Tag Archives: N302NV

Allegiant Air reports a softening in demand for August

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 is encouraged by an uptick in demand in March, traffic is down by 26.2% from 2019

Allegiant Travel Company reported its preliminary passenger traffic results for March 2021 as well as first quarter 2021.

“We are encouraged by the meaningful improvement in customer demand throughout the month of March,” stated Gregory Anderson, executive vice president and chief financial officer. “Average daily bookings for the month exceeded average daily bookings during the same time period in 2019. The significant improvement in March demand coupled with our industry-leading cost structure enabled us to generate positive EPS and EBITDA for the month of March, excluding the benefit from the payroll support grant. For the March quarter, we expect adjusted¹ CASM, excluding fuel, to be down 3 to 4 percent, year over two-year.”

“Capacity was up roughly three percent, when compared to 2019, with March capacity up 14 percent,” stated Drew Wells, senior vice president, revenue. “Although this caused some load pressure, our focus remains on generating positive cash flows and optimizing profits. We continue to expect first quarter total revenue to fall in the middle of our previous guide of down 35 to 40 percent, when compared with 2019. We remain optimistic about peak summer travel. With national vaccination rates steadily increasing and average daily bookings trending in the right direction, we expect sequential revenue improvements into the second quarter.”

¹ Adjusted to exclude the impact of the payroll support grant.

Scheduled Service – Year Over Two-Year Comparison

	March 2021	March 2019	Change
Passengers	1,095,572	1,484,326	(26.2%)
Revenue passenger miles (000)	1,022,480	1,386,501	(26.3%)
Available seat miles (000)	1,832,250	1,610,575	13.8%
Load factor	55.8%	86.1%	(30.3 pts)
Departures	11,710	10,297	13.7%
Average stage length (miles)	899	914	(1.6%)

	1^st Quarter 2021	1^st Quarter 2019	Change
Passengers	2,323,302	3,421,538	(32.1%)
Revenue passenger miles (000)	2,166,417	3,191,045	(32.1%)
Available seat miles (000)	3,921,090	3,802,132	3.1%
Load factor	55.3%	83.9%	(28.6pts)
Departures	24,947	24,344	2.5%
Average stage length (miles)	902	908	(0.7%)

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

	March 2021	March 2019	Change
Passengers	1,102,869	1,499,688	(26.5%)
Available seat miles (000)	1,884,130	1,655,330	13.8%
Departures	12,144	10,660	13.9%
Average stage length (miles)	892	908	(1.8%)

	1^st Quarter 2021	1^st Quarter 2019	Change
Passengers	2,334,503	3,450,278	(32.3%)
Available seat miles (000)	4,013,989	3,910,239	2.7%
Departures	25,684	25,200	1.9%
Average stage length (miles)	898	904	(0.7%)

Scheduled Service – Year Over Year Comparison

	March 2021	March 2020	Change
Passengers	1,095,572	892,966	22.7%
Revenue passenger miles (000)	1,022,480	839,766	21.8%
Available seat miles (000)	1,832,250	1,413,348	29.6%
Load factor	55.8%	59.4%	(3.6 pts)
Departures	11,710	8,926	31.2%
Average stage length (miles)	899	914	(1.6%)

	1^st Quarter 2021	1^st Quarter 2020	Change
Passengers	2,323,302	3,154,606	(26.4%)
Revenue passenger miles (000)	2,166,417	2,925,482	(25.9%)
Available seat miles (000)	3,921,090	3,964,009	(1.1%)
Load factor	55.3%	73.8%	(18.5pts)
Departures	24,947	25,484	(2.1%)
Average stage length (miles)	902	900	0.2%

*Total System – Year Over Year Comparison**

	March 2021	March 2020	Change
Passengers	1,102,869	898,986	22.7%
Available seat miles (000)	1,884,130	1,441,144	30.7%
Departures	12,144	9,172	32.4%
Average stage length (miles)	892	908	(1.8%)

	1^st Quarter 2021	1^st Quarter 2020	Change
Passengers	2,334,503	3,175,450	(26.5%)
Available seat miles (000)	4,013,989	4,067,671	(1.3%)
Departures	25,684	26,312	(2.4%)
Average stage length (miles)	898	895	0.3%

Preliminary Financial Results

	$ per gallon
March 2021 estimated average fuel cost per gallon – system	$1.99

	$ per gallon
1st quarter 2021 estimated average fuel cost per gallon – system	$1.86

Top Copyright Photo: Allegiant Air Airbus A319-112 N302NV (msn 2387) (Vegas Golden Knights) LAS (Gunter Mayer). Image: 953312.

Allegiant Air aircraft slide show:

Allegiant announces five new routes, introduces a Vegas Golden Knights logo jet

Allegiant Air has announced five new nonstop routes, including two new routes to the Gulf Coast and three new routes to Nashville.

Three new seasonal routes to Nashville International Airport (BNA):

Des Moines, Iowa via Des Moines International Airport (DSM) – beginning Feb. 13, 2020
Gulfport, Mississippi via Gulfport-Biloxi International Airport (GPT) – beginning Feb. 15, 2020
Appleton, Wisconsin via Appleton International Airport (ATW) – beginning Feb. 14, 2020

One new seasonal route to Punta Gorda Airport (PGD):

Richmond, Virginia via Richmond International Airport (ATW) – beginning Feb. 13, 2020

One new seasonal route to Sarasota-Bradenton International Airport (SRQ):

Allentown, Pennsylvania via Lehigh Valley International Airport (ABE) – beginning Feb. 13, 2020

Photos: Allegiant Air. N302NV in now in the colors of the Vegas Golden Knights, the local hockey team.

Allegiant reports its 3Q net profit increased 213.4% to $44.5 million

Allegiant Travel Group (Allegiant Air) (Las Vegas) reported its third quarter net income jumped by 213.4 percent from $14.2 million in 2014 to $44.5 million for this year.

Aircraft fleet plan by end of period:

Aircraft – (seats per AC) 3Q15 4Q15 YE16
MD-80 (166 seats) 51 51 46
757 (215 seats) 6 5 4
A319 (156 seats) 7 10 17
A320 (177 seats) 10 15 16
Total 74 81 83

Aircraft listed in table above include only in service aircraft, planned retirements and future aircraft under contract

Read the full report: CLICK HERE

Copyright Photo: Keith Burton/AirlinersGallery.com. Allegiant continues to expand its Airbus fleet. The company increased the number of Airbus aircraft in service by seven versus last year. According to the company, Airbus aircraft flew over 77 percent of the incremental scheduled service ASMs in the third quarter. In addition, Airbus aircraft flew over 32 percent of the third quarter ASMs versus 22 percent a year ago. Airbus A319-112 HB-JZN (msn 2387) became N302NV with Allegiant.

Allegiant aircraft slide show:

Allegiant launches new routes to Florida from Raleigh-Durham, Tulsa and Concord

Allegiant Air (Las Vegas) on May 6 launched nonstop service from Raleigh-Durham to St. Petersburg/Clearwater. Service to both Sanford (near Orlando) and Punta Gorda started yesterday (May 7). All flights will operate two days a week.

In addition, yesterday (May 7) Allegiant also launched twice-weekly seasonal service from Tulsa to St. Petersburg/Clearwater (near Tampa). The route will operate through August 16.

In addition, today (May 8) the company started twice-weekly service from Concord, North Carolina (near Charlotte) to Fort Lauderdale-Hollywood International Airport.

Finally, also today (May 8), the airline will start Cincinnati’s first low-cost service to Savannah-Hilton Head with summer seasonal service to Savannah-Hilton Head International Airport (SAV). Savannah-Hilton Head becomes the tenth destination Allegiant serves from CVG. The new flights operate twice weekly between the Cincinnati-Northern Kentucky International Airport (CVG) and Savannah-Hilton Head International Airport (SAV) through October 11, 2015.

Allegiant Air aircraft slide show:

Allegiant Air arrives in New Orleans from Cincinnati

Allegiant Air (Las Vegas) yesterday (February 4) celebrated the start of seasonal, low-cost service to New Orleans from Cincinnati (CVG). Local travelers can now laissez les bon temps rouler in the Big Easy just in time for Mardi Gras.

New Orleans is the first of two new cities Allegiant will be launching from CVG in February, with flights to Jacksonville, Florida beginning on February 12. Both cities were previously served nonstop from CVG by other carriers and were recently discontinued. Cincinnati is the first city to be connected with Allegiant’s newest destination and will offer travelers their first low-cost option for flights to New Orleans.

The seasonal flights will operate twice weekly from the Cincinnati-Northern Kentucky International Airport (CVG) to the Louis Armstrong New Orleans International Airport (MSY) through May 4, 2015.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-112 N302NV (msn 2387) completes its final approach to the runway at Los Angeles International Airport.

Allegiant Air aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Allegiant-Air

Allegiant announces five new routes to Florida

Allegiant Air (Las Vegas) has announced new, nonstop jet service on five new Florida routes, including one route each to Punta Gorda and Sanford (near Orlando) and three to St. Petersburg/Clearwater (Tampa Bay).

New routes announced include:

Nonstop service to St. Petersburg-Clearwater International Airport (PIE) from:

Belleville, Illinois – begins November 19, 2014
Bloomington, Illinois – begins November 21, 2014
Concord, North Carolina (near Charlotte) – begins November 13, 2014

Nonstop service to Orlando-Sanford International Airport (SFB) from:

Peoria, Illinois – begins November 14, 2014

Nonstop service to Punta Gorda Airport (PGD) from:

Huntington, West Virginia – begins Nov. 20, 2014

Allegiant differs in many ways from other U.S. airlines. The company is focused on low-cost, nonstop leisure travel, providing customers with low base fares while giving passengers the option to pay for the amenities they want, like luggage, seat assignments and priority boarding, without including the cost of things they don’t need in the price of the ticket.

Allegiant’s innovative business model has allowed it to grow from one airplane and one route 15 years ago, to offering access to low-cost, nonstop travel in more than 90 communities nationwide. This year, Allegiant has inaugurated service on 16 new routes to popular U.S. vacation destinations. Additionally, the company recently announced its 46th consecutive quarter of profitable operation while keeping its average one-way fare under $100.

Copyright Photo: Keith Burton/AirlinersGallery.com. The Airbus A319s and A320s are based at Sanford. Former easyJet Switzerland Airbus A319-112 HB-JZN (man 2387) became N302NV with Allegiant.

Allegiant:

Routes from Sanford. Allegiant operates nonstop routes to SFB from small underserved markets from the eastern half of the United States to the vacation Orlando area destination.

Allegiant to add 13 Airbus A319s and one A320

Allegiant Travel Company (Allegiant Air) (Las Vegas) has announced three separate aircraft transactions for 14 additional growth aircraft and a fourth transaction for the purchase of two leased aircraft and the conversion of future operating lease obligations to forward purchases.

“We continue to find purchase transactions for high quality Airbus aircraft to secure our future growth,” said Andrew C. Levy, Allegiant Travel Company President and Chief Operating Officer. “We will now have 32 Airbus series aircraft, all owned, in our fleet by the end of 2018. We expect to use debt financing along with cash reserves to purchase these aircraft. Importantly, the additional A320/A319 aircraft are all sister ships to aircraft we currently operate. We remain active in the used Airbus market and hope to add more aircraft to our fleet during 2016 and 2017.”

The company has agreed to purchase twelve Airbus A319 aircraft currently leased to a European carrier until 2018. This purchase transaction is expected to be completed by the end of June. As each aircraft lease expires, Allegiant will transition the aircraft into its operating fleet. Allegiant expects to recognize approximately $30 million in annual lease revenue beginning in June 2014 through 2018 and plans to assume $142 million of secured debt under this transaction. The remaining two growth aircraft – one A319 and one A320 – will be purchased in 2015 and 2016 upon aircraft delivery.

The company has also agreed to purchase the two currently leased A319 aircraft in its fleet. This purchase is expected to be completed in July. The remaining six aircraft under the lease agreement executed in 2012 will be purchased at the time of delivery to Allegiant, expected to be in late 2014 through 2015.

The company expects its capital expenditures (CAPEX) to be approximately $315 million in 2014 and approximately $220 million in 2015. Upon completion of the above transactions, the company’s fleet plan will be as follows:

Airbus A319-100 (156 seats) will grow to 22 aircraft by 2018

Airbus A320-200 (177 seats) will grow to 10 aircraft by the end of 2015

Boeing 757-200 (215 seats) will remain at 6 aircraft through 2018

McDonnell Douglas MD-80 (DC-9-82s, DC-9-83s and MD-88s) (166 seats) will remain at 53 aircraft through 2018 (Allegiant is not expected to add any more MD-80s)

Overall the fleet will grow from the current 70 aircraft to 91 aircraft by 2018

This plan and guidance is subject to revision.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-112 N302NV (msn 2387) prepares to touch in Los Angeles.

Allegiant Air:

Allegiant’s 1Q net profit increases to $31.9 million

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported the following financial results for the first quarter 2013:

Unaudited	1Q13	1Q12	Change
Total operating revenue (millions)	$273.0	$237.9	14.8%
Operating income (millions)	$52.4	$36.3	44.2%
Operating margin	19.2%	15.3%	3.9pp
EBITDA (millions)	$69.4	$48.3	43.6%
EBITDA margin	25.4%	20.3%	5.1pp
Net income (millions)	$31.9	$21.7	47.1%
Diluted earnings per share	$1.65	$1.12	47.3%

“We are very proud to report our 41st consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “The month of March is typically our busiest month of the year, and this year was no different. Thanks to the tireless efforts of our Team Members, we have had another profitable quarter.”

Notable company quarterly highlights

Began flying our first A319 on March 1, 2013, the second A319 on April 4, 2013
Repurchased over 284,000 shares for $22.2 million dollars, average purchase price of $78.15
Received board approval to increase share repurchase authority to $100 million
Completed the 166 seat MD-80 conversion project in February
Added two new small cities Provo, UT and Reno, NV
Added eight routes in the quarter
Announced five routes which will start in the second quarter, including one new city, Little Rock, AR
Operated 198 routes in the first quarter of 2013. Expect to operate 203 routes in the second quarter of 2013

First quarter 2013 revenue performance

13^th consecutive quarter of year over year increases in total average fare
First quarter 2013 average fare, average ancillary air per passenger, and total fare were the highest in the company’s history
First quarter TRASM increased by 1.2 percent even though we increased average scheduled service stage length by 4.9 percent and scheduled service ASMs grew by 17 percent
Load factor returned to a normalized rate closer to 90%
Same store markets, those which were operated in the first quarter 2012 and 2013, had a 4.3 percent TRASM increase versus the system average of 1.2 percent
Fixed fee revenue’s decline is attributable to no longer operating two aircraft in track charter programs as previously disclosed

	1Q13	1Q12	Change
Scheduled Service:
Average fare – scheduled service	$97.54	$94.95	2.7%
Average fare – ancillary air-related charges	$41.64	$32.39	28.6%
Average fare – ancillary third party products	$5.81	$5.36	8.4%
Average fare – total	$144.99	$132.70	9.3%
Scheduled service passenger revenue per ASM (PRASM) (cents)	8.60	9.04	(4.9)%
Total scheduled service revenue* per ASM (TRASM) (cents)	12.79	12.64	1.2%
Load factor	89.8%	91.1%	(1.3)pp
Passengers (millions)	1.8	1.7	8.4%
Average passengers per departure	148	138	7.2%
Average scheduled service stage length (miles)	978	932	4.9%

* Total scheduled service revenue includes scheduled service, ancillary air-related charges, and ancillary third party products revenue.
ASMs = available seat miles
PRASM = scheduled passenger revenue per scheduled available seat mile

First quarter 2013 cost performance

Operating CASM, excluding fuel increased only 0.2 percent to 5.18 cents despite an almost eight percent decrease in aircraft utilization for the same time period due to a higher concentration of flying during peak periods
Operating expense per ASM decreased by three percent even though our average fuel expense per gallon increased by three percent. System ASMs per gallon of fuel improved to 67.3; a 9.6 percent increase versus the first quarter 2012
Maintenance and repairs expense per passenger decreased by 19.2 percent due to a more normalized rate of engine overhaul expense compared to unusually high levels in the first quarter of 2012
Salary and benefits expense per passenger increased by 18.4 percent due mainly to increases in pilot compensation. As we reached a trailing twelve month operating margin of 14 percent in November of 2012, our pilots moved into a higher pilot pay rate band per our compensation agreement with our pilot work group. Additionally, higher flight attendant headcount resulting from the increased gauge of our MD-80 aircraft and operating six 757 aircraft as opposed to one during the first quarter 2012
Depreciation and amortization per passenger increased 35 percent primarily due to accelerated depreciation from the announced retirement of six MD-80s from first quarter 2013 through third quarter 2013, along with higher depreciation stemming from 51 converted 166 seat MD-80s at the end of the quarter versus 17 a year ago
Other expense per passenger increased 35 percent primarily attributable to a higher write-down of engine values in our consignment program

	1Q13	1Q12	Change
Total System*:
Operating expense per passenger	$117.31	$112.03	4.7%
Operating expense per passenger, excluding fuel	$59.62	$55.10	8.2%
Operating expense per ASM (CASM) (cents)	10.20	10.52	(3.0)%
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents)	5.18	5.17	0.2%
Average block hours per aircraft per day	5.9	6.4	(7.8)%

* Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Second quarter 2013 cost trends

Salary and benefit expense is still subject to the same pressures as in the first quarter including the higher pilot pay band in effect
We expect the bulk of the engine and heavy airframe maintenance for the year will be incurred in the second and third quarters. For the full year, we are still anticipating maintenance per aircraft per month to be between $100 thousand and $110 thousand which has been our normalized historical run rate
Second quarter depreciation expense will still feel the impact of the accelerated depreciation reflected in the first quarter and to a lesser extent the higher depreciation from the converted 166 seat MD-80s as we had converted 27 aircraft by the end of June 2012. Four of the MD-80s driving the bulk of the accelerated depreciation are scheduled to be retired in the third quarter of 2013. In addition, we are expecting higher depreciation in the fourth quarter as we are currently expecting to place seven A320s into service by the fourth quarter of 2013.

Copyright Photo: Keith Burton. Allegiant introduced the first Airbus A319 into operations on March 1. The second was introduced on April 4. The former easyJet (Switzerland) A319-111 HB-JZN became N302NV (msn 2387) when it was delivered on February 11, 2013. The airliner is leased from GECAS.

Allegiant: