Tag Archives: Airbus A320-214 WL

Allegiant loses $33 million in the first quarter

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

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

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

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

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

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

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

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

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

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

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

Network and Customer Experience

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

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

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

CARES Act Relief

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

Balance Sheet, Cash and Liquidity

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

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

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

Non-airline Subsidiaries

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

First quarter 2020 results

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

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

Allegiant Air aircraft slide show:

Eurowings outlines its basic flight schedule

Eurowings Airbus A320-214 WL D-AEWP (msn 7377) PMI (Ton Jochems). Image: 949939.

Against the background of the coronavirus crisis, Eurowings continues to ensure its basic service at the airports of Düsseldorf, Hamburg, Cologne/Bonn and Stuttgart: a basic flight program enables important domestic German connections as well as flights to selected destinations in Europe. Eurowings has now extended its flight schedule and adds additional connections as of May 2020. One focus will be on destinations in the Mediterranean region. For the first time, the island of Mallorca will again be served from several German locations.

Eurowings destinations from Düsseldorf

From Düsseldorf, Eurowings flies up to nine times a week to Hamburg and Berlin, up to six times a week to Vienna, Zurich and London and up to four times a week to Milan, Salzburg – Eurowings is the first airline to take off again from Salzburg – and Sylt. The destinations Barcelona and Manchester are offered up to three times a week. Eurowings takes off twice a week to Budapest, Catania, Ibiza, Naples, Olbia, Prague, Rome and Thessaloniki from the largest airport in North Rhine-Westphalia. Flights to Heraklion are offered once a week. The Balearic island of Mallorca is connected up to seven times a week.

Eurowings destinations from Cologne/Bonn

From Cologne/Bonn, Eurowings offers up to six weekly flights each to Berlin, Hamburg and Munich and flies up to three times a week to Edinburgh. Twice a week each to Lisbon, Kavala and Zagreb and once a week to Bastia. Eurowings flies to Mallorca up to seven times a week.

Eurowings destinations from Hamburg

From Hamburg Eurowings offers daily connections to Mallorca. Flights to Cologne/Bonn and Stuttgart are offered six times a week, while Eurowings flies to Vienna four times a week. There are up to nine weekly connections to Düsseldorf from Hamburg.

Eurowings destinations from Stuttgart

From Stuttgart, Eurowings flies four times a week to Berlin and six times a week to Hamburg. The airline offers up to seven weekly connections to Mallorca.

Eurowings destinations from Munich

Eurowings currently flies from Munich six times a week to Cologne/Bonn and the Balearic island of Mallorca.

Top Copyright Photo: Eurowings Airbus A320-214 WL D-AEWP (msn 7377) PMI (Ton Jochems). Image: 949939.

Eurowings aircraft slide show:

Eurowings wins HLX Touristik as new partner for Eurowings Holidays

Eurowings has made this announcement:

With HLX Touristik GmbH, Eurowings has gained a new partner for its tour operator brand ‘Eurowings Holidays’, founded in 2017: With immediate effect, Eurowings cooperates with HLX, a travel provider specializing in the packaging of flight and hotel offers with guaranteed best prices. Eurowings customers can book high-quality low-cost package tours via the ‘Eurowings Holidays’ portal at holidays.eurowings.com. HLX is one of the leading providers in this segment and has been successfully operating holiday portals for Lufthansa and Swiss for several years.

Eurowings Digital Managing Director Oliver Schmitt comments: “As Germany’s largest holiday airline, we are significantly expanding the range of ‘Eurowings Holidays’ together with HLX. With Eurowings you can not only fly cheaply, but also book complete trips with many additional services, such as rental cars, insurance and local activities – with just a few clicks, simply and conveniently from one source.

Eurowings (Europe) Airbus A320-214 WL OE-IQD (msn 7056) (Eurowings Holidays) AYT (Ton Jochems). Image: 943735.

Above Copyright Photo: Eurowings (Europe) Airbus A320-214 WL OE-IQD (msn 7056) (Eurowings Holidays) AYT (Ton Jochems). Image: 943735.

The change to HLX is associated with a significant expansion of the range of low-cost package tours and additional services. Thus, the hotel offer which is availabe on the reservation portal holidays.eurowings.com grows on over 45.000 hotels. New are also the “Nobag” tariffs which are very popular particularly in combination with city trips.

Karl Heinz Kögel, Managing Director of HLX Touristik: “We look forward much to the partnership with Eurowings. Together we offer customers professionally organized, high-quality package tours with individual design options and a best-price guarantee. Many of these are exclusive to ‘Eurowings Holidays’.”

The ‘Eurowings Holidays’ portfolio includes short and city trips to vibrant metropolises as well as long-haul trips to the world’s most beautiful holiday destinations. In addition to an expanded hotel portfolio, customers will also benefit in future from top offers with best price guarantees and a fresh brand presence with an optimized user experience. They also have the option of booking individual trips with or without free baggage allowance.

Members of the Eurowings Boomerang Club receive one flight mile for every euro they spend. When booking a package tour with a Eurowings flight, Boomerang Club members additionally receive 250 (domestic German), 500 (continental) and 750 miles (intercontinental) per route, depending on the destination. At the start of the cooperation, there will be a special campaign: when booking between 6 and 16 January 2020, customers will receive an immediate discount of up to 220 euros on the travel price.

Eurowings aircraft photo gallery:

easyJet launches easyJet holidays with a logo jet

Launched on November 28, 2019

easyJet has launched its own holiday arm amid concerns that the British public will be put off booking a trip with a company famed for its budget approach to air travel.
easyJet holidays went live on Thursday, November 28, 2019, selling packages to 5,000 hotels in more than 100 destinations, predominantly in Europe. Each booking comes with 23kg checked baggage per customer and transfers, where available.
For this reason the pictured easyJet A320 G-EZOA has received a special livery with “easyjet holidays” titles and special decals on the rear fuselage.
easyJet made this announcement:

easyJet on November 28 launched a new holiday business aimed at shaking up the sector with flexible, great-value holidays to handpicked hotels across Europe.

UK customers can book Europe’s most loved hotels, together with any easyJet flight, on one platform. This will help to reduce the seven hours holidaymakers spend on average searching for a holiday, according to research by the new holiday company.

easyJet holidays will offer lots of peak-time holiday availability and more weekend flying than anyone else. All holiday bookings will include 23kg hold baggage per person, offering great value and extra ease, especially with families in mind, and beach holidays will also include a transfer.

The business has been built to overcome the things that frustrate travellers the most. This includes the amount of time spent looking for good deals (25%), the added expense of travelling at preferred times (21%) and the lack of flexibility with flight times and dates (17%).

easyJet holidays customers will benefit from ultimate flexibility and can choose exactly how many nights they wish to stay thanks to the strength of the easyJet fleet and its flying schedule. The airline has more than 330 aircraft flying up to 670 routes a day to beach and city locations, resulting in great-value holidays, no matter the duration or time of year.

easyJet holidays is directly contracting hotels for the first time, giving holidaymakers the choice of staying at handpicked hotels. The range of high-quality hotels has been carefully selected by experts, with bespoke collections carefully designed to suit every holiday type. The beach collections include ‘Luxury’, ‘Adult’, ‘Family’ and ‘Undiscovered’, for authentic accommodation off the beaten track. For city breaks, the hotels will be highlighting ‘Luxury’ and ‘Boutique’ collections. Customers can choose from over 5,000 hotels across more than 100 destinations.

The business has also introduced new technology to ensure a quick and seamless customer experience, including integration with easyJet’s app and a completely new website. The new website also features advanced mapping technology, meaning customers can explore a city or resort or start to plan their trip before they book. Key points of interest and walking routes from chosen hotels are highlighted – together with new itinerary guides for a selection of cities – so that customers can start to make the most of their holiday before they travel.  The website will also feature TripAdvisor ratings, following research showing that holidaymakers trust these reviews over anything else (40%) when it comes to choosing which hotel to book. It will also use AI to learn and personalise the experience for customers.

Garry Wilson, Chief Executive of easyJet holidays, said: “easyJet has been a pioneer in transforming travel for almost 25 years and we want to bring that to the holidays sector. “We know the way people travel is continuously evolving; we know customers want flexibility on when and how they holiday; we know customers want flexibility on when and how they holiday; we know they want to be able to easily pick a hotel to suit their needs and we know they want a hassle-free booking process. We’re really excited to help meet these needs with the launch of our new modern and relevant holidays business.”

Javier Rodriguez reporting from Spain.
Top Copyright Photo: easyJet holidays (easyJet UK) Airbus A320-214 WL G-EZOA (msn 6412) PMI (Javier Rodriguez). Image: 948408.
easyJet (UK) aircraft slide show:

Allegiant Travel Group reports its second quarter 2019 results

Allegiant Air Airbus A320-214 WL N247NV (msn 7704) FLL (Bruce Drum). Image: 104577.

Allegiant Travel Company (Allegiant Air) has reported the following financial results for the second quarter 2019, as well as comparisons to the prior year:

Consolidated Three Months Ended
June 30,
Percent Six Months Ended
June 30,
(unaudited) 2019 2018 Change 2019 2018 Change
Total operating revenue (millions) $ 491.8 $ 436.8 12.6 % $ 943.4 $ 862.2 9.4 %
Operating income (millions) 108.1 74.2 45.7 199.2 154.2 29.2
Net income (millions) 70.5 50.0 41.0 127.7 105.2 21.3
Diluted earnings per share $ 4.33 $ 3.10 39.7 % $ 7.84 $ 6.52 20.2 %
Airline only Three Months Ended
June 30,
Percent Six Months Ended
June 30,
(unaudited) 2019 2018 Change 2019 2018 Change
Airline operating revenue (millions) $ 486.8 $ 434.6 12.0 % $ 935.1 $ 858.9 8.9 %
Airline operating income (millions) 115.5 76.1 51.8 214.0 158.0 35.4
Airline operating margin(2) 23.7 % 17.5 % 6.2 22.9 % 18.4 % 4.5
Airline diluted earnings per share(1) $ 4.81 $ 3.21 49.8 $ 8.80 $ 6.75 30.4
Airline CASM ex fuel (cents)(1) 5.65 6.02 (6.1 ) 6.00 6.17 (2.8 )

(1) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.
(2) Percent point change

“I’m happy to report the second quarter of 2019 was Allegiant’s 66th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “We commented last quarter about the benefits of our all Airbus fleet. These benefits are continuing and increasing. We led the industry in Q1 with a 22 percent airline operating margin; this quarter the airline generated a 24 percent operating margin, a six percentage point increase from the previous year. And we accomplished these results with seven fewer aircraft this year compared to 2018. The fuel efficiencies of the Airbus continue to impress. We consumed 4.9 percent more fuel in Q2 compared to last year but produced 13.4 percent more ASMs. Correspondingly, our CASM ex-fuel declined 6.1 percent year over year. I’m comfortable stating we believe we will be the only carrier this quarter who had lower unit costs this year versus last year.

“On the revenue front, scheduled service revenue was $11 million per aircraft during the first six months of the year, over $2 million more than last year’s per aircraft revenue during the same period. Additionally, we generated approximately $3.5 million of EBITDA per aircraft in the same period or about $1.1 million greater per aircraft than the same period last year.

“Our operations continue to excel. We have solely led or tied for the industry lead in completion factor every month in 2019.  One of our challenges in the past few years has been our ability to scale our operations during our peak periods in the summer months and maintain a high completion rate.  In June 2018, we were number five in completion rate; this year we were number one. I’m happy to report we have had only ten days where we have had a mechanical cancellation since the beginning of the year.

“This combination of superior financial results and industry-leading operational performance, along with the proprietary model we have developed and continue to operate is a tribute to our excellent team members. Looking forward, we are excited about the opportunities in front of us including our ability to operate our leisure model to Mexico and the Caribbean in the coming years.”

New Routes:

Airline operational highlights

•         Departures in the second quarter up 13.8 percent year over year despite seven fewer average aircraft in service
•         Average number of aircraft in service decreased 7.6 percent from 92 to 85 year over year
•         Spare aircraft reduced from twelve down to four spares year over year
•         Block hour utilization increased by 20.5 percent to 8.8 block hours per aircraft per day
•         Led industry in completion every month in 2019
•         Maintenance cancellations down 87.6 percent year over year
•         On time performance (A-14) for the quarter was 77.7 percent up 2.8pts year over year
•         Net promoter score is up an average of 8pts year over year
•         Irregular operation costs – second quarter down $7.2 million or 57.6 percent

Airline only second quarter 2019 results

•         Diluted earnings per share were $4.81, up 49.8 percent year over year
•         23.7 percent operating margin for the quarter and 22.9 percent year to date
•         TRASM decreased 1.6 percent on capacity growth of 13.6 percent
•         May TRASM grew 2.4 percent on 11 percent growth in ASMs
•         June TRASM grew 0.7 percent on 13.5 percent growth in ASMs
•         Total fare is down only 0.5 percent despite increasing aircraft utilization by 20.5 percent
•         Year-to-date average total fare has increased 1.0 percent to $120.49
•         Fixed fee flying revenue increased 63.2 percent
•         Fuel gallons used increased only 4.9 percent on ASM growth of 13.4 percent
•         Increase in ASMs per gallon of 8.1 percent to 82.3
•         Airline unit cost excluding fuel decreased by 6.1 percent
•         Maintenance and operational improvements were the largest drivers

Liquidity and shareholder returns

•         Total cash and investments at June 30 were $695 million
•         Paid off high yield bond balance of $102 million in July
•         Currently, we have 26 unencumbered aircraft
•         $81 million available under the revolving credit facility
•         Returned $11 million in dividends in the second quarter
•         Expect to pay dividend of $0.70 per share on September 27, 2019 to shareholders of record as of September 20, 2019

Non-airline highlights

•         Non-airline businesses resulted in a combined operating loss of $7.4 million during second quarter
•         Evaluating strategic alternatives for Teesnap
•         Triggered the business classification of an entity held for sale in July 2019
•         SunseekerResorts FY19 CAPEX reduced to a range between $150 and $175 million
•         Operated two family entertainment centers (FEC’s) during second quarter
•         Rebranded FEC’s from G4CE to Allegiant Nonstop effective June 1, 2019

Aircraft fleet plan by end of period
Aircraft – (seats per AC) YE18 1Q19 2Q19 3Q19 YE19
A319 (156 seats) 32 37 37 37 38
A320 (177/186 seats) 44 47 49 53 55
Total 76 84 86 90 93

Aircraft listed in table above include only in-service aircraft and future aircraft under contract (subject to change)

Top Copyright Photo: Allegiant Air Airbus A320-214 WL N247NV (msn 7704) FLL (Bruce Drum). Image: 104577.

Allegiant Air aircraft slide show:

Route Map:

TAP to fly to Banjul, Gambia

TAP Portugal - Air Portugal Airbus A320-214 WL CS-TNT (msn 4095) LIS (Ton Jochems). Image: 946599.

TAP will begin flying to Banjul, the capital of The Gambia, on October 26, 2019. TAP will offer three flights per week from Lisbon.

This is another example of the national airline strengthening its service to Africa, a market in which TAP has recorded significant growth.

The service will use Airbus A320 aircraft, with three flights per week, leaving Lisbon at 20:55 on Tuesdays, Thursdays and Saturdays and arriving in Banjul at 00:10 the next day. The flights will then leave Banjul at 01:05 (on Wednesdays, Fridays and Sundays), arriving at Humberto Delgado Airport at 06:05 (all times local).

TAP flies to the following destinations in Africa: Morocco (Marrakesh, Casablanca, Tangier and Fez), Cape Verde (Sal, Praia, S. Vicente and Boa Vista), Senegal (Dakar), Guinea-Bissau (Bissau), Ivory Coast (Abidjan), Togo (Lomé), Ghana (Accra), S. Tomé and Príncipe (S. Tomé), Angola (Luanda) and Mozambique (Maputo) – a total of 16 cities in 10 countries.

The new destination of Banjul, in The Gambia, and the recently announced start of flights to Conakry, in Guinea, bring the number of African countries and cities the national airline directly serves from Portugal to 12 and 18, respectively.

TAP carried more than 1.1 million passengers on its African routes in 2018, an increase of 11.3% compared to the previous year. TAP continues its growth in Africa with these new destinations for 2019.

Top Copyright Photo: TAP Portugal – Air Portugal Airbus A320-214 WL CS-TNT (msn 4095) LIS (Ton Jochems). Image: 946599.

TAP aircraft slide show:


Allegiant Travel Company reports its first quarter financial results

Allegiant Air Airbus A320-214 WL N250NV (msn 7743) BWI (Tony Storck). Image: 943561.

Allegiant Travel Company today reported the following financial results for the first quarter 2019, as well as comparisons to the prior year:

Consolidated Three Months Ended March 31,
(unaudited) 2019 2018 Change
Total operating revenue (millions) $ 451.6 $ 425.4 6.2 %
Operating income (millions) 91.1 80.0 13.9
Net income (millions) 57.1 55.2 3.5
Diluted earnings per share $ 3.52 $ 3.42 2.9
Airline only Three Months Ended March 31,
(unaudited) 2019 2018 Change
Airline operating revenue (millions) $ 448.3 $ 424.3 5.7 %
Airline operating income (millions) 98.5 82.0 20.1
Airline operating margin 22.0 % 19.3 % 2.7
Airline diluted earnings per share* $ 3.98 $ 3.54 12.4
Airline CASM ex fuel (cents) * 6.40 6.35 0.8

*Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.

“I’m happy to report the first quarter of 2019 was Allegiant’s 65th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “This quarter demonstrated the earnings potential of our all-Airbus fleet. Despite having eleven fewer aircraft compared to the same period last year, our airline’s operating income rose more than $16 million and we had a 22 percent margin.  In addition, our operational performance was exceptional, with a controllable completion rate of 100 percent for the quarter.  Our on-time performance for March – one of the busiest months of the year – was 85 percent.  These results were due to the exceptional work of our team.

“In March we broke ground on Sunseeker Resorts Charlotte Harbor in Southwest Florida, and also partnered with TPG Sixth Street Partners to finance some of the construction costs to build the project,” he continued. “We have an ideal location, a database of 16 million customers, and an infrastructure to feed customers to our property through Punta Gorda Airport (PGD) and St. Pete/Clearwater International Airport (PIE). This is a natural extension of our business model. These next two years will be investment years in our non-airline projects such as Sunseeker Resorts, the Allegiant Nonstop family entertainment centers and our golf offering.  All of these products will enable us to interact with an ever-expanding universe of leisure customers, to offer more options under the Allegiant Travel Company umbrella.

“I want to thank all of our Allegiant team members for their excellent efforts the past quarter.  The improvement in our operations, the reliability and the on-time performance could not have been achieved without their exceptional work. They are the most critical component in our continued financial success.”

2019 highlights and trends

  • Maintaining EPS guide of $13.25 to $14.75increasing full year fuel cost to $2.26 from $2.10 per gallon
  • EPS in Q2 should exceed Q1 because of Easter and additional available aircraft
    • Only happened twice before in past ten years
  • Easter shift expected to benefit TRASM for Q2 2019 between 2.0 and 2.5 percent
  • Available seat mile (ASM) growth is expected to be lowest in Q1 and highest in Q2
    ASM growth in Q2 expected to be between 13 and 14 percent
  • Airline CASM ex fuel is expected to be down year over year in each remaining quarter with the largest decrease in Q4
  • Submitted US DOT application for international flying into Mexico and expect to begin selling flights by YE19

Airline only first quarter 2019 results

  • Diluted earnings per share were $3.98, up $0.44 year over year
  • 22 percent operating margin for the airline
    • Highest since the second quarter of 2017 when the fuel price per gallon was $1.71
  • Despite an estimated 1.5 percent TRASM headwind due to Easter shift into Q2, (TRASM) increased by 1.8 percent year over year
  • Better than expected improvement in salary expense and station operations resulted in unit costs excluding fuel (CASM-ex)increasing by only 0.8 percent year over year

Q1 2019 airline network and revenue highlights

  • Ancillary air revenue per passenger highest in company history at $53.10 up 12.5 percent year over year
    Total fare per passenger was $127.75, up 2.9 percent year over year
  • Fixed fee flying revenue was $10.6 million, flat year over year, despite a 6.5 percent decrease in fixed fee departures
    Government shutdown eliminated some expected Department of Defense charters
    • Airbus charter economics superior to the MD-80
  • Announced two new operational bases
    • Grand Rapids, MI
    • Savannah, GA
  • 35 routes announced
    • New service to Anchorage, AK
    • Strong growth to Destin, FL, Nashville, TN and Savannah, GA

Q1 2019 airline cost highlights

  • Fuel benefits with Airbus continue – total fuel costs down by six percent
  • Total gallons down 4.5 percent while block hours up 4.1 percent and ASMs up 4.9 percent
    • Increase in ASMs per gallon of 9.6 percent to 84.1 ASMs per gallon
    • Decrease in the price per gallon of 1.8 percent to $2.14 per gallon
  • Total operating costs excluding fuel were $250.2 million, an increase of 5.8 percent year over year
    Depreciation costs increased 26.9 percent or $7.5 million
    • Q1 2018 MD80s were fully depreciated; were 27.5 percent of ASMs
  • Total unit costs excluding fuel and depreciation were 5.5 cents, a decrease of 2.0 percent year over year
  • $3.7 million of additional interest expense associated with the tender of our $450 million high yield bond
    • Capitalized interest resulted in a $1.5 million reduction in interest expense primarily driven by the capex associated with Sunseeker Resorts
    • Expect the cadence of capitalized interest to increase in direct correlation with incremental Sunseeker capex

Q1 2019 airline operational highlights

  • Departures up five percent despite eleven fewer average aircraft
    • Average aircraft decreased from 91 last year to 80 this year
    Spare aircraft were reduced from eleven to four year over year
  • Controllable completion 100 percent on 24,300 departures
    • Second most quarterly departures in company history
    Total completion factor 99.2 percent
    • No maintenance cancellations for over 120 days since December 16th, record for the company
    On time performance (A-14) for the quarter was 79 percent
    • March on time performance was 85 percent
    • Third-highest versus domestic carriers per flightstats.com
    • Company’s busiest flying month of the year

Q1 2019 capital allocation highlights

  • Capital expenditures:
    • Airline – $108.9 million
    • Heavy Maintenance – $10.0 million
    • Sunseeker – $5.3 million
    • Other – $8.4 million
  • Shareholder returns
    • Returned $11 million in dividends in the first quarter
    • Expect to pay dividends of $0.70 per share on June 27, 2019 to shareholders of record as of June 14, 2019

Q1 2019 balance sheet highlights

  • Ended with $555 million in total cash and investments
  • Ended with $1,236.6 million in debt and $121.1 million in capital lease obligations
    Refinanced $450 million unsecured bond with a five year $450 million term loan
    • Secured by company assets excluding aircraft, engines and Sunseeker Resort
  • At the end of the quarter, we have 28 unencumbered aircraft

Q1 2019 non-airline highlights

  • Non-airline businesses resulted in a combined operating loss of $7.4 million
    • Non-airline operating losses expected to be highest in Q1 due to one-time expenses associated with opening of two Allegiant Nonstop family entertainment centers
    • Allegiant Nonstop revenues are expected to be weakest in Q1
    • Expect improvement in second half of year
  • Sunseeker Resorts
    • Broke ground on resort in Punta Gorda
    • Expect to include 500 hotel rooms, 189 long stay suites, restaurants, bars and other amenities
    TPG Sixth Street Partnersagreed to provide $175 million in two-thirds non-recourse construction financing
    • TPG funds are last funds into the project and drawn monthly with interest paid only on drawn amounts
  • Allegiant Nonstop (family entertainment centers)
    • Rebranded to Allegiant Nonstop for better tie-in to airline
    • Opened first location, Clearfield, UT in Jan 2019
    • Opened second location, Warren, MI in Apr 2019

Top Copyright Photo (all others by the airline): Allegiant Air Airbus A320-214 WL N250NV (msn 7743) BWI (Tony Storck). Image: 943561.

Allegiant aircraft slide show:

Eurowings helps Germania passengers following insolvency

Eurowing's 2016 "Boomerang Club"

Eurowings has made this announcement:

The insolvency of the Germania airline has led to yet another upheaval for the aviation industry in Germany and for the affected passengers. Because of this, we are offering the Germania passengers who are currently stranded abroad heavily discounted rates for return flights to Germany with Eurowings until the end of February 2019.

Here’s how it works:


Book an alternative flight as a replacement for your canceled return flight to Germany on eurowings.com or via our mobile services.

Submit documentation

Please submit the following documents to the email address buchungsinfo@eurowings.com by 28 February 2019:

  • Booking confirmation for your canceled Germania flight from an airport outside Germany to a destination in Germany
  • Please be aware that the canceled Germania flight must have been scheduled until the end of February.
  • Booking confirmation for your Eurowings flight booked on or after February 5, 2019
  • Please enter “Reimbursement Germania” in the subject line of your email.

Get your discount

You will receive a refund of 50% of the Eurowings airfare. The amount will be refunded automatically using the same payment method you selected for your booking on eurowings.com. Domestic flights within Germany and flights booked through third-party booking portals or in travel agencies are not eligible for the rebate. Please book your replacement flight exclusively through eurowings.com. Customers who booked their canceled Germania flight as part of a package tour are requested to contact their tour operator directly. Please understand that, due to the number of affected passengers, it may take several weeks to process the refunds.

Top Copyright Photo (all others by the airline): Eurowings Airbus A320-214 WL D-AEWM (msn 7259) (Boomerang Club) ZRH (Andi Hiltl). Image: 945589.

Eurowings aircraft slide show:


easyJet to partner with Cathay Pacific, now has 130 aircraft registered in Austria for Brexit

Delivered on November 28, 2018

easyJet has made this announcement:

easyJet customers will be able to connect seamlessly between easyJet flights across its European network flying into London Gatwick Airport and onwards on Cathay Pacific flights, initially between London Gatwick and Hong Kong once it is live on Worldwide in the coming weeks.

Worldwide by easyJet has been consistently growing in popularity. Chicago is currently the most popular longhaul destination connecting through Rome while the Rome-Reykjavik connection is the most popular shorthaul connection. To date, more than 5,000 unique origins and destinations which have been booked in combination with partner airlines.

easyJet has leadership positions at more of Europe’s major airports and flies on more of Europe’s 100 largest routes than any other airline which makes it the most attractive European short haul airline partner. The introduction of this disruptive product opens up new 70m market segment for easyJet.

This addition of Cathay Pacific compliments easyJet’s existing relationships with long haul carriers Emirates, Virgin Atlantic, Norwegian, WestJet and Singapore Airlines.

Worldwide by easyJet launched in September 2017 enabling customers to connect easyJet flights through London Gatwick to long haul flights, with launch airline partners WestJet and Norwegian.  This quickly expanded to Thomas Cook Airlines, Corsair, La Compagnie and Loganair and the connections platform was extended to Milan Malpensa airport in December 2017. Virgin Atlantic and Emirates joined as partners in October 2018 followed by Singapore Airlines.

Worldwide by easyJet now connects to a total of 11 airports across Europe, including Amsterdam, Barcelona, Paris CDG and Orly, which in addition to London Gatwick, Milan Malpensa, Berlin Tegel and Venice Marco Polo, means that over half of the airline’s flights – and 53 million easyJet customers a year – will be able to connect to airline partner services and other easyJet flights in a single booking through easyJet’s digital booking portal.

In other news, easyJet also reported on its financial performance through December 31, 2018:

easyJet has delivered a good performance in the quarter with robust customer demand driving passenger and ancillary revenue which is in line with expectations. Underlying revenue per seat was positive, including good ancillary revenue growth. This was offset, as expected, by the impact from last year’s one-off revenue benefits, the dilutive impact of flying at Tegel and new accounting standards delaying the recognition of revenue. easyJet has made good progress with its cost and operational performance but both were affected by the impact of drone activity at London Gatwick over the Christmas period.

Commenting; Johan Lundgren, easyJet Chief Executive said:

“easyJet has made a good start to the 2019 financial year with robust customer demand and ancillary sales, driving solid revenue generation. This was underpinned by good operating and on-time performance across the network, with the exception of the disruption caused by the Gatwick closures due to drone sightings. There has been be a one-off cost impact from this incident, but underlying cost progress is in line with expectations. I am proud of the way our teams worked around the clock to mitigate the impact of the incident and looked after affected customers.

“Recognition of the easyJet brand continues to grow. We made good progress on our strategic initiatives; holidays, business, loyalty and data during the quarter.

“For the first half of 2019, booking levels currently remain encouraging despite the lack of certainty around Brexit for our customers. Second half bookings continue to be ahead of last year and our expectations for the full year headline profit before tax are broadly in line with current market expectations.” 


Total revenue in the first quarter to 31 December 2018 increased by 13.7% to £1,296 million. Passenger revenue increased by 12.2% to £1,025 million and ancillary revenue increased by 19.9% to £271 million.

Passenger1 numbers in the quarter increased by 15.1% to 21.6 million, driven by an increase in capacity2 of 18.2% to 24.1 million seats which was slightly lower than originally planned due in part to the drone issues at London Gatwick and to late A321 deliveries from Airbus.

Load factor3 decreased by two percentage points to 89.7%, as anticipated, due to the one-off increase in prior year late demand and the dilutive impact of Tegel flying.

Total revenue per seat decreased by 4.2% at constant currency, in line with expectations. This performance has been driven by:

  • An increase in underlying revenue per seat of 1.5% due to:

–          Robust underlying demand and disciplined capacity growth by competitors on easyJet’s markets, supported by easyJet’s increasing brand recognition

–          Continued growth in ancillary revenue per seat through better bag and allocated seating sales

  • The negative impact from:

–          The dilutive impact of first time flying in Q1 at Berlin Tegel (where the schedule is still in the early stages of optimisation)

–          One-off benefits experienced in 2018 not being repeated:

  • Air Berlin and Monarch bankruptcies (Q1 2018 benefit of c.£30m)
  • Ryanair winter schedule cancellations last year (Q1 2018 benefit of c.£20m)

–          The impact of the move to IFRS 15 accounting standards (c.£8m revenue impact in Q1)

–          Cancelled flights and lost revenue resulting from the drone issue at London Gatwick (c.£5m revenue impact)


easyJet’s underlying cost performance has been solid and in line with expectations, before the cost impact of the drones at Gatwick. Headline cost per seat excluding fuel at constant currency increased by 1.0% in the quarter reflecting:

–          A £10 million cost impact of the drones at Gatwick relating to customer welfare costs (representing c.1ppt of cost per seat in Q1). The incident affected around 82,000 customers and led to over 400 flights being cancelled

–          Annualisation of crew pay deals; better than expected crew retention; and some additional inefficiency relating to Gatwick disruption

–          Ownership costs reflecting new aircraft year on year, some additional leasing costs resulting from late Airbus aircraft deliveries and the impact of IFRS 16 accounting

easyJet’s cost programme has continued to deliver substantial savings in particular in:

–        Airport costs, driven by discounts on additional passenger volumes, and

–        Fleet up-gauging from A319 ceo to A320 neo and A321 neo, albeit this has been marginally impacted by Airbus delivery delays

–        Reduced level of cancellations and delays over 3 hours despite the drone issue at Gatwick

Customer and operational performance

easyJet has improved its On-Time Performance (OTP) since the difficult 2018 summer. The closure of Gatwick airport due to the drone issues had a negative impact on OTP but after adjusting for this December network OTP was better at 81%.


OTP % arrivals within 15 minutes Oct Nov Dec Q1
Q1 ’19 76% 86% 77% 79%
Q1 ’18 81% 88% 74% 81% 

Traffic statistics

As announced at the full year results in November, easyJet will now be reporting monthly passenger statistics within its quarterly reports. Load factor was slightly lower than Q1 2018 due to one-off prior year benefits and the dilutive impact of Tegel flying.

easyJet experienced 764 cancellations in Q1 2019 compared to 1,051 cancellations in Q1 2018, with the biggest number of cancellations due to the drone issue at London Gatwick.


Oct Nov Dec Q1
Passengers (‘000) 8,578 6,182 6,831 21,592
Passenger growth 14.1% 15.6% 16.1% 15.1%
Load factor 90.5% 89.2% 89.2% 89.7% 

Sale and Leaseback

easyJet has entered into another planned sale and leaseback arrangement for 10 A319 aircraft which has generated £120 million in cash and further facilitates our fleet management strategy. Six were completed during the quarter and a further four were finalised on 8 January. This will be disclosed as a non-headline item in the income statement and is currently expected to be a small loss on disposal.


easyJet is well prepared for Brexit. It now has 130 aircraft registered in Austria and has made good progress in ensuring it has a spare parts pool in the EU27 and in transferring crew licences, both of which will be completed by 29 March. Both the EU and the UK have committed to ensure that flights between the UK and EU will continue in the event of a no-deal Brexit.

Routes from Vienna:

In order to remain owned and controlled by EEA qualifying nationals, as required by EU regulations, easyJet has a number of options, including the use of the provisions contained in its Articles of Association which would permit it to suspend rights to attend and vote at meetings of shareholders and/or forcing the sale of shares owned by non-qualifying nationals as well as other potential actions. easyJet has increased its ownership by qualifying EEA (excluding UK) nationals to around 49%. 


Despite the consumer and economic uncertainty created by Brexit, demand currently remains solid and forward bookings for the period after 29th March are robust.

For the year ending 30 September 2019, easyJet expects:

  • Full Year capacity to grow by c.10%; H1 2019 growth of c.15%
  • With approximately 40% of forward bookings secured for the second quarter, revenue per seat at constant currency for the first half is expected to decrease by mid to high single digits. This update reflects:

–          Continued positive underlying trading in line with Q1, but larger than previously anticipated phasing impact from H1 to H2 from the impact of new IFRS 15 accounting standards and the shift of Easter into H2. IFRS 15 is expected to have a negative impact of around £50 million in the first half and Easter is expected to have a negative impact of around £50 million in the first half. Both of these will reverse in the second half

–          A more competitive market in Berlin as well as constraints on our ability to deliver network optimisation as quickly as anticipated. easyJet now expects a loss in FY 2019 in Berlin

  • Full Year headline cost per seat excluding fuel at constant currency to be circa flat (assuming normal levels of disruption), using new IFRS 15 and 16 accounting standards and including the £10m cost impact from the drones issue at London Gatwick
  • Full Year unit fuel bill is likely to be £10 million to £60 million adverse4. The total fuel bill is expected to be c.£1.46 billion, reflecting a reduction in the price of oil since November and continued higher carbon pricing.
  • Foreign exchange4 movements will have a c.£10 million adverse impact on headline profit before tax
  • easyJet expectations for the full year are broadly in line with current market expectations5

Top Copyright Photo (all others by the airline): easyJet (Europe) Airbus A320-214 WL OE-ICR (msn 6885) ZRH (Rolf Wallner). Image: 944772.

easyJet (Europe) aircraft slide show:



Frontier to add new flights to Branson, Cleveland and Nashville

"Grizwald, the Bear"

Frontier Airlines continues to add routes, announcing five more non-stop flights from Branson Airport (BKG), Cleveland-Hopkins International Airport (CLE), and Nashville International Airport (BNA). Service begins in spring 2019.

Routes and Frequency:









Wednesday, Saturday





Wednesday, Saturday










Thursday, Sunday





Tuesday, Thursday, Sunday











Tuesday, Thursday, Sunday


Additionally, Frontier is expanding service between Chicago (ORD) and both Fort Myers and Tampa into the summer season with flights twice/week to Fort Myers and 3 times/week to Tampa.

Top Copyright Photo (all other images by the airline): Frontier Airlines (2nd) Airbus A320-214 WL N227FR (msn 6184) (Grizwald, the Bear) LAX (Ron Monroe). Image: 945324.

Frontier aircraft slide show: