Wednesday, 12 August 2020

Allegiant reported preliminary passenger traffic results for July 2020 this week show a cash burn of $1 million a day.

The U.S. budget carrier Allegiant has reported preliminary passenger traffic results for July 2020 which demonstrated the airline was burning around $1 million a day.  The airline carried 896,478 people during July this year, down from 1,750,065 last July, a reduction of 48%.

"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.
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