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.”

Scheduled Service – Year Over Two-Year Comparison

Total System* – Year Over Two-Year Comparison

Scheduled Service – Year Over Year Comparison

Total System* – Year Over Year Comparison

*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

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.

*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.

Allegiant Air and the Vegas Golden Knights announced today an unprecedented multi-year partnership, designating Allegiant as the “Official Domestic Airline Partner of the Vegas Golden Knights.”  The partnership – in Allegiant’s hometown of Las Vegas – promises to engage hockey fans across North America through key activations and sponsored content.

In addition to the exclusive designation as the “Official Domestic Airline Partner of the Vegas Golden Knights,” Allegiant will engage hockey fans at various touchpoints throughout T-Mobile Arena, through on-site activations on Toshiba Plaza and via digital and social media. Fans can expect big fun from Allegiant throughout the season including Vegas Golden Knights tickets and autographed gear giveaways and much more.

The Vegas Golden Knights are a National Hockey League franchise owned and operated by Black Knight Sports and Entertainment LLC. The Vegas Golden Knights were established by founding partners William Foley and his family and the Maloof family.

Copyright Photo: Allegiant Air Airbus A320-214 N214NV (msn 1221) (Vueling colors) BWI (Tony Storck). Image: 943456.

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