LAS VEGAS, Sept. 9, 2021 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) 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."
|
Previous
|
Current
|
System ASMs – year
over two-year change2
|
Up 16.0 to
20.0%
|
Up 13.0 to
14.0%
|
Total operating
revenue - year over two-year change
|
Up 3.5 to
7.5%
|
Up 3.0 to
5.0%
|
Adjusted¹ EBITDA
margin
|
N/A
|
16.0 to
18.0%
|
Fuel cost per
gallon
|
$2.11
|
$2.19
|
Weighted average
share count for the third quarter
|
17.1
million
|
17.8
million
|
Scheduled Service – Year Over Two-Year Comparison
|
August
2021
|
August
2019
|
Change
|
Passengers
|
1,179,414
|
1,241,846
|
(5.0%)
|
Revenue passenger
miles (000)
|
1,021,613
|
1,047,568
|
(2.5%)
|
Available seat miles
(000)
|
1,377,398
|
1,229,543
|
12.0%
|
Load
factor
|
74.2%
|
85.2%
|
(11.0
pts)
|
Departures
|
9,451
|
8,768
|
7.8%
|
Average stage length
(miles)
|
835
|
822
|
1.6%
|
Total System* - Year Over Two-Year Comparison
|
August
2021
|
August
2019
|
Change
|
Passengers
|
1,185,944
|
1,256,712
|
(5.6%)
|
Available seat miles
(000)
|
1,408,554
|
1,306,860
|
7.8%
|
Departures
|
9,725
|
9,294
|
4.6%
|
Average stage length
(miles)
|
830
|
824
|
0.7%
|
Scheduled Service – Year Over Year Comparison
|
August
2021
|
August
2020
|
Change
|
Passengers
|
1,179,414
|
633,155
|
86.3%
|
Revenue passenger
miles (000)
|
1,021,613
|
540,317
|
89.1%
|
Available seat miles
(000)
|
1,377,398
|
1,226,370
|
12.3%
|
Load
factor
|
74.2%
|
44.1%
|
30.1pts
|
Departures
|
9,451
|
8,455
|
11.8%
|
Average stage length
(miles)
|
835
|
835
|
(0.0%)
|
Total System* - Year Over Year Comparison
|
August
2021
|
August
2020
|
Change
|
Passengers
|
1,185,944
|
636,485
|
86.3%
|
Available seat miles
(000)
|
1,408,554
|
1,252,758
|
12.4%
|
Departures
|
9,725
|
8,669
|
12.2%
|
Average stage length
(miles)
|
830
|
833
|
(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 Financial Results
|
$ per
gallon
|
August 2021 estimated
average fuel cost per gallon – system
|
$2.18
|
|
|
|
|
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 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 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 August 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
|
1 Adjusted to exclude COVID related special charges,
the net benefit from the payroll support program, and profit
sharing bonus accruals related to the benefit of the payroll
support program
2 Year over two-year percentage changes compare 2021 to
2019
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SOURCE Allegiant Travel Company