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Allegiant Reports Sept. 2020 Traffic; Reports 475K Passengers Vs 770K YoY; Reports Q3 Passengers Of 2M Vs 3.75M YoY

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

· 10/08/2020 09:08

Allegiant Reports September 2020 Traffic

 

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