Tag Archives: Allegiant Air

Allegiant reports December 2020 traffic

Allegiant Travel Company reported preliminary passenger traffic results for December 2020.

“As expected, the fourth quarter highlighted the divergence in strength between peak travel periods and non-peak periods,” stated Drew Wells, vice president of revenue. “Demand remained soft throughout much of December before accelerating during the peak holiday travel period at the end of the month. Load factors during the peak period came in at nearly 60 percent, which aided in completing the quarter with a load factor of 58.2 percent, the best since the onset of the pandemic. Over the last several weeks, we have been encouraged by favorable forward booking trends as flight volumes begin to pick up mid-February and into peak Spring Break travel. We remain cognizant that the situation is fluid and will continue to manage capacity to meet the changing demand environment.”

Scheduled Service
December 2020 December 2019 Change
Passengers 673,041 1,308,341 (48.6%)
Revenue passenger miles (000) 611,429 1,165,902 (47.6%)
Available seat miles (000) 1,128,200 1,411,107 (20.0%)
Load factor 54.2% 82.6% (28.4pts)
Departures 7,281 9,423 (22.7%)
Average stage length (miles) 891 871 2.3%
4th Quarter 2020 4th Quarter 2019 Change
Passengers 2,129,292 3,516,263 (39.4%)
Revenue passenger miles (000) 1,878,831 3,073,055 (38.9%)
Available seat miles (000) 3,226,050 3,745,031 (13.9%)
Load factor 58.2% 82.1% (23.9 pts)
Departures 21,399 25,541 (16.2%)
Average stage length (miles) 868 856 1.4%
YTD 2020 YTD 2019 Change
Passengers 8,553,623 14,823,267 (42.3%)
Revenue passenger miles (000) 7,626,470 13,038,003 (41.5%)
Available seat miles (000) 12,814,080 15,545,818 (17.6%)
Load factor 59.5% 83.9% (24.4 pts)
Departures 85,276 105,690 (19.3%)
Average stage length (miles) 867 859 0.9%

 

Total System*
December 2020 December 2019 Change
Passengers 679,424 1,318,872 (48.5%)
Available seat miles (000) 1,147,534 1,453,592 (21.1%)
Departures 7,471 9,742 (23.3%)
Average stage length (miles) 883 868 1.7%
4th Quarter 2020 4th Quarter 2019 Change
Passengers 2,159,035 3,585,966 (39.8%)
Available seat miles (000) 3,315,599 3,928,536 (15.6%)
Departures 22,189 27,088 (18.1%)
Average stage length (miles) 860 846 1.7%
YTD 2020 YTD 2019 Change
Passengers 8,623,984 15,012,149 (42.6%)
Available seat miles (000) 13,125,533 16,174,240 (18.8%)
Departures 87,955 110,542 (20.4%)
Average stage length (miles) 862 855 0.8%

*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 2020 estimated average fuel cost per gallon – system $1.56
$ per gallon
4th quarter 2020 estimated average fuel cost per gallon – system $1.41

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

Allegiant announces nine new routes and three new destinations

Allegiant Air today announced 21 new nonstop routes, including nine routes to three new cities: Portland, Oregon; Key West, Florida, and Jackson Hole, Wyoming.

Included as part of today’s announcement are eight routes that were delayed in 2020 due to the COVID-19 pandemic.

New service from Jackson Hole Airport (JAC) includes:

  1. Los Angeles, California via Los Angeles International Airport (LAX) – beginning June 2, 2021 with fares as low as $59 each way.*
  2. Phoenix, Arizona via Phoenix Mesa Gateway Airport (AZA) – beginning June 2, 2021 with fares as low as $59 each way.*
  3. Las Vegas, Nevada via McCarran International Airport (LAS) – beginning June 4, 2021 with fares as low as $49 each way.*
  4. Reno, Nevada via Reno-Tahoe International Airport (RNO) – beginning June 4, 2021 with fares as low as $49 each way.*

New service from Key West International Airport (EYW) includes:

  1. Nashville, Tennessee via Nashville International Airport (BNA) – beginning June 2, 2021 with fares as low as $59 each way.*
  2. Sanford, Florida via Orlando Sanford International Airport (SFB) – beginning June 4, 2021 with fares as low as $49 each way.*

New service from Portland International Airport (PDX) includes:

  1. Santa Maria, California via Santa Maria Airport (SMX) – beginning April 15, 2021 with fares as low as $49 each way.*
  2. Monterey, California via Monterey Regional Airport (MRY) – beginning May 28, 2021 with fares as low as $49 each way.*
  3. Idaho Falls, Idaho via Idaho Falls Regional Airport (IDA) – beginning May 28, 2021 with fares as low as $49 each way.*

New service from General Wayne A. Downing International Airport (PIA) includes:

  1. Sarasota, Florida via Sarasota-Bradenton International Airport (SRQ) – beginning May 27, 2021 with fares as low as $59 each way.*
  2. Denver, Colorado via Denver International Airport (DEN) – beginning May 28, 2021 with fares as low as $39 each way.*

The new route to/from Charleston, South Carolina via Charleston International Airport (CHS) includes:

  1. Belleville, Illinois/ St. Louis, Missouri via MidAmerica St. Louis Airport (BLV) – beginning May 28, 2021 with fares as low as $49 each way.*  

The new route to/from Baltimore, Maryland via Baltimore/Washington International Thurgood Marshall Airport (BWI) includes:

  1. Punta Gorda, Florida via Punta Gorda Airport (PGD) – beginning May 27, 2021 with fares as low as $59 each way.*

In addition to these new routes, Allegiant is announcing new dates for eight routes that were postponed in 2020 due to the pandemic. Allegiant is offering one-way fares on those routes as low as $39.*

The rescheduled routes to Norfolk International Airport (ORF) include:

  1. Pittsburgh, Pennsylvania via Pittsburgh International Airport (PIT) – beginning June 3, 2021 with fares as low as $49.*
  2. Columbus, Ohio via Rickenbacker International Airport (LCK) – beginning June 3, 2021 with one-way fares as low as $49.*

The rescheduled route to Nashville, Tennessee via Nashville International Airport (BNA) includes:

  1. Greensboro, North Carolina via Piedmont Triad International Airport (GSO) – beginning June 3, 2021 with fares as low as $39 each way.*

The rescheduled route to/from Boston, Massachusetts via Boston Logan International Airport (BOS) includes:

  1. Grand Rapids, Michigan via Gerald R. Ford Airport (GRR) – beginning March 5, 2021 with fares as low as $49 each way.*

The rescheduled route to/from Louisville, Kentucky via Louisville International Airport (SDF) includes:

  1. Charleston, South Carolina via Charleston International Airport (CHS) – beginning May 28, 2021 with fares as low as $49 each way.*

The rescheduled route to/from Myrtle Beach, Florida via Myrtle Beach International Airport (MYR) includes:

  1. Knoxville, Tennessee via McGhee Tyson Airport (TYS) – beginning June 2, 2021 with fares as low as $39 each way.*

The rescheduled routes to/from Hudson Valley, New York via New York Stewart International Airport (SWF) include:

  1. Destin, Florida via Destin-Fort Walton Beach Airport (VPS) – beginning June 13, 2021 with fares as low as $59 each way.*
  2. Savannah, Georgia via Savannah International Airport (SAV) – beginning May 26, 2021 with fares as low as $59 each way.*

Allegiant reports a decline in bookings and an increase in cancellations

Allegiant Air is reporting a softening in traffic due to rising COVID-19 cases:

Allegiant Travel Company reported preliminary passenger traffic results for November 2020.

“Over the course of the last several weeks, we have seen a deceleration of bookings coupled with an increase in cancellations related to recent surges in COVID-19 cases and new travel restrictions,” stated Drew Wells, vice president of revenue.

“Average daily bookings were roughly $3 million during the month of October, whereas November daily bookings averaged roughly $2.2 million. There continues to be a divergence in terms of strength between peak travel periods and non-peak periods, with peak days showing far more resiliency, a trend expected to hold through the Christmas holiday. We continue to approach demand as we have since the onset of the pandemic by maintaining a wide selling presence and cutting capacity as dictated by demand trends.

Despite recent booking weakness, fourth quarter capacity reductions are still expected to be roughly 15 percent as compared with prior year.”  

Scheduled Service
November 2020 November 2019 Change
Passengers 682,976 1,101,346 (38.0%)
Revenue passenger miles (000) 596,377 962,614 (38.0%)
Available seat miles (000) 1,034,482 1,197,831 (13.6%)
Load factor 57.6% 80.4% (22.8pts)
Departures 6,940 8,189 (15.3%)
Average stage length (miles) 861 857 0.5%
Total System*
November 2020 November 2019 Change
Passengers 692,327 1,129,065 (38.7%)
Available seat miles (000) 1,065,731 1,255,381 (15.1%)
Departures 7,201 8,739 (17.6%)
Average stage length (miles) 854 841 1.5%

*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
November 2020 estimated average fuel cost per gallon – system $1.39

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

Allegiant Air announces 15 new routes and two new destinations

Allegiant Airtoday announced 15 new nonstop routes, including nine routes to two new cities: Orange County, California and Spokane, Washington.

The new routes to/from Orange County, California via John Wayne Airport (SNA) include:

  1. Boise, Idaho via Boise Airport (BOI) – beginning Feb. 12, 2021 with fares as low as $49* each way.
  2. Grand Junction, Colorado via Grand Junction Regional Airport (GJT) – beginning Feb. 12, 2021with fares as low as $69* each way.
  3. Medford, Oregon via Rogue Valley International-Medford Airport (MFR) – beginning Feb. 12, 2021 with fares as low as $69* each way.
  4. Provo, Utah via Provo Airport (PVU) – beginning Feb. 12, 2021 with fares as low as $49* each way.
  5. Las Vegas, Nevada via McCarran International Airport (LAS) – beginning Feb. 18, 2021 with fares as low as $39* each way.
  6. Missoula, Montana via Missoula International Airport (MSO) – beginning Feb. 18, 2021 with fares as low as $69* each way.
  7. Reno, Nevada via Reno-Tahoe International Airport (RNO) – beginning Feb. 18, 2021 with fares as low as $39* each way.
  8. Spokane, Washington via Spokane International Airport (GEG) – beginning Feb. 18, 2021 with fares as low as $69* each way.

The new routes to/from Las Vegas, Nevada via McCarran International Airport (LAS) include:

  1. Spokane, Washington via Spokane International Airport (GEG) – beginning Feb. 11, 2021 with fares as low as $49* each way.
  2. Orange County, California via John Wayne Airport (SNA) – beginning Feb. 18, 2021 with fares as low as $39* each way.
  3. Asheville, North Carolina via Asheville Regional Airport (AVL) – beginning Mar. 4, 2021 with fares as low as $79* each way.
  4. Flint, Michigan via Flint Bishop International Airport (FNT) – beginning Mar. 4, 2021 with fares as low as $59* each way.

The new routes to/from Grand Rapids, Michigan via Gerald R. Ford International Airport (GRR) include:

  1. Newark, New Jersey via Newark Liberty International Airport (EWR) – beginning Mar. 5, 2021with fares as low as $59* each way.
  2. Destin, Florida via Destin-Fort Walton Beach Airport (VPS) – beginning Mar. 5, 2021 with fares as low as $49* each way.

The new route to/from St. Petersburg, Florida via St. Pete–Clearwater International Airport (PIE) includes:

  1. Fargo, North Dakota via Hector International Airport (FAR) – beginning Feb. 11, 2021 with fares as low as $79* each way.

The new route to/from Houston, Texas via William P. Hobby Airport (HOU) includes:

  1. Mesa, Arizona via Phoenix-Mesa Gateway Airport (AZA) – beginning Feb. 11, 2021 with fares as low as $49* each way.

*About the introductory one-way fares:

Seats and dates are limited and fares are not available on all flights. Flights must be purchased by Nov. 18, 2020 for travel by May 24, 2021. Price displayed includes taxes, carrier charges & government fees. Fare rules, routes and schedules are subject to change without notice. Optional baggage charges and additional restrictions may apply.

Allegiant Air aircraft photo gallery:

Allegiant loses $29.1 million in the third quarter

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

 

Consolidated Three Months Ended
September 30,
Percent Change Nine Months Ended
September 30,
Percent Change
(unaudited) (in millions, except per
share amounts)
2020 2019 2020 2019
Total operating revenue $ 201.0 $ 436.5 (54.0) % $ 743.5 $ 1,379.9 (46.1) %
Operating income (loss) (33.1) 72.1 (145.9) (257.3) 271.3 (194.9)
Income (loss) before income taxes (44.7) 56.9 (178.6) (321.9) 222.6 (244.6)
Net income (loss) (29.1) 43.9 (166.3) (155.3) 171.6 (190.5)
Diluted earnings (loss) per share $ (1.82) $ 2.70 (167.4) $ (9.75) $ 10.54 (192.5)
Consolidated – adjusted Three Months Ended
September 30,
Percent Change Nine Months Ended
September 30,
Percent Change
(unaudited) (in millions, except per share amounts) 2020 2019 2020 2019
Adjusted operating income (loss) (1) (2) $ (77.4) $ 72.1 (207.4) % $ (128.8) $ 271.3 (147.5) %
Adjusted income (loss) before income taxes(1) (2) (89.0) 56.9 (256.4) (166.8) 222.6 (174.9)
Adjusted net income (loss)(1) (2) (68.5) 43.9 (256.0) (128.4) 171.6 (174.8)
Adjusted diluted earnings (loss) per share (1) (2) $ (4.28) $ 2.70 (258.5) $ (8.07) $ 10.54 (176.6)
(1) Adjusted to exclude COVID related special charges, the benefit from the CARES Act payroll support program, and the portion of the tax benefit (as applicable) attributable to the CARES Act.
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.

“As we continue to navigate through the pandemic we have been encouraged by the modest, yet consistent improvements during the third quarter and into the fourth,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “Consumer confidence towards air travel is improving as seen in our quarterly performance. We completed the quarter beating consensus with a loss per share of $4.28, excluding one-time, special items, and the benefit from the CARES Act. Our scheduled capacity year-over-year was down less than seven percent, perhaps the best showing in the industry. Revenue is also trending in the right direction with September totals down 43 percent versus prior year. Although we still have a long road ahead of us, the progress we’ve seen is a direct reflection of the quality of our people and the nimbleness of the model.

“As we move into the fourth quarter, we remain focused on cash management. Our cash preservation strategy continues to center around maintaining a broad selling presence as well as stripping costs from the business. Our revenue and planning teams have done an exceptional job optimizing our schedule available for sale. We’ve seen average daily gross bookings increase from just over $2 million per day during the third quarter to over $3 million per day thus far in the fourth quarter. On the cost front, we successfully reduced variable operating expenses by nearly 30 percent, excluding the CARES Act payroll support benefit and one-time special items, which outpaces our reduction in capacity more than threefold. These savings are important in paving the way to cash break-even. Our cash preservation strategies coupled with strategic capital raises over the last several weeks have contributed to our pro forma cash balance of $850 million.

“Even though we’re pleased with recent progress, we remain cautious. We have had to make tough decisions the past few months, including a reduction in our workforce. Although difficult, these steps were necessary to right size our organization to better align with demand. This environment has been difficult for our team members, and I cannot thank them enough for their continued hard work and dedication during this trying time. Their efforts to prioritize health and safety for our passengers, and our leadership efforts to bolster the financial health of the company have laid a solid foundation for our recovery. This has been and will continue to be a slow climb out of this abyss known as COVID. At this point, I believe we are leading the way out towards light ahead in the coming months and year.”

Covid-19 Responses – Update

  • Ranked by Safe Travel Barometer as #1 airline among North American carriers and among the top five worldwide for best COVID-19 Traveler Safety Measures, with results based on an independent audit of more than 150 airlines
  • Prioritizing the health and safety of our passengers and crew members by upholding the principles of our Going the Distance for Health and Safety program, which include enhanced cleaning protocols, air purity guidelines, and new service practices and boarding procedures designed to provide additional distancing between customers whenever possible
  • Accommodating travel flexibility by waiving change and cancellation fees for all customers with future travel through the end of 2020, extending the expiry on credit vouchers to two years, and offering an opt-in option within the booking path to alert customers if their flight has reached 65 percent capacity allowing the option to re-book or receive a refund
  • Reduced management and support teams by roughly 300 positions, which includes voluntary leaves
    • 25 percent reduction in these work groups
    • Includes 220 positions previously disclosed
    • Anticipated annual savings of roughly $20 million
  • Furloughed roughly 130 pilots, a 13 percent reduction
    • 100 furloughed as of October 1, with an additional 30 expected November 1

Third Quarter 2020 Results

  • Recorded positive cash inflows for the month of September, excluding a $5 million payment in connection with terminating the loan agreement intended to finance the development of Sunseeker Resorts Charlotte Harbor
  • Reduced scheduled third quarter capacity by 6.5 percent
    • Completed the quarter with load factor in the month of September of 57.4 percent, the highest month since the onset of the pandemic in March
  • Recognized total special charges related to COVID-19 of $33.6 million during the third quarter
  • Anticipate fourth quarter capacity to be reduced by 15 percent from prior year but will continue to adjust based on demand trends
  • Minimal close-in cancellations during the third quarter and anticipate the fourth quarter will be similar
  • Total revenue for the quarter was $201.0 million, down 54.0 percent year over year
    • September total revenue down 42.8 percent, the lowest monthly reduction since the onset of the pandemic
    • Average total ancillary revenue per passenger (includes air-related charges and third party products) remains strong, despite current yield pressure, at $55.70 per passenger, up 1.5 percent year-over-year
  • Operating expense was $234.1 million, down 35.8 percent year-over-year on reduced system-wide capacity of 9.4 percent
    • Variable operating expense, defined as total operating expense excluding the benefit of the CARES Act, one-time special items, aircraft leases, and depreciation and amortization, down 29.2 percent versus prior year
  • Advertising spend down 75 percent year-over-year, yet website visitors derived by either directly typing www.allegiant.com or by clicking on a marketing email promotional link are up 17 percent versus prior year
    • Customer conversion rate is up 36 percent from pre-pandemic levels
  • Named #1 airline co-branded credit card two years in a row by USA Today

Balance Sheet, Cash and Liquidity

  • Total cash and investments at September 30th was $709.8 million 
  • Total sources of liquidity received during the third quarter around $184.9 million
    • Obtained $84 million in financings secured by A320 aircraft and CFM engines
    • Entered into a sale leaseback transaction, which included the sale of four A320-series aircraft, three of which closed in the third quarter generating $30 million
      • Fourth sale closed in October, generating $10 million
    • Federal income tax refund of $48.7 million related to tax net operating losses from 2018
      • Expect a federal income tax refund in excess of $125 million related to 2020 net operating losses to be received during the first half of 2021
    • Additional payroll support related to the CARES Act of $22.2 million
  • In early October, issued $150 million of senior secured notes backed by collateral pledged to existing Term Loan
    • Cash balance pro forma for this financing in excess of $850 million
  • Debt, net of liquidity, as of September 30th was $840 million, down roughly $100 million from December 31, 2019
  • Third quarter interest expense down 38.8 percent versus prior year
  • 3Q20 daily cash burn averaged $1.3 million (1)                       
    • Gross bookings averaged just above $2.0 million per day during the quarter
    • Includes $15 million of payments to Sixth Street Partners (formerly TSSP) to terminate loan agreement intended to finance the development of Sunseeker Resorts Charlotte Harbor
  • As of September 30th, have 22 unencumbered aircraft and 4 unencumbered spare engines
  • Air traffic liability at September 30th was $334 million
    • Balance related to future scheduled flights is $116 million
    • Balance related to travel vouchers issued for future use is $218 million

(1) Daily cash burn defined as cash from operations less scheduled debt and rent payments and capital expenditure outflows excluding aircraft and engine acquisitions as they are expected to be financed. Excludes benefits received from CARES Act such as Payroll Support Program funding and tax refunds from net operating loss carry-backs.

Capital Expenditures

  • Remaining 2020 spend related to capital expenditures is roughly $130 million
    • Includes five previously executed purchase commitments for aircraft
    • Roughly $10 million of deferred heavy maintenance
  • Full year 2021 capital expenditures, including deferred heavy maintenance, expected to be roughly $125 million
    • Includes two previously executed purchase commitments for aircraft
  • Expect to have 93 operating aircraft at year end 2020
    • Does not include owned aircraft currently in storage programs

Allegiant reports September 2020 traffic

Allegiant Travel Companytoday reported preliminary passenger traffic results for September 2020 as well as third quarter 2020.

Average daily cash burn came in at roughly $1.3 million for the third quarter,” stated Gregory Anderson, executive vice president and chief financial officer, Allegiant Travel Company. “Gross bookings for the quarter averaged more than $2.0 million per day, which is better than our previous booking levels of less than $2 million per day, due primarily to steady improvements in bookings throughout the month of September. During the third quarter, we paid approximately $15 million to Sixth Street Partners in conjunction with the termination of the Sunseeker loan agreement, which drove cash burn up slightly. As previously stated, our cash burn figure includes debt payments. We continue to expect fourth quarter daily cash burn to be well below $1 million based on the assumption of average daily gross bookings of more than $2.0 million, which is inclusive of the remaining $5 million payment to Sixth Street Partners.

“As we enter the final quarter of the year, we meaningfully increased our liquidity position to over $850 million, primarily driven by the $84 million in senior secured debt backed by two A320 aircraft and eight CFM engines along with the sale of $150 million of senior secured notes, which is backed by collateral pledged to our existing Term Loan. We believe this improved liquidity coupled with our industry-best cash burn rate not only bolsters liquidity further, but provides enhanced flexibility to best respond to the fluid environment.”

We will continue to approach the fourth quarter by maintaining a wide selling footprint,” stated Drew Wells, vice president of revenue. “This approach has been effective at capturing demand as it returns. We completed the quarter with capacity down 6.5 percent year over year and a load factor of just below 50 percent. We saw some strength towards the back half of the quarter, as evidenced by September’s load factor of 57.4 percent. We continue to monitor bookings and will make any necessary cuts to the schedule as dictated by demand trends.”

 

Scheduled Service
September 2020 September 2019 Change
Passengers 475,814 770,768 (38.3%)
Revenue passenger miles (000) 405,590 639,534 (36.6%)
Available seat miles (000) 706,148 775,906 (9.0%)
Load factor 57.4% 82.4% (25.0 pts)
Departures 4,885 5,638 (13.4%)
Average stage length (miles) 839 808 3.8%
3rd Quarter 2020 3rd Quarter 2019 Change
Passengers 2,003,648 3,753,611 (46,6%)
Revenue passenger miles (000) 1,714,622 3,170,826 (45.9%)
Available seat miles (000) 3,449,339 3,687,473 (6.5%)
Load factor 49.7% 86.0% (36.3 pts)
Departures 23,710 26,238 (9.6%)
Average stage length (miles) 839 824 1.8%

 

Total System*
September 2020 September 2019 Change
Passengers 483,278 799,592 (39.6%)
Available seat miles (000) 734,898 855,962 (14.1%)
Departures 5,137 6,248 (17.8%)
Average stage length (miles) 830 802 3.5%
3rd Quarter 2020 3rd Quarter 2019 Change
Passengers 2,016,241 3,806,369 (47.0%)
Available seat miles (000) 3,521,508 3,888,400 (9.4%)
Departures 24,365 27,707 (12.1%)
Average stage length (miles) 834 823 1.3%

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

Allegiant teams up with National Breast Cancer Foundation

Allegiant Air has announced that, through October, it will donate a portion of proceeds from the sale of pink in-flight refreshments to the National Breast Cancer Foundation, Inc.® (NBCF).

This is the seventh year that the Las Vegas-based airline will hold its annual in-flight fundraiser in support of the foundation. In that time, Allegiant has donated more than $100,000 to support NBCF’s mission, which is to provide help and inspire hope to those affected by breast cancer through early detection, education, and support services.

Pink refreshments – pink lemonade and rosé wine – will be available for passengers to purchase on all Allegiant flights during October. Crew members will also don special pink attire to demonstrate their support for the cause.

“October is a special time for our flight crew members,” said Tracy Tulle, Allegiant’s senior vice president of flight crew operations. “Many of them have either battled breast cancer themselves or had a loved one who was affected. They’re excited to help raise money for a cause that is so personally important to them. And our customers appreciate the chance to support the cause simply by buying a pink drink or making a donation onboard. We’re proud to have the chance to help fight this disease along with our partners at the National Breast Cancer Foundation.”

Breast cancer is among the leading health issues women face in the United States. One in eight women will be diagnosed with breast cancer in her lifetime. There is currently no known cure for it. Early diagnosis and timely treatment is critical to survival.

NBCF supports the communities where Allegiant operates by funding outreach and treatment programs at local hospitals in cities such as Las Vegas, Tampa, and Los Angeles. Among the programs their grants fund are screenings and treatment for uninsured and underinsured women.

“We are humbled by the generosity and unwavering commitment of Allegiant, even in the midst of an unprecedented year of challenge,” said Ken Rameriz, NBCF’s senior vice president of strategic partnerships and charitable giving. “Breast cancer does not pause for pandemics, and neither does National Breast Cancer Foundation. Together with partners like Allegiant, we are more committed than ever to providing help and inspiring hope to those affected by breast cancer.”

The pink refreshments that will be available for passengers to purchase on Allegiant flights include Minute Maid Pink Lemonade for $5 and Yes Way Rosé for $10.

In-flight crews have the option of wearing pink scarves, ties, belts, lanyards and other pink-themed apparel during October flights.

Allegiant announces seven new routes

Allegiant Air has announced seven new nonstop routes, including three new routes to Florida and two to Palm Springs, California.

Also, after a short hiatus, Allegiant will also extend its seasonal route connecting Nashville, Tennessee and Bozeman, Montana.

The new seasonal routes to Punta Gorda Airport (PGD) in Southwest Florida include:

  1. Houston, Texas via William P. Hobby Airport (HOU) – beginning Nov. 20, 2020
  2. Chicago, Illinois via Chicago Midway International Airport (MDW) – beginning Nov. 20, 2020

The new seasonal route to Sarasota-Bradenton International Airport (SRQ) in Florida includes:

  1. Boston, Massachusetts via Boston Logan International Airport (BOS) – beginning Nov. 19, 2020

The new route to Phoenix-Mesa Gateway International Airport (AZA) in Arizona includes:

  1. Santa Maria, California via Santa Maria Airport (SMX) – beginning Nov. 19, 2020

The new seasonal routes to Palm Springs International Airport (PSP) in Southern California include:

  1. Boise, Idaho via Boise Airport (BOI) – beginning Nov. 19, 2020
  2. Eugene, Oregon via Eugene Airport (EUG) – beginning Nov. 20, 2020

The new seasonal route to Denver International Airport (DEN) in Colorado includes:

  1. Provo, Utah via Provo Municipal Airport (PVU) – beginning Nov. 19, 2020

The extension on the seasonal route to Bozeman Yellowstone International Airport (BZN) in Montana includes:

  1. Nashville, Tennessee via Nashville International Airport (BNA) – beginning Nov. 21, 2020

The new nonstop routes will operate twice weekly.

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

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Allegiant reports a $93.1 million net loss in the second quarter

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

“The second quarter proved to be the most turbulent quarter in the history of the industry,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “As the virus spread throughout the country in March and April, the industry saw an unprecedented plummet in demand, followed by significant capacity cuts, upwards of 80 to 90 percent. As cases subsided, demand began trickling back in, only to begin recessing again with the uptick in cases beginning late June. It appears demand will continue to ebb and flow along with fluctuations in reported cases for the foreseeable future. We have built a unique way to operate our company as compared to the rest of the industry, which will continue to sustain us throughout the duration of these uncertain times.

“We are experts when it comes to managing capacity to meet demand. Our model was built around flexing capacity up and down to meet differing seasonal demand levels. This quarter proved to be the ultimate test of the model, and I believe our second quarter results highlight its inherent strength. Throughout the quarter, we maintained a very broad network and selling presence, cutting capacity when it made sense, but also capturing demand when it returned. We completed the quarter with roughly 50 percent reductions in capacity, maintaining the broadest schedule of any domestic carrier. Load factors were just over 50 percent, a significant step in the right direction from April lows. During the second quarter, Allegiant passengers accounted for more than five percent of all TSA screenings conducted. That is astonishing given our market share. These results are a testament to our ability to not only manage capacity, but also our ability to manage cost, further highlighting we are best equipped to react to these fluctuations in market conditions.

“Although we were able to manage through the chaos of the quarter, arguably better than most, this environment is unsustainable long-term. It continues to be of utmost importance to strengthen liquidity positions. We completed the quarter with an average daily cash burn of $900 thousand, a 57 percent reduction from our initial forecasts. June bookings were a significant contributor to this reduction, with several days in June exceeding prior year booking levels. In fact, June bookings resulted in cash breakeven for the month of June. We continued to remain disciplined in regard to cost savings and successfully cut more than 38 percent of operating expenses from the quarter. These efforts coupled with funds received related to the CARES Act as well as executed financing arrangements enabled us to grow our liquidity position by nearly $200 million to end the quarter with total liquidity of $663.1 million. Unfortunately, the strength seen in June has since weakened as case numbers have risen. I am comfortable the strides made in building liquidity throughout the quarter will act as a safety net as we continue to manage the ever-changing demand environment.

“In conclusion, I would like to thank our 4,000 team members for their continued hard work. These are difficult times, yet our employees continue to go the extra mile to prioritize the health and safety of our passengers by performing additional cleaning procedures on board our aircraft, encouraging social distancing practices, and exemplifying the principles of our Going the Distance for Health and Safety program. Although I believe the effects of this pandemic will linger well into 2021 and possibly beyond, I firmly believe Allegiant’s flexible model and financial strength will not only sustain us during these uncertain times, but will ultimately uniquely position us to recover quickly upon a normalized return of demand.”

Covid-19 Responses – Update

  • Maintain a comprehensive cleaning program for all aircraft that includes a regular schedule of standard and deep-clean procedures that exceed both CDC and Airbus guidance
  • Utilize VOC (volatile organic compound) filters on board every aircraft, which remove additional organic compounds and ensure that cabin air is changed on average, every three minutes, exceeding HEPA standards
  • Continue to encourage social distancing at check-in, while waiting at gates, and throughout the boarding process as well as offer complimentary health and safety kits to each passenger upon boarding the aircraft
  • Treat hard surfaces in all office areas, including airport station offices, maintenance facilities, headquarters/administrative offices, with antimicrobial disinfectant/protectant, and utilize wall-mounted and handheld thermometers for employee and crew member temperature checks
  • Partner with Quest Diagnostics to provide at-home self-collection COVID-19 test kits to employees in the event local testing is not immediately available
  • Effective July 2, require customers and crew members to wear face coverings through all phases of travel, including at the ticket counter, in the gate area, and during flight
  • Offer opt-in option in the booking path for customers to receive notification that their flight has reached 65 percent capacity with option to re-book on another flight with no fee or receive a refund
  • Continue to waive change and cancellation fees for all customers for future travel as well as extend expiry on credit vouchers to two years
    • $80.7 million in cash refunds have been provided year to date
  • Reduced management and support teams by 220 positions, a 20 percent reduction of those work groups
    • Employees will be paid through September 30, 2020, in compliance with the CARES Act

Second Quarter 2020 Results

  • Reported adjusted loss per share of $5.96, which excludes one-time, non-recurring charges, as detailed in the section below titled “COVID-19 Related Special Charges”, the benefit from the CARES Act payroll support program, and a portion of the tax benefit attributable to the CARES Act
  • Completed the quarter with load factor in the month of June of 56.8 percent, up 38 points from April
  • Total revenue for the quarter was $133.3 million, down 72.9 percent year over year
    • Progressive improvement in revenue throughout the quarter with April, May, and June decreases of 95 percent, 75 percent, and 52 percent, respectively
    • Despite yield pressure, average air ancillary revenue per passenger for the quarter was $51.57, remaining consistent with prior year
  • Total operating expense was $246.6 million, down 35.7 percent year over year on reduced capacity of 50.1 percent
    • Total operating expense, excluding one-time, non-recurring charges noted below and excluding the benefit related to CARES Act payroll support, was $240.0 million, down 37.5 percent

Network

  • Reduced second quarter capacity by 50.1 percent
    • Anticipate third quarter capacity reductions to be 25 percent of planned capacity but will adjust in accordance with demand trends
  • Conducted minimal close-in cancellations for the months of June and July to date

COVID-19 Related Special Charges

  • Recognized total special charges related to COVID-19 of $101 million during the second quarter
    • $81.2 million included as an operating expense and $19.8 million included as other non-operating expense
  • $59 million adjustment resulting from the accelerated retirements of seven aircraft, loss on sale leaseback transaction of four A320 series aircraft, and write-off of other aircraft related assets
  • $10 million adjustment for additional salary and benefits expense in relation to the elimination of 220 positions as well as other non-recurring compensation expense associated with the acceleration of certain existing awards
    • Total cash outlay is expected to be only $1.5 million of the $10 million adjustment
  • $5 million impairment loss related to an investment interest held by the company since 2018
  • $2 million write-down on various non-aircraft assets
  • $20 million accrual on the expectation to terminate the loan agreement with Sixth Street Partners (formerly TSSP)  intended to finance the development of Sunseeker Resorts Charlotte Harbor
    • Expected to be paid throughout the remainder of the year
  • $5 million related to suspension of construction at Sunseeker

CARES Act

  • Received $154.7 million of the $171.9 million Payroll Support Program grant in the quarter
    • Remaining $17.2 million to be received in July
    • Received $17.4 million in loan funds (recorded as debt and warrants) related to the $154.7 millionreceived
      • Expense offset recognized during the second quarter related to the grant was $74.5 million
      • Remaining $62.8 million recorded as an accrued liability to be relieved during the third quarter
    • Future expense offset of roughly $75 million to be recognized during the third quarter
  • $45.6 million of federal income tax refunds related to net operating losses from 2018 and 2019were received in May
    • Additional $48.7 million received during July
  • Expect a federal income tax refund in excess of $125 million related to 2020 net operating losses to be received during the first half of 2021
  • Eligible to receive up to $276 million loan under the CARES Act

Balance Sheet, Cash and Liquidity

  • Total cash and investments at June 30th was $663.1 million 
  • Entered into a sale leaseback transaction on June 23, which included the sale of four A320-series aircraft, generating $48 million
  • Further sources of liquidity received during the third quarter around $65.9 million, including:
    • Federal income tax refund of $48.7 million related to net operating losses from 2018
    • Additional payroll support related to the CARES Act of $17.2 million
  • Federal excise tax refund of $21 million related to net refunds issued during 2020 is expected during the second half of the year
  • Evaluating option to access up to a $276 million loan available through the CARES Act as well as other secured financing options available
  • 2Q20 daily cash burn averaged $900 thousand per day (1)
    • 57 percent reduction from initial expectations of $2.1 million as reported in our first quarter earnings release
    • Gross bookings averaged more than $2.5 million per day during the quarter
  • 3Q20 daily cash burn is expected to be slightly above $1 million assuming gross bookings average roughly $2 million per day
    • Includes a portion of the $20 million accrual related to expectation to terminate the loan agreement with Sixth Street Partners
  • 24 unencumbered aircraft and 10 unencumbered spare engines with approximate market values of $387 million
  • Air traffic liability at June 30th was $355 million
    • Balance related to future scheduled flights is $139 million
    • Balance related to travel vouchers issued for future use is $216 million

(1) Daily cash burn defined as cash from operations less debt and rent payments 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.

Capital Expenditures

  • Remaining 2020 spend related to capital expenditures is roughly $165 million
    • Includes five previously executed purchase commitments for aircraft during 2020, all of which are intended to be financed
  • Reduced Sunseeker capital expenditures by $300 million for the year
  • Reduced full year heavy maintenance spend by roughly $70 million, compared to initial guidance of $120 million
    • Six planned aircraft retirements within the next ten months and one additional retirement within the next three years
    • Five planned CFM-engine retirements

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, July 29 to discuss its second quarter 2020 financial results. A live broadcast of the conference call will be available via the Company’s Investor Relations website homepage at http://ir.allegiantair.com. The webcast will also be archived in the “Events & Presentations” section of the website.

As a result of the COVID-19 pandemic, we will hold this year’s annual stockholders meeting on Tuesday, August 4, 2020.

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

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Allegiant promotes its air quality

Allegiant Air has issued this report on its aircraft air quality:

We are setting a new standard for air purity. The air quality on our planes exceeds HEPA standards thanks to our VOC (volatile organic compound) filters, which remove even smaller contaminants.

On average, cabin air is changed every three minutes through a continuous flow of fresh and VOC-filtered air. Air enters the cabins through vents near the ceiling and flows downward, exiting through vents near the floor. Air doesn’t flow toward the front or the back of the plane. This flow ensures the air is fresh and sanitary.

“Together We Fly” is more than a phrase, it’s our promise to you. That’s why we are taking important steps to protect the health and safety of you, your loved ones and our team members.

We work closely with the Centers for Disease Control and Prevention (CDC), World Health Organization (WHO) and other authorities and experts. Based on their direction, we ensure our actions not only follow current guidance, but exceed the recommended standards so you can fly with confidence.