Allegiant has announced it has repaid the $24.8 million dollar emergency relief loan the company received under the Coronavirus Aid, Relief and Economic Security (CARES) Act in April 2020.

The government assistance, coupled with proactive initiatives from Allegiant and its employees, allowed the airline to preserve liquidity and strategically position itself to withstand the uncertainty surrounding the outbreak of COVID-19. Allegiant’s unique business model, focused entirely on leisure travel, helped the company respond to the unprecedented challenges that the entire airline industry faced when demand for air travel dropped so suddenly and precipitously in 2020, as a result of the global pandemic.

The CARES Act, signed into law in April 2020, established the Payroll Support Program to provide assistance to U.S. companies that were impacted by the global pandemic. The funds helped Allegiant support the airline’s employee salaries and benefits.

Allegiant Air aircraft photo gallery:

Allegiant Travel Company (Allegiant Air) today reported the following financial results for the second quarter 2022, as well as comparisons to prior years:

“Demand surged in the second quarter resulting in the highest revenue-generating quarter in company history,” stated John Redmond, CEO of Allegiant Travel Company. “Total operating revenue was up over 28 percent as compared with 2019. We saw impressive increases in TRASM of over 15 percent, year over three-year, particularly considering scheduled capacity was up over 13 percent. Earnings per share, adjusted to exclude the impact from the 2022 recognition bonus, was $0.62, pressured by lower productivity levels due to heightened fuel prices and a challenging operating environment.

“As we head into the third quarter, we continue to focus on operational integrity, ensuring safe and reliable travel for our customers. Our operations and planning teams have made significant progress combating the challenges present within the current operating environment. We have seen significant improvements in reliability into the third quarter, with a July controllable completion factor of 99 percent, as compared with 97 percent in June. We expect to finish the quarter with a controllable completion of over 99 percent.

“Looking ahead to 2023, we remain focused on improving margins and our major strategic initiatives, including integration of the Boeing MAX fleet, and the opening of Sunseeker Resort Charlotte Harbor. These are major undertakings for the company, but I believe these ventures will create significant shareholder value in the coming years. Retaining our talented leaders is critical to ensuring success with these initiatives. I was pleased to announce the appointments of Scott Sheldon and Gregory Anderson to President. Their superior leadership skills and combined 30 years of experience at Allegiant will play an integral role in the long-term success of the company.

“In closing, I am humbled by the hard work and dedication of our more than 5,000 team members across the network. This industry is not for the faint of heart, but we truly have the best employees. I cannot thank them enough for making Allegiant the successful airline we are today.”

     • GAAP Income before income taxes of $5.8 million
° Excluding recognition bonus ⁽¹⁾ , achieved a pre-tax margin of 2.4 percent
     • GAAP operating income of $26.1 million, yielding an operating margin of 4.1 percent
° Operating margin, adjusted to exclude recognition bonus ⁽¹⁾ of 5.6 percent
     • Consolidated EBITDA⁽²⁾ of $75.3 million, yielding an EBITDA margin of 12 percent
     • Total operating revenue was $629.8 million, up 28.1 percent year over three-year
° The month of June was the highest revenue-generating month in company history in both absolute dollars and unitized on a revenue per flight basis
     • Total system capacity up 12.2 percent year over three-year
° Sequential improvement in load factor of over eight points from the first quarter, with June loads of roughly 90 percent
        ° TRASM up 15.7 percent for the quarter versus 2019, despite a 13.4 increase in scheduled service capacity
        ° Total average fare of $131.69, up 15.0 percent from the second quarter of 2019
° Total average fare – air-related charges of $60.19, up 16.5 percent from 2019, driven predominantly by strength in bundled ancillary
° Total average fare – third party products of $5.90, up 34.1 percent year over three-year driven by Allways Allegiant World Mastercard strength
° Acquired 42 thousand new Allways Allegiant World Mastercard holders during the quarter, up 65 percent from 2019
° Year-to-date remuneration from Bank of America up 129 percent, year over three-year
     • Operating CASM, excluding fuel and recognition bonus ^{(1) (2)} of 6.76 cents, up 14.0 percent when compared with the second quarter of 2019
     • Expanded the network by announcing 10 new routes during the quarter, bringing total routes served to 610 and 128 cities

     • Total cash and investments at June 30, 2022 were $1.2 billion
     • $227.8 million in total operating cash inflow for the second quarter 2022
     • Total debt at June 30, 2022 was $2.0 billion
° Net debt at June 30, 2022 was $752.2 million
° Received $87.5 million during the quarter in prearranged financing related to Sunseeker project
° Raised $108 million in aircraft-backed debt
     • Debt principal payments of $33.2 million during the quarter
     • In August 2022, secured a $100 million revolving credit facility with MUFG
     • Air traffic liability at June 30, 2022 was $451.1 million
° Balance related to future scheduled flights is $392.5 million
° Balance related to travel vouchers issued for future use is $58.6 million

• Second quarter capital expenditures of $74 million, which includes $39 million for aircraft pre-delivery deposits, the purchase of one A320 aircraft, and $35 million in other airline capital expenditures
° Second quarter deferred heavy maintenance spend was $13 million
• Full-year 2022 capital expenditures expected to be roughly $380 million, a slight increase from initial expectations, which includes $240 million for aircraft purchases, inductions, and pre-delivery deposits, and $140 million in other airline capital expenditures
° Full-year 2022 deferred heavy maintenance spend expected to be $60 million, a slight reduction from initial expectations

     • Total project spend as of June 30, 2022 was $346 million with $158 million funded by debt and the remaining $188 million funded by Allegiant
° Second quarter capital expenditures were $70 million relating to the Sunseeker Resort Charlotte Harbor and $4 million related to other Sunseeker capital expenditures

Allegiant Air aircraft photo gallery:

Allegiant Travel Company (Allegiant Air) today reported preliminary passenger traffic results for March 2022 as well as first quarter 2022.

“We finished the quarter with total revenue in excess of $500 million, a 10.7 percent increase from 2019,” stated Drew Wells, senior vice president, revenue. “Demand began picking up in earnest mid-February resulting in load factors for the month of March above levels observed in 2019. TRASM during the month of March exceeded March of 2019 on capacity growth of over 14 percent. Demand strength has continued into the second quarter with booking growth exceeding planned forward capacity growth for the quarter. We expect second quarter load factors to exceed 2019 levels, with a more than ten percent increase in TRASM on double-digit anticipated capacity growth.”

“‘Our average fuel cost per gallon was $3.07, which was further pressured as we closed out the quarter by paying $3.46 during the month of March,” stated Gregory Anderson, executive vice president, chief financial officer. “The sudden spike in fuel resulted in $22 million more in fuel expense than expected during the quarter and was the primary driver of our loss per share of $0.44 cents. Additionally, this loss includes the impact of ‘profit sharing’, consistent with 2019 amounts. Excluding this ‘profit share’ component, the loss per share was roughly $0.12 cents. These results generally would not trigger profit sharing. However, given the challenging environment and the continued efforts of our team members, we are pleased to award a 2022 recognition bonus.

“Our unit cost, excluding fuel and ‘profit sharing’ was up 4.2 percent year over three-year, in line with our initial guide despite lower-than-expected capacity growth. As we head into the second quarter, we have optimized our planned capacity growth to prioritize operational integrity, better align with a high-fuel environment, and enhance profitability.”

*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.