • Air traffic liability at March 31, 2021 was $403 million, compared to $308 million at December 31, 2020
    • Balance related to future scheduled flights is $224 million, up from $86 million on December 31, 2020
    • Balance related to travel vouchers issued for future use is $179 million, a 19 percent reduction from December 31, 2020

Capital Expenditures

  • First quarter capital expenditures related to aircraft, engines and induction costs were $56 million, which included $50 million for the acquisition of three aircraft and induction costs, and $6 million in other airline capital expenditures
  • First quarter capital expenditures related to deferred heavy maintenance were $8.5 million

 

Guidance, subject to revision Previous Current
Second Quarter 2021 guidance
System ASMs – year over two-year change(1) 2.0 to 6.0%
Scheduled Service  ASMs – year over two-year change(1) 2.0 to 6.0%
Scheduled service  revenue – year over two-year change, excluding fixed fee and other revenue(1) down 6 to 10%
Fuel cost per gallon $ 1.99
Full year 2021 guidance
CAPEX
Aircraft, engines and induction costs (millions) $115 to $125 $115 to $125
Capitalized Airbus deferred heavy maintenance (millions) $50 to $60 $50 to $60
Other capital expenditures (millions) $20 to $30 $40 to $50
Interest expense $50 to $55 $65 to $70
Recurring principal payments(2) $170 to $180 $170 to $180
(1) Year over two-year percentage changes compare 2021 to 2019
(2) Excludes $111 million of principal repayments related to the maturity of our revolving credit facility and the refinancing of three A320 aircraft during the first quarter 2021

Aircraft Fleet Plan by End of Period

Aircraft – (seats per AC)                                           1Q21 2Q21 3Q21 YE21
A319 (156 seats) 35 35 35 35
A320 (177 seats) 26 21 21 19
A320 (186 seats) 39 49 52 54
Total 100 105 108 108
The table above is provided based on the company’s current plans and may be subject to change

Top Copyright Photo: Allegiant Air Airbus A319-111 N319NV (msn 2503) LAX (Michael B. Ing). Image: 948907.

Allegiant aircraft slide show:

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: