Allegiant Reports August 2020 Traffic

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) reported preliminary passenger traffic results for August 2020, showing a considerable decline from August 2019. Passenger numbers dropped by 49.0% to 633,155, with revenue passenger miles down 48.4% to 540,317, and a load factor of 44.1%, down 41.1 percentage points. Average daily bookings remained around $2 million, although cash burn is projected to exceed $1 million in Q3. The company noted some weekly improvements in bookings and anticipates lower cash burn in Q4.

Positive

• Weekly improvements in daily bookings observed throughout August into September.
• Average daily cash burn projected to decrease below $1 million in Q4 if trends continue.

Negative

• Passenger numbers decreased by 49.0% year-over-year.
• Revenue passenger miles fell by 48.4% compared to last year.
• Load factor decreased to 44.1% from 85.2% in August 2019.

LAS VEGAS, Sept. 9, 2020 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for August 2020.

"Average daily bookings for the month of August were roughly $2 million," stated Gregory Anderson, executive vice president and chief financial officer, Allegiant Travel Company. "We continued to maintain a broad selling presence with available seat miles remaining relatively flat year over year. At recent booking levels, average daily cash burn is expected to be greater than $1 million for the third quarter, which includes payments due in conjunction with the termination of the loan agreement with Sixth Street Partners. We have been pleased to see modest week over week improvements in daily bookings throughout the month of August and into September. If current booking trends remain stable, we continue to expect average daily cash burn to be lower than $1 million in the fourth quarter."  

Scheduled Service

	August 2020	August 2019	Change
Passengers	633,155	1,241,846	(49.0%)
Revenue passenger miles (000)	540,317	1,047,568	(48.4%)
Available seat miles (000)	1,226,370	1,229,543	(0.3%)
Load factor	44.1%	85.2%	(41.1pts)
Departures	8,455	8,768	(3.6%)
Average stage length (miles)	835	822	1.6%

Total System*

	August 2020	August 2019	Change
Passengers	636,485	1,256,712	(49.4%)
Available seat miles (000)	1,252,758	1,306,860	(4.1%)
Departures	8,669	9,294	(6.7%)
Average stage length (miles)	833	824	1.1%

*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 2020 estimated average fuel cost per gallon – system	$1.34

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

FAQ

What were Allegiant Travel Company's passenger traffic results for August 2020?

Allegiant reported 633,155 passengers in August 2020, a 49.0% decline from 1,241,846 passengers in August 2019.

How has Allegiant's revenue passenger miles changed in August 2020?

Revenue passenger miles decreased by 48.4% in August 2020 to 540,317 from 1,047,568 in August 2019.

What is the expected cash burn for Allegiant in the third quarter of 2020?

The average daily cash burn is expected to exceed $1 million for Q3 2020.

What improvements has Allegiant seen in bookings for September 2020?

Allegiant noted modest weekly improvements in daily bookings throughout August and into September 2020.

What is the load factor for Allegiant in August 2020?

The load factor for August 2020 was 44.1%, down from 85.2% in August 2019.