Tag Archives: Allegiant Air

Allegiant reports its fourth quarter will be its third consecutive quarter of profitability since the onset of the pandemic

Allegiant Travel Company (Allegiant Air) today reported preliminary passenger traffic results for December 2021, fourth quarter 2021, and full year 2021.

“Fourth quarter scheduled capacity was up 14.5 percent as compared with 2019, in line with our initial expectations,” stated Drew Wells, senior vice president of revenue. “Despite a challenging operating environment during the Christmas holiday peak-period, we ended the quarter with a load factor of 78.8 percent, the highest since the onset of the pandemic. Although Omicron led to an uptick in customer cancellations, daily booking trends throughout the quarter consistently outperformed levels observed in 2019. This strength in bookings resulted in total operating revenue of roughly $496 million for the quarter, an increase of more than 7.5 percent when compared with 2019.”

“We are pleased to report that the fourth quarter will be our third consecutive quarter of profitability since the onset of the pandemic,” stated Gregory Anderson, executive vice president and chief financial officer. “Despite operational challenges around holiday peak travel, we expect an adjusted1 EBITDA margin for the fourth quarter of roughly 19 percent. This margin includes nearly $23 million of irregular operations costs incurred during the quarter, the majority of which were incurred in December. Operational challenges were predominantly a result of crew shortages related to Omicron. Although these challenges continued into early January, we are beginning to see relief and expect significant improvement in the operation as the Omicron variant begins to dissipate.”

Scheduled Service – Year Over Two-Year Comparison
December 2021 December 2019 Change
Passengers 1,320,403 1,308,341 0.9%
Revenue passenger miles (000) 1,226,131 1,165,902 5.2%
Available seat miles (000) 1,556,101 1,411,107 10.3%
Load factor 78.8% 82.6% (3.8 pts)
Departures 9,801 9,423 4.0%
Average stage length (miles) 902 871 3.6%
4th Quarter 2021 4th Quarter 2019 Change
Passengers 3,671,032 3,516,263 4.4%
Revenue passenger miles (000) 3,306,563 3,073,055 7.6%
Available seat miles (000) 4,288,133 3,745,031 14.5%
Load factor 77.1% 82.1% (5.0pts)
Departures 27,818 25,541 8.9%
Average stage length (miles) 876 856 2.3%
YTD 2021 YTD 2019 Change
Passengers 13,509,544 14,823,267 (8.9%)
Revenue passenger miles (000) 11,963,715 13,038,003 (8.2%)
Available seat miles (000) 17,027,902 15,545,818 9.5%
Load factor 70.3% 83.9% (13.6pts)
Departures 113,121 105,690 7.0%
Average stage length (miles) 862 859 0.3%

Total System* – Year Over Two-Year Comparison
December 2021 December 2019 Change
Passengers 1,327,884 1,318,872 0.7%
Available seat miles (000) 1,586,060 1,453,592 9.1%
Departures 10,065 9,742 3.3%
Average stage length (miles) 896 868 3.2%
4th Quarter 2021 4th Quarter 2019 Change
Passengers 3,731,034 3,585,966 4.0%
Available seat miles (000) 4,440,839 3,928,536 13.0%
Departures 29,193 27,088 7.8%
Average stage length (miles) 865 846 2.2%
YTD 2021 YTD 2019 Change
Passengers 13,637,405 15,012,149 (9.2%)
Available seat miles (000) 17,490,571 16,174,240 8.1%
Departures 117,047 110,542 5.9%
Average stage length (miles) 856 855 0.1%

 

Scheduled Service – Year Over Year Comparison
December 2021 December 2020 Change
Passengers 1,320,403 673,041 96.2%
Revenue passenger miles (000) 1,226,131 611,429 100.5%
Available seat miles (000) 1,556,101 1,128,200 37.9%
Load factor 78.8% 54.2% 24.6pts
Departures 9,801 7,281 34.6%
Average stage length (miles) 902 891 1.2%
4th Quarter 2021 4th Quarter 2020 Change
Passengers 3,671,032 2,129,292 72.4%
Revenue passenger miles (000) 3,306,563 1,878,831 76.0%
Available seat miles (000) 4,288,133 3,226,050 32.9%
Load factor 77.1% 58.2% 18.9pts
Departures 27,818 21,399 30.0%
Average stage length (miles) 876 868 0.9%
YTD 2021 YTD 2020 Change
Passengers 13,509,544 8,553,623 57.9%
Revenue passenger miles (000) 11,963,715 7,626,470 56.9%
Available seat miles (000) 17,027,902 12,814,080 32.9%
Load factor 70.3% 59.5% 10.8pts
Departures 113,121 85,276 32.7%
Average stage length (miles) 862 867 (0.6%)

 

Total System* – Year Over Year Comparison
December 2021 December 2020 Change
Passengers 1,327,884 679,424 95.4%
Available seat miles (000) 1,586,060 1,147,534 38.2%
Departures 10,065 7,471 34.7%
Average stage length (miles) 896 883 1.5%
4th Quarter 2021 4th Quarter 2020 Change
Passengers 3,731,034 2,159,035 72.8%
Available seat miles (000) 4,440,839 3,315,599 33.9%
Departures 29,193 22,189 31.6%
Average stage length (miles) 865 860 0.6%
YTD 2021 YTD 2020 Change
Passengers 13,637,405 8,623,984 58.1%
Available seat miles (000) 17,490,571 13,125,533 33.3%
Departures 117,047 87,955 33.1%
Average stage length (miles) 856 862 (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
December 2021 estimated average fuel cost per gallon – system $2.37
$ per gallon
4th quarter 2021 estimated average fuel cost per gallon – system $2.48
$ per gallon
Full year 2021 estimated average fuel cost per gallon – system $2.15

Allegiant Air switches to Boeing, orders 50 new 737-7 and 737-8 200 MAX aircraft + 50 options

Allegiant Travel Company (Allegiant Air) today announced an agreement with Boeing to purchase 50 new 737 MAX aircraft as part of the airline’s ongoing efforts to modernize and expand its fleet.

The multi-year deal – Boeing’s first with an ultra-low-cost carrier in the United States –  includes the purchase of 737-7 and 737-8-200 models, as well as options to purchase 50 additional aircraft, giving the company flexibility for future growth. Allegiant will take delivery of an initial group of planes in 2023, with the remaining deliveries scheduled throughout 2024 and 2025.

Allegiant’s unique ULCC business model has been primarily focused on high quality used aircraft to maintain lower fixed costs. However, the pandemic recovery cycle has brought to Allegiant unique opportunities to acquire new equipment, including this aircraft-family solution, which will add significant economic and operational benefits for years to come.

The arrangement with Boeing will allow Allegiant to replace aircraft that are scheduled to retire while also expanding the fleet to maintain the company’s projected 10 percent-plus annual growth rate.

The Boeing 737s come equipped with several innovative in-cabin features – such as Boeing Sky Interior and Space Bins – that create a feeling of spaciousness, provide more leg room and make storing and retrieving carry-on luggage easier for passengers. Additionally, the new aircraft will burn approximately 20 percent less fuel than older Airbus A320 family aircraft.  while also offering increased seating capacity.

The aircraft will be powered with CFM LEAP 1-B engines. Allegiant has signed a 12-year exclusive maintenance agreement with CFM for the LEAP engine fleet, which will also bring support for the existing Airbus fleet. Allegiant currently operates 108 Airbus A319s and A320s and will continue sourcing A320s in the used market.

Reuters: Allegiant Air to order 50 Boeing 737 MAX jets

Is Allegiant Air ready to jump from Airbus to Boeing?

From Reuters:

“Allegiant Air is close to ordering 50 Boeing 737 MAX jets worth $5 billion at list prices, people familiar with the matter said, as the low-cost U.S. airline eyes a rebound in tourism.”

Read the full article:

https://www.reuters.com/business/aerospace-defense/exclusive-us-carrier-allegiant-air-buy-50-boeing-737-max-jets-sources-2022-01-04/

 

Allegiant announces nine new routes

2021 "Raiders - Raider Nation" team livery

Allegiant Air has announced nine new nonstop routes for spring vacation travel to premier destinations in Florida and the southwest.

Routes from TYS:

The new routes to Knoxville, Tennessee via McGhee Tyson Airport (TYS) include:

  1. Phoenix, Arizona via Phoenix Sky Harbor International Airport (PHX) – beginning Feb. 16, 2022 with one-way fares as low as $59.*
  2. Minneapolis, Minnesota via Minneapolis-Saint Paul International Airport (MSP) – beginning March 9, 2022 with one-way fares as low as $49.*

Routes from AZA:

The new route to Phoenix, Arizona via Phoenix-Mesa Gateway Airport (AZA):

  1. Toledo, Ohio via Eugene F. Kranz Toledo Express Airport (TOL) – beginning March 9, 2022 with one-way fares as low as $59.

Routes from PIE:

The new route to St. Petersburg, Florida via St. Petersburg-Clearwater International Airport (PIE) include:

  1. Clarksburg, West Virginia via North Central West Virginia Airport (CKB) – beginning March 11, 2022 with one-way fares as low as $49.*

Routes from ATW:

The new routes to Appleton, Wisconsin via Appleton International Airport (ATW):

  1. Fort Lauderdale-Hollywood International Airport (FLL– beginning March 10, 2022 with one-way fares as low as $49.*
  2. Sarasota, Florida via Sarasota Bradenton International Airport (SRQ) – beginning March 11, 2022 with one-way fares as low as $59.*
  3. Denver, Colo. Via Denver Airport (DEN) – beginning March 11, 2022 with one-way fares as low as $39.*

Routes from FNT:

The new routes to Flint, Michigan via Flint Bishop International Airport (FNT) include:

  1. Boston, Massachusetts via Logan International Airport (BOS) – beginning March 10, 2022 with one-way fares as low as $49.*
  2. Jacksonville, Fla. via Jacksonville International Airport (JAX) – beginning March 11, 2022 with one-way fares as low as $39.*

Top Copyright Photo: Allegiant Air Airbus A319-111 N328NV (msn 2821) (Raiders – Raider Nation) LAS (Tony Storck). Image: 955811.

Allegiant Air aircraft slide show:

Allegiant Air aircraft photo gallery:

Allegiant Air and Viva Aerobus announce an alliance agreement

Allegiant Chairman and CEO Maurice J. Gallagher, Jr. and Viva Aerobus Chief Executive Officer Juan Carlos Zuazua, photographed at McCarran International Airport in Las Vegas. The airlines today announced plans for a fully-integrated Commercial Alliance Agreement, designed to dramatically expand options for nonstop leisure air travel between the United States and Mexico, while lowering fares to make travel more accessible and affordable for residents of both nations. (Photo: Henri Sagalow)

Allegiant Air and Viva Aerobus today announced plans for a fully-integrated Commercial Alliance Agreement, designed to dramatically expand options for nonstop leisure air travel between the United States and Mexico, while lowering fares to make travel more accessible and affordable for residents of both nations. The alliance is not only the first such venture for Las Vegas-based Allegiant and Viva Aerobus, but is also first-of-its-kind in the airline industry between two ultra low cost carriers (ULCCs).

Allegiant and Viva Aerobus have submitted a joint application to the U.S. Department of Transportation (DOT) requesting approval of and antitrust immunity for the alliance.  Allegiant will also make an equity investment of $50 million in Viva Aerobus, and Allegiant Chairman and Chief Executive Officer Maurice J. Gallagher, Jr. is expected to join the Viva Aerobus Board of Directors. The transactions are also subject to clearance by the Mexican Federal Economic Competition Commission.

Combining the unique product offerings, networks and market experience of two of the world’s fastest-growing ULCCs, the alliance will achieve important public benefits that neither Allegiant nor Viva Aerobus could provide independently.

The only U.S.-based airline focused entirely on leisure travel, Allegiant currently offers nonstop service to more than 130 cities across the country.  It does not currently serve Mexico. Monterrey-based Viva Aerobus offers extensive intra-Mexico service, as well as nonstop flights from Mexico to key destinations in the U.S. and Latin America. The Alliance Agreement will afford Allegiant the opportunity to broaden its travel offerings to include new world-class vacation destinations such as Cancun, Los Cabos and Puerto Vallarta, Mexico. At the same time, Viva Aerobus will have access to Allegiant’s distribution network and point-of-sale process, growing its U.S. customer base.

The alliance will also enable Viva Aerobus to add routes in the United States – particularly underserved or untapped-to-Mexico markets where Allegiant has a significant presence such as Las Vegas and several cities in Florida — very popular destinations for Mexican tourists.

A fully-integrated and immunized alliance will afford Allegiant and Viva Aerobus coordination across all areas of airline operations – including code-sharing, scheduling, marketing, information systems and loyalty programs, providing seamless access and benefits for customers of both airlines.

The alliance is anticipated to add new transborder routes and nonstop competition where currently only connecting service is available. More than 250 new potential route opportunities have been identified as part of the DOT application, though specific routes targeted for service will be announced at a later date, following the application’s approval.

Allegiant and Viva Aerobus currently expect to offer flights under the alliance beginning in the first quarter of 2023, pending governmental approval of the application. Per national requirements, Allegiant and Viva Aerobus will in parallel file for alliance approval with regulatory authorities in Mexico, including with the Mexican Federal Economic Competition Commission.

Barclays, Goldman Sachs and White & Case acted as financial and legal advisors for Viva Aerobus.  WilmerHale and Garofalo Goerlich Hainbach, PC, acted as legal advisors for Allegiant.

Photo: Allegiant Air Airbus A319-111 N328NV (msn 2821) (Raiders – Raider Nation) LAS (Nick Dean). Image: 955768.

2021 "Raiders - Raider Nation" team livery

Copyright Photo: Allegiant Air Airbus A319-111 N328NV (msn 2821) (Raiders – Raider Nation) LAS (Nick Dean). Image: 955768.

Allegiant reports a net profit of $66.3 million in the third quarter, new routes from Akron/Canton

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

Consolidated Three Months Ended September 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 459.5 $ 201.0 $ 436.5 128.6 % 5.3 %
Total operating expense 393.2 234.1 364.4 68.0 7.9
Operating income (loss) 66.3 (33.1) 72.1 300.4 (8.1)
Income (loss) before income taxes 50.2 (44.7) 56.9 212.4 (11.7)
Net income (loss) 39.3 (29.1) 43.9 234.7 (10.6)
Diluted earnings (loss) per share $ 2.18 $ (1.82) $ 2.70 219.8 (19.3)

 

Nine Months Ended September 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 1,211.0 $ 743.5 $ 1,379.9 62.9 % (12.2) %
Total operating expense 981.3 1,000.8 1,108.6 (2.0) (11.5)
Operating income (loss) 229.7 (257.3) 271.3 189.3 (15.3)
Income (loss) before income taxes 181.5 (321.9) 222.6 156.4 (18.5)
Net income (loss) 141.2 (155.3) 171.6 190.9 (17.7)
Diluted earnings (loss) per share $ 8.18 $ (9.75) $ 10.54 183.9 (22.4)

 

Consolidated – adjusted Three Months Ended September 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 428.0 $ 278.4 $ 364.4 53.7 % 17.5 %
Adjusted operating income (loss) (1) (2) 31.5 (77.4) 72.1 140.7 (56.3)
Adjusted income (loss) before income taxes (1) (2) 15.4 (89.0) 56.9 117.3 (72.9)
Adjusted net income (loss) (1) (2) 11.9 (68.5) 43.9 117.4 (72.9)
Adjusted diluted earnings (loss) per share (1) (2) $ 0.66 $ (4.28) $ 2.70 115.4 (75.6)

 

Nine Months Ended September 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expense (1) (2) $ 1,144.7 $ 872.3 $ 1,108.6 31.2 % 3.3 %
Adjusted operating income (loss) (1) (2) 66.3 (128.8) 271.3 151.5 (75.6)
Adjusted income (loss) before income taxes (1) (2) 18.1 (166.8) 222.6 110.9 (91.9)
Adjusted net income (loss) (1) (2) 14.0 (128.4) 171.6 110.9 (91.8)
Adjusted diluted earnings (loss) per share (1) (2) $ 0.82 $ (8.07) $ 10.54 110.2 (92.2)
(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs (PSPs), and bonus accruals
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

We finished the quarter with earnings per share of $2.18, our second consecutive quarter of profitability since the onset of the pandemic,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “Third quarter total operating revenue was up 5.3 percent year over two-year making us one of the only domestic carriers to grow revenue from pre-pandemic levels. While demand was strong during our peak summer travel period, we experienced a slowdown as the delta variant spiked, but have since seen the demand curve ramp back up. Yields held up nicely, considering the effects of the delta variant, down less than six percent on scheduled service capacity increases of 17 percent. Third-party revenue continues to outperform, up 32.0 percent on a per passenger basis compared with 2019.

“Despite the favorable revenue environment, the operation continues to present challenges, as noted by several of our peers as well. Prior to COVID, the operation was a well-oiled machine – things ran smoothly. Fast forward to today, and we are operating in a different environment. The over-heated economy, continuing impacts of COVID, plus difficult labor environment created a perfect storm of challenges, including cancellations and delays over the past several months. We have a strong compensation approach for our interrupted passengers. We reimburse our customers for the inconvenience we have caused via prepaid credit cards or ACH deposits. Given the volume of our interruptions this past quarter, this was a meaningful amount. As a result, our third quarter adjusted CASM, excluding fuel, was 6.97 cents, 4.3 percent higher year over two-year. Excluding these costs for irregular operations, I was pleased that our adjusted CASM, excluding fuel was below the third quarter of 2019. As we head into the holiday season, job one is managing our operational integrity. We’ve scaled back on some peak day travel to mitigate the risk of cancellations. We now expect fourth quarter capacity to be up 12 percent from 2019.

“In regards to 2022 growth plans, it’s too early to provide specific numbers. At a minimum, growth will mirror our historical low, double-digit rate. However, if fuel continues to increase, we will moderate capacity accordingly. Uncertainty around the labor market is another growth factor we are watching. In the coming months, we will closely monitor the operational environment and our personnel availability. The flexibility of our model will continue to be vital as we respond to these differing environmental factors. We will have more insights at our next call.

“Although we have faced recent operational challenges, the business is in great shape. The balance sheet is stronger than ever with total liquidity of $1.1 billion and net debt of roughly $500 million. We’ve proven the resiliency of the model in both good times and bad, including high fuel cost environments. I am optimistic about the future. Our runway of potential routes continues to exceed 1,000. We’ve identified untapped revenue potential within third-party sales and are pleased to see positive trends from our newly launched loyalty program, Allways Rewards – both will contribute bottom line results in the coming years. Additionally, we resumed construction on Sunseeker Resorts with an anticipated opening date during the first quarter of 2023 as well as closed on $350 million of construction financing. We are excited to see this project come to fruition.

“The last several months have been challenging for our team members. The operational environment has created added stress, yet they have continued to work hard, putting our customers’ needs and safety first. I cannot thank them enough for their efforts. Relief is on the horizon as we are aggressively hiring more frontline employees. The future for Allegiant is very bright. We would not be in the favorable position we find ourselves in today without our team members’ hard work and dedication.”

Third Quarter 2021 Results

  • GAAP diluted earnings per share of $2.18
    • Adjusted diluted earnings per share(1) (2) (3) of $0.66
  • Consolidated EBITDA(2) (3) of $112.5 million yielding an EBITDA margin of 24.5 percent
    • Adjusted EBITDA(1) (2) (3) of $77.7 million yielding an adjusted EBITDA margin of 16.9 percent
  • Total operating revenue was $459.5 million, up 5.3 percent when compared with the third quarter of 2019
    • One of the first domestic carriers to achieve year over two-year revenue increases since the onset of the pandemic
    • Yield remained strong throughout the quarter down only 5.9 percent year over two-year on scheduled service capacity increases of 17.0 percent
  • Total average fare of $116.91, up 7.2 percent year over two-year
    • Total ancillary average fare of $64.85, up 18.2 percent from 2019 driven primarily by air ancillary bundles, website redesign, rental car rate strength, and increased cobrand activity
  • Continued sequential improvement in load factor, which came in at 76.6 percent, up 6 percentage points from the second quarter
    • Third quarter peak period load factor exceeded 80 percent
    • TRASM of 10.40 cents, down 6.3 percent year over two-year on scheduled service capacity increases of 17.0 percent
  • Adjusted operating CASM, excluding fuel of 6.97 cents, up 4.3 percent when compared with the third quarter of 2019, driven primarily by costs related to increased irregular operations

Third Quarter 2021 Highlights

  • Expanded the network by adding 25 new routes with one new city, Minneapolis-St. Paul, and two new bases, Appleton and Flint, bringing total routes served to 598 and 132 cities
    • List of potential incremental routes to add to the network continues to exceed 1,000
  • Allegiant World Mastercard voted USA Today Readers’ Choice Best Airline Co-Branded Credit Card for the third consecutive year
    • Full-year 2021 total revenue related to the cobrand program on track to outpace 2019
    • Two months during the third quarter ranked in the top five highest cardholder acquisition months since the inception of the program in 2016
    • Completed the quarter with nearly 275 thousand active cardholders, up 49 percent from the third quarter of 2019
    • Average annual spend for cardholders is more than twice that of non-cardholders
  • Launched the Allways Rewards program during the quarter with over 13 million active members
  • Partnered with Women In Aviation Las Vegas to sponsor Girls in Aviation Day at McCarran International Airport
  • Resumed providing in-kind travel for Make-A-Wish kids and their families during the third quarter

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and bonus accruals
(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 September 30, 2021 were $1.1 billion
  • Received $21 million federal tax refund related to 2020 net operating losses
    • Received $116 million in federal tax refunds in October related to 2020 net operating losses
  • Debt principal payments of $40 million during the quarter
  • $40 million used for cash capital expenditures
  • Third quarter interest expense of $17 million, down 15 percent year over two-year
  • Air traffic liability at September 30, 2021 was $352 million
    • Balance related to future scheduled flights is $246 million
    • Balance related to travel vouchers issued for future use is $106 million, a 19 percent reduction from June 30, 2021

Capital Expenditures

  • Third quarter capital expenditures related to aircraft, engines and induction costs were $9 million and $18 million in other airline capital expenditures
    • $9 million related primarily to aircraft induction costs
  • Third quarter expenditures related to deferred heavy maintenance were $15 million

Sunseeker Resort

  • Resumed construction with an anticipated completion date of the first quarter of 2023
  • Secured financing with Castlelake, L.P. to fund up to $350 million of construction with $175 million expected to be drawn by the end of October
  • Third quarter capital expenditures related to the project were $13 million

 

Guidance, subject to revision Previous Current
Fourth Quarter 2021 guidance
System ASMs – year over two-year change(1) 10.0 to 14.0%
Scheduled Service  ASMs – year over two-year change(1) 12.0 to 16.0%
Total operating revenue – year over two-year change (1)  0.5% to 4.0%
Fuel cost per gallon 2.55
Full year 2021 guidance
Airline CAPEX
Aircraft, engines and induction costs (millions) $115 to $125 $115 to $125
Capitalized deferred heavy maintenance (millions) $50 to $60 $50 to $60
Other airline capital expenditures (millions) $40 to $50 $60 to $70
Sunseeker Resorts Project 
2021 project spend (millions) $50 to $55
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) 1Q21 2Q21 3Q21 YE21
A319 (156 seats) 35 35 35 35
A320 (177 seats) 26 23 23 22
A320 (186 seats) 39 45 48 51
Total 100 103 106 108

The table above is provided based on the company’s current plans and is subject to change

In other news, the airline announced new routes from Akron/Canton:

Allegiant Announces Vote To Ratify Maintenace Technicians Contract With International Brotherhood Of Teamsters

Allegiant Air today announced that maintenance technician and related employees represented by the International Brotherhood of Teamsters (IBT) have voted to ratify their first collective bargaining agreement with the company.

The contract is effective from the date of ratification – October 26, 2021 – for a five-year term.  Allegiant currently employs 415 maintenance technician and related employees – a group which includes line and heavy maintenance technicians, as well as stores employees and some administrative maintenance staff.

The process of negotiating a first collective bargaining agreement for Allegiant maintenance technician and related employees began in January 2019. The parties had temporarily suspended negotiations due to the onset of the COVID-19 pandemic, and talks resumed in September 2020. The International Brotherhood of Teamsters was most recently certified as the group’s exclusive representative on March 7, 2018.

Allegiant introduces a “Ron’s Gone Wrong” logo jet

Allegiant Air, 20th Century Studios and Locksmith Animation are celebrating the power of true connection with the release of Ron’s Gone Wrong, a new animated adventure comedy debuting in theaters on October 22.

From late September through November, Allegiant customers and fans can join the story of Barney, a socially awkward middle-schooler, and Ron – a walking, talking digitally-connected device whose malfunctions lead to a hilarious, perilous action-packed adventure – through special inflight features and surprises, and an online sweepstakes*.

Fans can watch the skies for a special Ron’s Gone Wrong-themed aircraft (Airbus A320-214 N220NV), featuring larger-than-life images of the film’s heroic duo on the fuselage.

On board every Allegiant flight, passengers will go behind-the-scenes with filmmaker Sarah Smith in an exclusive feature interview in the airline’s Sunseeker Magazine. Flyers will also enjoy fun surprises like movie-themed napkins and a special Ron’s Gone Wrong kids’ snack pack, available for inflight purchase while supplies last. Allegiant will donate $1 from every Ron’s Gone Wrong snack pack purchase from Sept. 9 through Oct. 9, 2021 to Make-A-Wish®.

Celebrating the film’s theme of taking time away from technology to make a true connection, Allegiant is offering families their own opportunity to reconnect by presenting the Disconnect to Reconnect Flyaway Sweepstakes. From Oct. 4 -22, fans can enter for a chance to win a grand prize of $1,000 in travel vouchers for tickets to the Allegiant vacation destination of their choice, tickets to see Ron’s Gone Wrong in their local theater, and a $100 Visa gift card for a family night out (or in!). Five additional winners will receive a $500 voucher for tickets to the Allegiant destination of their choice. Fans can enter the sweepstakes online at Allegiant.com/RonsGoneWrong.

About Ron’s Gone Wrong

20th Century Studios and Locksmith Animation’s “Ron’s Gone Wrong” is the story of Barney, a socially awkward middle-schooler and Ron, his new walking, talking, digitally-connected device, which is supposed to be his “Best Friend out of the Box.” Ron’s hilarious malfunctions set against the backdrop of the social media age, launch them into an action-packed journey in which boy and robot come to terms with the wonderful messiness of true friendship. “Ron’s Gone Wrong” features the voices of Zach Galifianakis (“A Wrinkle in Time”), Jack Dylan Grazer (“Shazam!”), Ed Helms (“The Office”), Olivia Colman (“The Crown”), Justice Smith (“Jurassic World: Fallen Kingdom”), Rob Delaney (“Deadpool 2”), Kylie Cantrall (“Gabby Duran and the Unsittables”), Ricardo Hurtado (“The Goldbergs”), Marcus Scribner (“Black-ish”), Thomas Barbusca (“Chad”). The film is directed by Sarah Smith (“Arthur Christmas”)  and Pixar veteran Jean-Philippe Vine (story artist on “Cars 3” and “The Good Dinosaur”) with Octavio E. Rodriguez (story artist on “Coco” and “The Incredibles 2”) co-directing. The script is written by Peter Baynham (“Arthur Christmas,” “Borat: Cultural Learnings of America for Make Benefit Glorious Nation of Kazakhstan,” “Borat: Subsequent Moviefilm”) & Smith. Julie Lockhart (“Shaun the Sheep Movie,” “The Pirates! Band of Misfits”), also a co-founder of Locksmith, and Lara Breay produce, with Locksmith chairman Elisabeth Murdoch, Smith and Baynham serving as executive producers.

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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.

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