ALLEGIANT REPORTS MAY 2022 TRAFFIC

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) reported strong preliminary passenger traffic results for May 2022, with a capacity growth of nearly 16% compared to 2019 and a load factor of 87%, marking the highest since the pandemic began. Despite strong demand and forward bookings exceeding capacity growth, flight cancellations due to crew availability have impacted the quarter's revenue, expected to rise by approximately 28%. Fuel costs increased significantly, now anticipated to average $4.30 per gallon, resulting in excess expenses of around $18 million.

Positive

• Capacity grew by nearly 16% compared to May 2019.
• Load factor reached 87%, the highest since onset of the pandemic.
• Forward bookings are trending higher than 2019 levels.
• Expectations for June loads are around 90%.

Negative

• Increased flight cancellations due to crew availability.
• Total revenue for the quarter may be on the low end, despite an expected rise of 28%.

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

"We grew capacity by nearly 16 percent during May, as compared with 2019, and completed the month with a load factor of 87 percent, the highest month since the onset of the pandemic," stated Drew Wells, senior vice president, revenue. "Demand strength continues to persist with forward bookings outpacing future capacity growth and continuing to trend higher than levels observed during 2019. Although early, bookings into the off-peak season are also trending higher than 2019. We continue to expect June loads to surpass May levels, with loads expected to be roughly 90 percent. As COVID cases began rising mid-May, we saw an increase in flight cancelations stemming from crew availability. Due to heightened cancelations, we expect total revenue for the quarter to come in on the low end of our previous guide, at up roughly 28 percent compared with 2019. In addition, we now expect total system capacity to be up roughly 11.5 percent for the quarter, year over three-year."

"The average cost per fuel gallon in May was $4.41 and we now expect to finish the quarter at an average cost per gallon of $4.30," stated Gregory Anderson, executive vice president, chief financial officer. "This increased fuel cost over our previous guide of $4.00 per gallon will result in roughly $18 million in excess expense throughout the quarter. We expect our CASM, excluding fuel and profit sharing, to fall within our previous guide, at up roughly 15 percent when compared with 2019. Updated guidance for the second quarter is included in the table below."     

	Previous	Current
System ASMs – year over three-year change1	Up 9.0 to 13.0%	Up ~11.5%
Scheduled service ASMs – year over three-year change¹	Up 10.0 to 14.0%	Up ~12.5%
Total operating revenue - year over three-year change¹	Up 28.0 to 32.0%	Up ~28%
Operating CASM, excluding fuel and profit share - year over three-year change¹	Up 12.0 to 16.0%	Up ~15%
Fuel cost per gallon	$4.00	$4.30

 

Scheduled Service – Year Over Three-Year Comparison
	May 2022	May 2019	Change
Passengers	1,454,779	1,269,429	14.6 %
Revenue passenger miles (000)	1,309,090	1,093,781	19.7 %
Available seat miles (000)	1,512,328	1,308,911	15.5 %
Load factor	86.6 %	83.6 %	3.0pts
Departures	9,779	9,086	7.6 %
Average stage length (miles)	879	843	4.3 %

 

Total System* - Year Over Three-Year Comparison
	May 2022	May 2019	Change
Passengers	1,465,823	1,281,742	14.4 %
Available seat miles (000)	1,553,013	1,357,963	14.4 %
Departures	10,060	9,416	6.8 %
Average stage length (miles)	877	844	3.9 %

 

Scheduled Service – Year Over Year Comparison
	May 2022	May 2021	Change
Passengers	1,454,779	1,040,590	39.8 %
Revenue passenger miles (000)	1,309,090	888,735	47.3 %
Available seat miles (000)	1,512,328	1,293,704	16.9 %
Load factor	86.6 %	68.7 %	17.9pts
Departures	9,779	8,939	9.4 %
Average stage length (miles)	879	834	5.4 %

 

Total System* - Year Over Year Comparison
	May 2022	May 2021	Change
Passengers	1,465,823	1,046,813	40.0 %
Available seat miles (000)	1,553,013	1,326,062	17.1 %
Departures	10,060	9,202	9.3 %
Average stage length (miles)	877	831	5.5 %

*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
May 2022 estimated average fuel cost per gallon – system	$4.41

 

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.

Allegiant Media Contact:		Investor Inquiries:
Sonya Padgett		Sherry Wilson
email: mediarelations@allegiantaircom		email: ir@allegiantaircom

^{1 Year over three-year percentage changes compare 2022 to 2019}

View original content to download multimedia:https://www.prnewswire.com/news-releases/allegiant-reports-may-2022-traffic-301570164.html

SOURCE Allegiant Travel Company

FAQ

What were Allegiant Travel Company's passenger traffic results for May 2022?

Allegiant Travel Company reported 1,454,779 passengers in May 2022, a 14.6% increase compared to May 2019.

What is the expected revenue growth for Allegiant in Q2 2022?

Allegiant expects total revenue for the quarter to increase by approximately 28% compared to 2019.

What is the average fuel cost expected for Allegiant in Q2 2022?

The average fuel cost per gallon is expected to be around $4.30 for Q2 2022.

What is the load factor for Allegiant Travel in May 2022?

The load factor in May 2022 was 87%, the highest since the pandemic began.

How did Allegiant's capacity change in May 2022 compared to 2019?

Allegiant's capacity grew by nearly 16% in May 2022 compared to May 2019.