Tag Archives: Allegiant Air

Allegiant announces five new routes, introduces a Vegas Golden Knights logo jet

Allegiant Air has announced five new nonstop routes, including two new routes to the Gulf Coast and three new routes to Nashville.

Three new seasonal routes to Nashville International Airport (BNA):

  • Des Moines, Iowa via Des Moines International Airport (DSM) – beginning Feb. 13, 2020
  • Gulfport, Mississippi via Gulfport-Biloxi International Airport (GPT) – beginning Feb. 15, 2020
  • Appleton, Wisconsin via Appleton International Airport (ATW) – beginning Feb. 14, 2020

One new seasonal route to Punta Gorda Airport (PGD):

  • Richmond, Virginia via Richmond International Airport (ATW) – beginning Feb. 13, 2020

One new seasonal route to Sarasota-Bradenton International Airport (SRQ):

  • Allentown, Pennsylvania via Lehigh Valley International Airport (ABE) – beginning Feb. 13, 2020

Photos: Allegiant Air. N302NV in now in the colors of the Vegas Golden Knights, the local hockey team.

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Allegiant Air announces a new base in Des Moines

Allegiant Air has made this announcement:

State and local officials joined executives from Allegiant Travel Company today as the company announced plans to establish a two-aircraft base at Des Moines International Airport (DSM).  The announcement heralds the leisure airline’s 20th base of operations, a $50 million investment which will locate two Airbus A320 aircraft in Des Moines, bringing at least 66 new, high-wage jobs to the community.  The Las Vegas-based carrier will begin base operations at DSM on May 14, 2020.

Allegiant began service at DSM in 2003 and currently offers eight non-stop routes – to Orlando-Sanford, St. Pete-Clearwater, Punta Gorda, Destin-Fort Walton Beach and Sarasota, Florida; Phoenix-Mesa, Arizona; Los Angeles, California; and Las Vegas, Nevada.  Allegiant in 2018 carried more than 232,000 annual passengers through Des Moines, and is on track to eclipse that number in 2019.

Allegiant to establish a new base in Nashville

Allegiant Travel Company today announced plans to establish a base of operations at Nashville International Airport (BNA).  The Las Vegas-based company will invest $50 million to establish the new base, creating at least 66 new, high-wage jobs and housing two Airbus aircraft.

The company, which focuses on linking travelers in small-to-medium cities to world-class leisure destinations, plans to begin its base operations in Nashville on February 13, 2020. The music city airport will become the airline’s 19th aircraft base.

Allegiant began operating at BNA in 2018 and currently offers twelve nonstop routes – Sanford, St. Petersburg-Clearwater, Punta Gorda and Sarasota/Bradenton, Florida; Harrisburg and Lehigh Valley (ABE), Pennsylvania; Bentonville/Fayetteville, Arkansas; Cedar Rapids, Iowa; Grand Rapids, Michigan; Syracuse, New York; Cleveland, Ohio and Richmond, Virginia.  During 2019 to date, Allegiant has flown more than 177,000 passengers through Nashville (January through September).

Allegiant aircraft photo gallery:

 

Allegiant Travel Company reports its third quarter 2019 financial results

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

Consolidated Three Months Ended
September 30,
Percent
Change
Nine Months Ended
September 30,
Percent
Change
(unaudited) 2019 2018 2019 2018
Total operating revenue (millions) $ 436.5 $ 393.1 11.0 % $ 1,379.9 $ 1,255.3 9.9 %
Operating income (millions) 72.1 26.2 175.5 271.3 180.4 50.4
Net income (millions) 43.9 15.1 190.0 171.6 120.4 42.6
Diluted earnings per share $ 2.70 $ 0.94 187.2 % $ 10.54 $ 7.45 41.5 %
Airline only Three Months Ended
September 30,
Percent
Change
Nine Months Ended
September 30,
Percent
Change
(unaudited) 2019 2018 2019 2018
Airline operating revenue (millions)(1) $ 430.9 $ 390.4 10.4 % $ 1,366.0 $ 1,249.3 9.3 %
Airline operating income (millions)(1) 77.3 29.7 160.3 % 291.4 187.7 55.2 %
Airline operating margin 17.9 % 7.6 % 10.3 pts. 21.3 % 15.0 % 6.3 pts.
Airline diluted earnings per share(1) $ 3.06 $ 1.15 166.1 % $ 11.85 $ 7.91 49.8 %
Airline CASM ex fuel (cents)(1) 6.40 6.78 (5.6) % 6.13 6.37 (3.8) %
(1) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.

“I couldn’t be happier about our post-fleet transition results with our third consecutive quarter of airline margin expansion,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “This is our 67th consecutive profitable quarter and we’ve nearly tripled EPS versus the same period a year ago, despite having eight fewer aircraft in the current fleet. Airline operating margin increased ten-plus points to almost 18 percent in the quarter. Even without the year-over-year benefits from lower fuel cost per gallon, our airline operating margins would have been greater than 15 percent, almost twice as high as last year.

“We have discussed a number of times previously how our model post-transition will remain intact. After three full quarters, I am comfortable stating not only is it intact, it is actually better today than with the MD-80 fleet. Our revenue per aircraft is greater, and we have the ability to fly profitably further down the off-peak curve, thereby allowing us greater fleet utilization both in our weekly cycle and in our peak months. As an example, our average daily block hour per aircraft in the past three years, 2016-2018 averaged 6.2 hours in Q3. This year we averaged 7.4 hours, a 19.4 percent increase in utilization. We are in an excellent place in the history of the company. We have spent the past three-to-four years devising our current Allegiant 2.0 plan, and we are pacing nicely in the implementation. Our team members have been a critical component in the execution of the plan. We continue to excel in operational performance, number one in overall completion reported to date for the third quarter. Our product is our people, and it keeps getting better every day.  Hats off to all who produced a tremendous quarter during a very busy summer.”

Airline only third quarter 2019 results

  • Diluted earnings per share were $3.06, an increase of nearly $2.00 per share versus last year
  • 17.9 percent operating margin for the quarter and 21.3 percent year to date
  • TRASM increased 4.3 percent despite capacity growth of 5.8 percent
    • Quarter negatively impacted .5 percent due to Hurricane Dorian
  • Total fare increased 1.8 percent despite increasing aircraft utilization by 15.6 percent
  • Fixed fee flying set a quarterly record of almost $20 million in revenue contribution
  • Cobrand credit card total revenue was $2.58 per passenger during the quarter
    • Named Best Airline Co-Branded Credit Card by the USA Today 10Best Readers Choice Awards
  • Third party hotel net revenue grew 17 percent easily exceeding growth in passengers
  • Fuel gallons used increased only 3.0 percent on ASM growth of 6.7 percent
    • Increase in ASMs per gallon of 3.6 percent to 80.3
  • Airline unit cost excluding fuel decreased by 5.6 percent
    • Maintenance, continued improvement in operations, and lower airport fees were the largest drivers

Airline operational highlights

  • Departures in the third quarter were up 8.2 percent year over year despite eight fewer average number of aircraft in service
  • Improved industry leading completion despite an increase in cancellations of more than 1.5x due to weather
    • Controllable completion was 99.97 percent, up from 99.52 percent year over year
  • On time performance (A-14) for the quarter was 79.2 percent up 4.7 points year over year
    • Controllable A-14 was 88.3 percent, up 4.5 points from last year
  • Irregular operations costs – third quarter down $5.5 million or 53 percent
    • Year to date irregular operations costs were down $14 million or 53 percent

Liquidity and shareholder returns

  • Total cash and investments at September 30 were $442 million
  • Total debt declined from the second quarter to $1.4 billion
  • We have 30 unencumbered aircraft
  • $81 million available under the revolving credit facility
  • Returned $14.7 million through share repurchases in the quarter – purchased at an average of $141.64 per share
    • Currently have approximately $85 million in share repurchase authority
  • Returned $11 million in dividends in the third quarter
    • Expect to pay dividend of $0.70 per share on December 12, 2019 to shareholders of record as of November 22, 2019

Non-airline highlights

  • Non-airline businesses resulted in a combined operating loss of $5.2 million during third quarter
  • In discussion with potential buyers for Teesnap

Allegiant Air aircraft photo gallery:

 

 

Allegiant announces a new base in the Lehigh Valley, PA

Allegiant Air made this announcement:

State and local officials joined executives from Allegiant Travel Company today as the company announced plans to establish a two-aircraft base at Lehigh Valley International Airport (ABE) in Lehigh County, Pennsylvania. Allegiant’s growth plans in the state include creating at least 66 new, high-wage jobs.

The Las Vegas-based company is investing $50 million to establish its new base of operations, which will house two Airbus aircraft. The company, which focuses on linking travelers in small-to-medium cities to world-class leisure destinations, plans to begin its base operations at Lehigh Valley International Airport on February 12, 2020. Lehigh Valleywill become the airline’s 18th aircraft base.

The Lehigh Valley is a two-county region in eastern Pennsylvania consisting of 62 municipalities and three cities; Allentown, Bethlehem, and Easton. Located one hour north of Philadelphia and 90 minutes west of New York City, the Lehigh Valley is the 69th largest metropolitan region in the United States, with a $40.1 billion GDP that is larger than that of two entire states, Wyoming and Vermont. With more than 15,000 businesses contributing to an incredibly diverse industry base, Lehigh Valley is the fastest growing and third most populous region in the state of Pennsylvania, with a population of more than 670,000 residents. Site Selection named the Lehigh Valley one of the top five fastest-growing regions with under a million people in the United States in 2018, and the fastest-growing region of its size in the Northeast U.S. for a third consecutive year.

Allegiant began operating at ABE in 2005 and currently offers seven nonstop routes – to Fort Lauderdale/HollywoodSanford, St. Petersburg-Clearwater and Punta Gorda, Florida; Myrtle Beach, South Carolina; Nashville, Tennessee and Savannah, Georgia.  Allegiant currently carries more than 280,000 annual passengers through Lehigh Valley.

Current routes from ABE:

New routes announced:

Raiders, Allegiant agree on naming rights deal for Las Vegas Stadium

The Raiders and Allegiant Air today announced an agreement for the naming rights to Las Vegas Stadium, the under-construction future home of the Raiders and UNLV football.

This partnership with the Raiders presents a global branding opportunity for the Las Vegas-based company as Allegiant will have its name showcased on the 1.75 million-square-foot, state-of-the-art domed stadium that will also host many world-class major sports and entertainment events.

Allegiant Stadium will also serve as site of the Las Vegas Bowl beginning in 2020, which will feature a Pac-12 football opponent versus either a Big Ten or SEC opponent, as well as the 2020 and 2021 Pac-12 Football Championship Game.

With 55 nonstop routes from cities across the country, Allegiant brings more than 1.2 million customers to Las Vegas each year. Allegiant’s affordable, all-nonstop flights – along with special fan travel packages – will offer Raiders fans everywhere unprecedented access to see their favorite team.

This partnership will allow Allegiant to feature exterior signage at the transformational facility that is set to become the latest jewel along the internationally-known, iconic skyline of the Las Vegas Strip.

The Raiders and Allegiant are also teaming up to provide additional enhancements, rewarding customers and fans with unique in-game and season-long promotions including the “Allegiant Connection of the Game” linking a lucky fan to their favorite Raiders player, and an opportunity to win “Fan Traveler of the Year” honors.

The Raiders and Allegiant share a deep commitment to the community which offers even more synergy to the partnership as they will unite in programs and activations that benefit Southern Nevada residents.  Headquartered in Las Vegas, Allegiant currently generates nearly $3 billion in annual economic impact for the state of Nevada.

Legends Global Partnerships represented the Raiders to secure the naming rights agreement with Allegiant as a part of their duties as the stadium’s official premium ticketing and sponsorships agency.

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,
Percent
(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,
Percent
(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: