Allegiant Reports June 2021 Traffic

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) reported preliminary passenger traffic results for June 2021 and the second quarter. Despite a decrease in scheduled service revenue by 1.3% compared to 2019, overall demand showed resilience with a 2.3% increase in passengers in June year-over-year. The airline’s load factor improved nearly 10 points from May, though it still lags behind 2019 levels. Adjusted EBITDA margin is estimated at 29%. Average fuel costs rose slightly to $2.02 per gallon, while bookings exceeded pre-pandemic levels.

Positive

• Passenger count in June 2021 increased by 2.3% compared to June 2019.
• Load factor improved by nearly 10 points from May 2021.
• Estimated adjusted EBITDA margin of approximately 29%.
• Average daily bookings exceeded the same period in 2019.

Negative

• Scheduled service revenue down 1.3% compared to 2019.
• Load factor decreased 8.2 points compared to June 2019.
• Total operating revenue decreased by 4.0% year-over-year.

LAS VEGAS, July 13, 2021 /PRNewswire/ --  Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for June 2021 as well as second quarter 2021.

"Demand strength persisted throughout the quarter with average daily bookings in excess of the same time period in 2019," stated Gregory Anderson, executive vice president and chief financial officer. "We continued to see load factor improvement throughout June with a nearly 10-point increase from May on year over two-year capacity growth of roughly 14 percent. Given the demand strength, scheduled service revenue, excluding fixed fee and other revenue, is estimated to be $467 million, down 1.3 percent when compared with 2019. This is better than initial expectations due to significantly increased breakage revenue¹ related to the elevated issuance of credit vouchers throughout the pandemic as well as sustained yield strength throughout the quarter. Excluding breakage, yield was up nearly two percent when compared with the second quarter of 2019. Given the revenue strength observed throughout the quarter, we estimate an adjusted EBITDA margin² of roughly 29 percent. Additional updates to guidance are included in the table below."

	Previous	Current
Scheduled service revenue - year over two-year change, excluding fixed fee and other revenue	Down 6 to 10%	Down 1.3%3
Total operating revenue - year over two-year change	N/A	Down 4.0%
Fuel cost per gallon	$1.99	$2.02
Weighted average share count for the second quarter	16.2 million	17.1 million

1 Breakage accounts for just below five percent of scheduled service revenue. 2 Adjusted to exclude impacts from the CARES Act and profit sharing. 3 The removal of incremental breakage results in a year over two-year decrease to scheduled service revenue of approximately 6.3 percent.

 

Scheduled Service – Year Over Two-Year Comparison
	June 2021	June 2019	Change
Passengers	1,630,204	1,594,128	2.3%
Revenue passenger miles (000)	1,395,232	1,355,240	3.0%
Available seat miles (000)	1,794,848	1,576,993	13.8%
Load factor	77.7%	85.9%	(8.2 pts)
Departures	12,416	11,176	11.1%
Average stage length (miles)	828	828	0.0%
	2nd Quarter 2021	2nd Quarter 2019	Change
Passengers	3,680,254	4,131,855	(10.9%)
Revenue passenger miles (000)	3,188,215	3,603,076	(11.5%)
Available seat miles (000)	4,505,786	4,311,182	4.5%
Load factor	70.8%	83.6%	(12.8pts)
Departures	30,763	29,567	4.0%
Average stage length (miles)	842	853	(1.3%)
Total System* - Year Over Two-Year Comparison
	June 2021	June 2019	Change
Passengers	1,635,716	1,606,651	1.8%
Available seat miles (000)	1,821,104	1,618,098	12.5%
Departures	12,642	11,478	10.1%
Average stage length (miles)	825	827	(0.2%)
	2nd Quarter 2021	2nd Quarter 2019	Change
Passengers	3,699,217	4,169,536	(11.3%)
Available seat miles (000)	4,594,542	4,447,066	3.3%
Departures	31,507	30,547	3.1%
Average stage length (miles)	838	853	(1.8%)
Scheduled Service – Year Over Year Comparison
	June 2021	June 2020	Change
Passengers	1,630,204	867,207	88.0%
Revenue passenger miles (000)	1,395,232	745,608	87.1%
Available seat miles (000)	1,794,848	1,301,559	37.9%
Load factor	77.7%	57.3%	20.4 pts
Departures	12,416	8,940	38.9%
Average stage length (miles)	828	846	(2.1%)
	2nd Quarter 2021	2nd Quarter 2020	Change
Passengers	3,680,254	1,266,077	190.7%
Revenue passenger miles (000)	3,188,215	1,107,534	187.9%
Available seat miles (000)	4,505,786	2,174,683	107.2%
Load factor	70.8%	50.9%	19.9pts
Departures	30,763	14,683	109.5%
Average stage length (miles)	842	855	(1.5%)
Total System* - Year Over Year Comparison
	June 2021	June 2020	Change
Passengers	1,635,716	868,927	88.2%
Available seat miles (000)	1,821,104	1,315,304	38.5%
Departures	12,642	9,105	38.8%
Average stage length (miles)	825	839	(1.7%)
	2nd Quarter 2021	2nd Quarter 2020	Change
Passengers	3,699,217	1,273,258	190.5%
Available seat miles (000)	4,594,542	2,220,755	106.9%
Departures	31,507	15,089	108.8%
Average stage length (miles)	838	850	(1.4%)

*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
June 2021 estimated average fuel cost per gallon – system	$2.11
	$ per gallon
2nd quarter 2021 estimated average fuel cost per gallon – system	$2.02

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 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

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/allegiant-reports-june-2021-traffic-301332861.html

SOURCE Allegiant Travel Company

FAQ

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

Allegiant reported 1,630,204 passengers in June 2021, a 2.3% increase compared to June 2019.

How did Allegiant's scheduled service revenue perform in the second quarter of 2021?

Scheduled service revenue for the second quarter of 2021 is estimated at $467 million, down 1.3% compared to 2019.

What is the estimated adjusted EBITDA margin for Allegiant in Q2 2021?

The estimated adjusted EBITDA margin for Q2 2021 is approximately 29%.

How did Allegiant's load factor change in June 2021?

The load factor in June 2021 was 77.7%, down 8.2 percentage points from June 2019.

What were the average fuel costs for Allegiant in Q2 2021?

The estimated average fuel cost per gallon for Q2 2021 was $2.02.