LAS VEGAS, July 9, 2020 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) today reported preliminary
passenger traffic results for June
2020 as well as second quarter 2020.
"We continued to see modest demand improvements throughout the
month of June, building upon May's demand increases," stated
Gregory Anderson, executive vice
president, chief financial officer and principal accounting officer
of Allegiant Travel Company. "Gross bookings for the month of June
averaged more than $4 million per
day, bringing the average daily gross bookings for the second
quarter to over $2.5 million. June's
bookings exceeded our expectations, thus the average daily cash
burn for the second quarter was $900
thousand, down from our previous forecast of $1.75 million. However, within the last two
weeks, several states have reported increases in the number of
people with the virus, which has negatively impacted bookings and
tempered expectations into the third quarter. Therefore, utilizing
the average daily bookings from the second quarter of $2.5 million, we now expect daily cash burn will
be approximately $750 thousand during
the third quarter. We recognize the situation is fluid, and that
demand could be impacted by additional shutdowns and required
quarantines in our markets. As a result, we remain focused on
finding ways to eliminate costs and preserve cash. We continue to
keep our finger on the pulse and will leverage the flexibility of
our model to pull back capacity to match demand levels in the
coming months."
"During the month of June we operated 70 percent of our schedule
while increasing load factor by nearly 10 points from May to 57.3
percent," stated Drew Wells, vice
president of revenue. "Capacity was down 17.5 percent for the month
of June as compared with 2019, but peak day available seat miles
actually grew 3.5 percent from prior year. Allegiant travelers
represented roughly 6 percent of all travelers going through a TSA
checkpoint in the month, and that trend continued into the Fourth
of July weekend. We expect to operate roughly 75 percent of our
schedule into the third quarter but will make any necessary
adjustments as dictated by demand trends."
Scheduled
Service
|
|
|
June 2020
|
June 2019
|
Change
|
Passengers
|
867,207
|
1,594,128
|
(45.6%)
|
Revenue passenger
miles (000)
|
745,608
|
1,355,240
|
(45.0%)
|
Available seat miles
(000)
|
1,301,559
|
1,576,993
|
(17.5%)
|
Load
factor
|
57.3%
|
85.9%
|
(28.6
pts)
|
Departures
|
8,940
|
11,176
|
(20.0%)
|
Average stage length
(miles)
|
846
|
828
|
2.2%
|
|
2nd
Quarter 2020
|
2nd
Quarter 2019
|
Change
|
Passengers
|
1,266,077
|
4,131,855
|
(69.4%)
|
Revenue passenger
miles (000)
|
1,107,534
|
3,603,076
|
(69.3%)
|
Available seat miles
(000)
|
2,174,683
|
4,311,182
|
(49.6%)
|
Load
factor
|
50.9%
|
83.6%
|
(32.7
pts)
|
Departures
|
14,683
|
29,567
|
(50.3%)
|
Average stage length
(miles)
|
855
|
853
|
0.2%
|
Total
System*
|
|
|
June 2020
|
June 2019
|
Change
|
Passengers
|
868,927
|
1,606,651
|
(45.9%)
|
Available seat miles
(000)
|
1,315,304
|
1,618,098
|
(18.7%)
|
Departures
|
9,105
|
11,478
|
(20.7%)
|
Average stage length
(miles)
|
839
|
827
|
1.5%
|
|
2nd
Quarter 2020
|
2nd
Quarter 2019
|
Change
|
Passengers
|
1,273,258
|
4,169,536
|
(69.5%)
|
Available seat miles
(000)
|
2,220,755
|
4,447,066
|
(50.1%)
|
Departures
|
15,089
|
30,547
|
(50.6%)
|
Average stage length
(miles)
|
850
|
853
|
(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 Fuel
Results
|
|
$ per
gallon
|
June 2020 estimated
average fuel cost per gallon – system
|
$1.17
|
|
|
|
$ per
gallon
|
2nd
quarter 2020 estimated average fuel cost per gallon –
system
|
$1.08
|
|
|
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