Allegiant today announced twelve new nonstop routes to popular vacation destinations.
Starting in Spring 2024, the new flights will expand the airline’s network options in 22 cities around the country.
The routes, launching in May, are designed to transport vacationers to some of the airline’s most in-demand destinations.
Additionally, Allegiant has added another Florida airport to its robust network: Orlando International Airport (MCO). This is the first new station Allegiant has added since March 2022.
The new routes to Orlando International Airport (MCO) in Florida include:
Asheville, North Carolina via Asheville Regional Airport (AVL) – beginning May 3, 2024 with one-way fares as low as $49.*
Allentown, Pennsylvania via Lehigh Valley International Airport (ABE) – beginning May 16, 2024 with one-way fares as low as $59.*
Knoxville, Tennessee via McGhee Tyson Airport (TYS) – beginning May 17, 2024 with one-way fares as low as $49.*
The new route to Orlando Sanford International Airport (SFB) in Florida includes:
Routes from Sanford (SFB):
Rapid City, South Dakota via Rapid City Regional Airport (RAP) – beginning May 15, 2024with one-way fares as low as $79.*
The new route to St. Pete-Clearwater International Airport (PIE) in Florida includes:
Bismarck, North Dakota via Bismarck Airport (BIS) – beginning May 15, 2024 with one-way fares as low as $79.*
The new route to Los Angeles International Airport (LAX) in California includes:
Billings, Montana via Billings-Logan International Airport (BIL) – beginning May 16, 2024with one-way fares as low as $59.*
The new route to Nashville International Airport (BNA) in Tennessee includes:
Rockford, Illinois via Chicago Rockford International Airport (RFD) – beginning May 16, 2024 with one-way fares as low as $49.*
The new route to Harry Reid International Airport (LAS) in Nevada includes:
Chattanooga, Tennessee via Chattanooga Metropolitan Airport (CHA) – beginning May 16, 2024 with one-way fares as low as $79.*
The new route to Punta Gorda Airport (PGD) in Florida includes:
Washington D.C. via Dulles International Airport (IAD) – beginning May 16, 2024 with one-way fares as low as $59.*
The new route to Newark Liberty International Airport (EWR) in New Jersey includes:
Appleton, Wisconsin via Appleton International Airport (ATW) – beginning May 17, 2024with one-way fares as low as $59.*
The new route to Fort Lauderdale-Hollywood International Airport (FLL) in Florida includes:
Traverse City, Michigan via Cherry Capital Airport (TVC) – beginning May 17, 2024 with one-way fares as low as $69.*
The new route to Austin-Bergstrom International Airport (AUS) in Texas includes:
Eugene, Oregon via Eugene Airport (EUG) – beginning May 31, 2024 with one-way fares as low as $79.*
Allegiant Travel Company (Allegiant Air) has reported the following financial results for the third quarter 2023, as well as comparisons to the prior year:
Consolidated
Three Months Ended September 30,
Percent Change
(unaudited) (in millions, except per share amounts)
2023
2022
YoY
Total operating revenue
$ 565.4
$ 560.3
0.9 %
Total operating expense
583.2
591.2
(1.4) %
Operating loss
(17.9)
(30.9)
42.1 %
Loss before income taxes
(29.9)
(56.2)
46.7 %
Net loss
(25.1)
(46.5)
46.0 %
Diluted loss per share
(1.44)
(2.58)
44.2 %
Sunseeker special charges, net of recoveries (4)
17.4
35.0
(50.3) %
Airline special charges (4)
15.2
0.1
NM
Diluted earnings (loss) per share excluding special charges net of recoveries(1)(5)
0.09
(0.96)
109.4 %
Airline only
Three Months Ended September 30,
Percent Change(2)
(unaudited) (in millions, except per share amounts)
2023
2022
YoY
Airline operating revenue
$ 565.4
$ 560.3
0.9 %
Airline operating expense (1)
559.5
553.5
1.1 %
Airline operating income
5.8
6.8
(14.7) %
Airline loss before income taxes (1)
(7.4)
(17.3)
57.2 %
Airline net loss (1)
(5.6)
(15.2)
63.2 %
Airline special charges (4)
15.2
0.1
NM
Airline net income (loss), excluding special charges (1)(3)(6)
5.9
(15.1)
NM
Airline operating margin, excluding special charges (1)(6)
3.7 %
1.2 %
2.5
Airline diluted earnings (loss) per share, excluding special charges (1)(6)
0.31
(0.84)
136.9 %
Consolidated
Nine Months Ended September 30,
Percent Change
(unaudited) (in millions, except per share amounts)
2023
2022
YoY
Total operating revenue
$ 1,898.9
$ 1,690.3
12.3 %
Total operating expense
1,688.5
1,687.8
— %
Operating income
210.4
2.4
NM
Income (loss) before income taxes
160.8
(60.9)
364.0 %
Net income (loss)
119.6
(50.0)
339.2 %
Diluted earnings (loss) per share
6.43
(2.78)
331.3 %
Sunseeker special charges, net of recoveries(4)
4.6
35.0
NM
Airline special charges (4)
15.2
0.4
NM
Diluted earnings (loss) per share excluding special charges(1)(5)
7.22
(1.16)
722.4 %
Airline only
Nine Months Ended September 30,
Percent Change(2)
(unaudited) (in millions, except per share amounts)
2023
2022
YoY
Airline operating revenue
$ 1,898.8
$ 1,690.3
12.3 %
Airline operating expense(1)
1,668.0
1,645.4
1.4 %
Airline operating income
230.9
44.9
414.3 %
Airline income (loss) before income taxes(1)
181.9
(12.5)
NM
Airline net income (loss)(1)
137.3
(11.0)
1,348.2 %
Airline special charges(4)
15.2
0.4
NM
Airline net income (loss), excluding special charges (1)(3)(6)
148.8
(10.7)
NM
Airline operating margin, excluding special charges(1)(6)
13.0 %
2.7 %
10.3
Airline diluted earnings (loss) per share, excluding special charges (1)(6)
8.00
(0.59)
NM
(1)
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information and for calculation of per share figures.
(2)
Except Airline operating margin, excluding special charges, which is percentage point change.
(3)
Utilizing an airline-only effective tax rate of 24.5% for 2023 and 12.0% for 2022.
(4)
In 2023 and 2022, we recognized as special charges the full amount of estimated property damage to Sunseeker Resortdue to weather and other insured events less the amount of recognized insurance recoveries through the end of the applicable period. In 2023 we also recognized accelerated depreciation as special charges related to our revised fleet plan. We sometimes refer to these amounts as “specials” in this earnings release.
(5)
Adjusted to exclude the impacts of property damage to Sunseeker Resort, net of recoveries, and aircraft accelerated depreciation charges resulting from our revised fleet plan, as described above.
(6)
Adjusted to exclude accelerated depreciation charges related to our revised fleet plan, as described above.
NM
Not meaningful
*
Note that amounts may not recalculate due to rounding
“I am excited to be back in the role of CEO, particularly as the team continues to deliver strong operational and financial performance”, stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “The third quarter marked another quarter of airline operating profits, excluding special charges. Year to date we have delivered industry-leading financial performance yielding an adjusted airline-only operating margin of 13 percent. These accomplishments are directly attributable to Team Allegiant. You are the best in the industry, and I thank you for all your hard work and dedication.
“As we move into the fourth quarter, we are all but done with the completion of Sunseeker Resort. Construction crews are wrapping up the last details, and we expect the property to open on December 15. A main driver behind my endorsement of this property was the quality of the management team. They have navigated the project from its inception nearly five years ago and they are world renowned. My conviction around the success of the property remains strong, and I am thrilled to begin realizing the benefits that Sunseeker Resort will provide.
“One of our primary focuses remains on enhancing our brand. The Allegiant credit card continues to materially impact the bottom line through new cardholder acquisitions and continued increases in cardholder spend. Year to date, we have received $88 million in remuneration from our partner, Bank of America. We expect this number to continue growing. Our investment in the Allegiant Extra product also continues to surpass our expectations. Currently 14 aircraft have been retrofitted with this product and we expect roughly one-third of the fleet to be retrofitted by the end of 2024. These diversified revenue streams, coupled with our unique, low-utilization model will continue to differentiate us from our peers.”
“I am proud of the teams’ efforts to deliver another profitable quarter in what is historically our weakest quarter of the year,” stated Gregory Anderson, president of Allegiant Travel Company. “Despite fuel costs rising nearly 30 percent intra-quarter, the team delivered an airline-only adjusted earnings per share of $0.31 driven by an increase in TRASM of 1.4 percent over the prior year. This increase in unit revenue was extra impressive given the unprecedented strength of off-peak leisure demand during the same period last year. While leisure demand during our peak periods continues to outperform pre-pandemic levels, we experienced a return of normalization during the off-peak periods. Our ability to match capacity with leisure demand trends was nicely put on display as we reduced capacity by 45 percent during the off-peak period of September versus the peak season of July.
“We are continuing to strengthen our foundation by reinvesting back into the airline’s future. During the third quarter, we successfully launched SAP and Navitaire – technology enhancements that will support our planned growth for years to come. Furthermore, we have readied ourselves for the delivery of our first Boeing 737 MAX aircraft in early 2024. This aircraft will strengthen our flexibility by providing more diversity in fleet composition further enabling us to deploy the right gauge aircraft in the right markets at the right times.
“It’s an exciting time to be part of Team Allegiant. Several of our major initiatives will take shape in the coming months. These initiatives, coupled with our differentiated model, will help drive the long-term success of the company. This could not be achieved without the dedication and efforts of our team members throughout the organization. You are inspiring, and I extend my sincerest thanks.”
Third Quarter 2023 Results and Highlights
Income before income tax, excluding specials(1)(3)(4)of $2.7M, yielding a pre-tax margin of 0.5%
Airline-only income before income tax, excluding specials(1)(5) of $7.9M, yielding a pre-tax margin of 1.4%
Operating income, excluding specials(1)(3)(4) of $14.7M, yielding an operating margin of 2.6%
Airline-only operating income, excluding specials(1)(5) of $21.0M, yielding an airline-only operating margin of 3.7%
Consolidated EBITDA, excluding specials(1)(3)(4) of $70.3M, yielding an EBITDA margin of 12.4%
Airline-only EBITDA, excluding specials(1)(5) of $76.6M a 13.5% margin
Total operating revenue of $565.4M, up 0.9% over the prior year and the highest third-quarter total in company history
Total fixed fee contracts revenue of $17.7M, up 11.7% year-over-year
TRASM(2) of 12.78 ¢, up 1.4% year-over-year on scheduled service capacity decrease of 0.8% year-over-year
When compared to 2019, we are the only US carrier, among carriers having reported third quarter results, to be up more than 10 percent in both system available seat miles (ASMs) and TRASM(2) during the quarter as well as year to date
Total average fare of $129.23, up 2.6% year-over-year
Total average ancillary fare of $71.80, up 11.0% year-over-year
$88 million in year-to-date remuneration received from Bank of America, up 26% from the prior year
Announced a collaboration with global entertainment icon Carrie Underwood in support of the company’s Allways Rewards Visa® card and loyalty program
Allways Rewards program enrolled 478K new members during the quarter, bringing total members to 16.7M
Airline-only operating CASM, excluding fuel and special charges(3), of 8.49 ¢, up 9.5% year-over-year
Includes $18.7M in incremental cost related to accrual of pilot retention bonuses
Excludes $15.2M in accelerated depreciation related to the early retirement of 21 airframes to be retired between 2023 through 2025
Year to date 2023 Results
Income before income tax, excluding specials(1)(3)(4)of $180.6M yielding a pre-tax margin of 9.5%
Operating income, excluding specials(1)(3)(4) of $230.2M, yielding an operating margin of 12.1%
Consolidated EBITDA, excluding specials(1)(3)(4) of $394.4M, yielding an EBITDA margin of 20.8%
(1)
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information and for calculation of per share figures.
(2)
TRASM represents total passenger revenue per scheduled service available seat mile.
(3)
In 2023 and 2022, we recognized as special charges the full amount of estimated property damage to Sunseeker Resortdue to weather and other insured events less the amount of recognized insurance recoveries through the end of the applicable period. In 2023 we also recognized accelerated depreciation as special charges related to our revised fleet plan.
(4)
Adjusted to exclude the impacts of property damage to Sunseeker Resort, net of recoveries, and aircraft accelerated depreciation charges resulting from our revised fleet plan, as described above.
(5)
Adjusted to exclude accelerated depreciation charges related to our revised fleet plan, as described above.
Balance Sheet, Cash and Liquidity
Total available liquidity at September 30, 2023 was $1.3B, which included $1.0B in cash and investments, and $279.9M in undrawn revolving credit facilities and PDP facilities
$24.5M in cash from operations during the third quarter 2023
Total debt at September 30, 2023 was $2.3B
Net debt at September 30, 2023 was $1.3B
Secured $412M in financing commitments during the quarter of which $196M was used to refinance seven Airbus A320 aircraft and $216M is committed to finance four Boeing 737 MAX aircraft to be delivered in 2024
Debt principal payments of $143.5M during the third quarter
Includes $113M prepayment of aircraft-secured facilities during the quarter
Year-to-date principal payments of $293M, including a total of $174M in prepayments
Issued notice to call $150M, 8.5% senior secured notes with the balance to be paid during the fourth quarter
Returned $11M in dividends during the third quarter
Air traffic liability at September 30, 2023 was $395.8M
Airline Capital Expenditures
Third quarter capital expenditures of $157.6M, which included $112.1M for aircraft purchases and inductions, pre-delivery deposits, and other related costs, and $45.5M in other airline capital expenditures
Third quarter deferred heavy maintenance spend was $13.8M
Sunseeker Resort Charlotte Harbor
Total capital expenditures(1) as of September 30, 2023 were $653M
Third quarter capital expenditures(1) were $71.6M
Recorded a special charge, net of insurance recoveries, of $17.4M during the third quarter 2023 related to estimated property damages at Sunseeker Resort resulting from various weather events, including Hurricane Idalia
(1)
Total capital expenditures is inclusive of Sunseeker Resort, Aileron Golf Club, remediation work related to weather and insurance events, accrued expenditures not yet paid and pre-COVID expenditures included as part of the COVID impairment. Capitalized interest, operating expenses, special charges related to COVID, and estimated losses related to insurance events have been excluded from these figures.
Guidance, subject to revision
Full-year 2023 guidance
Previous
Current
System ASMs – year over year change
0 to 3%
~1.8%
Scheduled service ASMs – year over year change
0 to 3%
~1.5%
Fuel cost per gallon
$ 2.90
$ 3.12
Available seat miles (ASMs)/gallon
~84
~84
Depreciation expense (millions)
$230 to $235
$225 to $230
Interest expense (millions)
$145 to $150
$145 to $150
Capitalized interest (1) (millions)
($30) to ($35)
($40) to ($45)
Interest income (millions)
$40 to $45
$40 to $45
Earnings per share – airline only, excluding specials(2)
$10.50 – $13.00
$7.75 to $8.50
Loss per share – Sunseeker, excluding specials (3)
~($1.25)
~($1.75)
Airline CAPEX
Aircraft, engines, induction costs, and pre-delivery deposits (millions)(4)
$490 to $500
$430 to $440
Capitalized deferred heavy maintenance (millions)
$60 to $70
$60 to $70
Other airline capital expenditures (millions)
$140 to $145
$150 to $155
Recurring principal payments (millions)
$210 to $215
$150 to $155
Sunseeker Resort Charlotte Harbor Project (millions)
Total projected capital expenditures (5)
$695
$720
Capital expenditures funded or expected to be funded by Allegiant
$370
Project debt incurred through September 30, 2023
$350
(1)
Includes capitalized interest related to Sunseeker as well as on pre-delivery deposits on new aircraft.
(2)
Earnings per share calculation is airline only. It includes accruals for increases in pilot and flight attendant compensation beginning in May. Actual results will differ based on economic terms agreed upon and the timing of the collective bargaining agreements. These differences may be material.
(3)
Excludes recoveries that may be received related to business interruption insurance claim.
(4)
Excludes capitalized interest related to pre-delivery deposits on new aircraft.
(5)
Total projected capital expenditures does not reflect the impairment or special charges related to COVID or insurance claims. Excludes amounts to remediate physical damage to the property resulting from Hurricane Ian, or other subsequent insurance events.
Aircraft Fleet Plan by End of Period
Aircraft – (seats per AC)
1Q23
2Q23
3Q23
YE23
A319 (156 seats)
35
35
35
35
A320 (177 seats)
19
19
19
19
A320 (180-186 seats)
70
72
73
73
Total
124
126
127
127
The table above is provided based on the company’s current plans and is subject to change. The numbers exclude aircraft expected to be delivered before the end of 2023 for revenue service beginning in 2024.
Top Copyright Photo: Allegiant Air Airbus A319-111 N322NV (msn 2528) SNA (Michael B. Ing). Image: 961849.
Allegiant Travel Company (NASDAQ: ALGT) is thrilled to announce a collaboration with eight-time GRAMMY® Award winner and three-time ACM Entertainer of the Year Carrie Underwood, in support of the company’s Allways Rewards Visa® card and loyalty program.
The collaboration focuses on a series of commercials that highlight Carrie’s small-town roots, staying connected with the people, places and experiences that matter most while illustrating how the Allways Rewards Visa® card helps cardholders “Live their best Nonstop Life®”.
Global entertainment icon Carrie Underwood will partner with Allegiant in support of the company’s Allways Rewards Visa® credit card and loyalty program. (PRNewsfoto/Allegiant Travel Company)
In addition to their small-town roots, Carrie and Allegiant have something else in common: a partnership with Make-A-Wish®.
Since 2012, Allegiant has been helping the national nonprofit grant wishes for kids across the country by providing them with airfare to their wish destinations. Carrie has been involved with the organization for more than 15 years, granting wishes since the beginning of her recording career. Most recently, she arranged for a donation of $1 from each ticket sold for her ongoing REFLECTION: The Las Vegas Residency, which debuted in 2021 and has recently been extended into 2024, to be contributed to Make-A-Wish.
“I really responded to Allegiant’s mission to make travel accessible and affordable for people who may not live near a big city airport, helping them to live their own best ‘nonstop’ lives,” says Underwood. “I also appreciate the company’s history of giving back, which is important to me in everything I do.”
Allegiant will officially kick off Underwood’s partnership through a national advertising campaign, with the first national spot airing during Thursday Night Football on Amazon Prime when the Buffalo Bills take on the Tampa Bay Buccaneers Oct. 26.
Allegiant Travel Company (Allegiant Air) has announced it will relocate its Nashville International Airport’s® (BNA®) operations from Concourse B to the brand new Satellite Concourse, setting the stage for the airline’s next phase of growth at BNA.
The Las Vegas-based airline will begin operating at the C Gate Satellite Concourse Saturday, Oct. 21. Allegiant passengers will now board and deplane their aircraft in a new state-of-the-art facility designed to enhance their overall travel experience.
The move will allow the leisure travel-focused carrier to offer a more robust schedule of flights that includes opportunities for future expansion at BNA. Allegiant passengers will also be able to enjoy the amenities the new facility offers, such as expanded seating areas and dining and vendor options, while waiting for their flights.
Since beginning service in 2018, Allegiant has flown more than 1.9 million passengers through BNA.
In February 2020, Allegiant established BNA as a three-aircraft base of operations, creating 66 new high-wage jobs in the process and investing $50 million in infrastructure and equipment. Nashville, a booming city known for its rich cultural history, iconic music and world-class culinary scenes, has quickly become one of the most popular destinations in the country. Allegiant’s service has proven to be so popular that the airline added a fourth aircraft and additional crews and team members to better serve its BNA customers. Currently, the airline employs 111 team members at BNA.
Allegiant now serves 31 cities from BNA throughout the year. Of those cities, 19 routes are unique to Allegiant – meaning no other airlines offer nonstop service on those routes. In July 2023,
Allegiant announced it will add new service to Fort Lauderdale/Hollywood, Fla., beginning November 16.
Allegiant Travel Company (Allegiant Air) has announced financing commitments for seven Airbus A320 and four Boeing 737 MAX aircraft from BNP Paribas, Europe’s leading bank, and Jackson Square Aviation (JSA), a leading global commercial aircraft lessor.
The innovative $412M deal combines banking and lessor capital to secure Allegiant’s aircraft financing needs into the second quarter 2024, while providing the airline with healthy liquidity at an attractive cost in today’s market.
Allegiant has drawn down $196 million on September 29, and the remainder will be drawn commensurate with its initial 737 MAX deliveries.
Allegiant currently operates an all-Airbus fleet comprised of 127 Airbus A319s and A320s.
Allegiant has agreed to purchase up to 130 Boeing 737-7 and 737-8-200 models in a multi-year deal, Boeing’s first with an ultra-low-cost carrier in the United States. The new 737 MAX additions will afford the airline flexibility, environmental benefits, and new customer features.
Allegiant Travel Company (Allegiant Air) has announced that John Redmond has resigned as chief executive officer and as a member of the Board of Directors effective immediately. Maurice J. Gallagher, former CEO, current executive chairman and one of the Company’s largest stockholders, will resume the CEO role.
“I am grateful to the board for giving me the opportunity to be a part of this incredible organization,” said Redmond. “I’m particularly proud of the Sunseeker team we’ve put in place, and I know they will carry the project over the finish line and establish the hotel as a premier destination in Southwest Florida.”
Gallagher, an innovator in the aviation industry, will also maintain his role as chairman of Allegiant’s board.
“We have built a management team headed by Greg Anderson, President, and many other talented and dedicated executives that is among the best in the industry,” Gallagher said. “This team is well-positioned to lead the Company as we continue to set the standard for the U.S. leisure travel sector.”
In addition to Allegiant’s air operations, the company has expanded its service lines into other areas of the leisure and hospitality industry, including Sunseeker Resort at Charlotte Harbor, Florida, slated to open in Q4 2023.
“We’re excited about completing construction and opening Sunseeker Resort,” continued Gallagher. “Industry veteran Micah Richins and his experienced team will continue to lead Sunseeker and we look forward to a successful opening and operation.”
Richins has an extensive hospitality background. Before joining Sunseeker, a subsidiary of Allegiant Travel Company, Richins operated some of the world’s largest and most successful integrated resorts, including MGM Grand, New York-New York and the Luxor. He has managed and overseen every aspect of hotel management, implementing corporate strategies for revenue management, entertainment, and customer service. Richins and his executive team have more than 75 years of experience, combined, in the hospitality industry.
Anderson was appointed president of Allegiant in 2022. Since joining the company in 2010, he has held several leadership roles, including senior vice president – treasury, principal accounting officer, and chief financial officer. Prior to joining Allegiant, he worked in corporate accounting for U.S. Airways.
Gallagher has spent more than four decades developing and building successful airline business models, culminating with Allegiant. When Gallagher took control of Allegiant in 2001, it had one airplane and was just emerging from bankruptcy. Gallagher has grown the Company into one of the most profitable airlines in the world with more than 120 aircraft, operating more than 550 routes across more than 120 cities in the United States.
JetBlue Airways Corporation and Allegiant today announced that the airlines have entered into a definitive agreement under which JetBlue will transfer to Allegiant all of the holdings of Spirit Airlines, Inc. at Boston Logan International Airport and Newark Liberty International Airport.
JetBlue will also turn over up to five gates and related ground facilities at Fort Lauderdale-Hollywood International Airport to promote ultra-low-cost carrier growth.
On June 1, JetBlue announced that it will divest all of Spirit’s holdings at New York’s LaGuardia Airport to Frontier. Together, these divestitures are part of JetBlue’s voluntary upfront commitments included in the merger agreement with Spirit and are conditioned on the closing of the JetBlue-Spirit transaction.
The divestitures are subject to approval by the local airport authorities as well as FAA/DOT, and are conditioned upon and will occur after the closing of JetBlue’s planned combination with Spirit. JetBlue expects to close the transaction with Spirit in the first half of 2024.
Under the terms of the agreement, JetBlue has agreed to transfer to Allegiant all of Spirit’s holdings in Boston and Newark, principally consisting of two gates in Boston, two gates in Newark, and 43 takeoff and landing authorizations in Newark. In addition, JetBlue has agreed to relinquish up to five gates at Fort Lauderdale to the Broward County Aviation Department and will work closely with the Department to facilitate Allegiant’s ULCC growth at FLL using these gates.
Allegiant Air has announced that the company and the International Brotherhood of Teamsters (IBT), representing Allegiant’s maintenance technicians and related employees, have ratified a new contract agreement on a two-year extension to the union’s initial collective bargaining agreement. The employee group includes line and heavy maintenance technicians as well as stores employees and some administrative maintenance staff.
The tentative agreement was ratified by the Allegiant maintenance technicians and related workforce with a 75.5 percent approval vote. Allegiant currently employs 683 maintenance technician and related employees.
The process of negotiating the new collective bargaining agreement for Allegiant maintenance technician and related employees was swift and was reached more than 3 years before the current contract became amendable. The ratified agreement provides for significant increases in rates and a two-year extension to the amenable date of the current bargaining agreement, bringing the new amendable date to October 31, 2028.
Allegiant Air on January 19 celebrated its 2,000th wish flight as a Make-A-Wish travel partner, flying Annabelle from Reno, NV, to Las Vegas, where she will fulfill her wish of hitting the ice as a professional hockey player.
Annabelle, 8, who battles cystic fibrosis, was given a superstar welcome when she landed at Harry Reid International Airport. There, she was met by dozens of Allegiant and Make-A-Wish staff members who cheered her on as she and her family made their way through the airport. Allegiant Chief Marketing Officer Scott DeAngelo presented her with a gift basket filled with Vegas Golden Knights gear, including a jersey signed by Mark Stone, a hockey stick, and other goodies.
Allegiant became a national partner with Make-A-Wish in 2012. Since then, the company has donated more than $7 million to the organization through in-kind flights and sponsorships. While wish fulfillments often involve amusement parks and beach destinations, Allegiant has flown several wish kids to Las Vegas over the years. In 2018, the airline’s 1000th wish kid – “Cuatro” — flew from his home in Texas to Las Vegas to attend the Monster Jam World Finals XIX.
Allegiant’s partnership with Make-A-Wish extends beyond wish flights. In 2017, the airline donated office space at its Las Vegas headquarters to Make-A-Wish Southern Nevada. This allows the nonprofit to reduce its administrative costs, dedicating those funds to wish fulfillment.
Allegiant also donates $1 from every Wingz Snack Packs sold in flight to Make-A-Wish and is the presenting sponsor of the annual Walk for Wishes event in Las Vegas.
Top Copyright Photo: Allegiant Air Airbus A320-214 N218NV (msn 1229) (Make-A-Wish) FLL (Bruce Drum). Image: 104921.
Allegiant Travel Company reported on its third quarter:
Allegiant Travel Company (Allegiant Air) reported the following financial results for the third quarter 2022, as well as comparisons to prior years:
Consolidated
Three Months Ended September 30,
Percent Change
(unaudited) (in millions, except per share amounts)
2022
2021
2019
YoY
Yo3Y
Total operating revenue
$ 560.3
$ 459.5
$ 436.5
22.0 %
28.4 %
Total operating expense
591.2
393.2
364.4
50.4
62.3
Operating income (loss)
(30.9)
66.3
72.1
(146.6)
(142.9)
Income (loss) before income taxes
(56.2)
50.2
56.9
(211.8)
(198.7)
Net income (loss)
(46.5)
39.3
43.9
(218.4)
(205.8)
Diluted earnings (loss) per share
(2.58)
2.18
2.70
(218.3)
(195.6)
Hurricane Ian special charge
35.0
—
—
NM
NM
Diluted earnings (loss) per share excluding Hurricane
Ian special charge (2) (3)
$ (0.97)
$ 2.18
$ 2.70
(144.5)
(135.9)
Nine Months Ended September 30,
Percent Change
(unaudited) (in millions, except per share amounts)
2022
2021
2019
YoY
Yo3Y
Total operating revenue
$ 1,690.3
$ 1,211.0
$ 1,379.9
39.6 %
22.5 %
Total operating expense
1,687.8
981.3
1,108.6
72.0
52.2
Operating income
2.4
229.7
271.3
(98.9)
(99.1)
Income (loss) before income taxes
(60.9)
181.5
222.6
(133.6)
(127.4)
Net income (loss)
(50.0)
141.2
171.6
(135.4)
(129.1)
Diluted earnings (loss) per share
(2.78)
8.18
10.54
(134.0)
(126.4)
Hurricane Ian special charge
35.0
—
—
NM
NM
Diluted earnings (loss) per share excluding Hurricane
Ian special charge (2) (3)
$ (1.18)
$ 8.18
$ 10.54
(114.4)
(111.2)
(1)
Recognition bonus awarded despite not meeting internal profit-sharing targets
(2)
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information
(3)
Adjusted to exclude estimated loss from property damage to Sunseeker Resort related to Hurricane Ian. The amount of the loss will be offset in future periods by amounts to be recovered under the company’s insurance policies
“I am proud of the team for the strong operational performance delivered in the third quarter,” stated John Redmond, CEO of Allegiant Travel Company. “We completed the quarter with a controllable completion of 99.4 percent, a significant improvement from the first half of the year. This was achieved on 17.0 percent more scheduled capacity than 2019. In addition, we saw another sequential improvement in load factors, with loads at nearly 89 percent for the quarter. The demand environment remained strong throughout the quarter, resulting in a total operating revenue increase of more than 28 percent as compared with 2019.
“Demand continues to outpace 2019. Forward bookings into the upcoming holiday season are tracking at higher loads and significantly higher yields than at this point in 2019. A new trend we are beginning to observe post-COVID is the increase in passengers combining business and leisure trips. A recent survey showed that nearly 15 percent of respondents were traveling for both business and leisure. Much of this travel happened in the traditional off-peak period of September, resulting in September TRASM1 20 percent higher than September of 2019 on 30 percent more capacity and a load factor improvement of 4.7 percentage points. As we move through the remainder of the year, this is a trend we will watch closely.
“Looking ahead to the fourth quarter, we tapered capacity a bit as a result of the impacts from Hurricane Ian. We expect scheduled capacity to increase roughly 15 percent year over three-year. Given the strong demand environment coupled with improvements in operations, we expect to expand margins, delivering a profitable fourth quarter. From a balance sheet perspective, we have total liquidity of roughly $1.2 billion. During the quarter, the team executed on the issuance of $550 million in senior secured notes, utilizing the proceeds to repay the Term Loan B. Additionally, we repaid the emergency relief loan received under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Furthermore, our board of directors voted to remove the suspension on existing share repurchase authority with $54 million in authority remaining.
“In closing, I would like to thank our team members for all their hard work this quarter, particularly in regards to Hurricane Ian. The team swiftly came together to reposition aircraft, secure the operation, re-accommodate customers, and secure the property at Sunseeker Resort. As a result, we safely navigated the event and returned operations to normal as quickly as possible. Although we do expect a headwind to revenue resulting from Hurricane Ian during the fourth quarter, the impact was minimized due to the efforts of our team.”
(1)
Total passenger revenue per available seat mile
Third Quarter 2022 Results
Loss before income tax of $56.2 million
Includes a $35 million special charge related to the estimated loss from property damage at Sunseeker Resort caused by Hurricane Ian – insurance recoveries will offset the special charge in subsequent quarters when recoveries can be estimated and are approved for payment
Loss before income tax(1)(2)(3) of $11.9 million, excluding 2022 employee recognition bonus and Hurricane Ian special charge
Operating income, excluding 2022 recognition bonus and Hurricane Ian special charge (2),of $13.4 million, yielding an operating margin of 2.4 percent
Consolidated EBITDA, excluding recognition bonus and Hurricane Ian special charge (2), of $63.2 million, yielding an EBITDA margin of 11.3 percent
Total operating revenue was $560.3 million, up 28.4 percent year over three-year
Total system capacity up 14.5 percent year over three-year
Load factor of 88.5 percent, a 2.5 percentage point increase from the third quarter of 2019, and the best third quarter load factor since 2014
September load factor of 87.1 percent, the highest September since 2011
TRASM up 13.5 percent for the quarter versus 2019, despite a 17.0 percent increase in scheduled service capacity
Total average fare of $125.95, up 15.5 percent from the third quarter of 2019
Total average ancillary of $64.69, up 17.9 percent from 2019, driven predominantly by strength in bundled ancillary and the Allways Allegiant World Mastercard
Acquired 38 thousand new Allways Allegiant World Mastercard holders during the quarter, the strongest third quarter acquisition since the program’s inception
Operating CASM, excluding fuel, recognition bonus, and Hurricane Ian special charge (1) (3), of 7.61 cents, up 13.9 percent when compared with the third quarter of 2019
Added 1.7 million members to the Allways Rewards program during its first year
Allegiant World Mastercard® and Allegiant Allways Rewards® were voted as the No. 1 Best Airline Credit Card and Best Frequent Flyer Program in USA Today’s 10 Best 2022 Loyalty/Rewards Readers’ Choice Awards
In October, named to Newsweek’s Top 100 Most Loved Workplaces® list for the second consecutive year
Donated $100,000 to the American Red Cross for critical disaster relief to communities in the aftermath of Hurricane Ian
(1)
Recognition bonus awarded despite not meeting internal profit-sharing targets
(2)
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information
(3)
Adjusted to exclude estimated loss from property damage to Sunseeker Resort related to Hurricane Ian. The amount of the loss will be offset in future periods by amounts to be recovered under the company’s insurance policies
Balance Sheet, Cash and Liquidity
Total available liquidity at September 30, 2022 of $1.2 billion, which includes $1.0 billion in cash and investments, and $225 million in undrawn revolving credit facilities
Board of directors removed suspension on existing share repurchase authority with $54 million in authority remaining
$221.8 million in cash from operations year-to-date
Total debt at September 30, 2022 was $2.0 billion
Net debt at September 30, 2022 was $990.7 million
Secured financing commitments for $200 million to support 737 MAX pre-delivery deposits – facility is currently undrawn
Issued $550 million 7.25% senior secured notes due in 2027, with proceeds used to prepay $533 million Term Loan B, previously due February 2024
Other Debt principal payments of $63 million during the quarter
Repaid $25 million dollar emergency relief loan received under the Coronavirus Aid, Relief and Economic Security (CARES) Act
Scheduled debt principal payments of $38 million
Air traffic liability at September 30, 2022 was $429.9 million
Balance related to future scheduled flights is $367.8 million
Balance related to travel vouchers issued for future use is $62.1 million
Airline Capital Expenditures
Third quarter capital expenditures of $84 million, which includes $46 million for aircraft pre-delivery deposits, aircraft induction costs, and other related costs, and $38 million in other airline capital expenditures
Third quarter deferred heavy maintenance spend was $12.3 million
Full-year 2022 capital expenditures expected to be roughly $325 million, which includes $195 million for aircraft purchases and inductions, pre-delivery deposits, and other related costs, and $130 million in other airline capital expenditures
Full-year 2022 deferred heavy maintenance spend expected to be $55 million, a slight reduction from initial expectations
Sunseeker Resort Charlotte Harbor
Total project spend as of September 30, 2022 was $437 million with $249 million funded by debt and the remaining $188 million funded by Allegiant
Third quarter capital expenditures were $88 million relating to the Sunseeker Resort Charlotte Harbor and $3 million related to other Sunseeker capital expenditures
Recorded a $35 million special charge during the quarter related to estimated property damages at Sunseeker Resort resulting from Hurricane Ian, most of which was attributable to subcontractor cranes collapsing onto the buildings
Insurance recoveries to offset this charge will be recorded in subsequent quarters when recoveries can be estimated and are approved for payment
Guidance, subject to revision
Current
Fourth Quarter 2022 guidance
System ASMs – year over three-year change(1)
~13.5%
Scheduled Service ASMs – year over three-year change(1)
~15%
Total operating revenue – year over three-year change(1)
26.5% to 28.5%
Operating CASM, excluding fuel – year over three-year change(1) (4)
13% to 15%
Fuel cost per gallon
$3.75
Full year 2022 guidance
Airline CAPEX
Aircraft, engines, induction costs, and pre-delivery deposits (millions)
$190 to $200
Capitalized deferred heavy maintenance (millions)
$50 to $60
Other airline capital expenditures (millions)
$125 to $135
Interest expense (millions) (2) (5)
$100 to $105
Recurring principal payments (millions)
$150 to $160
Sunseeker Resort Charlotte Harbor Project (millions)
Total projected project spend(3)
$618
Allegiant contributions through September 30, 2022
$188
Allegiant contributions remaining to be spent
$80
Project spend funded by debt through September 30, 2022
$249
Remaining project spend expected to be funded by debt
$101
(1)
Year over three-year percentage changes compare 2022 to 2019
(2)
Includes capitalized interest related to pre-delivery deposits on new aircraft as well as the construction of Sunseeker Resort Charlotte Harbor
(3)
Amounts do not contemplate physical damage and remediation to the property resulting from Hurricane Ian
(4)
Excludes any hurricane damage and insurance recoveries
(5)
Interest expense includes loss on debt extinguishment of $7 million
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
21
A320 (186 seats)
55
58
59
67
Total
112
115
116
123
The table above is provided based on the company’s current plans and is subject to change
Top Copyright Photo: Allegiant Air Airbus A320-214 N288NV (msn 4537) AZA (Jarrod Wilkening). Image: 957850.
Aircraft Fleet Plan by End of Period