LAS VEGAS, June 9, 2020 /PRNewswire/ -- Allegiant Travel
Company (NASDAQ: ALGT) today reported preliminary passenger
traffic results for May 2020.
"We are continuing to see material improvement in demand from
the April lows," stated Gregory
Anderson executive vice president, chief financial officer
and principal accounting officer of Allegiant Travel
Company. "For the entire month we averaged over $2 million in gross bookings per day. As such, we
are anticipating our cash burn per day in the second quarter to be
down to approximately $1.75 million.
This number includes variable components related to increased
capacity and a higher fuel price than previously forecasted, as
well as an increased rate of voucher redemptions. This daily cash
burn improves upon our previously expected estimate of $2.1 million per day, which was based on
$750 thousand in daily gross
bookings. In addition, we are anticipating the third quarter cash
burn to be less than $1 million per
day if $2.0 million in daily gross
bookings were to remain consistent. This is less than the
$1.5 million per day we spoke about
during our earnings call. Even with this improvement in demand, we
are continuing to focus on finding ways to reduce costs. As we
have stated previously, the flexibility which is central to our
business model allows us to take advantage of these periods of
extremely low demand – which is clearly unique in our
industry."
"We have been pleased to see that May demand trends were
stronger than anticipated," stated Drew
Wells, vice president of revenue. "In fact, during Memorial
Day weekend Allegiant accounted for approximately eight percent of
all travelers going through a TSA checkpoint versus two percent
last year. During the first week of June we operated 70
percent of our schedule versus roughly 50 percent of the schedule
in May. Even with the increases in capacity, we were able to
maintain load factors just shy of 50 percent. With Las Vegas casinos opening early June, we
expect modest improvements to continue throughout the
month."
Scheduled
Service
|
|
|
|
|
|
May 2020
|
May 2019
|
Change
|
Passengers
|
362,528
|
1,269,429
|
(71.4%)
|
Revenue passenger
miles (000)
|
326,748
|
1,093,781
|
(70.1%)
|
Available seat miles
(000)
|
690,624
|
1,308,911
|
(47.2%)
|
Load
factor
|
47.3%
|
83.6%
|
(36.3pts)
|
Departures
|
4,654
|
9,086
|
(48.8%)
|
Average stage length
(miles)
|
856
|
843
|
1.5%
|
Total
System*
|
|
|
May 2020
|
May 2019
|
Change
|
Passengers
|
365,519
|
1,281,742
|
(71.5%)
|
Available seat miles
(000)
|
710,712
|
1,357,963
|
(47.7%)
|
Departures
|
4,795
|
9,416
|
(49.1%)
|
Average stage length
(miles)
|
855
|
844
|
1.3%
|
*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
|
May 2020 estimated
average fuel cost per gallon – system
|
$.91
|
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
ALGT/G
Note: This news release was accurate at the date of issuance.
However, information contained in the release may have changed. If
you plan to use the information contained herein for any purpose,
verification of its continued accuracy is your
responsibility.
For further information please visit the company's investor
website: http://ir.allegiantair.com
Reference to the Company's website above does not constitute
incorporation of any of the information thereon into this news
release.
Allegiant Media
Contact:
|
|
Investor
Inquiries:
|
Hilarie
Grey
|
|
Sherry
Wilson
|
email:
mediarelations@allegiantair.com
|
|
email:
ir@allegiantair.com
|
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SOURCE Allegiant Travel Company