Allegiant Reports July 2020 Traffic

Rhea-AI Summary

On August 11, 2020, Allegiant Travel Company (NASDAQ: ALGT) released preliminary passenger traffic results for July 2020, indicating challenges due to the pandemic. Gross bookings averaged approximately $2 million per day, with expectations of daily cash burn exceeding $1 million for Q3. The company operated 75% of its planned schedule, resulting in a 48.6% decline in passengers (894,679) from July 2019. Additionally, revenue passenger miles decreased by 48.2%, and load factor dropped to 50.7%, indicating reduced capacity and demand.

Positive

• Gross bookings of approximately $2 million per day in July 2020.
• Operated roughly 75% of its planned schedule.

Negative

• Passengers fell by 48.6% year-over-year to 894,679.
• Revenue passenger miles decreased by 48.2% compared to July 2019.
• Load factor dropped to 50.7%, down 37.5 points from the previous year.
• Daily cash burn anticipated to exceed $1 million for Q3.

LAS VEGAS, Aug. 11, 2020 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for July 2020.

"Gross bookings came in at roughly $2 million per day for the month of July," stated Gregory Anderson, executive vice president and chief financial officer, Allegiant Travel Company. "Holding July daily gross bookings constant for the duration of the quarter, we continue to anticipate average daily cash burn to be just over $1 million for the third quarter, which includes half of the $20 million expected settlement to Sixth Street Partners (formerly TSSP) related to the termination of the loan agreement intended to finance the development of Sunseeker Resort Charlotte Harbor. We operated roughly 75 percent of our originally planned schedule during the month of July, with available seat miles down 9.8 percent year over year. This is consistent with expectations for the remainder of the quarter. We recognize that market conditions continue to evolve; therefore, we will refine capacity to better match the demand environment as needed."      

Scheduled Service
	July 2020	July 2019	Change
Passengers	894,679	1,740,997	(48.6%)
Revenue passenger miles (000)	768,714	1,483,724	(48.2%)
Available seat miles (000)	1,516,821	1,682,024	(9.8%)
Load factor	50.7%	88.2%	(37.5pts)
Departures	10,370	11,832	(12.4%)
Average stage length (miles)	843	834	1.1%

                                                                       

Total System*
	July 2020	July 2019	Change
Passengers	896,478	1,750,065	(48.8%)
Available seat miles (000)	1,533,852	1,725,577	(11.1%)
Departures	10,559	12,165	(13.2%)
Average stage length (miles)	838	833	0.6%

*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
July 2020 estimated average fuel cost per gallon – system	$1.33

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's passenger traffic results for July 2020?

Allegiant reported 894,679 passengers in July 2020, a decline of 48.6% compared to July 2019.

How much were Allegiant's gross bookings in July 2020?

Gross bookings averaged approximately $2 million per day in July 2020.

What is Allegiant's anticipated daily cash burn for Q3 2020?

Allegiant anticipates a daily cash burn of just over $1 million for Q3 2020.

How did the load factor change for Allegiant in July 2020?

The load factor for July 2020 was 50.7%, down 37.5 percentage points from the previous year.