Tag Archives: Allegiant Air

Allegiant sees a significant step-up in leisure demand beginning mid-February and persisting into March

Allegiant Travel Company (Allegiant Air) reported its preliminary passenger traffic results for February 2022.

“After a slow start to the quarter, attributable to the Omicron variant, we saw a significant step-up in leisure demand beginning mid-February and persisting into March,” stated Drew Wells, senior vice president, revenue. “We finished February with a load factor of 77.8 percent, a more than eight-point improvement over January. Load factor during the month of March is currently trending above levels observed in 2019, with several weeks exceeding 90 percent booked loads, marking the first time we’ve seen loads at this level since the onset of the pandemic. In addition, yields are strong with March TRASM tracking in line with March of 2019. Due to recent weather events and staffing challenges, we have lowered our quarterly capacity guidance and now expect ASMs to be up roughly 18 percent year over three-year. Given yield strength, we expect total revenue to come in on the high-end of our initial revenue guide.”

“Despite decreased capacity for the quarter, we continue to expect CASM, excluding fuel, to fall within our initial range,” stated Gregory Anderson, executive vice president, chief financial officer. “Recent spikes in jet fuel prices have resulted in an updated fuel cost per gallon for the first quarter of roughly $3.05. Due predominantly to the volatile fuel environment as well as some staffing challenges, we expect to reduce planned capacity by roughly ten percent for the second quarter. We will continue to manage capacity to maximize profitability.”

	Previous	Current
System ASMs – year over three-year change¹	Up 19.0 to 23.0%	Up 17.0 to 19.0%
Scheduled service ASMs – year over three-year change¹	Up 19.0 to 23.0%	Up 17.0 to 19.0%
Total operating revenue – year over three-year change¹	Up 5.0 to 9.5%	Up 7.5 to 9.5%
Operating CASM, excluding fuel – year over three-year change¹ ²	Up 1.0 to 5.0%	Up 3.0 to 5.0%
Fuel cost per gallon	$2.67	$3.05

Scheduled Service – Year Over Three-Year Comparison

	February 2022	February 2019	Change
Passengers	1,099,911	1,012,255	8.7%
Revenue passenger miles (000)	1,060,497	947,536	11.9%
Available seat miles (000)	1,362,381	1,137,059	19.8%
Load factor	77.8%	83.3%	(5.5pts)
Departures	8,277	7,265	13.9%
Average stage length (miles)	932	908	2.6%

*Total System – Year Over Three-Year Comparison**

	February 2022	February 2019	Change
Passengers	1,105,652	1,020,352	8.4%
Available seat miles (000)	1,392,157	1,174,082	18.6%
Departures	8,503	7,559	12.5%
Average stage length (miles)	928	903	2.8%

Scheduled Service – Year Over Year Comparison


	February 2022	February 2021	Change
Passengers	1,099,911	679,906	61.8%
Revenue passenger miles (000)	1,060,497	636,119	66.7%
Available seat miles (000)	1,362,381	1,203,720	13.2%
Load factor	77.8%	52.8%	25.0pts
Departures	8,277	7,630	8.5%

*Total System – Year Over Year Comparison**

	February 2022	February 2021	Change
Passengers	1,105,652	680,930	62.4%
Available seat miles (000)	1,392,157	1,223,407	13.8%
Departures	8,503	7,783	9.3%
Average stage length (miles)	928	904	2.

*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
February 2022 estimated average fuel cost per gallon – system	$2.92

Allegiant to add three more routes in May

Allegiant Air is adding three new routes in May including Orange County and Newark:

Orange County (Santa Ana) – Idaho Falls, ID starting on May 18, 2022

Newark – Des Moines starting on May 20, 2022

Sanford (near Orlando) – Las Vegas starting on May 27, 2022

Allegiant opens a new base at Flint, MI

Flint Bishop Airport (FNT) made this announcement:

Flint Bishop Airport is now a base operation for Allegiant! It is the first time in FNT history a major commercial airline opens a base! In true FNT fashion, we celebrated big with our community partners who helped make this happen!

Allegiant turns to the black, produces a profit in the fourth quarter and 2021

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

Consolidated	Three Months Ended December 31,			Percent Change
(unaudited) (in millions, except per share amounts)	2021	2020	2019	YoY	Yo2Y
Total operating revenue	$ 496.9	$ 246.6	$ 461.1	101.5 %	7.8 %
Total operating expense	463.6	270.2	368.4	71.6	25.8
Operating income (loss)	33.3	(23.6)	92.7	241.0	(64.0)
Income (loss) before income taxes	15.1	(39.2)	78.6	138.6	(80.7)
Net income (loss)	10.7	(28.8)	60.5	137.1	(82.3)
Diluted earnings (loss) per share	$ 0.59	$ (1.79)	$ 3.72	133.0	(84.1)

	Twelve Months Ended December 31,			Percent Change
(unaudited) (in millions, except per share amounts)	2021	2020	2019	YoY	Yo2Y
Total operating revenue	$ 1,707.9	$ 990.1	$ 1,841.0	72.5 %	(7.2) %
Total operating expense	1,444.8	1,271.1	1,477.0	13.7	(2.2)
Operating income (loss)	263.1	(281.0)	364.0	193.6	(27.7)
Income (loss) before income taxes	196.6	(361.1)	301.2	154.5	(34.7)
Net income (loss)	151.9	(184.1)	232.1	182.5	(34.6)
Diluted earnings (loss) per share	$ 8.68	$ (11.53)	$ 14.26	175.3	(39.1)

Consolidated – adjusted	Three Months Ended December 31,			Percent Change
(unaudited) (in millions, except per share amounts)	2021	2020	2019	YoY	Yo2Y
Adjusted operating expense ^{(1) (2)}	$ 451.2	$ 254.4	$ 368.4	77.4 %	22.5 %
Adjusted operating income (loss)^{(1) (2)}	45.7	(7.8)	92.7	685.9	(50.7)
Adjusted income (loss) before income taxes ^{(1) (2)}	27.5	(23.4)	78.6	217.5	(65.0)
Adjusted net income (loss) ^{(1) (2)}	21.3	(18.0)	60.5	218.3	(64.8)
Adjusted diluted earnings (loss) per share ^{(1) (2)}	$ 1.18	$ (1.12)	$ 3.72	205.4	(68.3)

	Twelve Months Ended December 31,			Percent Change
(unaudited) (in millions, except per share amounts)	2021	2020	2019	YoY	Yo2Y
Adjusted operating expense ^{(1) (2)}	$ 1,595.7	$ 1,130.2	$ 1,477.0	41.2 %	8.0 %
Adjusted operating income (loss)^{(1) (2)}	112.2	(140.1)	364.0	180.1	(69.2)
Adjusted income (loss) before income taxes ^{(1) (2)}	45.7	(193.6)	301.2	123.6	(84.8)
Adjusted net income (loss) ^{(1) (2)}	35.1	(149.1)	232.1	123.5	(84.9)
Adjusted diluted earnings (loss) per share ^{(1) (2)}	$ 2.04	$ (9.33)	$ 14.26	121.9	(85.7)


(1)	Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, when applicable, and profit sharing 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 year with adjusted earnings per share⁽¹⁾ of $2.04, one of the only domestic carriers to record a full-year adjusted profit,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “This is a remarkable feat and could not have been accomplished without the support of our team members. 2021 was a challenging year, yet we remained nimble and continued to learn and adapt. Despite impacts from multiple variants throughout the year, we grew scheduled capacity more than eight percent when compared to 2019. Load factors sequentially improved throughout the year with fourth quarter loads of 77.1 percent, a more than twenty-point increase from the first quarter. We grew fourth quarter revenue by 7.8 percent when compared with 2019, finishing the year with total operating revenue of $1.7 billion, just seven percent below 2019.

“As we exited 2021, the operation was challenged by impacts from the Omicron variant. We saw unprecedented crew shortages due to COVID, resulting in cancelled flights during the peak holiday travel season and persisting throughout January. Case counts have started to recede, thus the worst should be behind us. I expect the operation to return to a more normalized state in time for peak March travel. Given the cancellations from Covid, irregular operations expenses were $23 million during the fourth quarter. As noted last quarter, it is imperative and good business practice to reimburse our customers for the inconvenience we have caused, in addition to refunding the ticket price.

“Despite the Omicron variant, forward bookings are strong for upcoming peak leisure travel periods. Spring break bookings have been particularly strong. Over the past several months, the booking curve has normalized to its pre-COVID state, and although early, we are beginning to see positive demand trends into early summer. In addition, third-party revenues have outperformed 2019 due primarily to strength with our cobrand credit card program. We acquired more than 100 thousand new cardholders in 2021, a program record. This trend continues in 2022, with January now the program’s best month for new cardholder acquisitions.

“The future of Allegiant is bright. We expect to end 2022 with 127 aircraft. All incoming aircraft will have 186 seats, increasing our seats per departure. The recently announced Boeing transaction will increase incremental route opportunities to 1,400, which represents more than ten years of growth. Additionally, progress on Sunseeker is on track to open in early 2023. This project will diversify our ecosystem of travel offerings available to our customers.

“Once again our team members have shown their mettle in the past 90 days. They have been on the front lines in one of the worst periods I have seen with regard to the uncertainty and fear we are all experiencing from Covid. I want to personally thank each and every one of them.”

Fourth Quarter 2021 Results

GAAP income before income taxes of $15.1 million
- Adjusted income before income taxes^{(1) (2) (3)}of $27.5 million, yielding a pre-tax margin of 5.5 percent
Consolidated EBITDA^{(2) (3)} of $80.0 million, yielding an EBITDA margin of 16.1 percent
- Adjusted EBITDA^{(1) (2) (3)} of $92.4 million, yielding an adjusted EBITDA margin of 18.6 percent
Total operating revenue was $496.9 million, up 7.8 percent when compared with the fourth quarter of 2019
- Scheduled capacity up 14.5 percent year over two-year
- Continued sequential improvement in load factor, which came in at 77.1 percent
- Peak holiday travel load factor mirrored levels observed in 2019 for the same time period
Total average fare – third party products of $6.90, up 47.4 percent year over two-year driven primarily by cobrand strength
Adjusted operating CASM, excluding fuel ⁽¹⁾of 7.24 cents, up 7.4 percent when compared with the fourth quarter of 2019, driven primarily by costs related to increased irregular operations
Expanded the network by adding 13 new routes with one new city, Canton, Ohio, bringing total routes served to 608 and 133 cities
- List of incremental, domestic-route opportunities in excess of 1,400
  - Route profile similar to current network structure – roughly 80 percent of opportunities currently have no direct, non-stop competition
Announced plans for a fully-integrated Commercial Alliance Agreement with Viva Aerobus to expand options for nonstop leisure air travel between the United States and Mexico
- First-of-its-kind alliance between two ultra low-cost carriers
Partnered with Boeing to purchase 50 737 MAX aircraft, powered by CFM LEAP 1-B engines, with deliveries beginning mid-2023

Full-Year 2021 Results

GAAP income before income taxes of $196.6 million
- Adjusted income before income taxes^{(1) (2) (3)}of $45.7 million, yielding a pre-tax margin of 2.7 percent
- One of the only domestic carriers to achieve full-year profitability on an adjusted basis
Consolidated EBITDA of $444.1 million, yielding an EBITDA margin of 26.0 percent
- Adjusted EBITDA of $293.2 million, yielding an adjusted EBITDA margin of 17.2 percent
Total system capacity increased 8.1 percent when compared with 2019
Total operating revenue was $1.7 billion, 7.2 percent below 2019
- Total average fare of $123.24, up 4.2 percent from 2019
- Total ancillary average fare of $64.73, up 14.2 percent from 2019 driven by air ancillary bundles, website redesign, and increased cobrand activity
Available seat miles per fuel gallon of 85.4, a 3.7 percent improvement from 2019
Record-setting year for the cobrand program with more than 100 thousand new cardholders acquired
Ended 2021 with nearly 800 thousand active Allways Rewards members

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, when applicable, and profit sharing 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 December 31, 2021 were $1.2 billion
- Received $116 million in federal tax refunds in October related to 2020 net operating losses
- Received $204 million in payroll support program funds during 2021
$488.2 million in total operating cash inflow for 2021, including payroll support program funds received as well as federal tax refunds related to net operating losses
Total debt at December 31, 2021 was $1.7 billion
- Net debt at December 31, 2021 was $559.8 million, a 42.5 percent decrease from year-end 2020
Debt principal payments of $62 million during the quarter
Full year Interest expense of $68 million, down 10.9 percent year over two-year
Air traffic liability at December 31, 2021 was $307 million
- Balance related to future scheduled flights is $240 million
- Balance related to travel vouchers issued for future use is $67 million

Airline Capital Expenditures

Fourth quarter spend was $56 million, which included $29 million for the acquisition of two aircraft as well as induction costs and $27 million in other airline capital expenditures
- Fourth quarter deferred heavy maintenance spend was $12 million
Full year 2021 capital expenditures were $205 million, which included $136 million for the acquisition of seven aircraft and one engine as well as induction costs and $69 million in other airline capital expenditures
- Full year deferred heavy maintenance spend was $61 million

Sunseeker Resort

Anticipated opening remains unchanged at first quarter 2023
Total project spend as of December 31, 2021 was $211 million with $23 million funded by debt and the remaining $188 million funded by Allegiant
- Fourth quarter capital expenditures related to the project were $38 million
- 2021 capital expenditures were $51 million

Guidance, subject to revision	Previous	Current

*First Quarter 2022 guidance*

System ASMs – year over three-year change⁽¹⁾		19.0 to 23.0%
Scheduled Service ASMs – year over three-year change⁽¹⁾		19.0 to 23.0%

Total operating revenue – year over three-year change⁽¹⁾		5.0 to 9.5%

Operating CASM, excluding fuel – year over three-year change⁽¹⁾		1.0 to 5.0%

Fuel cost per gallon		$2.67

*Full year 2022 guidance*

*Airline CAPEX*
Aircraft, engines, induction costs, and pre-delivery deposits (millions)		$255 to $265
Capitalized deferred heavy maintenance (millions)		$85 to $95
Other airline capital expenditures (millions)		$95 to $105

Interest expense ⁽²⁾		$85 to $95
Recurring principal payments		$185 to $195


*Sunseeker Resorts – Charlotte Harbor Project*
Total projected project spend (millions)		$560 to $585
Percent of project to be financed		60 to 63%
Percent of total project spend already funded by Allegiant contributions		32 to 34%
Percent of project spend remaining – to be funded by Allegiant contributions		4 to 8%

(1)	Year over three-year percentage changes compare 2022 to 2019
(2)	Includes capitalized interest related to pre-delivery deposits on new aircraft as well as the construction of Sunseeker Resorts – Charlotte Harbor

Aircraft Fleet Plan by End of Period



Aircraft – (seats per AC)	1Q22	2Q22	3Q22	YE22
A319 (156 seats)	35	35	35	35
A320 (177 seats)	22	22	22	22
A320 (186 seats)	56	58	65	70
Total	113	115	122	127

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

Allegiant announces nine new nonstop routes

Allegiant Air today announces nine new nonstop routes beginning service this spring.

“We’re thrilled to kick off 2022 with a network expansion in twelve of our markets,” said Drew Wells, Allegiant’s senior vice president of revenue and planning. “These new routes will grow our presence in Austin, where we recently opened a base, while connecting travelers in some of the smaller cities we serve to several popular vacation destinations such as Nashville, Savannah, Roanoke and San Diego.”

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

Sarasota, Florida via Sarasota Bradenton International Airport (SRQ) – beginning April 14, 2022 with one-way fares as low as $49.*
San Diego, California via San Diego International Airport (SAN) – beginning April 20, 2022 with one-way fares as low as $49.*
Washington, D.C. via Dulles International Airport (IAD) – beginning April 21, 2022 with one-way fares as low as $49.*

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

Providence, Rhode Island via Rhode Island T.F. Green International Airport (PVD) – beginning April 21, 2022 with one-way fares as low as $49.*
Roanoke, Virginia via Roanoke-Blacksburg Regional Airport (ROA) – beginning April 21, 2022 with one-way fares as low as $39.*
Washington, D.C. via Dulles International Airport (IAD) – beginning April 21, 2022 with one-way fares as low as $39.*

The new routes to San Diego, California via San Diego International Airport (SAN) include:

Austin, Texas via Austin-Bergstrom International Airport (AUS) – beginning April 20, 2022 with one-way fares as low as $49.*
Sioux Falls, South Dakota via Sioux Falls Regional Airport (FSD) – beginning May 19, 2022 with one-way fares as low as $59.*

The new route to Orange County, California via John Wayne Airport (SNA) includes:

Des Moines, Iowa via Des Moines International Airport (DSM) – beginning April 14, 2022 with one-way fares as low as $59.*

The new route to Savannah, Georgia via Savannah/Hilton Head International Airport (SAV) includes:

Flint Michigan via Flint Bishop International Airport (FNT) – beginning April 15, 2022 with fares as low as $39.*

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%
	4^th Quarter 2021	4^th 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%
	4^th Quarter 2021	4^th 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%
	4^th Quarter 2021	4^th 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%
	4^th Quarter 2021	4^th 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
4^th 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

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:

Phoenix, Arizona via Phoenix Sky Harbor International Airport (PHX) – beginning Feb. 16, 2022 with one-way fares as low as $59.*
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):

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:

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):

Fort Lauderdale-Hollywood International Airport (FLL) – beginning March 10, 2022 with one-way fares as low as $49.*
Sarasota, Florida via Sarasota Bradenton International Airport (SRQ) – beginning March 11, 2022 with one-way fares as low as $59.*
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:

Boston, Massachusetts via Logan International Airport (BOS) – beginning March 10, 2022 with one-way fares as low as $49.*
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.

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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.