ALLEGIANT ANNOUNCES REPAYMENT OF ITS OBLIGATIONS UNDER THE CARES ACT PAYROLL SUPPORT PROGRAM

Rhea-AI Summary

On September 5, 2022, Allegiant (NASDAQ: ALGT) announced the early repayment of a $24.8 million emergency relief loan received under the CARES Act in April 2020. This loan facilitated liquidity during the pandemic, aiding the company in safeguarding jobs. Allegiant's unique focus on leisure travel enabled a swift recovery in demand. CEO John Redmond expressed gratitude for the governmental support that allowed the airline to fulfill its obligations sooner than expected, as the travel sector rebounds from the pandemic.

Positive

• Repayment of $24.8 million loan ahead of schedule indicates strong recovery and financial health.
• Government support helped preserve jobs and liquidity during a challenging period.

Negative

• None.

LAS VEGAS, Sept. 5, 2022 /PRNewswire/ -- Allegiant (NASDAQ: ALGT) announced it has repaid the $24.8 million dollar emergency relief loan the company received under the Coronavirus Aid, Relief and Economic Security (CARES) Act in April 2020.

The government assistance, coupled with proactive initiatives from Allegiant and its employees, allowed the airline to preserve liquidity and strategically position itself to withstand the uncertainty surrounding the outbreak of COVID-19. Allegiant's unique business model, focused entirely on leisure travel, helped the company respond to the unprecedented challenges that the entire airline industry faced when demand for air travel dropped so suddenly and precipitously in 2020, as a result of the global pandemic.

The CARES Act, signed into law in April 2020, established the Payroll Support Program to provide assistance to U.S. companies that were impacted by the global pandemic. The funds helped Allegiant support the airline's employee salaries and benefits.

"We're so grateful to the federal government and the American people for stepping up and assisting the entire industry when the outlook for the future was so uncertain," said Allegiant's CEO John Redmond. "This loan helped us save jobs at a time when it wasn't clear how the U.S. would emerge from the pandemic. We're thrilled that demand has increased so much in recent months that we were able to fulfill our obligation much earlier than we originally anticipated."

Allegiant – Together We Fly^TM

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

Media Contact
Phone: 702-800-2020
Email: mediarelations@allegiantair.com

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SOURCE Allegiant Travel Company

FAQ

When did Allegiant repay the loan from the CARES Act?

Allegiant repaid the $24.8 million loan on September 5, 2022.

How much was the loan Allegiant repaid?

Allegiant repaid $24.8 million under the CARES Act.

What was the purpose of the CARES Act loan for Allegiant?

The loan helped Allegiant maintain liquidity and support employee salaries during the COVID-19 pandemic.

What is Allegiant's business focus?

Allegiant focuses entirely on leisure travel, connecting small-to-medium cities with vacation destinations.

Who is the CEO of Allegiant?

John Redmond is the CEO of Allegiant.