Monday, 13 September 2021

Passenger numbers up at Allegiant

Passenger traffic for Allegiant in August was up by over 86% year on year the budget carrier revealed in its latest update. Slowly demonstrating that passenger demand in the U.S. is rapidly growing and close to pre-pandemic levels. 

"As we have transitioned from our peak summer flying season into the off-peak fall season we have seen a softening in demand," stated Drew Wells, senior vice president, revenue. "Consistent with industry trends, the increase in COVID-19 cases coupled with return to school and work for many has contributed to an increase in cancellations and a deceleration of demand. The off-peak periods continue to underperform, while peak periods remain strong, a trend that has persisted throughout the pandemic. By way of example, Labor Day weekend performed well with load factors of roughly 80 percent on peak days, consistent with levels observed in 2019."

"We expect third quarter capacity to be up roughly 13.5 percent as compared with 2019, a 4.5 percentage point reduction from initial expectations," stated Gregory Anderson, executive vice president, chief financial officer. "Although we did observe demand weakness, these reductions were driven primarily by operational challenges observed throughout the quarter. Given these capacity reductions, we have updated our guidance, which is included in the table below. We expect an increase in total operating revenue from 2019 of between 3.0 and 5.0 percent, which should yield an adjusted1 EBITDA margin between 16 and 18 percent for the third quarter. We will continue to monitor trends and tweak fourth quarter capacity accordingly but given peak-period performance, we remain encouraged about the upcoming holiday travel season."



Scheduled Service – Year Over Two-Year Comparison


August 2021

August 2019

Change

Passengers

1,179,414

1,241,846

(5.0%)

Revenue passenger miles (000)

1,021,613

1,047,568

(2.5%)

Available seat miles (000)

1,377,398

1,229,543

12.0%

Load factor

74.2%

85.2%

(11.0 pts)

Departures

9,451

8,768

7.8%

Average stage length (miles)

835

822

1.6%

Total System* - Year Over Two-Year Comparison


August 2021

August 2019

Change

Passengers

1,185,944

1,256,712

(5.6%)

Available seat miles (000)

1,408,554

1,306,860

7.8%

Departures

9,725

9,294

4.6%

Average stage length (miles)

830

824

0.7%

Scheduled Service – Year Over Year Comparison


August 2021

August 2020

Change

Passengers

1,179,414

633,155

86.3%

Revenue passenger miles (000)

1,021,613

540,317

89.1%

Available seat miles (000)

1,377,398

1,226,370

12.3%

Load factor

74.2%

44.1%

30.1pts

Departures

9,451

8,455

11.8%

Average stage length (miles)

835

835

(0.0%)

Total System* - Year Over Year Comparison


August 2021

August 2020

Change

Passengers

1,185,944

636,485

86.3%

Available seat miles (000)

1,408,554

1,252,758

12.4%

Departures

9,725

8,669

12.2%

Average stage length (miles)

830

833

(0.4%)

*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.




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