ALLEGIANT REPORTS FEBRUARY 2022 TRAFFIC

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) reported its preliminary passenger traffic results for February 2022. The company experienced a significant increase in leisure demand in mid-February, achieving a load factor of 77.8%, up over eight points from January. March load factors are exceeding those of 2019, with several weeks over 90% booked. Although recent weather and staffing issues led to a 10% reduction in quarterly capacity guidance, total revenue is expected to be at the higher end of initial projections, supported by strong yield strength.

Positive

• Passenger numbers increased by 8.4% year-over-three-year.
• Load factors improved significantly, with March trending above 2019 levels.
• Total revenue expected to meet high-end of initial guidance.

Negative

• Capacity guidance reduced by 10% for the second quarter.
• Expected fuel costs have increased to $3.05 per gallon.

LAS VEGAS, March 17, 2022 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for February 2022.

"After a slow start to the quarter, attributable to the Omicron variant, we saw a significant step-up in leisure demand beginning mid-February and persisting into March," stated Drew Wells, senior vice president, revenue. "We finished February with a load factor of 77.8 percent, a more than eight-point improvement over January. Load factor during the month of March is currently trending above levels observed in 2019, with several weeks exceeding 90 percent booked loads, marking the first time we've seen loads at this level since the onset of the pandemic. In addition, yields are strong with March TRASM tracking in line with March of 2019. Due to recent weather events and staffing challenges, we have lowered our quarterly capacity guidance and now expect ASMs to be up roughly 18 percent year over three-year. Given yield strength, we expect total revenue to come in on the high-end of our initial revenue guide."

"Despite decreased capacity for the quarter, we continue to expect CASM, excluding fuel, to fall within our initial range," stated Gregory Anderson, executive vice president, chief financial officer. "Recent spikes in jet fuel prices have resulted in an updated fuel cost per gallon for the first quarter of roughly $3.05. Due predominantly to the volatile fuel environment as well as some staffing challenges, we expect to reduce planned capacity by roughly ten percent for the second quarter. We will continue to manage capacity to maximize profitability."

	Previous	Current
System ASMs – year over three-year change1	Up 19.0 to 23.0%	Up 17.0 to 19.0%
Scheduled service ASMs – year over three-year change¹	Up 19.0 to 23.0%	Up 17.0 to 19.0%
Total operating revenue - year over three-year change¹	Up 5.0 to 9.5%	Up 7.5 to 9.5%
Operating CASM, excluding fuel - year over three-year change¹ 2	Up 1.0 to 5.0%	Up 3.0 to 5.0%
Fuel cost per gallon	$2.67	$3.05

 

Scheduled Service – Year Over Three-Year Comparison
	February 2022	February 2019	Change
Passengers	1,099,911	1,012,255	8.7%
Revenue passenger miles (000)	1,060,497	947,536	11.9%
Available seat miles (000)	1,362,381	1,137,059	19.8%
Load factor	77.8%	83.3%	(5.5pts)
Departures	8,277	7,265	13.9%
Average stage length (miles)	932	908	2.6%

 

Total System* - Year Over Three-Year Comparison
	February 2022	February 2019	Change
Passengers	1,105,652	1,020,352	8.4%
Available seat miles (000)	1,392,157	1,174,082	18.6%
Departures	8,503	7,559	12.5%
Average stage length (miles)	928	903	2.8%

 

Scheduled Service – Year Over Year Comparison
	February 2022	February 2021	Change
Passengers	1,099,911	679,906	61.8%
Revenue passenger miles (000)	1,060,497	636,119	66.7%
Available seat miles (000)	1,362,381	1,203,720	13.2%
Load factor	77.8%	52.8%	25.0pts
Departures	8,277	7,630	8.5%

 

Total System* - Year Over Year Comparison
	February 2022	February 2021	Change
Passengers	1,105,652	680,930	62.4%
Available seat miles (000)	1,392,157	1,223,407	13.8%
Departures	8,503	7,783	9.3%
Average stage length (miles)	928	904	2.

*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
February 2022 estimated average fuel cost per gallon – system	$2.92

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 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 November 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.

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Allegiant Media Contact:		Investor Inquiries:
Sonya Padgett		Sherry Wilson
email: mediarelations@allegiantair.com		email: ir@allegiantair.com

¹ Year over three-year percentage changes compare 2022 to 2019
² Operating CASM, excluding fuel, does not include bonus accruals

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SOURCE Allegiant Travel Company

FAQ

What are Allegiant's passenger traffic results for February 2022?

Allegiant reported 1,099,911 passengers in February 2022, an increase of 8.4% compared to February 2019.

How did Allegiant's load factor perform in February 2022?

The load factor for February 2022 was 77.8%, which is over eight points higher than January.

What is the expected revenue guidance for Allegiant in 2022?

Allegiant expects total revenue to come in at the high-end of its initial guidance due to strong yield strength.

How has Allegiant's capacity changed for the second quarter of 2022?

Allegiant has reduced its capacity guidance by roughly 10% for the second quarter due to staffing challenges and weather events.

What is the estimated average fuel cost per gallon for Allegiant in the first quarter of 2022?

The estimated average fuel cost per gallon for the first quarter of 2022 is approximately $3.05.