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 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 Endedย 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 Endedย 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 Endedย December 31, | Percent Change | |||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||
| Adjusted operating expenseย (1) (2) | $ 451.2 | $ 254.4 | $ 368.4 | 77.4 % | 22.5 % | ||||
| Adjusted operating income (loss)ย (1) (2) | 45.7 | (7.8) | 92.7 | 685.9 | (50.7) | ||||
| Adjusted income (loss) before income taxesย (1) (2) | 27.5 | (23.4) | 78.6 | 217.5 | (65.0) | ||||
| Adjusted net income (loss)ย (1) (2) | 21.3 | (18.0) | 60.5 | 218.3 | (64.8) | ||||
| Adjusted diluted earnings (loss) per shareย (1) (2) | $ 1.18 | $ (1.12) | $ 3.72 | 205.4 | (68.3) | ||||
| Twelve Months Endedย December 31, | Percent Change | ||||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||
| Adjusted operating expenseย (1) (2) | $ 1,595.7 | $ 1,130.2 | $ 1,477.0 | 41.2 % | 8.0 % | ||||
| Adjusted operating income (loss)ย (1) (2) | 112.2 | (140.1) | 364.0 | 180.1 | (69.2) | ||||
| Adjusted income (loss) before income taxesย (1) (2) | 45.7 | (193.6) | 301.2 | 123.6 | (84.8) | ||||
| Adjusted net income (loss)ย (1) (2) | 35.1 | (149.1) | 232.1 | 123.5 | (84.9) | ||||
| Adjusted diluted earnings (loss) per shareย (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)ย ofย $2.04, one of the only domestic carriers to record a full-year adjusted profit,” statedย Maurice J. Gallagher, Jr., chairman and CEO ofย 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 ofย $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 wereย $23 millionย 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.ย 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.ย I want to personally thank each and every one of them.”
Fourth Quarter 2021 Results
Full-Year 2021 Results
(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
Airline Capital Expenditures
Sunseeker Resort
| Guidance, subject to revision | Previous | Current | |
| First Quarter 2022 guidance | |||
| System ASMs – year over three-year change(1) | 19.0 to 23.0% | ||
| Scheduled Serviceย 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) | $255ย toย $265 | ||
| Capitalized deferred heavy maintenance (millions) | $85ย toย $95 | ||
| Other airline capital expenditures (millions) | $95ย toย $105 | ||
| Interest expenseย (2) | $85ย toย $95 | ||
| Recurring principal payments | $185ย toย $195 | ||
| Sunseeker Resortsย –ย Charlotte Harbor Projectย | |||
| Total projected project spend (millions) | $560ย toย $585 | ||
| Percent of projectย to be financed | 60ย to 63% | ||
| Percent of total project spend already funded by Allegiant contributions | 32 to 34% | ||
| Percent of project spend remaining โ 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 ofย Sunseeker Resortsย – 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 Airย today announces nine new nonstop routes beginning service this spring.ย
“We’re thrilled to kick off 2022 with a network expansion in twelve of our markets,” saidย Drew Wells, Allegiant’s senior vice president of revenue and planning. “These new routes will grow our presence inย Austin, where we recently opened a base, while connecting travelers in some of the smaller cities we serve to several popular vacation destinations such asย Nashville,ย Savannah,ย Roanokeย andย San Diego.”
The new routes toย Austin, Texasย viaย Austin-Bergstrom International Airportย (AUS)ย include:
The new routes toย Nashville, Tennesseeย viaย Nashville International Airportย (BNA)ย include:
The new routes toย San Diego, Californiaย via San Diego International Airportย (SAN)ย include:
The new route toย Orange County, Californiaย viaย John Wayne Airportย (SNA)ย includes:
The new route toย Savannah, Georgiaย viaย Savannah/Hilton Head International Airportย (SAV)ย includes:
Allegiant Travel Company (Allegiant Air) today reported preliminary passenger traffic results for December 2021, fourth quarter 2021, and full year 2021.
“Fourth quarter scheduled capacity was up 14.5 percent as compared with 2019, in line with our initial expectations,” statedย Drew Wells, senior vice president of revenue. “Despite a challenging operating environment during the Christmas holiday peak-period, we ended the quarter with a load factor of 78.8 percent, the highest since the onset of the pandemic. Although Omicron led to an uptick in customer cancellations, daily booking trends throughout the quarter consistently outperformed levels observed in 2019. This strength in bookings resulted in total operating revenue of roughlyย $496 millionย for the quarter, an increase of more than 7.5 percent when compared with 2019.”
“We are pleased to report that the fourth quarter will be our third consecutive quarter of profitability since the onset of the pandemic,” statedย Gregory Anderson, executive vice president and chief financial officer. “Despite operational challenges around holiday peak travel, we expect an adjusted1ย EBITDA margin for the fourth quarter of roughly 19 percent. This margin includes nearlyย $23 millionย of irregular operations costs incurred during the quarter, the majority of which were incurred in December. Operational challenges were predominantly a result of crew shortages related to Omicron. Although these challenges continued into early January, we are beginning to see relief and expect significant improvement in the operation as the Omicron variant begins to dissipate.”
| Scheduled Service โ Year Over Two-Year Comparison | |||
| December 2021 | December 2019 | Change | |
| Passengers | 1,320,403 | 1,308,341 | 0.9% |
| Revenue passenger miles (000) | 1,226,131 | 1,165,902 | 5.2% |
| Available seat miles (000) | 1,556,101 | 1,411,107 | 10.3% |
| Load factor | 78.8% | 82.6% | (3.8 pts) |
| Departures | 9,801 | 9,423 | 4.0% |
| Average stage length (miles) | 902 | 871 | 3.6% |
| 4thย Quarter 2021 | 4thย Quarter 2019 | Change | |
| Passengers | 3,671,032 | 3,516,263 | 4.4% |
| Revenue passenger miles (000) | 3,306,563 | 3,073,055 | 7.6% |
| Available seat miles (000) | 4,288,133 | 3,745,031 | 14.5% |
| Load factor | 77.1% | 82.1% | (5.0pts) |
| Departures | 27,818 | 25,541 | 8.9% |
| Average stage length (miles) | 876 | 856 | 2.3% |
| YTD 2021 | YTD 2019 | Change | |
| Passengers | 13,509,544 | 14,823,267 | (8.9%) |
| Revenue passenger miles (000) | 11,963,715 | 13,038,003 | (8.2%) |
| Available seat miles (000) | 17,027,902 | 15,545,818 | 9.5% |
| Load factor | 70.3% | 83.9% | (13.6pts) |
| Departures | 113,121 | 105,690 | 7.0% |
| Average stage length (miles) | 862 | 859 | 0.3% |
| Total System* – Year Over Two-Year Comparison | |||
| December 2021 | December 2019 | Change | |
| Passengers | 1,327,884 | 1,318,872 | 0.7% |
| Available seat miles (000) | 1,586,060 | 1,453,592 | 9.1% |
| Departures | 10,065 | 9,742 | 3.3% |
| Average stage length (miles) | 896 | 868 | 3.2% |
| 4thย Quarter 2021 | 4thย Quarter 2019 | Change | |
| Passengers | 3,731,034 | 3,585,966 | 4.0% |
| Available seat miles (000) | 4,440,839 | 3,928,536 | 13.0% |
| Departures | 29,193 | 27,088 | 7.8% |
| Average stage length (miles) | 865 | 846 | 2.2% |
| YTD 2021 | YTD 2019 | Change | |
| Passengers | 13,637,405 | 15,012,149 | (9.2%) |
| Available seat miles (000) | 17,490,571 | 16,174,240 | 8.1% |
| Departures | 117,047 | 110,542 | 5.9% |
| Average stage length (miles) | 856 | 855 | 0.1% |
| Scheduled Service โ Year Over Year Comparison | |||
| December 2021 | December 2020 | Change | |
| Passengers | 1,320,403 | 673,041 | 96.2% |
| Revenue passenger miles (000) | 1,226,131 | 611,429 | 100.5% |
| Available seat miles (000) | 1,556,101 | 1,128,200 | 37.9% |
| Load factor | 78.8% | 54.2% | 24.6pts |
| Departures | 9,801 | 7,281 | 34.6% |
| Average stage length (miles) | 902 | 891 | 1.2% |
| 4thย Quarter 2021 | 4thย Quarter 2020 | Change | |
| Passengers | 3,671,032 | 2,129,292 | 72.4% |
| Revenue passenger miles (000) | 3,306,563 | 1,878,831 | 76.0% |
| Available seat miles (000) | 4,288,133 | 3,226,050 | 32.9% |
| Load factor | 77.1% | 58.2% | 18.9pts |
| Departures | 27,818 | 21,399 | 30.0% |
| Average stage length (miles) | 876 | 868 | 0.9% |
| YTD 2021 | YTD 2020 | Change | |
| Passengers | 13,509,544 | 8,553,623 | 57.9% |
| Revenue passenger miles (000) | 11,963,715 | 7,626,470 | 56.9% |
| Available seat miles (000) | 17,027,902 | 12,814,080 | 32.9% |
| Load factor | 70.3% | 59.5% | 10.8pts |
| Departures | 113,121 | 85,276 | 32.7% |
| Average stage length (miles) | 862 | 867 | (0.6%) |
| Total System* – Year Over Year Comparison | |||
| December 2021 | December 2020 | Change | |
| Passengers | 1,327,884 | 679,424 | 95.4% |
| Available seat miles (000) | 1,586,060 | 1,147,534 | 38.2% |
| Departures | 10,065 | 7,471 | 34.7% |
| Average stage length (miles) | 896 | 883 | 1.5% |
| 4thย Quarter 2021 | 4thย Quarter 2020 | Change | |
| Passengers | 3,731,034 | 2,159,035 | 72.8% |
| Available seat miles (000) | 4,440,839 | 3,315,599 | 33.9% |
| Departures | 29,193 | 22,189 | 31.6% |
| Average stage length (miles) | 865 | 860 | 0.6% |
| YTD 2021 | YTD 2020 | Change | |
| Passengers | 13,637,405 | 8,623,984 | 58.1% |
| Available seat miles (000) | 17,490,571 | 13,125,533 | 33.3% |
| Departures | 117,047 | 87,955 | 33.1% |
| Average stage length (miles) | 856 | 862 | (0.7%) |
| *Total system includes scheduled service and fixed fee contract.ย 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.ย Fixed fee flying is better measured through dollar contribution versus operational statistics. |
| Preliminary Financial Results | |
| $ per gallon | |
| December 2021ย estimated average fuel cost per gallon โ system | $2.37 |
| $ per gallon | |
| 4thย quarter 2021 estimated average fuel cost per gallon โ system | $2.48 |
| $ per gallon | |
| Full year 2021 estimated average fuel cost per gallon โ system | $2.15 |
Allegiant Travel Company (Allegiant Air) today announced an agreement with Boeing to purchase 50 new 737 MAX aircraft as part of the airline’s ongoing efforts to modernize and expand its fleet.
The multi-year deal โ Boeing’s first with an ultra-low-cost carrier inย the United Statesย โ ย includes the purchase of 737-7 and 737-8-200 models, as well as options to purchase 50 additional aircraft, giving the company flexibility for future growth. Allegiant will take delivery of an initial group of planes in 2023, with the remaining deliveries scheduled throughout 2024 and 2025.
Allegiant’s unique ULCC business model has been primarily focused on high quality used aircraft to maintain lower fixed costs. However, the pandemic recovery cycle has brought to Allegiant unique opportunities to acquire new equipment, including this aircraft-family solution, which will add significant economic and operational benefits for years to come.
The arrangement with Boeing will allow Allegiant to replace aircraft that are scheduled to retire while also expanding the fleet to maintain the company’s projected 10 percent-plus annual growth rate.
The Boeing 737s come equipped with several innovative in-cabin features โ such as Boeing Sky Interior and Space Bins โ that create a feeling of spaciousness, provide more leg room and make storing and retrieving carry-on luggage easier for passengers. Additionally, the new aircraft will burn approximately 20 percent less fuel than older Airbus A320 family aircraft. ย while also offering increased seating capacity.
The aircraft will be powered with CFM LEAP 1-B engines. Allegiant has signed a 12-year exclusive maintenance agreement with CFM for the LEAP engine fleet, which will also bring support for the existing Airbus fleet. Allegiant currently operates 108 Airbus A319s and A320s and will continue sourcing A320s in the used market.
Is Allegiant Air ready to jump from Airbus to Boeing?
From Reuters:
“Allegiant Air is close to ordering 50 Boeing 737 MAX jets worth $5 billion at list prices, people familiar with the matter said, as the low-cost U.S. airline eyes a rebound in tourism.”
Read the full article:
Allegiant Air has announced nine new nonstop routes for spring vacation travel to premier destinations in Florida and the southwest.
Routes from TYS:
The new routes toย Knoxville, Tennesseeย viaย McGhee Tyson Airportย (TYS)ย include:
Routes from AZA:
The new route toย Phoenix, Arizonaย viaย Phoenix-Mesa Gateway Airportย (AZA):
Routes from PIE:
The new route to St. Petersburg, Florida via St. Petersburg-Clearwater International Airport (PIE) include:
Routes from ATW:
The new routes toย Appleton, Wisconsinย viaย Appleton International Airportย (ATW):
Routes from FNT:
The new routes toย Flint, Michiganย viaย Flintย Bishop International Airportย (FNT) include:
Top Copyright Photo: Allegiant Air Airbus A319-111 N328NV (msn 2821) (Raiders – Raider Nation) LAS (Tony Storck). Image: 955811.
Allegiant Air aircraft slide show:
Allegiant Air aircraft photo gallery:
Allegiant Chairman and CEO Maurice J. Gallagher, Jr. and Viva Aerobus Chief Executive Officer Juan Carlos Zuazua, photographed at McCarran International Airport in Las Vegas. The airlines today announced plans for a fully-integrated Commercial Alliance Agreement, designed to dramatically expand options for nonstop leisure air travel between the United States and Mexico, while lowering fares to make travel more accessible and affordable for residents of both nations. (Photo: Henri Sagalow)
Allegiant Air and Viva Aerobus today announced plans for a fully-integrated Commercial Alliance Agreement, designed to dramatically expand options for nonstop leisure air travel between the United States and Mexico, while lowering fares to make travel more accessible and affordable for residents of both nations. The alliance is not only the first such venture for Las Vegas-based Allegiant and Viva Aerobus, but is also first-of-its-kind in the airline industry between two ultra low cost carriers (ULCCs).
Allegiant and Viva Aerobus have submitted a joint application to theย U.S. Department of Transportationย (DOT) requesting approval of and antitrust immunity for the alliance. ย Allegiant will also make an equity investment ofย $50 millionย in Viva Aerobus, and Allegiant Chairman and Chief Executive Officerย Maurice J. Gallagher, Jr. is expected to join the Viva Aerobus Board of Directors. The transactions are also subject to clearance by theย Mexican Federal Economic Competition Commission.
Combining the unique product offerings, networks and market experience of two of the world’s fastest-growing ULCCs, the alliance will achieve important public benefits that neither Allegiant nor Viva Aerobus could provide independently.
The onlyย U.S.-based airline focused entirely on leisure travel, Allegiant currently offers nonstop service to more than 130 cities across the country. ย It does not currently serveย Mexico.ย Monterrey-based Viva Aerobus offers extensive intra-Mexicoย service, as well as nonstop flights fromย Mexicoย to key destinations in theย U.S.ย andย Latin America. The Alliance Agreement will afford Allegiant the opportunity to broaden its travel offerings to include new world-class vacation destinations such asย Cancun,ย Los Cabosย andย Puerto Vallarta, Mexico. At the same time, Viva Aerobus will have access to Allegiant’s distribution network and point-of-sale process, growing itsย U.S.ย customer base.
The alliance will also enable Viva Aerobus to add routes inย the United Statesย – particularly underserved or untapped-to-Mexicoย markets where Allegiant has a significant presence such asย Las Vegasย and several cities inย Floridaย —ย very popular destinations for Mexican tourists.
A fully-integrated and immunized alliance will afford Allegiant and Viva Aerobus coordination across all areas of airline operations – including code-sharing, scheduling, marketing, information systems and loyalty programs, providing seamless access and benefits for customers of both airlines.
The alliance is anticipated to add new transborder routes and nonstop competition where currently only connecting service is available. More than 250 new potential route opportunities have been identified as part of the DOT application, though specific routes targeted for service will be announced at a later date, following the application’s approval.
Allegiant and Viva Aerobus currently expect to offer flights under the alliance beginning in the first quarter of 2023, pending governmental approval of the application. Per national requirements, Allegiant and Viva Aerobus will in parallel file for alliance approval with regulatory authorities inย Mexico, including with theย Mexican Federal Economic Competition Commission.
Barclays, Goldman Sachsย and White & Case acted as financial and legal advisors for Viva Aerobus. ย WilmerHale andย Garofalo Goerlich Hainbach, PC, acted as legal advisors for Allegiant.
Copyright Photo: Allegiant Air Airbus A319-111 N328NV (msn 2821) (Raiders – Raider Nation) LAS (Nick Dean). Image: 955768.
Allegiant Travel Company today reported the following financial results for the third quarter 2021, as well as comparisons to the prior years:
| Consolidated | Three Months Endedย September 30, | Percent Change | |||||||||||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||||||||||
| Total operating revenue | $ | 459.5 | $ | 201.0 | $ | 436.5 | 128.6 | % | 5.3 | % | |||||||
| Total operating expense | 393.2 | 234.1 | 364.4 | 68.0 | 7.9 | ||||||||||||
| Operating income (loss) | 66.3 | (33.1) | 72.1 | 300.4 | (8.1) | ||||||||||||
| Income (loss) before income taxes | 50.2 | (44.7) | 56.9 | 212.4 | (11.7) | ||||||||||||
| Net income (loss) | 39.3 | (29.1) | 43.9 | 234.7 | (10.6) | ||||||||||||
| Diluted earnings (loss) per share | $ | 2.18 | $ | (1.82) | $ | 2.70 | 219.8 | (19.3) | |||||||||
| Nine Months Endedย September 30, | Percent Change | ||||||||||||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||||||||||
| Total operating revenue | $ | 1,211.0 | $ | 743.5 | $ | 1,379.9 | 62.9 | % | (12.2) | % | |||||||
| Total operating expense | 981.3 | 1,000.8 | 1,108.6 | (2.0) | (11.5) | ||||||||||||
| Operating income (loss) | 229.7 | (257.3) | 271.3 | 189.3 | (15.3) | ||||||||||||
| Income (loss) before income taxes | 181.5 | (321.9) | 222.6 | 156.4 | (18.5) | ||||||||||||
| Net income (loss) | 141.2 | (155.3) | 171.6 | 190.9 | (17.7) | ||||||||||||
| Diluted earnings (loss) per share | $ | 8.18 | $ | (9.75) | $ | 10.54 | 183.9 | (22.4) | |||||||||
| Consolidated – adjusted | Three Months Endedย September 30, | Percent Change | |||||||||||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||||||||||
| Adjusted operating expenseย (1) (2) | $ | 428.0 | $ | 278.4 | $ | 364.4 | 53.7 | % | 17.5 | % | |||||||
| Adjusted operating income (loss)ย (1) (2) | 31.5 | (77.4) | 72.1 | 140.7 | (56.3) | ||||||||||||
| Adjusted income (loss) before income taxesย (1) (2) | 15.4 | (89.0) | 56.9 | 117.3 | (72.9) | ||||||||||||
| Adjusted net income (loss)ย (1) (2) | 11.9 | (68.5) | 43.9 | 117.4 | (72.9) | ||||||||||||
| Adjusted diluted earnings (loss) per shareย (1) (2) | $ | 0.66 | $ | (4.28) | $ | 2.70 | 115.4 | (75.6) | |||||||||
| Nine Months Endedย September 30, | Percent Change | ||||||||||||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||||||||||
| Adjusted operating expenseย (1) (2) | $ | 1,144.7 | $ | 872.3 | $ | 1,108.6 | 31.2 | % | 3.3 | % | |||||||
| Adjusted operating income (loss)ย (1) (2) | 66.3 | (128.8) | 271.3 | 151.5 | (75.6) | ||||||||||||
| Adjusted income (loss) before income taxesย (1) (2) | 18.1 | (166.8) | 222.6 | 110.9 | (91.9) | ||||||||||||
| Adjusted net income (loss)ย (1) (2) | 14.0 | (128.4) | 171.6 | 110.9 | (91.8) | ||||||||||||
| Adjusted diluted earnings (loss) per shareย (1) (2) | $ | 0.82 | $ | (8.07) | $ | 10.54 | 110.2 | (92.2) | |||||||||
| (1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs (PSPs), and 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 quarter with earnings per share ofย $2.18, our second consecutive quarter of profitability since the onset of the pandemic,” statedย Maurice J. Gallagher, Jr., chairman and CEO ofย Allegiant Travel Company. “Third quarter total operating revenue was up 5.3 percent year over two-year making us one of the only domestic carriers to grow revenue from pre-pandemic levels. While demand was strong during our peak summer travel period, we experienced a slowdown as the delta variant spiked, but have since seen the demand curve ramp back up. Yields held up nicely, considering the effects of the delta variant, down less than six percent on scheduled service capacity increases of 17 percent. Third-party revenue continues to outperform, up 32.0 percent on a per passenger basis compared with 2019.
“Despite the favorable revenue environment, the operation continues to present challenges, as noted by several of our peers as well. Prior to COVID, the operation was a well-oiled machine – things ran smoothly. Fast forward to today, and we are operating in a different environment. The over-heated economy, continuing impacts of COVID, plus difficult labor environment created a perfect storm of challenges, including cancellations and delays over the past several months. We have a strong compensation approach for our interrupted passengers. We reimburse our customers for the inconvenience we have caused via prepaid credit cards or ACH deposits. Given the volume of our interruptions this past quarter, this was a meaningful amount. As a result, our third quarter adjusted CASM, excluding fuel, wasย 6.97 cents, 4.3 percent higher year over two-year. Excluding these costs for irregular operations, I was pleased that our adjusted CASM, excluding fuel was below the third quarter of 2019. As we head into the holiday season, job one is managing our operational integrity. We’ve scaled back on some peak day travel to mitigate the risk of cancellations. We now expect fourth quarter capacity to be up 12 percent from 2019.
“In regards to 2022 growth plans, it’s too early to provide specific numbers. At a minimum, growth will mirror our historical low, double-digit rate. However, if fuel continues to increase, we will moderate capacity accordingly. Uncertainty around the labor market is another growth factor we are watching. In the coming months, we will closely monitor the operational environment and our personnel availability. The flexibility of our model will continue to be vital as we respond to these differing environmental factors. We will have more insights at our next call.
“Although we have faced recent operational challenges, the business is in great shape. The balance sheet is stronger than ever with total liquidity ofย $1.1 billionย and net debt of roughlyย $500 million. We’ve proven the resiliency of the model in both good times and bad, including high fuel cost environments. I am optimistic about the future. Our runway of potential routes continues to exceed 1,000. We’ve identified untapped revenue potential within third-party sales and are pleased to see positive trends from our newly launched loyalty program, Allways Rewards – both will contribute bottom line results in the coming years. Additionally, we resumed construction onย Sunseeker Resortsย with an anticipated opening date during the first quarter of 2023 as well as closed onย $350 millionย of construction financing. We are excited to see this project come to fruition.
“The last several months have been challenging for our team members. The operational environment has created added stress, yet they have continued to work hard, putting our customers’ needs and safety first. I cannot thank them enough for their efforts. Relief is on the horizon as we are aggressively hiring more frontline employees. The future for Allegiant is very bright. We would not be in the favorable position we find ourselves in today without our team members’ hard work and dedication.”
Third Quarter 2021 Results
Third Quarter 2021 Highlights
(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and 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
Capital Expenditures
Sunseeker Resort
| Guidance, subject to revision | Previous | Current | |
| Fourth Quarter 2021 guidance | |||
| System ASMs – year over two-year change(1) | 10.0 to 14.0% | ||
| Scheduled Serviceย ASMs – year over two-year change(1) | 12.0 to 16.0% | ||
| Total operating revenue – year over two-year changeย (1) | ย 0.5% to 4.0% | ||
| Fuel cost per gallon | 2.55 | ||
| Full year 2021 guidance | |||
| Airline CAPEX | |||
| Aircraft, engines and induction costs (millions) | $115ย toย $125 | $115ย toย $125 | |
| Capitalized deferred heavy maintenance (millions) | $50ย toย $60 | $50ย toย $60 | |
| Other airline capital expenditures (millions) | $40ย toย $50 | $60ย toย $70 | |
| Sunseeker Resorts Projectย | |||
| 2021 project spend (millions) | $50ย toย $55 | ||
| Interest expense | $65ย toย $70 | $65ย toย $70 | |
| Recurring principal payments(2) | $170ย toย $180 | $170ย toย $180 | |
| (1) Year over two-year percentage changes compare 2021 to 2019 |
| (2) Excludesย $111 millionย 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 | 23 | 23 | 22 | ||||
| A320 (186 seats) | 39 | 45 | 48 | 51 | ||||
| Total | 100 | 103 | 106 | 108 | ||||
The table above is provided based on the company’s current plans and is subject to change
In other news, the airline announced new routes from Akron/Canton:
You must be logged in to post a comment.