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 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.*

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

“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

Aircraft Fleet Plan by End of Period