Allegiant Reports August 2021 Traffic

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) reported preliminary passenger traffic results for August 2021, showing a 5.0% decline in passengers compared to August 2019, totaling 1,179,414. The increase in COVID-19 cases has led to softening demand and higher cancellations, despite strong performance during peak periods like Labor Day with load factors around 80%. The company anticipates a 13.5% capacity increase from 2019 for Q3, but revised initial expectations down by 4.5 percentage points. Operating revenue is expected to rise 3.0% to 5.0% year-over-year.

Positive

• Total operating revenue projected to increase by 3.0% to 5.0% compared to 2019.
• Labor Day weekend load factors reached approximately 80%, consistent with 2019 levels.
• Capacity for the third quarter expected to increase by 13.5% compared to 2019.

Negative

• Passenger traffic declined by 5.0% compared to August 2019.
• Load factor decreased by 11.0 percentage points from August 2019 to 74.2%.
• Revised Q3 capacity increase expectation down by 4.5 percentage points due to operational challenges.

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

FAQ

What were Allegiant's passenger traffic results for August 2021?

Allegiant reported a total of 1,179,414 passengers in August 2021, a 5.0% decline from August 2019.

How did COVID-19 affect Allegiant's demand in August 2021?

The increase in COVID-19 cases contributed to a softening in demand and increased cancellations.

What is Allegiant's capacity forecast for the third quarter of 2021?

Allegiant expects a capacity increase of approximately 13.5% compared to 2019 for Q3 2021.

What is the projected operating revenue change for Allegiant in Q3 2021?

Allegiant anticipates total operating revenue to increase by 3.0% to 5.0% year-over-year.

How did Allegiant's load factors perform during Labor Day weekend?

Load factors reached approximately 80% during Labor Day weekend, consistent with levels observed in 2019.