Tag Archives: Allegiant Air

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:

https://airlinersgallery.smugmug.com/frame/slideshow?key=j6jV5d&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

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:

https://airlinersgallery.smugmug.com/frame/slideshow?key=j6jV5d&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

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.

Allegiant’s campaign to get people to fly again

Besides rock-bottom fares, Allegiant Air is touting its aircraft cleaning:

We maintain a comprehensive cleaning program that ensures every aircraft is cleaned and disinfected to the highest possible standard. Exceeding guidance set by the CDC and Airbus, all aircraft undergo a regular schedule of standard and deep cleans. All touch surfaces, from seatbelts and tray tables to galleys and lavatories, are sanitized and disinfected thoroughly during every cleaning.

Adopting hospital-grade standards, we also routinely treat all aircraft with an advanced antimicrobial protectant that kills viruses and bacteria on contact for 14 days. This product is safe and effective, forming a colorless, odorless protective barrier on all surfaces. Our treatment schedule, along with our cleaning practices, far exceeds manufacturer guidelines.

See the video below to learn more about how we use our antimicrobial protectant to help protect the health and safety of you, your loved ones and our team members.

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

https://airlinersgallery.smugmug.com/frame/slideshow?key=j6jV5d&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

Allegiant comments on June traffic and trends as it reduces daily cash burn

Allegiant Travel Company today reported preliminary passenger traffic results for June 2020 as well as second quarter 2020.

“We continued to see modest demand improvements throughout the month of June, building upon May’s demand increases,” stated Gregory Anderson, executive vice president, chief financial officer and principal accounting officer of Allegiant Travel Company. “Gross bookings for the month of June averaged more than $4 million per day, bringing the average daily gross bookings for the second quarter to over $2.5 million. June’s bookings exceeded our expectations, thus the average daily cash burn for the second quarter was $900 thousand, down from our previous forecast of $1.75 million.

However, within the last two weeks, several states have reported increases in the number of people with the virus, which has negatively impacted bookings and tempered expectations into the third quarter. Therefore, utilizing the average daily bookings from the second quarter of $2.5 million, we now expect daily cash burn will be approximately $750 thousand during the third quarter.

We recognize the situation is fluid, and that demand could be impacted by additional shutdowns and required quarantines in our markets. As a result, we remain focused on finding ways to eliminate costs and preserve cash. We continue to keep our finger on the pulse and will leverage the flexibility of our model to pull back capacity to match demand levels in the coming months.”

“During the month of June we operated 70 percent of our schedule while increasing load factor by nearly 10 points from May to 57.3 percent,” stated Drew Wells, vice president of revenue. “Capacity was down 17.5 percent for the month of June as compared with 2019, but peak day available seat miles actually grew 3.5 percent from prior year. Allegiant travelers represented roughly 6 percent of all travelers going through a TSA checkpoint in the month, and that trend continued into the Fourth of July weekend. We expect to operate roughly 75 percent of our schedule into the third quarter but will make any necessary adjustments as dictated by demand trends.”

Allegiant Air aircraft photo gallery:

Allegiant Air aircraft slide show:

https://airlinersgallery.smugmug.com/frame/slideshow?key=j6jV5d&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

Allegiant to require customers to wear face masks

Allegiant Travel Company today announced that, beginning July 2, customers will be required to wear face masks during all phases of travel, including at the ticket counter, in the gate area, during boarding, on the aircraft and during the flight. This policy update builds on Allegiant’s comprehensive health and safety program by bringing an extra layer of protection to customers, crew and team members at Allegiant airports.

In early May, Allegiant became the first U.S.-based airline to provide all passengers with complimentary Health and Safety Kits, which include a face mask and cleansing wipes. The airline has strongly encouraged passengers to wear face masks, with most adopting the practice. Allegiant employees are required to wear face masks when they interact with customers.

Customers can use their own face mask or covering, or the mask provided in Allegiant’s Health and Safety Kit. Children ages 2 and under are exempt from the new policy, as are passengers with disabilities or documented medical conditions. Passengers will also be allowed to remove face coverings to briefly eat or drink. The new policy is highlighted when customers book their flights, as well as in confirmation and reminder emails ahead of their departure date. Acknowledgement of this policy will also be included in a health questionnaire required at check-in. Customers who do not comply will not be allowed to fly.

Additionally, when booking a flight, customers can request to be notified if a booked flight exceeds 65 percent capacity. If they’re not comfortable traveling at that time, they can choose from a number of options, including being rebooked on another flight.

Videos:

Allegiant sees increased demand in May and June

Allegiant Travel Company today reported preliminary passenger traffic results for May 2020.

“We are continuing to see material improvement in demand from the April lows,” stated Gregory Anderson executive vice president, chief financial officer and principal accounting officer of Allegiant Travel Company. “For the entire month we averaged over $2 million in gross bookings per day. As such, we are anticipating our cash burn per day in the second quarter to be down to approximately $1.75 million. This number includes variable components related to increased capacity and a higher fuel price than previously forecasted, as well as an increased rate of voucher redemptions. This daily cash burn improves upon our previously expected estimate of $2.1 million per day, which was based on $750 thousand in daily gross bookings. In addition, we are anticipating the third quarter cash burn to be less than $1 million per day if $2.0 million in daily gross bookings were to remain consistent. This is less than the $1.5 million per day we spoke about during our earnings call. Even with this improvement in demand, we are continuing to focus on finding ways to reduce costs. As we have stated previously, the flexibility which is central to our business model allows us to take advantage of these periods of extremely low demand – which is clearly unique in our industry.”

“We have been pleased to see that May demand trends were stronger than anticipated,” stated Drew Wells, vice president of revenue. “In fact, during Memorial Day weekend Allegiant accounted for approximately eight percent of all travelers going through a TSA checkpoint versus two percent last year.  During the first week of June we operated 70 percent of our schedule versus roughly 50 percent of the schedule in May. Even with the increases in capacity, we were able to maintain load factors just shy of 50 percent. With Las Vegas casinos opening early June, we expect modest improvements to continue throughout the month.”

Scheduled Service
May 2020 May 2019 Change
Passengers 362,528 1,269,429 (71.4%)
Revenue passenger miles (000) 326,748 1,093,781 (70.1%)
Available seat miles (000) 690,624 1,308,911 (47.2%)
Load factor 47.3% 83.6% (36.3pts)
Departures 4,654 9,086 (48.8%)
Average stage length (miles) 856 843 1.5%

Total System*
May 2020 May 2019 Change
Passengers 365,519 1,281,742 (71.5%)
Available seat miles (000) 710,712 1,357,963 (47.7%)
Departures 4,795 9,416 (49.1%)
Average stage length (miles) 855 844 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.

Preliminary Financial Results
$ per gallon
May 2020 estimated average fuel cost per gallon – system $.91

Allegiant Air Pilots announce formation of Teamsters Local 2118

International Brotherhood of Teamsters made this announcement:

At the request of the pilots at Allegiant Air, Teamsters General President James P. Hoffa and the Teamsters General Executive Board approved the formation of Teamsters Local 2118. There are over 1,100 pilots who will be members of the union which will be headquartered in Las Vegas.

A low-cost regional carrier, Allegiant Air is one of the ten largest passenger airlines in North America. In addition to representing the flight crews, Teamsters also represent the company’s mechanics and dispatchers.