Allegiant Reports September 2020 Traffic

Rhea-AI Summary

Allegiant Travel Company (NASDAQ: ALGT) reported its preliminary passenger traffic results for September 2020 and the third quarter. The average daily cash burn was approximately $1.3 million, with gross bookings exceeding $2 million per day. The company paid about $15 million to Sixth Street Partners related to a loan agreement, impacting cash burn. Liquidity increased to over $850 million. However, third-quarter passenger numbers fell by 46.6% compared to 2019, with a load factor of 49.7%.

Positive

• Increased liquidity to over $850 million.
• Gross bookings averaged more than $2 million per day.

Negative

• Passenger traffic decreased by 46.6% year-over-year.
• Load factor dropped to 49.7%, down from 86.0%.

LAS VEGAS, Oct. 8, 2020 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for September 2020 as well as third quarter 2020.

"Average daily cash burn came in at roughly $1.3 million for the third quarter," stated Gregory Anderson, executive vice president and chief financial officer, Allegiant Travel Company. "Gross bookings for the quarter averaged more than $2.0 million per day, which is better than our previous booking levels of less than $2 million per day, due primarily to steady improvements in bookings throughout the month of September. During the third quarter, we paid approximately $15 million to Sixth Street Partners in conjunction with the termination of the Sunseeker loan agreement, which drove cash burn up slightly. As previously stated, our cash burn figure includes debt payments. We continue to expect fourth quarter daily cash burn to be well below $1 million based on the assumption of average daily gross bookings of more than $2.0 million, which is inclusive of the remaining $5 million payment to Sixth Street Partners.

"As we enter the final quarter of the year, we meaningfully increased our liquidity position to over $850 million, primarily driven by the $84 million in senior secured debt backed by two A320 aircraft and eight CFM engines along with the sale of $150 million of senior secured notes, which is backed by collateral pledged to our existing Term Loan. We believe this improved liquidity coupled with our industry-best cash burn rate not only bolsters liquidity further, but provides enhanced flexibility to best respond to the fluid environment."

"We will continue to approach the fourth quarter by maintaining a wide selling footprint," stated Drew Wells, vice president of revenue. "This approach has been effective at capturing demand as it returns. We completed the quarter with capacity down 6.5 percent year over year and a load factor of just below 50 percent. We saw some strength towards the back half of the quarter, as evidenced by September's load factor of 57.4 percent. We continue to monitor bookings and will make any necessary cuts to the schedule as dictated by demand trends." 

 

Scheduled Service
	September 2020	September 2019	Change
Passengers	475,814	770,768	(38.3%)
Revenue passenger miles (000)	405,590	639,534	(36.6%)
Available seat miles (000)	706,148	775,906	(9.0%)
Load factor	57.4%	82.4%	(25.0 pts)
Departures	4,885	5,638	(13.4%)
Average stage length (miles)	839	808	3.8%
	3rd Quarter 2020	3rd Quarter 2019	Change
Passengers	2,003,648	3,753,611	(46,6%)
Revenue passenger miles (000)	1,714,622	3,170,826	(45.9%)
Available seat miles (000)	3,449,339	3,687,473	(6.5%)
Load factor	49.7%	86.0%	(36.3 pts)
Departures	23,710	26,238	(9.6%)
Average stage length (miles)	839	824	1.8%

                                                                       

Total System*
	September 2020	September 2019	Change
Passengers	483,278	799,592	(39.6%)
Available seat miles (000)	734,898	855,962	(14.1%)
Departures	5,137	6,248	(17.8%)
Average stage length (miles)	830	802	3.5%
	3rd Quarter 2020	3rd Quarter 2019	Change
Passengers	2,016,241	3,806,369	(47.0%)
Available seat miles (000)	3,521,508	3,888,400	(9.4%)
Departures	24,365	27,707	(12.1%)
Average stage length (miles)	834	823	1.3%

*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
September 2020 estimated average fuel cost per gallon – system	$1.28
	$ per gallon
3rd quarter 2020 estimated average fuel cost per gallon – system	$1.32

 

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 September 2020?

Allegiant reported 475,814 passengers in September 2020, a 38.3% decline from September 2019.

How did Allegiant's third quarter 2020 financial results compare to 2019?

In Q3 2020, Allegiant had 2,003,648 passengers, down 46.6% from 3,753,611 in Q3 2019.

What is Allegiant's average daily cash burn?

Allegiant's average daily cash burn was approximately $1.3 million for Q3 2020.

What was Allegiant's liquidity position at the end of Q3 2020?

Allegiant increased its liquidity to over $850 million by the end of Q3 2020.

What was the average load factor for Allegiant in the third quarter of 2020?

The average load factor for Allegiant in Q3 2020 was 49.7%, significantly lower than the previous year's 86.0%.