Category Archives: Allegiant Air

Allegiant to require customers to wear face masks

Allegiant Travel Company today announced that, beginning July 2, customers will be required to wear face masks during all phases of travel, including at the ticket counter, in the gate area, during boarding, on the aircraft and during the flight. This policy update builds on Allegiant’s comprehensive health and safety program by bringing an extra layer of protection to customers, crew and team members at Allegiant airports.

In early May, Allegiant became the first U.S.-based airline to provide all passengers with complimentary Health and Safety Kits, which include a face mask and cleansing wipes. The airline has strongly encouraged passengers to wear face masks, with most adopting the practice. Allegiant employees are required to wear face masks when they interact with customers.

Customers can use their own face mask or covering, or the mask provided in Allegiant’s Health and Safety Kit. Children ages 2 and under are exempt from the new policy, as are passengers with disabilities or documented medical conditions. Passengers will also be allowed to remove face coverings to briefly eat or drink. The new policy is highlighted when customers book their flights, as well as in confirmation and reminder emails ahead of their departure date. Acknowledgement of this policy will also be included in a health questionnaire required at check-in. Customers who do not comply will not be allowed to fly.

Additionally, when booking a flight, customers can request to be notified if a booked flight exceeds 65 percent capacity. If they’re not comfortable traveling at that time, they can choose from a number of options, including being rebooked on another flight.


Allegiant sees increased demand in May and June

Allegiant Travel Company today reported preliminary passenger traffic results for May 2020.

“We are continuing to see material improvement in demand from the April lows,” stated Gregory Anderson executive vice president, chief financial officer and principal accounting officer of Allegiant Travel Company. “For the entire month we averaged over $2 million in gross bookings per day. As such, we are anticipating our cash burn per day in the second quarter to be down to approximately $1.75 million. This number includes variable components related to increased capacity and a higher fuel price than previously forecasted, as well as an increased rate of voucher redemptions. This daily cash burn improves upon our previously expected estimate of $2.1 million per day, which was based on $750 thousand in daily gross bookings. In addition, we are anticipating the third quarter cash burn to be less than $1 million per day if $2.0 million in daily gross bookings were to remain consistent. This is less than the $1.5 million per day we spoke about during our earnings call. Even with this improvement in demand, we are continuing to focus on finding ways to reduce costs. As we have stated previously, the flexibility which is central to our business model allows us to take advantage of these periods of extremely low demand – which is clearly unique in our industry.”

“We have been pleased to see that May demand trends were stronger than anticipated,” stated Drew Wells, vice president of revenue. “In fact, during Memorial Day weekend Allegiant accounted for approximately eight percent of all travelers going through a TSA checkpoint versus two percent last year.  During the first week of June we operated 70 percent of our schedule versus roughly 50 percent of the schedule in May. Even with the increases in capacity, we were able to maintain load factors just shy of 50 percent. With Las Vegas casinos opening early June, we expect modest improvements to continue throughout the month.”

Scheduled Service
May 2020 May 2019 Change
Passengers 362,528 1,269,429 (71.4%)
Revenue passenger miles (000) 326,748 1,093,781 (70.1%)
Available seat miles (000) 690,624 1,308,911 (47.2%)
Load factor 47.3% 83.6% (36.3pts)
Departures 4,654 9,086 (48.8%)
Average stage length (miles) 856 843 1.5%

Total System*
May 2020 May 2019 Change
Passengers 365,519 1,281,742 (71.5%)
Available seat miles (000) 710,712 1,357,963 (47.7%)
Departures 4,795 9,416 (49.1%)
Average stage length (miles) 855 844 1.3%

*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
May 2020 estimated average fuel cost per gallon – system $.91

Allegiant Air Pilots announce formation of Teamsters Local 2118

International Brotherhood of Teamsters made this announcement:

At the request of the pilots at Allegiant Air, Teamsters General President James P. Hoffa and the Teamsters General Executive Board approved the formation of Teamsters Local 2118. There are over 1,100 pilots who will be members of the union which will be headquartered in Las Vegas.

A low-cost regional carrier, Allegiant Air is one of the ten largest passenger airlines in North America. In addition to representing the flight crews, Teamsters also represent the company’s mechanics and dispatchers.


Allegiant loses $33 million in the first quarter

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

Allegiant Travel Company has  reported the following financial results for the first quarter 2020, as well as comparisons to the prior year:

Consolidated Three Months Ended March 31, Percent
(unaudited) (in millions, except per share amounts) 2020 2019
Total operating revenue $ 409.2 $ 451.6 (9.4) %
Operating income (loss) (117.8) 91.1 (229.3)
Income (loss) before income taxes (130.7) 73.9 (276.9)
Net income (loss) (33.0) 57.1 (157.8)
Diluted earnings (loss) per share $ (2.08) $ 3.52 (159.1)
Consolidated – adjusted Three Months Ended March 31, Percent
(unaudited) (in millions, except per share amounts) 2020 2019
Adjusted operating income(1) $ 55.1 $ 91.1 (39.5)
Adjusted income before income taxes(1) 42.2 73.9 (42.9)
Adjusted net income(1) 33.3 57.1 (41.7)
Adjusted diluted earnings per share (1) $ 2.05 $ 3.52 (41.8)
Airline only Three Months Ended March 31, Percent
(unaudited) 2020 2019
Airline operating revenue (millions)(1) $ 404.7 $ 448.3 (9.7) %
Airline operating income (millions)(1) 51.1 98.5 (48.1)
Airline operating margin 12.6 % 22.0 % (42.7)
Airline income before income taxes (millions) (1) $ 38.8 $ 81.5 (52.4)
Airline fully diluted earnings per share(1) $ 1.89 $ 3.98 (52.5)
Airline CASM ex fuel (cents)(1) 6.51 6.40 1.7
(1) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.

“The events that have unfolded over the last eight weeks are truly unprecedented,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “We began to see the first signs of demand weakness at the end of February, with a steep downward demand trajectory by mid-March. Despite March revenues down nearly 40 percent year over year, we finished the quarter with airline-only EPS of $1.89 per share and an airline-only operating margin of 12.6 percent. These numbers are a true testament to the flexibility of our model and our ability to right-size capacity quickly and seamlessly.

“Since the onset of the pandemic, we have been laser-focused on ensuring the health and safety of our employees and passengers. Enhancing our cleaning procedures, adding health precautions and employing smart principles of social distancing, we recently launched our Going the Distance for Health and Safety initiative as a resource to customers, the details of which can be found in the bullets below. It outlines a set of principles which are as much a part of our DNA as flying from small cities to vacation destinations. These principles are designed to evolve with travel needs, as a permanent part of our operation.

“In addition to health and safety enhancements, we took early and decisive action to preserve liquidity and reduce cash burn. These measures, outlined below, have brought immediate and significant progress over the past few weeks. Most notably, more than 25 percent of our team members have strengthened these efforts by participating in voluntary leave and pay reduction programs. I am humbled by their generosity and personal investment in our company. These investments will help preserve jobs and the company alike. The effect of these combined liquidity preservation measures has reduced daily cash burn to roughly $2.1 million a day, in a matter of a few weeks.

“As previously reported, we will receive $172 million in payroll support under the CARES Act, of which $86 million has been received to date, with the remainder being paid in installments. In addition, we will receive nearly $100 million in federal income tax refunds during the second quarter of 2020 related to favorable net operating loss (NOL) carryback rules as outlined by the CARES Act. We anticipate another projected $100 million or more early next year related to 2020 expected losses and capital expenditures. I look at this very material $200 million plus in federal income tax refunds as our ‘equity’ offering other carriers are currently pursuing in the market. With these refunds and our aggressive cost and capital expenditure savings, we believe we have sufficient liquidity going forward. Should we project a need for additional funds, we have up to $276 million of dry powder available through the end of September from the CARES Act loan program.

“Near term is painful and will continue to be painful. But I believe our model, given the current economic impact, is best-suited to withstand the brutal impact from this pandemic. In the near term, we will most likely shrink our fleet by as many as 25 aircraft. These aircraft, particularly the motors, will ‘seed’ our near and long-term ability to materially reduce planned engine overhauls, beginning in 2020 and for years thereafter. Going forward, the market will favor buyers, not sellers as has been the case the past few years. We will be able to use our expertise, as we did with the MD80s, to purchase aircraft and associated parts at what we believe will be substantial discounts to recent prices. We will ‘manage’ planned overhauls via our balance sheet versus expensive overhaul shop visits. Another substantial advantage is that we do not have meaningful aircraft purchase commitments in 2021 and beyond. The combination of our retirements and the greatly reduced cost of used aircraft and their motors is a key part of both our near-term liquidity benefit and long-term – 2021 and beyond –  reduced capital requirements for our growth. Finally, I am reminded of a saying I used with our MD80s, namely ‘we were a non-capital-intensive business in a capital-intensive industry.’

“Going forward, we are prepared to make tough choices and take any steps necessary to adapt and right-size our cost structure. Since the outset of the COVID-19 crisis, we have taken proactive measures to adjust quickly and aggressively to meet the demands of this challenging and changing environment. With that said, our low-cost business model has proven its resilience during past economic downturns, and we expect it will support our ability to rebound here as well. The Allegiant model, based on simplicity, flexibility and optionality is well-suited for these difficult environments.”

Covid-19 Responses – Going the Distance for Health and Safety

  • Enhanced aircraft cleaning, including regular treatment with an advanced antimicrobial protectant that kills viruses, germs and bacteria on contact for 14 days. Our treatment schedule, along with regular cleaning processes, far exceeds manufacturer guidelines
  • Social distancing principles at check-in, boarding and on-board, including limiting adjacent row seating and allowing only customers on the same itinerary to utilize middle seats as practicable
  • Volatile Organic Compound (VOC) air filters that ensure the air quality on our planes exceeds HEPA standards
  • Complimentary health and safety kits, which include a single-use face mask, a pair of non-latex disposable gloves and cleaning wipes, provided to all of our customers
  • Crew members wear face masks on board and gloves during in-flight service
    • All in-flight service offerings consist of prepackaged, factory sealed goods
    • In-flight service frequency has been reduced to once per flight

Network and Customer Experience

  • Reduced April capacity by 87.4 percent
    • Evaluating May and June and expect significant capacity reductions based on diminished leisure demand trends
  • Waived change and cancellation fees for all customers for future travel
  • Extended expiry on credit vouchers to two years

Cash Outlay Reduction – as much as $375 million in cash outlay reductions to our initial 2020 plan

  • Suspended all stock buybacks and dividends
  • Executives reduced salaries by 50 percent and Board members are foregoing cash compensation
    • Neither the chairman and CEO nor the president draw a salary
  • Enacted a hiring freeze and offering voluntary leave
    • More than 1,100 team members are currently participating in some form of pay reduction program
  • Suspended nearly all contractor positions, subscriptions, non-essential training and travel
  • Suspended all non-essential capital expenditures including non-airline subsidiaries
  • Extended payment terms and renegotiating contracts with vendors

CARES Act Relief

  • Payroll support in the amount of $171.9 million comprised of $150.3 million in direct grants and a $21.6 million low-interest, unsecured 10-year loan.
    • Received first installment of $86 million with remainder expected over the next three months
    • Warrants will be issued to the U.S. Department of the Treasury to purchase 25,898 shares at a strike price of $83.33 per share
  • Federal income tax refund of $94 million related to 2018 and 2019 net operating loss carrybacks
  • Anticipated federal income tax refund of $100 million expected to be received between March and May 2021 for 2020 net operating loss carryback
  • Submitted application under the Loan Program with the option to access up to $276 millionsecured loan through September 2020

Balance Sheet, Cash and Liquidity

  • Total cash and investments at March 31st and April 30th were $464 million and $517 million(1), respectively
  • Repriced Term Loan B facility with a 150 basis points rate reduction and upsized by $100 millionin February
  • Obtained financing of $31 millionin April secured by two A320 aircraft
  • Current 2Q20 cash burn is expected to be $2.1 million per day(2)
    • Cash burn assumes gross bookings for 2Q20 average $750 thousand per day
    • 3Q20 cash burn is expected to be $1.5 million per day assuming gross bookings average $750 thousand per day
  • Further sources of liquidity expected during the second quarter around $163 million, including:
    • Additional payroll support from CARES Act in the amounts of $68.7 million
    • Federal income tax refund of $94 million related to net operating losses from 2018 and 2019
  • Reduced full year capital expenditures by $260 million
    • $100 million reduction in airline capital expenditures
      • Expect all remaining 2020 aircraft and engine acquisitions to be financed
    • $160 million reduction in non-airline capital expenditures
  • We currently have 28 unencumbered aircraft and 8 unencumbered spare engines with an appraised value of roughly $431 million
  • Air traffic liability at March 31 and April 30 was $304 million and $305 million, respectively
    • March 31 and April 30 balance related to future scheduled flights are $137 million and $95 million
    • March 31 and April 30 balance related to travel vouchers issued for future use are $167 million and $210 million

(1) April 30 ending cash balance of $517 million includes the first installment payment received under the CARES Act Payroll Support Program of $86 million.

(2) Daily cash burn defined as cash from operations less debt and rent obligations and capital expenditure outflows excluding aircraft and engine acquisitions as they are expected to be financed. Excludes impact of CARES Act Payroll Support Program funding.

Non-airline Subsidiaries

  • Nearly all non-airline subsidiary spend has been suspended indefinitely
  • COVID-19 triggered impairment review and as a result of the uncertainty moving forward, the company recognized a total impairment of $163 million over its non-airline subsidiaries:
    • Sunseeker impairment of $137 million – suspended construction indefinitely
      • No plans for future capital commitments from Allegiant
      • Exploring potential strategic partnerships
    • Nonstop impairment of $18 million – reorganized to be self-sufficient, not requiring future funding from the airline
      • Warren location temporarily closed – produced positive cash flow prior to closing
      • Permanently closed Utah locations
    • Teesnap impairment of $8 million – reorganized to be self-sufficient, not requiring future funding from the airline
      • Remains an asset held for sale

First quarter 2020 results

  • TRASM decreased 13.4 percent
    • March capacity cut 23.3 percent and down 12.2 percent year over year
  • Airline only CASM, excluding fuel increased 1.7 percent on capacity growth of 4.0 percent
    • CASM, excluding fuel had been on track to be down 2.0 percent on capacity growth of 16.0 percent prior to COVID-19 scheduling changes

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

Allegiant Air aircraft slide show:

Allegiant to provide personal health and safety kits to all passengers

Allegiant has made this announcement:

As the COVID-19 outbreak continues to impact our daily lives and the lives of our friends and family, our 4,500 Allegiant team members across America are — as always — one hundred percent focused on making sure your travels are as safe and seamless as possible. Whether you need to travel today, or are looking ahead to future vacations and long-overdue visits, we understand that your decision to travel is personal, and many factors are involved. And we know that a healthy environment is at the top of that list. It’s personal, and it’s critical — for you, and for our dedicated crew members who fly every day.

That’s why, beginning this week, we will be providing complimentary personal health and safety kits to all passengers as they board their Allegiant flights. These kits include a single-use face mask, a pair of non-latex disposable gloves and cleaning wipes. This program will be rolled out across our system this week, so watch for it on your upcoming Allegiant flight.

We are pleased to provide this service to help bring peace of mind as you travel. You’ll also see our crew members wearing masks on board. This is just one of the many ways our team is going the distance for health and safety. Because the further we go now, the safer it will be to go farther tomorrow.

Our commitment to you includes cleaning and disinfecting our aircraft to the highest possible standard, exceeding guidance from the Centers for Disease Control and from Airbus, our aircraft manufacturer. And we don’t just clean — we protect all surfaces, routinely treating our planes with an advanced antimicrobial protectant that kills viruses, germs and bacteria on contact for 14 days.

We’ve raised the bar by setting new standards for air purity and adopting a low-touch service approach, limiting unnecessary personal contact and shared items. The air quality on board our planes exceeds HEPA standards, thanks to state-of-the art VOC filtration, which removes additional organic compounds from the air to help keep you healthy. On average, cabin air is changed entirely every three minutes through a continuous flow of fresh and VOC-filtered air.

During check-in, during the boarding process and in our cabins, we are continuing to incorporate social distancing principles. Adding personal health and safety kits for each passenger will further ensure a healthy space to enjoy your flight. To learn more about these and many other ways Allegiant is prioritizing your health and safety, please visit our resource page here.

The coming weeks and months will undoubtedly bring many changes, as communities across the country begin the process of safely re-opening, and events and occasions we’ve all been looking forward to are rescheduled. As your plans develop, please know we’ll be with you on your journey, seeing you safely on your way.

Thanks once again for flying with us. We look forward to welcoming you aboard again soon.

Together we fly,

Scott Sheldon
Chief Operating Officer


Allegiant announces agreement with Treasury for payroll support under the CARES Act

Allegiant Travel Company has announced an agreement with the U.S. Department of the Treasury to receive $171.9 millionin emergency relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The Payroll Support Program (PSP) funds are targeted to support team member salaries and benefits for Allegiant’s 4,500-member workforce.

“The Payroll Support Program recognizes the essential role our team members play in our country’s air travel infrastructure,” said Maurice J. Gallagher, Jr., Allegiant chairman and CEO. “Their dedication in the face of the unprecedented crisis brought by the COVID-19 outbreak has been tremendous – and their continued work will be critical to our nation’s successful recovery in the months to come. On behalf of our entire team, I’d like to applaud the work of the administration, Treasury and the Department of Transportation, our hometown Nevada delegation, leadership of both houses of Congress and the Aviation Subcommittees for both the Senate and House for taking swift, bipartisan action to protect the jobs of our frontline team members. We thank you for your support and look forward to working with you to ensure Americans can once again be together, connecting with family and friends and conducting the business of our great nation.”

The PSP is expected to provide Allegiant with $171.9 million in funding and will cover approximately 76 percent of budgeted payroll and benefit costs through September 30, 2020. Of that funding, $21 million will be in the form of a 10-year term, low-interest loan, to be repaid at any time prior to maturity at par. Under the loan, the company will issue warrants to the U.S. Department of the Treasury to purchase 25,890 shares of common stock with a cash settlement right at the company’s option.

“We are incredibly grateful to the partners who made this critical support possible, but also want to thank our team members, who have stepped up in force to support the company during this unprecedented time,” said Greg Anderson, chief financial officer. “So far, more than 1,100 team members – 25 percent of our workforce – are already participating in a voluntary short-term leave program or voluntary pay reductions. Further participation will go a long way to maximize the payroll assistance funds and extend their impact as long as possible. We appreciate their action and know this shared sacrifice will be crucial to weathering the storm. With so much uncertainty regarding the arc of the coronavirus outbreak and when demand for travel will return, we believe the airlines maintaining the most flexibility will be best positioned to emerge from this crisis even stronger.”

Allegiant Air aircraft photo gallery:

Allegiant delays the opening of two new bases

Allegiant has made this announcement:

As demand for travel across the United Statescontinues to drop in the wake of the COVID-19 pandemic, Allegiant Travel Company has undertaken additional measures to address the impact of the outbreak, protect health and safety, and ensure a solid foundation for future operations.

“The outbreak of Coronavirus is having an impact the likes of which we’ve never seen in the travel industry. Even as a domestic carrier, to have zero demand across almost every community we serve is truly unsettling,” said Maurice J. Gallagher, Jr., Allegiant chairman and CEO. “With the situation changing daily, we are taking proactive steps to ensure operations continue, protect the livelihoods of our team members, and put us in the best possible position to serve our customers when demand for travel returns.”

In the face of the unprecedented downturn in leisure travel, Allegiant is withdrawing its 2020 full-year guidance. As reported in a filing with the Securities and Exchange Commission on April 7, the company anticipates revenue for March 2020 to be 40 to 45 percent lower than the previous year. The company has received and is reviewing term sheets for the federal Payroll Support Grant program and loan assistance under the CARES Act, in addition to exploring other financing alternatives.

Allegiant anticipates reducing airline capacity by 80 to 90 percent during April and May, with additional schedule reductions to come for the summer travel season. Two new aircraft bases scheduled to open in 2020 at Des Moines International Airport (DSM) in Iowa and Concord-Padgett International Airport in North Carolina will be delayed. The airline will also delay its announced start of service from William P. Hobby Airport (HOU) in Houston and Boston-Logan International Airport (BOS).

In addition, to assist customers in accessing information about Allegiant’s onboard and in-terminal health and safety measures, the company this week launched an online resource page, Going the Distance for Health and SafetyTM , highlighting cleaning and disinfection, air purity, low-touch service initiatives aimed at preventing cross-contamination, and social distancing efforts.

On March 18, the company announced a number of measures designed to limit expenditures, expected to result in up to $320 million in cash outlay reductions. These included immediate suspension of non-airline projects, including Sunseeker Resort Charlotte Harbor –  its planned resort in southwest Florida –  and the related renovation of Kingsway Country Club, as well as Allegiant Nonstop family entertainment centers in Warren, Michigan and Clearfield, Utah.  The company also placed an immediate moratorium on all non-essential capital expenditures and discretionary spending across the company, and instituted an immediate hiring freeze on all non-essential positions. Stock buyback and dividend activity were also suspended.

Allegiant Chairman and CEO Maurice J. Gallagher, Jr. and President John Redmond do not draw salary. Other officers of the company have taken a 50 percent salary reduction. Members of the company’s Board of Directors will also forego cash compensation for 2020. In addition, nearly 700 Allegiant team members (15 percent of the company’s workforce) have taken voluntary, 60-day leave at half pay, with full benefits in force.

Allegiant aircraft photo gallery:

Allegiant’s message to its customers

From Allegiant:

Dear Valued Allegiant Customer,

I’m writing to you during what would normally be a time for coming together. In past years, this weekend is one when we have the privilege to be part of your journey to see family for Easter or Passover, visit home on a break from college, or follow your favorite ball club to a spring game with your best friends. Even as the COVID-19 outbreak has impacted our business, the lives of our team members and the economies of the communities we serve, the loss of these moments is what we miss most during these uncertain times.

Helping you experience these moments by connecting you with the people and places that matter most is what Allegiant is all about – it was true yesterday and it will be true tomorrow. That commitment is what drives our teams every day. And it’s why we wanted to share some of the ways we’re working to ensure you travel seamlessly, safely and in a healthy environment, whenever and wherever your special moments take you.

Please know that both on the ground and in the air, Allegiant is going the distance for health and safety.

In addition to our daily aircraft cleaning program, we routinely treat our planes with an advanced antimicrobial protectant that kills viruses, germs and bacteria on contact for 14 days. Our treatment schedule far exceeds the manufacturer’s guidelines.

The air quality on our planes exceeds HEPA standards thanks to our VOC (volatile organic compound) filters, which remove additional organic compounds. On average, cabin air is changed every three minutes through a continuous flow of fresh and VOC-filtered air.

We are giving you space – social distancing space – and we’re doing it at check-in, during boarding and in our cabins to promote healthy distancing.

We know those reunions and special events you’ve been looking forward to will happen again. And when they do, please be assured that we’ll be there to see you safely on your way. We will see our family and friends again, visit favorite places and have new adventures together. And all of us at Allegiant will look forward to welcoming you aboard when that time comes.

On behalf of our entire Allegiant family –

Together we fly,

Scott Sheldon
Chief Operating Officer

Allegiant aircraft photo gallery:

A message from Allegiant’s chief operating officer

Allegiant Air made this announcement:

Dear Valued Allegiant Customer,

Together We Fly is more than a phrase, it’s what we stand for. At Allegiant, “together” means you – our valued customers, the communities we serve, and our 4,500 team members across the country dedicated to providing you with access to safe, affordable nonstop travel. That’s as true today as it will be tomorrow. I wanted to share with you some of the actions we are taking to ensure you can fly with confidence now, and that will enable Allegiant to continue to be there for you in the future when family visits, vacations and events resume.

As a domestic airline, Allegiant was not impacted as early in the arc of the Coronavirus / COVID-19 outbreak as many other carriers. However, as events canceled and popular destinations closed across the country, that quickly changed. We have reduced our flight schedule significantly, but are working to preserve flights where we are able. We thank you for your understanding as those reductions continue. As always, if you are booked with us, we will let you know immediately should there be a change to your scheduled flight, and work with you on all available options.

Temporarily reducing our schedule is just one of many strategic steps we are taking as a company to maintain financial stability now. This enables us to best ensure we can support your travel needs, the livelihoods of our team members and the businesses in the communities we serve that depend on air travel for their customers in the future. We know that our ability to continue providing nonstop service is critical in many of the communities that have been hit hardest. In many areas, our presence means jobs, tourism and economic impact as well as flights, and we are as committed to local recovery as we are to serving our customers.

Please know that your health and safety and that of our team members is, as always, our top priority. We are in constant contact with the Centers for Disease Control and Prevention, World Health Organization and other authorities, following all current guidance. Our aircraft cleaning program ensures all surfaces are disinfected to the highest possible standard. In addition, we are now treating all aircraft with an advanced protectant solution which creates a microscopic film shown to kill any virus, germ or bacteria coming into contact with a treated surface. This product is safe and effective because it forms a colorless, odorless protective barrier on all surfaces of the aircraft to prevent cross-contamination.

During these uncertain times, we know there are many factors that go into your decision to travel. If you would like to change your travel plans, you may continue to do so without incurring a fee. We introduced an online tool you can use to make changes or cancel your flight without contacting Customer Care. For more information and the latest updates, visit our COVID-19 information page here.

We will keep you informed of all new developments. But please know that our team continues to be committed to your safe, seamless travel – now, and in the future. We are all in this together.

Thank you once again for flying with us.

Scott Sheldon
Chief Operating Officer

Allegiant takes measures to counter the coronavirus downturn

Allegiant Air made this announcement:

In light of continuing operational impacts of the Coronavirus Disease / COVID-19 pandemic, Allegiant Travel Company today announced a slate of strategic measures aimed at strengthening the company’s balance sheet, consolidating demand while continuing to provide service to customers, protecting health and safety, and enabling a solid foundation for the future.


“This is an unprecedented situation and our team has come together in extraordinary ways to ensure our customers can continue to fly with confidence, while taking steps to ensure the ongoing financial health of the company,” said Maurice J. Gallagher, Jr., Allegiant chairman and CEO. “As a domestic airline with a unique business model serving primarily leisure travelers, we were better positioned than most to withstand the early impact of COVID-19 on travel. But this is a situation which is changing daily, and we are focused on taking proactive steps to protect the health and safety of our customers and team members, and to ensure our resilient company can continue to provide access to convenient, affordable nonstop travel.”

In an effort to address reduced demand in leisure travel, Allegiant has already cut airline capacity by approximately 15 percent during April and May, a figure expected to grow to 30-35 percent with additional reductions to come. Flexible scheduling for seasonal peaks which is adjusted regularly to demand has been a core principal of Allegiant’s business model, and allows the airline to decrease capacity quickly and inexpensively.

In an effort to limit prospective expenditures, the travel company will immediately cease activity on non-airline projects, including suspending construction of Sunseeker Resort Charlotte Harbor –  its planned resort in southwest Florida –  and the related renovation of Kingsway Country Club. Family entertainment centers operating in Warren, Michigan and Clearfield, Utah will also close until further notice. In addition to the preservation of liquidity, suspending these projects is necessary for social distancing to prevent community spread of COVID-19.

Allegiant has also placed an immediate moratorium on all non-essential capital expenditures and discretionary spending across the company, and instituted an immediate hiring freeze on all non-essential positions. Stock buyback and dividend activity will also be suspended, and avenues for additional borrowing will be explored. Allegiant Chairman and CEO Maurice J. Gallagher, Jr. and President John Redmond do not draw salary. Other officers of the company will take a 50 percent salary reduction.

“This set of initiatives could defer as much as $300 million in planned cash outlay for 2020,” said Greg Anderson, chief financial officer. “In addition, meaningful capacity cuts will help to preserve additional liquidity. The flexibility of our business model – particularly our low fixed cost structure –  will go a long way to help navigate these uncertain times and put us in a strong position moving forward,” he continued. “With these initiatives we believe we are well positioned to mitigate the impact to our sector of COVID-19, but we will continue to be proactive in our approach to mitigate both current and long-term effects, and to bring forward additional measures as needed.”

Allegiant Air aircraft photo gallery: