LAS VEGAS, April 14, 2020 /PRNewswire/ -- As demand for
travel across the United States
continues to drop in the wake of the COVID-19 pandemic,
Allegiant Travel Company (NASDAQ: ALGT) has undertaken
additional measures to address the impact of the outbreak, protect
health and safety, and ensure a solid foundation for future
operations.
"The outbreak of Coronavirus is having an impact the likes of
which we've never seen in the travel industry. Even as a domestic
carrier, to have zero demand across almost every community we serve
is truly unsettling," said Maurice J.
Gallagher, Jr., Allegiant chairman and CEO. "With the
situation changing daily, we are taking proactive steps to ensure
operations continue, protect the livelihoods of our team members,
and put us in the best possible position to serve our customers
when demand for travel returns."
In the face of the unprecedented downturn in leisure travel,
Allegiant is withdrawing its 2020 full-year guidance. As reported
in a filing with the Securities and Exchange Commission on
April 7, the company anticipates
revenue for March 2020 to be 40 to 45
percent lower than the previous year. The company has received and
is reviewing term sheets for the federal Payroll Support Grant
program and loan assistance under the CARES Act, in addition to
exploring other financing alternatives.
Allegiant anticipates reducing airline capacity by 80 to 90
percent during April and May, with additional schedule reductions
to come for the summer travel season. Two new aircraft bases
scheduled to open in 2020 at Des
Moines International Airport (DSM) in Iowa and Concord-Padgett International Airport
in North Carolina will be delayed.
The airline will also delay its announced start of service from
William P. Hobby Airport (HOU) in Houston and Boston-Logan International Airport
(BOS).
In addition, to assist customers in accessing information about
Allegiant's onboard and in-terminal health and safety measures, the
company this week launched an online resource page, Going the
Distance for Health and SafetyTM , highlighting cleaning
and disinfection, air purity, low-touch service initiatives aimed
at preventing cross-contamination, and social distancing
efforts.
On March 18, the company announced
a number of measures designed to limit expenditures, expected to
result in up to $320 million in cash
outlay reductions. These included immediate suspension of
non-airline projects, including Sunseeker Resort Charlotte Harbor
– its planned resort in southwest Florida – and the related renovation of
Kingsway Country Club, as well as Allegiant Nonstop family
entertainment centers in Warren,
Michigan and Clearfield,
Utah. The company also placed an immediate moratorium on all
non-essential capital expenditures and discretionary spending
across the company, and instituted an immediate hiring freeze on
all non-essential positions. Stock buyback and dividend activity
were also suspended.
Allegiant Chairman and CEO Maurice J.
Gallagher, Jr. and President John
Redmond do not draw salary. Other officers of the company
have taken a 50 percent salary reduction. Members of the company's
Board of Directors will also forego cash compensation for 2020. In
addition, nearly 700 Allegiant team members (15 percent of the
company's workforce) have taken voluntary, 60-day leave at half
pay, with full benefits in force.
Allegiant Travel Company
Las Vegas-based Allegiant (NASDAQ: ALGT) is an
integrated travel company with an airline at its heart, focused on
connecting customers with premier leisure experiences - from
vacations to hometown family entertainment. Since 1999, Allegiant
Air has linked travelers in small-to-medium cities to world-class
vacation destinations with all-nonstop flights and
industry-low average fares. Today, Allegiant's all-Airbus fleet
serves communities across the nation, with base airfares less than
half the cost of the average domestic roundtrip ticket. For more
information, visit us at Allegiant.com. Media information,
including photos, is available
at http://gofly.us/iiFa303wrtF
Media Contact
Phone: 702-800-2020
Email: mediarelations@allegiantair.com
Investor Inquiries
Email:
ir@allegiantair.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/allegiant-announces-additional-operational-measures-to-address-impact-of-covid-19-pandemic-301040447.html
SOURCE Allegiant Travel Company