ALGT Allegiant Travel Company

LAS VEGAS, Oct. 26, 2022 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for September 2022 as well as third quarter 2022.

"We ended the quarter with adjusted¹ earnings, excluding 2022 employee recognition bonus in-line with our updated guidance," stated Gregory Anderson, president and chief financial officer. "Demand remained strong throughout the quarter with strength continuing into the upcoming holiday season. Third quarter loads were more than 88 percent, 2.5 points higher than the third quarter of 2019, on 17 percent more capacity. As expected, incremental operating costs associated with Hurricane Ian in addition to reducing capacity by roughly 1.5 percent, contributed to a roughly 13.9 percent increase in CASM, excluding fuel and employee recognition bonus, as compared with the third quarter of 2019. Third quarter results are summarized in the table below.

"Although we are still assessing the impacts of Hurricane Ian, as of October 6, air service has been restored to all airports that we serve in Florida. While airports have resumed normal operations and demand shows good promise, we do expect a revenue headwind related to our Florida markets in the fourth quarter. Additionally, we are in the process of working with our insurance partners to measure the financial impact to Sunseeker Resorts. The physical damage to the structures was predominantly caused by several cranes collapsing onto the building. Based on limited information available to us today, we are currently estimating this damage to be approximately $35 million. However, because investigations are ongoing, and we continue to ascertain new information daily, this number is subject to change. The estimated physical damage of $35 million will be recorded as a one-time, special item on our third quarter income statement. As insurance proceeds are approved in subsequent quarters, these recoveries will offset the loss. I want to express my gratitude to our team members and partners for their efforts to safely restore our network."     

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. 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 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

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.

¹ Adjusted to exclude a one-time loss of $35 million related to the impact of Hurricane Ian on Sunseeker Resorts
² Year over three-year percentage changes compare 2022 to 2019
³ Operating CASM, excluding fuel, excludes the impact of excess profit sharing

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SOURCE Allegiant Travel Company