Category Archives: Allegiant Travel Company

Allegiant celebrates flying 2,000 wish kids via Make-A-Wish

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 Air aircraft photo gallery:

 

Allegiant reports a net loss of $46.5 million in the third quarter

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.

Allegiant Air aircraft photo gallery:

Allegiant is hit hard in its Florida destinations including Punta Gorda, donates $100,000 to the American Red Cross

Allegiant made this announcement:

Allegiant Travel Company (Allegiant Air) has announced a $100,000 donation to the American Red Cross as the nonprofit provides critical disaster relief to communities in the aftermath of Hurricane Ian.

In addition, the Las Vegas-based company activated an online giving platform to empower anyone wishing to make an immediate donation to the American Red Cross. To donate, please visit HERE.

The nonprofit has more than 500 volunteers in the hardest-hit areas in Florida, providing lifesaving assistance including shelter, food, water and other relief supplies for more than 60,000 victims. Hundreds of evacuation centers are open, providing shelter to more than 10,000 people displaced by the hurricane.

“Our hearts are with everyone grappling with the destruction carved out by Hurricane Ian,” said John Redmond, Allegiant’s CEO. “As we confront difficult days ahead, we cannot forget the incredible resiliency that has been demonstrated by the people of Florida. Time and time again, we have seen first responders, volunteers, Allegiant team members and entire communities step up to help. With this donation, we hope to make a difference to Florida residents impacted by this storm.”

Sunseeker resort in Charlotte Harbor, FL

In addition to serving 10 airports throughout Florida, Allegiant is building Sunseeker Resort in Charlotte Harbor, near Punta Gorda Airport. The community was among those hardest hit by the storm. Other Allegiant communities impacted by the storm include St. Petersburg-Clearwater, Orlando-Sanford, Sarasota/Bradenton, Key West and Jacksonville.

Damage to the Sunseeker Resort under construction:

https://www.businessobserverfl.com/article/towering-cranes-fall-on-port-charlotte-resort-construction-site#:~:text=Sunseeker%20Resort%20officials%20are%20assessing%20damage%20after%20Hurricane,Charlotte%20Harbor%20were%20knocked%20down%20during%20Hurricane%20Ian.

Statement of Sunseeker Resort:

“The Red Cross is thankful for Allegiant’s generous donation, which enables us to provide shelter, food and comfort to families and communities in the aftermath of Hurricane Ian,” said Elizabeth Penniman, vice president of communications at the American Red Cross.

The greatest needs during these times are funds, blood donations and volunteers, according to the American Red Cross. However, monetary donations are the most efficient way to make a difference immediately. For that reason, Allegiant and the American Red Cross activated a “microsite,” an online platform for disaster relief donations. To donate, please visit HERE. Through this initiative, Allegiant has previously raised hundreds of thousands of dollars after hurricanes wreaked havoc on communities where Allegiant employees live and work.  

The American Red Cross anticipates a great need for additional volunteers in the next 30 to 60 days. For more information, please visit this website. Additionally, people are asked to participate in community blood drives during this time of urgent need for donors. Click here to schedule an appointment to give blood.

Anyone affected by Hurricane Ian needing a safe place to go can find information for open Red Cross shelters on redcross.org, the Red Cross emergency app or by calling 1-800-RED CROSS(800-733-2767).

Allegiant Air aircraft photo gallery:

Allegiant announces seven new routes

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

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

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

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

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

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

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

Allegiant Air aircraft photo gallery:

Allegiant reports a loss in the first quarter

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

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

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

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

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

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

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

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

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

 

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

Aircraft Fleet Plan by End of Period

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

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

Allegiant Air aircraft photo gallery:

Allegiant to establish a new base at Provo, UT

2021 "Ron's Gone Wrong" promotional livery

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

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

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

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

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

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

Allegiant aircraft slide show:

Allegiant aircraft photo gallery:

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

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

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

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

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

 

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

 

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

 

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

 

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

*Total system includes scheduled service and fixed fee contract.  System revenue passenger miles and system load factor are not useful statistics as system available seat miles include both ASMs flown by fixed fee flying as well as non-revenue producing repositioning flights used for operational needs.  Fixed fee flying is better measured through dollar contribution versus operational statistics.

Preliminary Financial Results
$ per gallon
February 2022 estimated average fuel cost per gallon – system $2.92

Allegiant reports its fourth quarter will be its third consecutive quarter of profitability since the onset of the pandemic

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,” stated 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 roughly $496 million 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,” stated Gregory Anderson, executive vice president and chief financial officer. “Despite operational challenges around holiday peak travel, we expect an adjusted1 EBITDA margin for the fourth quarter of roughly 19 percent. This margin includes nearly $23 million 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 – 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%
4th Quarter 2021 4th 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%
4th Quarter 2021 4th 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 – 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%
4th Quarter 2021 4th 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%
4th Quarter 2021 4th 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.  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
December 2021 estimated average fuel cost per gallon – system $2.37
$ per gallon
4th quarter 2021 estimated average fuel cost per gallon – system $2.48
$ per gallon
Full year 2021 estimated average fuel cost per gallon – system $2.15

Allegiant reports a net profit of $66.3 million in the third quarter, new routes from Akron/Canton

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 Ended 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 Ended 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 Ended September 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 428.0 $ 278.4 $ 364.4 53.7 % 17.5 %
Adjusted operating income (loss) (1) (2) 31.5 (77.4) 72.1 140.7 (56.3)
Adjusted income (loss) before income taxes (1) (2) 15.4 (89.0) 56.9 117.3 (72.9)
Adjusted net income (loss) (1) (2) 11.9 (68.5) 43.9 117.4 (72.9)
Adjusted diluted earnings (loss) per share (1) (2) $ 0.66 $ (4.28) $ 2.70 115.4 (75.6)

 

Nine Months Ended September 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 1,144.7 $ 872.3 $ 1,108.6 31.2 % 3.3 %
Adjusted operating income (loss) (1) (2) 66.3 (128.8) 271.3 151.5 (75.6)
Adjusted income (loss) before income taxes (1) (2) 18.1 (166.8) 222.6 110.9 (91.9)
Adjusted net income (loss) (1) (2) 14.0 (128.4) 171.6 110.9 (91.8)
Adjusted diluted earnings (loss) per share (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 of $2.18, our second consecutive quarter of profitability since the onset of the pandemic,” stated Maurice J. Gallagher, Jr., chairman and CEO of 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, was 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 of $1.1 billion and net debt of roughly $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 on Sunseeker Resorts with an anticipated opening date during the first quarter of 2023 as well as closed on $350 million 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

  • GAAP diluted earnings per share of $2.18
    • Adjusted diluted earnings per share(1) (2) (3) of $0.66
  • Consolidated EBITDA(2) (3) of $112.5 million yielding an EBITDA margin of 24.5 percent
    • Adjusted EBITDA(1) (2) (3) of $77.7 million yielding an adjusted EBITDA margin of 16.9 percent
  • Total operating revenue was $459.5 million, up 5.3 percent when compared with the third quarter of 2019
    • One of the first domestic carriers to achieve year over two-year revenue increases since the onset of the pandemic
    • Yield remained strong throughout the quarter down only 5.9 percent year over two-year on scheduled service capacity increases of 17.0 percent
  • Total average fare of $116.91, up 7.2 percent year over two-year
    • Total ancillary average fare of $64.85, up 18.2 percent from 2019 driven primarily by air ancillary bundles, website redesign, rental car rate strength, and increased cobrand activity
  • Continued sequential improvement in load factor, which came in at 76.6 percent, up 6 percentage points from the second quarter
    • Third quarter peak period load factor exceeded 80 percent
    • TRASM of 10.40 cents, down 6.3 percent year over two-year on scheduled service capacity increases of 17.0 percent
  • Adjusted operating CASM, excluding fuel of 6.97 cents, up 4.3 percent when compared with the third quarter of 2019, driven primarily by costs related to increased irregular operations

Third Quarter 2021 Highlights

  • Expanded the network by adding 25 new routes with one new city, Minneapolis-St. Paul, and two new bases, Appleton and Flint, bringing total routes served to 598 and 132 cities
    • List of potential incremental routes to add to the network continues to exceed 1,000
  • Allegiant World Mastercard voted USA Today Readers’ Choice Best Airline Co-Branded Credit Card for the third consecutive year
    • Full-year 2021 total revenue related to the cobrand program on track to outpace 2019
    • Two months during the third quarter ranked in the top five highest cardholder acquisition months since the inception of the program in 2016
    • Completed the quarter with nearly 275 thousand active cardholders, up 49 percent from the third quarter of 2019
    • Average annual spend for cardholders is more than twice that of non-cardholders
  • Launched the Allways Rewards program during the quarter with over 13 million active members
  • Partnered with Women In Aviation Las Vegas to sponsor Girls in Aviation Day at McCarran International Airport
  • Resumed providing in-kind travel for Make-A-Wish kids and their families during the third quarter

(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

  • Total cash and investments at September 30, 2021 were $1.1 billion
  • Received $21 million federal tax refund related to 2020 net operating losses
    • Received $116 million in federal tax refunds in October related to 2020 net operating losses
  • Debt principal payments of $40 million during the quarter
  • $40 million used for cash capital expenditures
  • Third quarter interest expense of $17 million, down 15 percent year over two-year
  • Air traffic liability at September 30, 2021 was $352 million
    • Balance related to future scheduled flights is $246 million
    • Balance related to travel vouchers issued for future use is $106 million, a 19 percent reduction from June 30, 2021

Capital Expenditures

  • Third quarter capital expenditures related to aircraft, engines and induction costs were $9 million and $18 million in other airline capital expenditures
    • $9 million related primarily to aircraft induction costs
  • Third quarter expenditures related to deferred heavy maintenance were $15 million

Sunseeker Resort

  • Resumed construction with an anticipated completion date of the first quarter of 2023
  • Secured financing with Castlelake, L.P. to fund up to $350 million of construction with $175 million expected to be drawn by the end of October
  • Third quarter capital expenditures related to the project were $13 million

 

Guidance, subject to revision Previous Current
Fourth Quarter 2021 guidance
System ASMs – year over two-year change(1) 10.0 to 14.0%
Scheduled Service  ASMs – year over two-year change(1) 12.0 to 16.0%
Total operating revenue – year over two-year change (1)  0.5% to 4.0%
Fuel cost per gallon 2.55
Full year 2021 guidance
Airline CAPEX
Aircraft, engines and induction costs (millions) $115 to $125 $115 to $125
Capitalized deferred heavy maintenance (millions) $50 to $60 $50 to $60
Other airline capital expenditures (millions) $40 to $50 $60 to $70
Sunseeker Resorts Project 
2021 project spend (millions) $50 to $55
Interest expense $65 to $70 $65 to $70
Recurring principal payments(2) $170 to $180 $170 to $180
(1) Year over two-year percentage changes compare 2021 to 2019
(2) Excludes $111 million of principal repayments related to the maturity of our revolving credit facility and the refinancing of three A320 aircraft during the first quarter 2021

Aircraft Fleet Plan by End of Period

Aircraft – (seats per AC) 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:

Allegiant Announces Vote To Ratify Maintenace Technicians Contract With International Brotherhood Of Teamsters

Allegiant Air today announced that maintenance technician and related employees represented by the International Brotherhood of Teamsters (IBT) have voted to ratify their first collective bargaining agreement with the company.

The contract is effective from the date of ratification – October 26, 2021 – for a five-year term.  Allegiant currently employs 415 maintenance technician and related employees – a group which includes line and heavy maintenance technicians, as well as stores employees and some administrative maintenance staff.

The process of negotiating a first collective bargaining agreement for Allegiant maintenance technician and related employees began in January 2019. The parties had temporarily suspended negotiations due to the onset of the COVID-19 pandemic, and talks resumed in September 2020. The International Brotherhood of Teamsters was most recently certified as the group’s exclusive representative on March 7, 2018.