Tag Archives: Allegiant Air

Allegiant Air reports a softening in demand for August

"Official Domestic Airline of the Vegas Golden Knights"

Allegiant Travel Company today reported preliminary passenger traffic results for August 2021. 

“As we have transitioned from our peak summer flying season into the off-peak fall season we have seen a softening in demand,” stated Drew Wells, senior vice president, revenue. “Consistent with industry trends, the increase in COVID-19 cases coupled with return to school and work for many has contributed to an increase in cancellations and a deceleration of demand. The off-peak periods continue to underperform, while peak periods remain strong, a trend that has persisted throughout the pandemic. By way of example, Labor Day weekend performed well with load factors of roughly 80 percent on peak days, consistent with levels observed in 2019.”

“We expect third quarter capacity to be up roughly 13.5 percent as compared with 2019, a 4.5 percentage point reduction from initial expectations,” stated Gregory Anderson, executive vice president, chief financial officer. “Although we did observe demand weakness, these reductions were driven primarily by operational challenges observed throughout the quarter. Given these capacity reductions, we have updated our guidance, which is included in the table below. We expect an increase in total operating revenue from 2019 of between 3.0 and 5.0 percent, which should yield an adjusted1 EBITDA margin between 16 and 18 percent for the third quarter. We will continue to monitor trends and tweak fourth quarter capacity accordingly but given peak-period performance, we remain encouraged about the upcoming holiday travel season.”

Previous Current
System ASMs – year over two-year change2 Up 16.0 to 20.0% Up 13.0 to 14.0%
Total operating revenue – year over two-year change Up 3.5 to 7.5% Up 3.0 to 5.0%
Adjusted¹ EBITDA margin N/A 16.0 to 18.0%
Fuel cost per gallon $2.11 $2.19
Weighted average share count for the third quarter 17.1 million 17.8 million

Scheduled Service – Year Over Two-Year Comparison

August 2021 August 2019 Change
Passengers 1,179,414 1,241,846 (5.0%)
Revenue passenger miles (000) 1,021,613 1,047,568 (2.5%)
Available seat miles (000) 1,377,398 1,229,543 12.0%
Load factor 74.2% 85.2% (11.0 pts)
Departures 9,451 8,768 7.8%
Average stage length (miles) 835 822 1.6%

Total System* – Year Over Two-Year Comparison

August 2021 August 2019 Change
Passengers 1,185,944 1,256,712 (5.6%)
Available seat miles (000) 1,408,554 1,306,860 7.8%
Departures 9,725 9,294 4.6%
Average stage length (miles) 830 824 0.7%

Scheduled Service – Year Over Year Comparison

August 2021 August 2020 Change
Passengers 1,179,414 633,155 86.3%
Revenue passenger miles (000) 1,021,613 540,317 89.1%
Available seat miles (000) 1,377,398 1,226,370 12.3%
Load factor 74.2% 44.1% 30.1pts
Departures 9,451 8,455 11.8%
Average stage length (miles) 835 835 (0.0%)

Total System* – Year Over Year Comparison

August 2021 August 2020 Change
Passengers 1,185,944 636,485 86.3%
Available seat miles (000) 1,408,554 1,252,758 12.4%
Departures 9,725 8,669 12.2%
Average stage length (miles) 830 833 (0.4%)

*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
August 2021 estimated average fuel cost per gallon – system $2.18

Top Copyright Photo: Allegiant Air Airbus A319-112 N302NV (msn 2387) (Vegas Golden Knights) TUS (Fernandez Imaging). Image: 954949.

Allegiant Air aircraft slide show:

Allegiant introduces an Airbus A319 “Raider Nation” NFL logo jet

Allegiant Air made this announcement:

Executives from the Las Vegas Raiders and McCarran International Airport joined Allegiant Air today to introduce the airline’s Raiders livery aircraft – a one-of-a-kind sleek Silver and Black jet designed to capture the spirit and strength of Raider Nation.

Photo: Airbus A319-111 N328NV (msn 2821) (Allegiant Air/Las Vegas Raiders).

“As die-hard fans know, ‘The Autumn Wind is a Raider,'” said Scott DeAngelo, Allegiant’s executive vice president and chief marketing officer. “As football season rolls in this fall, we’re thrilled to have ‘The Autumn Wind’ bring this stunning aircraft to Las Vegas for all fans to enjoy. As Las Vegas’ hometown airline, we’re incredibly proud of our partnership with our hometown team. This distinctive jet brings together signature elements of both our brands, combining them to showcase our shared community pride.”

The one-of-a-kind livery was designed to have a strong, powerful presence in Allegiant’s fleet – as the Raiders do both on the field and in the Las Vegas community. The design incorporates Allegiant’s signature livery elements – flowing ribbon encircling the fuselage, prominent logo and sunburst tail – but washed in the Silver & Black recognized throughout the world as representing the Raiders. The silver metallic paint was carefully matched to the team’s distinctive helmets, and the engine cowlings call out Raider Nation, symbolizing the lift an incredible international fan base gives to this legendary franchise.

Allegiant is the Official Airline of the Las Vegas Raiders and the Naming Rights Partner for Allegiant Stadium.

The Raiders livery aircraft arrives just as football season gets underway and will undoubtedly carry fans as they travel to Las Vegas to attend games at Allegiant Stadium.

Unlike most other airlines, Allegiant operates an “out-and-back” network, with exclusively nonstop flights – meaning each day’s flying starts and ends at a base, rather than connecting traffic through busy hub airports. The Raiders-themed aircraft will be based in Las Vegas. It joins Allegiant’s all-Airbus fleet, carrying scheduled passengers to Southern Nevada and destinations across the airline’s network.

Allegiant introduces “Allways Rewards”

Allegiant Air today launched the travel company’s signature non-credit card loyalty program, Allways Rewards. The first airline loyalty program designed specifically for leisure travelers, Allways brings together the best of tech, travel and retail – providing continuous opportunities for customers to earn and redeem points – without restrictions, blackout dates or mileage tracking. In addition to opportunities to redeem points for flights, lodging and rental cars, the program leverages Allegiant’s partnerships to bring unique rewards to members, including sports and live music event tickets and exclusive experiences.

The program rollout will be accompanied by the Allways Rewards Launch Sweepstakes, starting September 3. One grand prize winner will receive a year of concert tickets, along with a pair of tickets to eight NFL Las Vegas Raiders home football games, beginning when the Silver and Black host the Miami Dolphins on September 29 at Allegiant Stadium. The grand prize winner will also receive vouchers for travel to Las Vegas or any other Allegiant destination. Those who enroll in the program by September 13 will be automatically entered to win.

“We designed Allways Rewards specifically to have an immediate personal impact for our customers. It was truly inspired by the best innovative technology and retail programs that make earning, tracking and using rewards incredibly easy,” said Scott DeAngelo, Allegiant executive vice president and chief marketing officer.  “It’s a generational departure from traditional miles-based airline loyalty, which exclusively addresses high-mileage business travelers with long layovers in airport lounges.”

“This program is about always earning, redeeming and getting something in return – without having to calculate miles, or worry about exceptions like blackout dates and point expiration,” he continued.  “It specifically benefits the way that leisure travelers fly, where they stay, and how they play.

Allways Rewards is a tech-forward program based on a user-friendly, points-based system. Members receive one point for every dollar spent at Allegiant.com, and two points per $1 for spending over $500 (excluding taxes and fees). Points are available for use 72 hours after travel on Allegiant, and are redeemed at .01 per point.  There are no blackout dates or usage fees and no minimum requirements for redemption. Points have no expiration for members who purchase travel with Allegiant within 24 months.  Members will have the ability to combine Allways Rewards points with vouchers or promo codes seamlessly. And unlike most travel reward programs, points are awarded to the buyer rather than to an individual traveler. This means the Allways member will receive full credit for purchasing family travel, not just the cost of their own ticket.

In another central benefit to be added later this year, Allways members will receive a five percent discount on all airfare purchased at Allegiant.com. Members will also see a host of special promotions and discounts on travel offered via a personalized online portal, as well as access to exclusive member benefits under the Allways All-Access banner, including Ticketmaster ticket cash, event ticket giveaways and promotions, opportunities to earn and redeem on live music and sports event ticket purchases, special artist experiences and more.

The program is designed to integrate seamlessly with the Allegiant World Mastercard®, which debuts a new Allways-branded look this month. Launched in 2016, the card has been named USA Today 10Best Readers’ Choice / Best Airline Co-Brand Credit Card for 2019 and 2020.  Cardholders will be automatically enrolled in Allways Rewards, and will enjoy additional benefits offered to cardholders.

Allegiant’s July 2021 traffic exceeds July 2019 traffic by 6.4%

Allegiant Air Airbus A319-111 N319NV (msn 2503) LAS (Gunter Mayer). Image: 954241.

Allegiant Travel Company (Allegiant Air) today reported preliminary passenger traffic results for July 2021. Its traffic is now about 2019 results, before the pandemic impacted travel.

Scheduled Service – Year Over Two-Year Comparison

July 2021 July 2019 Change
Passengers 1,852,193 1,740,997 6.4%
Revenue passenger miles (000) 1,591,306 1,483,724 7.3%
Available seat miles (000) 1,957,736 1,682,024 16.4%
Load factor 81.3% 88.2% (6.9pts)
Departures 13,428 11,832 13.5%
Average stage length (miles) 834 834 0.0%

Total System* – Year Over Two-Year Comparison

July 2021 July 2019 Change
Passengers 1,857,678 1,750,065 6.1%
Available seat miles (000) 1,982,157 1,725,577 14.9%
Departures 13,634 12,165 12.1%
Average stage length (miles) 832 833 (0.1%)

Scheduled Service – Year Over Year Comparison

July 2021 July 2020 Change
Passengers 1,852,193 894,679 107.0%
Revenue passenger miles (000) 1,591,306 768,714 107.0%
Available seat miles (000) 1,957,736 1,516,821 29.1%
Load factor 81.3% 50.7% 30.6pts
Departures 13,428 10,370 29.5%
Average stage length (miles) 834 843 (1.1%)

Total System* – Year Over Year Comparison

July 2021 July 2020 Change
Passengers 1,857,678 896,478 107.2%
Available seat miles (000) 1,982,157 1,533,852 29.2%
Departures 13,634 10,559 29.1%
Average stage length (miles) 832 838 (0.7%)

*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
July 2021 estimated average fuel cost per gallon – system $2.19

Top Copyright Photo: Allegiant Air Airbus A319-111 N319NV (msn 2503) LAS (Gunter Mayer). Image: 954241.

Allegiant Air aircraft slide show:

Allegiant to establish new bases at Flint and Appleton

Allegiant Travel Company (Allegiant Air) today announced plans to establish two new aircraft and crew bases during the first quarter of 2022, at Flint Bishop International Airport (FNT) (above) and Appleton International Airport (ATW) (below).

At Flint Bishop International Airport (FNT), Allegiant will begin base operations with three Airbus A320 aircraft and at least 89 crew members, maintenance technicians and support staff on February 16, 2022 – an investment of $75 million.

Allegiant began operating at FNT in 2016 and currently offers eight nonstop routes – to Orlando-Sanford, Fort Lauderdale, Punta Gorda, St. Pete-Clearwater and Sarasota, Florida.; Nashville, Tennessee; Las Vegas, Nevada and Phoenix/Mesa, Arizona (new service starting Nov. 18, 2021).  In 2019, Allegiant carried nearly 197,000 passengers through Flint.

At Appleton International Airport (ATW), a $50 million investment will include two locally-based Airbus A320 aircraft and bring at least 66 new jobs to the community. Allegiant will begin base operations at ATW on March 2, 2022.

Allegiant began service at ATW in 2008 and currently offers seven nonstop routes – to Orlando-Sanford, St. Pete-Clearwater and Punta Gorda, Florida; Nashville, Tennessee; Phoenix-Mesa, Arizona; Savannah, Georgia and Las Vegas. Allegiant in 2019 carried nearly 147,000 passengers through ATW.

Allegiant announces 22 new routes

Allegiant Air today announced 22 new nonstop routes, expanding service in 25 cities across the United States.

The new routes to Destin-Fort Walton Beach Airport (VPS) in Florida include:

  1. Minneapolis, Minnesota via Minneapolis-Saint Paul International Airport (MSP) – beginning Oct. 1, 2021 with one-way fares as low as $49.*
  2. Las Vegas, Nevada via McCarran International Airport (LAS) – beginning Oct. 7, 2021 with one-way fares as low as $39.*

The new routes to Phoenix-Mesa Gateway Airport (AZA) in Arizona include:

  1. Amarillo, Texas via Rick Husband Amarillo International Airport (AMA) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  2. Flint, Michigan via Flint Bishop International Airport (FNT) – beginning Nov. 18, 2021 with one-way fares as low as $59.*
  3. Springfield, Illinois via Abraham Lincoln Capital Airport (SPI) – beginning Nov. 18, 2021 with one-way fares as low as $59.*
  4. Tulsa, Oklahoma via Tulsa International Airport (TUL) – beginning Nov. 18, 2021 with one-way fares as low as $49.*
  5. Orange County, California via John Wayne Airport (SNA) – beginning Nov. 19, 2021 with one-way fares as low as $39.*
  6. Spokane, Washington via Spokane International Airport (GEG) – beginning Nov. 22, 2021 with one-way fares as low as $39.*
  7. Minneapolis, Minneapolis via Minneapolis-Saint Paul International Airport (MSP) – beginning Nov. 24, 2021 with one-way fares as low as $49.*

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

  1. Des Moines, Iowa via Des Moines International Airport (DSM) – beginning Nov. 18, 2021 with fares as low as $59.*
  2. Indianapolis, Indiana via Indianapolis International Airport (IND) – beginning Nov. 18, 2021 with fares as low as $59.*
  3. Provo, Utah via Provo Airport (PVU) – beginning Nov. 19, 2021 with fares as low as $39.*

The new routes to Austin-Bergstrom International Airport (AUS) in Texas include:

  1. Punta Gorda, Florida via Punta Gorda Airport (PGD) – beginning Nov. 18, 2021 with one-way fares as low as $49.*
  2. Palm Beach, Florida via Palm Beach International Airport (PBI) – beginning Nov. 19, 2021 with fares as low as $49.*

The new routes to Minneapolis-Saint Paul International Airport (MSP) in Minnesota include:

  1. Destin, Florida via Destin-Fort Walton Beach Airport (VPS) – beginning Oct. 1, 2021 with one-way fares as low as $49.*
  2. Mesa, Arizona via Phoenix-Mesa Gateway Airport (AZA) – beginning Nov. 24, 2021 with one-way fares as low as $49.*

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

  1. Bentonville, Arkansas via Northwest Arkansas National Airport (XNA) – beginning Nov. 17, 2021 with one-way fares as low as $49.*
  2. Austin, Texas via Austin-Bergstrom International Airport (AUS) – beginning Nov. 18, 2021 with fares as low as $49.*

The new routes to Provo Airport (PVU) in Utah include:

  1. Houston, Texas via William P. Hobby Airport (HOU) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  2. Palm Springs, California via Palm Springs International Airport (PSP) – beginning Nov. 19, 2021 with fares as low as $39.*

The new routes to John Wayne Airport (SNA) in California include:

  1. Mesa, Arizona via Phoenix-Mesa Gateway Airport (AZA) – beginning Nov. 19, 2021 with fares as low as $39.*
  2. Sioux Falls, South Dakota via Sioux Falls Regional Airport (FSD) – beginning Nov. 19, 2021 with one-way fares as low as $49.*

The new routes to Sioux Falls Regional Airport (FSD) in South Dakota include:

  1. Orange County, California via John Wayne Airport (SNA) – beginning Nov. 19, 2021 with one-way fares as low as $49.*
  2. Fort Lauderdale, Florida via Fort Lauderdale-Hollywood International Airport (FLL) – beginning Dec. 15, 2021 with one-way fares as low as $59.*

The new routes to Sarasota Bradenton International Airport (SRQ) in Florida include:

  1. Cedar Rapids, Iowa via The Eastern Iowa Airport (CID) – beginning Nov. 19, 2021 with one-way fares as low as $49.*
  2. Tulsa, Oklahoma via Tulsa International Airport (TUL) – beginning Dec. 15, 2021 with one-way fares as low as $49.*

The new routes to Fort Lauderdale-Hollywood International Airport (FLL) in Florida include:

  1. Sioux Falls, South Dakota via Sioux Falls Regional Airport (FSD) – beginning Dec. 15, 2021 with fares as low as $59.*
  2. Harrisburg, Pennsylvania via Harrisburg International Airport (MDT) – beginning Dec. 15, 2021 with fares as low as $59.*
  3. Peoria, Illinois via Peoria International Airport (PIA) – beginning Dec. 15, 2021 with fares as low as $59.*

ALC leases ten used Airbus A320s to Allegiant Air

Air Lease Corporation (ALC) announced on July 28 long-term lease placements for ten used Airbus A320-200 aircraft with Allegiant.

The aircraft are scheduled to be delivered to the airline beginning in the Fall 2021 through Summer 2022.

Allegiant reports a profit in the second quarter

Allegiant Travel Company (Allegiant Air) today reported the following financial results for the second quarter 2021, as well as comparisons to the prior years:

Consolidated Three Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 472.4 $ 133.3 $ 491.8 254.3 (3.9)
Total operating expense 333.6 246.6 383.7 35.3 (13.1)
Operating income (loss) 138.9 (113.3) 108.1 222.6 28.4
Income (loss) before income taxes 122.6 (146.4) 91.8 183.7 33.5
Net income (loss) 95.0 (93.1) 70.5 202.1 34.7
Diluted earnings (loss) per share $ 5.49 $ (5.85) $ 4.33 193.8 26.8
Six Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 751.6 $ 542.5 $ 943.4 38.5 (20.3)
Total operating expense 588.1 766.8 744.2 (23.3) (21.0)
Operating income (loss) 163.5 (224.3) 199.2 172.9 (17.9)
Income (loss) before income taxes 131.2 (277.1) 165.7 147.4 (20.8)
Net income (loss) 101.9 (126.1) 127.7 180.8 (20.2)
Diluted earnings (loss) per share $ 6.04 $ (7.93) $ 7.84 176.2 (23.0)
Consolidated – adjusted Three Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 378.6 $ 239.9 $ 383.7 57.8 (1.3)
Adjusted operating income (loss) (1) (2) 93.9 (106.6) 108.1 188.1 (13.1)
Adjusted income (loss) before income taxes (1) (2) 77.6 (119.9) 91.8 164.7 (15.5)
Adjusted net income (loss) (1) (2) 60.0 (94.7) 70.5 163.4 (14.9)
Adjusted diluted earnings (loss) per share (1) (2) $ 3.46 $ (5.96) $ 4.33 158.1 (20.1)
Six Months Ended June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 716.7 $ 594.0 $ 744.2 20.7 (3.7)
Adjusted operating income (loss) (1) (2) 34.9 (51.5) 199.2 167.8 (82.5)
Adjusted income (loss) before income taxes (1) (2) 2.6 (77.7) 165.7 103.3 (98.4)
Adjusted net income (loss) (1) (2) 2.0 (61.4) 127.7 103.3 (98.4)
Adjusted diluted earnings (loss) per share (1) (2) $ 0.12 $ (3.87) $ 7.84 103.1 (98.5)
(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs (PSPs), and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

“The second quarter marked the return of leisure demand to pre-pandemic levels,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “Earnings per share came in at $5.49 on a year over two-year revenue decline of just 3.9 percent, with total revenue in June exceeding 2019 levels. We made significant progress towards achieving pre-pandemic unit revenues with TRASM of 10.36 cents (on a load factor of 70.8 percent), up 50 percent from the first quarter. The revenue team did an outstanding job optimizing loads and unit revenues during the quarter. This strong revenue performance, coupled with continued cost discipline as evidenced by our adjusted CASM, excluding fuel (3), of 5.86 cents, led to our adjusted operating margin(1) of 20 percent for the quarter.

“These results suggest we are close if not back to ‘normal’, where we were in the early days of 2020.  We were the first domestic carrier to grow capacity from 2019 levels. Given the reduced operations of the past year, this ramp up came with challenges – delays in infrastructure preparedness at some of our airports, labor constraints, and severe weather. Our operations team has done a great job reacting and adapting to these headwinds. During the third quarter we will continue our growth – capacity will increase nearly 20 percent, year over two-year.

“Last year at this time I stressed the importance of strengthening our liquidity to both weather the storm and position us favorably for growth post-pandemic. The team has done just that. We currently have $1.2 billion of cash on hand, up 79 percent from a year ago. Our total net debt continues to improve at under $400 million, a 52 percent reduction from a year ago. This strong liquidity leaves us well positioned for future growth. The fleet team has executed agreements to acquire 21 additional aircraft since the beginning of the year. These airplanes will all be placed into service by the end of 2022, thus supporting the remainder of this year as well as most of next year’s growth plan.

“The next year will be an exciting one for the company. We are preparing the launch of our new loyalty program in the coming months, Allways Rewards. This program will enable us to further enhance the customer experience. We also recently announced a new partnership with Live Nation venues, Ticketmaster and music festivals – kicking off a multi-year, strategic relationship with the world’s premier live entertainment company. This partnership will ultimately unlock another layer of leisure offerings, further enhancing a one-stop shop for our customer. Finally, we will continue to grow and expand our network, connecting more customers to world-class vacation destinations.

“I cannot thank our 4,000 team members enough for their continued efforts in supporting growth while prioritizing customer safety. Ramping up the operation the past few months has been a challenge, but our team members continue to work hard to support the operation. I could not be more proud of their efforts.”

Second Quarter 2021 Results

  • GAAP earnings per share of $5.49
    • Adjusted earnings per share(1) (2) (3) of $3.46
  • Consolidated EBITDA(2) (3) of $183.3 million yielding an EBITDA margin of 38.8 percent
    • Adjusted EBITDA(1) (2) (3) of $138.3 million yielding an adjusted EBITDA margin of 29.3 percent
  • Total June revenue exceeded June of 2019
  • Total operating revenue was $472.4 million, up 69.3 percent from the first quarter and down 3.9 percent when compared to the second quarter of 2019
    • Sustained yield strength throughout the quarter with yield up 7.8 percent year over two-year on scheduled service capacity increases of 4.5 percent
  • Total average fare of $126.82, up 10.8 percent year over two-year
    • Total ancillary average fare $64.25, up 14.6 percent from 2019 driven primarily by bundled air ancillary offerings, rental car rate strength, and increased cobrand activity
  • TRASM of 10.36 cents, down 5.6 percent year over two-year, and up 50.3 percent from the first quarter 2021
  • Load factor of 70.8%, up nearly 16 percentage points from the first quarter
  • Record-breaking quarter for co-brand activity with June new cardholder acquisitions becoming the highest month in the program’s history and the highest month for cardholder spend, beating the prior monthly spend record by more than 40 percent
    • May marked the third highest acquisition of new cardholders in program history
  • Adjusted operating expense(1) (2) (3) of $378.6 million, down 1.3 percent from second quarter 2019 on total system capacity increase of 3.3 percent
    • Adjusted Operating CASM, excluding fuel (3) of 5.86 cents, flat when compared to the second quarter of 2019
  • Adjusted operating margin(1) of 19.9 percent
  • Expanded the network by adding 29 new routes with four new cities and complementary service in Phoenix with the addition of Phoenix Sky Harbor International Airport, bringing total routes served to 596 and 134 cities
  • Ranked number two among US airlines within the 2021 Airline Quality Ranking

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs
(2) Denotes a non-GAAP financial measure
(3) Refer to the Non-GAAP Presentation section within this document for further information

Balance Sheet, Cash and Liquidity

  • Total cash and investments at June 30, 2021 were $1.2 billion, up from $728 million at March 31, 2021
    • Cash from operations of $237 million, including the benefit from the payroll support program and federal income tax refund of $12 million related to prior period tax net operating losses
      • Adjusted cash from operations of $176 million, which excludes the $49.2 million net benefit from the PSPs, and $12 million federal tax refund
    • Debt principal payments of $48 million during the quarter
      • Includes prepayment of debt secured by five aircraft
    • $65 million used for cash capital expenditures
    • Raised $335 million from issuance of 1.6 million shares at a price of $219 per share during the second quarter
  • Second quarter interest expense of $17 million, down 20 percent year over two-year
  • Expect to receive $136 million in federal tax refunds during the second half of the year related to 2020 net operating losses
  • Air traffic liability at June 30, 2021 was $437 million
    • Balance related to future scheduled flights is $305 million
    • Balance related to travel vouchers issued for future use is $132 million, a 26 percent reduction from March 31, 2021

Capital Expenditures

  • Second quarter capital expenditures related to aircraft, engines and induction costs were $46 million and $19 million in other airline capital expenditures
  • Second quarter capital expenditures related to deferred heavy maintenance were $23 million
  • Executed agreements to acquire 21 incremental aircraft year-to-date
Guidance, subject to revision Previous Current
Third Quarter 2021 guidance
System ASMs – year over two-year change(1) 16.0 to 20.0%
Scheduled Service  ASMs – year over two-year change(1) 16.0 to 20.0%
Total operating revenue – year over two-year change (1) Up 3.5% to 7.5%
Fuel cost per gallon $ 2.11
Full year 2021 guidance
CAPEX
Aircraft, engines and induction costs (millions) $115 to $125 $115 to $125
Capitalized Airbus deferred heavy maintenance (millions) $50 to $60 $50 to $60
Other capital expenditures (millions) $40 to $50 $40 to $50
Interest expense $65 to $70 $65 to $70
Recurring principal payments(2) $170 to $180 $170 to $180
(1) Year over two-year percentage changes compare 2021 to 2019
(2) Excludes $111 million of principal repayments related to the maturity of our revolving credit facility and the refinancing of three A320 aircraft during the first quarter 2021

Aircraft Fleet Plan by End of Period

Aircraft – (seats per AC) 2Q21 3Q21 YE21
A319 (156 seats) 35 35 35
A320 (177 seats) 23 23 22
A320 (186 seats) 45 49 51
Total 103 107 108
The table above is provided based on the company’s current plans and is subject to change

Allegiant announces 23 new nonstop routes

"Winter the Dolphin", promotional 2018 livery for  Clearwater Marine Aquarium

Allegiant Air today announces 23 new nonstop routes for fall vacation and holiday travel to destinations across the country, including 10 routes to four new cities: Melbourne, Fla.; Amarillo, Texas; Washington, D.C. and Minneapolis.

The new routes to Austin, Texas via Austin-Bergstrom International Airport (AUS) include:

  1. Amarillo, Texas via Rick Husband Amarillo International Airport (AMA) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  2. Louisville, Kentucky via Louisville International Airport (SDF) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  3. Orange County, California via John Wayne Airport (SNA) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  4. Provo, Utah via Provo Airport (PVU) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  5. Sioux Falls, South Dakota via Sioux Falls Regional Airport (FSD) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  6. Springfield, Missouri via Springfield-Branson National Airport (SGF) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  7. Tulsa, Oklahoma via Tulsa International Airport (TUL) – beginning Nov. 18, 2021 with one-way fares as low as $39.*

The new nonstop routes to Amarillo, Texas via Rick Husband Amarillo International Airport (AMA) include:

  1. Las Vegas, Nevada via McCarran International Airport (LAS) – beginning Oct. 14, 2021 with one-way fares as low as $39.*
  2. Austin, Texas via Austin-Bergstrom International Airport (AUS) – beginning Nov. 18, 2021 with fares as low as $39.*

The new nonstop routes to Washington, D.C. via Dulles International Airport (IAD) include:

  1. Jacksonville, Florida via Jacksonville International Airport (JAX) – beginning Nov. 19, 2021 with one-way fares as low as $39.*
  2. Sarasota, Florida via Sarasota Bradenton International Airport (SRQ) –  beginning Dec. 18, 2021 with fares as low as $39.*

The new nonstop routes to Melbourne, Fla. via Melbourne Orlando International Airport (MLB) include:

  1. Pittsburgh, Pennsylvania via Pittsburgh International Airport (PIT) – beginning Nov. 11, 2021 with one-way fares as low as $49.*
  2. Nashville, Tennessee via Nashville International Airport (BNA) – beginning Nov. 18, 2021 with fares as low as $39.*
  3. Concord, North Carolina via Concord-Padgett Airport (USA) – beginning Nov. 18, 2021 with fares as low as $39.*

The new nonstop routes to Minneapolis, Minn. via Minneapolis-Saint Paul International Airport (MSP) include:

  1. Asheville, North Carolina via Asheville Regional Airport (AVL) – beginning Oct. 7, 2021 with fares as low as $49.*
  2. Punta Gorda, Florida via Punta Gorda Airport (PGD) – beginning Oct. 8, 2021 with one-way fares as low as $49.*
  3. Palm Beach, Florida via Palm Beach International Airport (PBI) – beginning Oct. 7, 2021 with one-way fares as low as $49.*

The new nonstop routes to Punta Gorda, Fla. via Punta Gorda Airport (PGD) include:

  1. Minneapolis, Minnesota via Minneapolis-Saint Paul International Airport (MSP) – beginning Oct. 8, 2021 with one-way fares as low as $49.*
  2. Springfield, Missouri via Springfield-Branson National Airport (SGF) – beginning Nov. 19, 2021 with fares as low as $49.*

The new nonstop routes to Orange County, Calif. via John Wayne Airport (SNA) include:

  1. Eugene, Oregon via Eugene Airport (EUG) – beginning Oct. 8, 2021 with one-way fares as low as $39.*
  2. Austin, Texas via Austin-Bergstrom International Airport (AUS) – beginning Nov. 18, 2021 with fares as low as $39.*

The new routes to Nashville, Tenn. via Nashville International Airport (BNA) include:

  1. Palm Springs, California via Palm Springs International Airport (PSP) – beginning Nov. 17, 2021 with one-way fares as low as $49.*
  2. Melbourne, Florida via Melbourne Orlando International Airport (MLB) – beginning Nov. 18, 2021 with one-way fares as low as $39.*
  3. Jacksonville, Florida via Jacksonville International Airport (JAX) – beginning Nov. 18, 2021 with one-way fares as low as $39.*

The new nonstop routes to Jacksonville, Fla. via Jacksonville International Airport (JAX) include:

  1. Nashville, Tennessee via Nashville International Airport (BNA) – beginning Nov. 18, 2021 with fares as low as $39.*
  2. Dulles, Virginia via Dulles International Airport (IAD) – beginning Nov. 19, 2021 with one-way fares as low as $39.*

The new nonstop route to Las Vegas via McCarran International Airport (LAS) from Amarillo, Texas via Rick Husband Amarillo International Airport (AMA) begins Oct. 14, 2021 with fares as low as $39.*

The new nonstop route from Houston, Texas via William P. Lobby Airport to Bentonville, Ark. via Bentonville Municipal Airport (XNA) begins Nov.19, 2021 with one-way fares as low as $39.*

The new nonstop route from Des Moines, Iowa via Des Moines International Airport (DSM) to Fort Lauderdale, Fla. via Fort Lauderdale-Hollywood International Airport (FLL) begins Oct. 6, 2021 with one-way fares as low as $69.*

The new nonstop route from Wichita, Kansas via Wichita Dwight D. Eisenhower National Airport (ICT) to St. Petersburg, Fla. via St. Pete-Clearwater International Airport (PIE) begins Nov. 19, 2021 with one-way fares as low as $49.*

Top Copyright Photo: Allegiant Air Airbus A320-214 N271NV (msn 2932) (Winter the Dolphin) LAX (Michael B. Ing). Image: 954240.

Allegiant Air aircraft slide show:

Allegiant sees a leisure travel demand recovery for May and into this month

Allegiant Travel Company has reported preliminary passenger traffic results for May 2021. 

“We have been pleased to see leisure demand recovery persist throughout May and into early June,” stated Drew Wells, senior vice president, revenue. “Average daily bookings since the beginning of March have continued to exceed 2019 levels. May saw a nearly five-point increase in load factor when compared with April, and peak Memorial Day travel days saw load factors of roughly 80 percent. We anticipate June loads will be in excess of 75 percent on year-over-two-year capacity increases of roughly 15 percent. We continue to expect second quarter scheduled service revenue, excluding fixed fee and other revenue, to be down six to ten percent when compared with the second quarter of 2019.”

Scheduled Service – Year Over Two-Year Comparison
May 2021 May 2019 Change
Passengers 1,040,590 1,269,429 (18.0%)
Revenue passenger miles (000) 888,735 1,093,781 (18.7%)
Available seat miles (000) 1,293,704 1,308,911 (1.2%)
Load factor 68.7% 83.6% (14.9pts)
Departures 8,939 9,086 (1.6%)
Average stage length (miles) 834 843 (1.1%)

Total System* – Year Over Two-Year Comparison
May 2021 May 2019 Change
Passengers 1,046,813 1,281,742 (18.3%)
Available seat miles (000) 1,326,062 1,357,963 (2.3%)
Departures 9,202 9,416 (2.3%)
Average stage length (miles) 831 844 (1.5%)

 

Scheduled Service – Year Over Year Comparison
May 2021 May 2020 Change
Passengers 1,040,590 362,528 187.0%
Revenue passenger miles (000) 888,735 326,748 172.0%
Available seat miles (000) 1,293,704 690,624 87.3%
Load factor 68.7% 47.3% 21.4pts
Departures 8,939 4,654 92.1%
Average stage length (miles) 834 856 (2.6%)

 

Total System* – Year Over Year Comparison
May 2021 May 2020 Change
Passengers 1,046,813 365,519 186.4%
Available seat miles (000) 1,326,062 710,712 86.6%
Departures 9,202 4,795 91.9%
Average stage length (miles) 831 855 (2.8%)

*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
May 2021 estimated average fuel cost per gallon – system $2.02

Allegiant Air aircraft slide show: