Allegiant's passenger numbers up over 70% in October

The Las Vegas-based Allegiant Travel Company carried 829,029 passengers during the month of October, up just 3% from 2019 figures, but up over 71% from last October, bringing the total for this quarter to 3,834,956 people.

"We finished the quarter with capacity up just over 14 percent as compared with 2019," stated Gregory Anderson, executive vice president and chief financial officer. "We expect total revenue to be up roughly 5.3 percent when compared with 2019, just above our updated guidance of up three to five percent. Revenue strength was driven primarily by better than expected bookings during the back half of September. Despite a more favourable revenue environment, we are updating our adjusted EBITDA margin guidance to 15.5 to 16.5 percent. The updated range is primarily attributable to higher than anticipated irregular operations costs. Excluding heightened levels of irregular operations costs, adjusted EBITDA margin would have been roughly 24 percent." 

Scheduled Service – Year Over Two-Year Comparison
	September 2021	September 2019	Change
Passengers	803,349	770,768	4.2%
Revenue passenger miles (000)	689,600	639,534	7.8%
Available seat miles (000)	977,759	775,906	26.0%
Load factor	70.5%	82.4%	(11.9 pts)
Departures	6,714	5,638	19.1%
Average stage length (miles)	834	808	3.2%
	3rd Quarter 2021	3rd Quarter 2019	Change
Passengers	3,834,956	3,753,611	2.2%
Revenue passenger miles (000)	3,302,519	3,170,826	4.2%
Available seat miles (000)	4,312,893	3,687,473	17.0%
Load factor	76.6%	86.0%	(9.4pts)
Departures	29,593	26,238	12.8%
Average stage length (miles)	834	824	1.2%
Total System* - Year Over Two-Year Comparison
	September 2021	September 2019	Change
Passengers	829,029	799,592	3.7%
Available seat miles (000)	1,050,489	855,962	22.7%
Departures	7,304	6,248	16.9%
Average stage length (miles)	823	802	2.6%
	3rd Quarter 2021	3rd Quarter 2019	Change
Passengers	3,872,651	3,806,369	1.7%
Available seat miles (000)	4,441,201	3,888,400	14.2%
Departures	30,663	27,707	10.7%
Average stage length (miles)	829	823	0.7%
Scheduled Service – Year Over Year Comparison
	September 2021	September 2020	Change
Passengers	803,349	475,814	68.8%
Revenue passenger miles (000)	689,600	405,590	70.0%
Available seat miles (000)	977,759	706,148	38.5%
Load factor	70.5%	57.4%	13.1pts
Departures	6,714	4,885	37.4%
Average stage length (miles)	834	839	(0.6%)
	3rd Quarter 2021	3rd Quarter 2020	Change
Passengers	3,834,956	2,003,648	91.4%
Revenue passenger miles (000)	3,302,519	1,714,622	92.6%
Available seat miles (000)	4,312,893	3,449,339	25.0%
Load factor	76.6%	49.7%	26.9pts
Departures	29,593	23,710	24.8%
Average stage length (miles)	834	839	(0.6%)
Total System* - Year Over Year Comparison
	September 2021	September 2020	Change
Passengers	829,029	483,278	71.5%
Available seat miles (000)	1,050,489	734,898	42.9%
Departures	7,304	5,137	42.2%
Average stage length (miles)	823	830	(0.8%)
	3rd Quarter 2021	3rd Quarter 2020	Change
Passengers	3,872,651	2,016,241	92.1%
Available seat miles (000)	4,441,201	3,521,508	26.1%
Departures	30,663	24,365	25.8%
Average stage length (miles)	829	834	(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.

Preliminary Financial Results
	$ per gallon
September 2021 estimated average fuel cost per gallon – system	$2.24
	$ per gallon
3rd quarter 2021 estimated average fuel cost per gallon – system	$2.20

 Stock Information

ALGT (Common Stock)
Exchange	NASDAQ (US Dollar)
Price	$190.07
Change (%)	-2.87 (-1.49%)
Volume	119,857
Data as of Oct 15, 2021, 4:00 pm EDT

Data Provided by Refinitiv.

- Castlelake, L.P. ("Castlelake"), a global alternative investment manager with 16 years of experience investing in asset-rich opportunities, announced today it has provided a loan to Sunseeker, a wholly-owned subsidiary of Allegiant Travel Company (NASDAQ: ALGT), an integrated travel company with the world's leading ultra-low-cost carrier at its core. The loan will be used to fund construction of Sunseeker Resort Charlotte Harbor, which resumed in August of this year. 

 New Castlelake loan for Sunseeker Resort Charlotte Harbor 

Allegiant began construction of Sunseeker Resort Charlotte Harbor – a first-of-its-kind destination resort in southwest Florida – in March 2019, before pausing due to the severe impact of the COVID-19 pandemic on the travel and hospitality industry.

"Castlelake is pleased to provide financing to Sunseeker and strengthen our relationship with Allegiant through this project," said Armin Rothauser, Partner and Head of Lending at Castlelake. "This transaction sits at the intersection of Castlelake's deep real asset expertise, aviation experience and solutions-oriented approach."

Sunseeker Resort Charlotte Harbor is expected to have a significant impact on the local economy, eventually employing about 800 construction workers. Once the resort opens, Sunseeker expects to employ approximately 1,150 people, making it a leading employer in Southwest Florida. The resort will feature more than 500 hotel rooms, more than 180 extended stay suites, 55,000 square-feet of meeting and conference space, 19 restaurants and bars, and retail outlets along a scenic harbor walk.

"Sunseeker will not only be a transformational project for Southwest Florida, but also a tremendous catalyst for Allegiant's continued growth as an integrated travel company," said Allegiant President John Redmond. "This unique resort will bring unprecedented value and opportunity to our emerging leisure travel marketplace."

Allegiant Travel Company is focused on linking travellers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and base airfares less than half the cost of the average domestic roundtrip ticket. The company demonstrated resilience during the COVID-19 pandemic, with the smallest revenue decline of any airline in 2020.

As a top 15 aircraft lessor and more than 16 years of experience investing in, financing and managing aviation assets, Castlelake has a long-standing relationship with Allegiant. Castlelake's lending platform, which provides financial offerings to aviation-related asset owners and buyers, has completed over $2 billion of financings since November 2020. Castlelake also has significant experience structuring and executing land and real estate-centric transactions including acquisition, development & construction (AD&C), land banking, secured debt financing and direct investing.

"Castlelake is a proven, trusted partner with the right expertise to execute on financing the Sunseeker project within its own framework," said Allegiant Executive Vice President and Chief Financial Officer Greg Anderson. "Obtaining this financing affords Allegiant the capital needed to fund the bulk of the remaining cost for the Sunseeker project, in an efficient manner consistent with our fiscal strategy."

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