Latest results from budget airline Allegiant

U.S. budget airline Allegiant has released its latest results, with show a strong performance as John Redmond, CEO explains,  "I am proud of the team for the strong operational performance delivered in the third quarter," stated John Redmond, CEO of Allegiant Travel Company. "We completed the quarter with a controllable completion of 99.4 percent, a significant improvement from the first half of the year. This was achieved on 17.0 percent more scheduled capacity than 2019. In addition, we saw another sequential improvement in load factors, with loads at nearly 89 percent for the quarter. The demand environment remained strong throughout the quarter, resulting in a total operating revenue increase of more than 28 percent as compared with 2019.

"Demand continues to outpace 2019. Forward bookings into the upcoming holiday season are tracking at higher loads and significantly higher yields than at this point in 2019. A new trend we are beginning to observe post-COVID is the increase in passengers combining business and leisure trips. A recent survey showed that nearly 15 percent of respondents were travelling for both business and leisure. Much of this travel happened in the traditional off-peak period of September, resulting in September TRASM1 20 percent higher than September of 2019 on 30 percent more capacity and a load factor improvement of 4.7 percentage points. As we move through the remainder of the year, this is a trend we will watch closely.

"Looking ahead to the fourth quarter, we tapered capacity a bit as a result of the impacts from Hurricane Ian. We expect scheduled capacity to increase roughly 15 percent year over three-year. Given the strong demand environment coupled with improvements in operations, we expect to expand margins, delivering a profitable fourth quarter. From a balance sheet perspective, we have total liquidity of roughly $1.2 billion. During the quarter, the team executed on the issuance of $550 million in senior secured notes, utilizing the proceeds to repay the Term Loan B. Additionally, we repaid the emergency relief loan received under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Furthermore, our board of directors voted to remove the suspension on existing share repurchase authority with $54 million in authority remaining.

"In closing, I would like to thank our team members for all their hard work this quarter, particularly in regards to Hurricane Ian. The team swiftly came together to reposition aircraft, secure the operation, re-accommodate customers, and secure the property at Sunseeker Resort. As a result, we safely navigated the event and returned operations to normal as quickly as possible. Although we do expect a headwind to revenue resulting from Hurricane Ian during the fourth quarter, the impact was minimized due to the efforts of our team."

Consolidated	Three Months Ended September 30,						Percent Change
(unaudited) (in millions, except per share amounts)	2022		2021		2019		YoY		Yo3Y
Total operating revenue	$           560.3		$           459.5		$            436.5		22.0 %		28.4 %
Total operating expense	591.2		393.2		364.4		50.4		62.3
Operating income (loss)	(30.9)		66.3		72.1		(146.6)		(142.9)
Income (loss) before income taxes	(56.2)		50.2		56.9		(211.8)		(198.7)
Net income (loss)	(46.5)		39.3		43.9		(218.4)		(205.8)
Diluted earnings (loss) per share	(2.58)		2.18		2.70		(218.3)		(195.6)
Hurricane Ian special charge	35.0		—		—		NM		NM
Diluted earnings (loss) per share excluding Hurricane Ian special charge (2) (3)	$            (0.97)		$              2.18		$              2.70		(144.5)		(135.9)

 

	Nine Months Ended September 30,						Percent Change
(unaudited) (in millions, except per share amounts)	2022		2021		2019		YoY		Yo3Y
Total operating revenue	$        1,690.3		$        1,211.0		$        1,379.9		39.6 %		22.5 %
Total operating expense	1,687.8		981.3		1,108.6		72.0		52.2
Operating income	2.4		229.7		271.3		(98.9)		(99.1)
Income (loss) before income taxes	(60.9)		181.5		222.6		(133.6)		(127.4)
Net income (loss)	(50.0)		141.2		171.6		(135.4)		(129.1)
Diluted earnings (loss) per share	(2.78)		8.18		10.54		(134.0)		(126.4)
Hurricane Ian special charge	35.0		—		—		NM		NM
Diluted earnings (loss) per share excluding Hurricane Ian special charge (2) (3)	$            (1.18)		$              8.18		$            10.54		(114.4)		(111.2)

(1)	Recognition bonus awarded despite not meeting internal profit-sharing targets
(2)	Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information
(3)	Adjusted to exclude estimated loss from property damage to Sunseeker Resort related to Hurricane Ian. The amount of the loss will be offset in future periods by amounts to be recovered under the company's insurance policies

Allegiant Travel Company has reported preliminary passenger traffic results for September 2022 as well as third quarter 2022.

Allegiant Travel Company has reported preliminary passenger traffic results for September 2022 as well as third quarter 2022.

"We ended the quarter with adjusted1 earnings, excluding 2022 employee recognition bonus in-line with our updated guidance," stated Gregory Anderson, president and chief financial officer. "Demand remained strong throughout the quarter with strength continuing into the upcoming holiday season. Third quarter loads were more than 88 percent, 2.5 points higher than the third quarter of 2019, on 17 percent more capacity. As expected, incremental operating costs associated with Hurricane Ian in addition to reducing capacity by roughly 1.5 percent, contributed to a roughly 13.9 percent increase in CASM, excluding fuel and employee recognition bonus, as compared with the third quarter of 2019. Third quarter results are summarized in the table below.

"Although we are still assessing the impacts of Hurricane Ian, as of October 6, air service has been restored to all airports that we serve in Florida. While airports have resumed normal operations and demand shows good promise, we do expect a revenue headwind related to our Florida markets in the fourth quarter. Additionally, we are in the process of working with our insurance partners to measure the financial impact to Sunseeker Resorts. The physical damage to the structures was predominantly caused by several cranes collapsing onto the building. Based on limited information available to us today, we are currently estimating this damage to be approximately $35 million. However, because investigations are ongoing, and we continue to ascertain new information daily, this number is subject to change. The estimated physical damage of $35 million will be recorded as a one-time, special item on our third quarter income statement. As insurance proceeds are approved in subsequent quarters, these recoveries will offset the loss. I want to express my gratitude to our team members and partners for their efforts to safely restore our network."     

a 10th Airbus A320-200 for Allegiant from Air Lease Corp.

Air Lease Corporation has confirmed the delivery of a tenth Airbus A320-200 aircraft to the U.S. budget carrier Allegiant this week.  The jet was formerly on lease to Alaska Airlines and is the tenth of ten used Alaska A320s the firm has delivered to Allegiant Air. 

“ALC is pleased to announce this tenth A320 delivery to Allegiant,” said Steven Udvar-Házy, Executive Chairman of Air Lease Corporation. “These ten young A320s are providing valuable service to Allegiant’s growing fleet with advanced technology and fuel efficiency.”

To replace Alaska’s A320 fleet, ALC and Alaska signed long-term lease agreements for 14 new Boeing 737- MAX 9 aircraft of which 11 have already been delivered. The remaining aircraft are scheduled to deliver through the end of 2022 from ALC’s order book with Boeing.

Allegiant Travel Company added to Newsweek's Top 100 Most Loved Workplaces for the second year in a row

 Allegiant Travel Company is celebrating after being named to Newsweek's Top 100 Most Loved Workplaces® list for the second consecutive year, ranking 96th among the top 100 companies recognized for employee sentiment and satisfaction for 2022.   

Allegiant was the only airline to make this year's list.

The 2022 Top 100 Most Loved Workplaces® are the result of a collaboration with the Best Practice Institute (BPI), a leadership development and benchmark research company. The results were determined after surveying more than 1.4 million employees from businesses with workforces varying in size from 50 to more than 10,000.

Photo Allegiant

Allegiant has become one of the world's most innovative and successful airlines thanks to its more than 5,500 team members across the U.S.

"All of us at Allegiant are honoured to earn national recognition for championing a people-first atmosphere," said Rebecca Henry, Allegiant's senior vice president and chief human resources officer. "The credit truly goes to every employee, who day in and day out, demonstrates a relentless dedication to helping others achieve their professional dreams. Since Allegiant's founding, our top priority has been investing in our people – the foundation and key to our success. We're incredibly appreciative of this distinction because it's proof we are creating something meaningful together."

The list recognizes companies that put respect, caring, and appreciation for their employees at the center of their business model and, in doing so, have earned the loyalty and respect of the people who work for them. 

"As a result of 'The Great Resignation,' more companies recognize the importance of focusing on employee satisfaction to not only attract but retain top talent," said Nancy Cooper, Global Editor in Chief, Newsweek. "The businesses on this year's list clearly demonstrated that commitment."

"The companies on this list represent the best at placing love at the center of their employee's experience," said Louis Carter, CEO, Best Practice Institute. "The number of applications this year and analysis of survey data reinforces our original findings that love is the strongest predictor of the strength of a company's culture, employee engagement, and satisfaction."

Allegiant employees and their eligible dependents fly free on Allegiant and qualify for heavily discounted fares on many partner airlines worldwide. Other benefits include profit-sharing bonuses to all employees, a full suite of health benefits including medical and dental, 401k match with immediate vesting, employee stock purchase plan, and tuition reimbursement.

For the full Newsweek list of 2022's Most Loved Workplaces, please click here.

Methodology

To identify the top 100 companies for the Newsweek ranking, companies were evaluated and scored as follows: 35 percent of the initial score was based on employee survey responses; 25 percent was derived from analysis of external public ratings from sites such as Comparably, Careerbliss, Glassdoor, Indeed and Google; and 40 percent came from direct interviews with and written responses from company officials. Newsweek then conducted additional research into every company on the list, as well as the top runners up, to determine the final list of 100 companies and their ranking. (The list includes both U.S. firms and companies with a strong U.S. presence that are based overseas.)

Allegiant Travel Company makes a $100,000 donation to the American Red Cross

Allegiant Travel Company announced a $100,000 donation to the American Red Cross as the nonprofit provides critical disaster relief to communities in the aftermath of Hurricane Ian.

Photo Allegiant

         In addition, the Las Vegas-based company activated an online giving platform to empower anyone wishing to make an immediate donation to the American Red Cross. To donate, please visit HERE.

The nonprofit has more than 500 volunteers in the hardest-hit areas in Florida, providing lifesaving assistance including shelter, food, water and other relief supplies for more than 60,000 victims. Hundreds of evacuation centers are open, providing shelter to more than 10,000 people displaced by the hurricane.

"Our hearts are with everyone grappling with the destruction carved out by Hurricane Ian," said John Redmond, Allegiant's CEO. "As we confront difficult days ahead, we cannot forget the incredible resiliency that has been demonstrated by the people of Florida. Time and time again, we have seen first responders, volunteers, Allegiant team members and entire communities step up to help. With this donation, we hope to make a difference to Florida residents impacted by this storm."

In addition to serving 10 airports throughout Florida, Allegiant is building Sunseeker Resort in Charlotte Harbor, near Punta Gorda Airport. The community was among those hardest hit by the storm. Other Allegiant communities impacted by the storm include St. Pete-Clearwater, Orlando-Sanford, Sarasota Bradenton, Key West and Jacksonville.

"The Red Cross is thankful for Allegiant's generous donation, which enables us to provide shelter, food and comfort to families and communities in the aftermath of Hurricane Ian," said Elizabeth Penniman, vice president of communications at the American Red Cross.

The greatest needs during these times are funds, blood donations and volunteers, according to the American Red Cross. However, monetary donations are the most efficient way to make a difference immediately. For that reason, Allegiant and the American Red Cross activated a "microsite," an online platform for disaster relief donations. To donate, please visit HERE. Through this initiative, Allegiant has previously raised hundreds of thousands of dollars after hurricanes wreaked havoc on communities where Allegiant employees live and work.  

The American Red Cross anticipates a great need for additional volunteers in the next 30 to 60 days. For more information, please visit this website. Additionally, people are asked to participate in community blood drives during this time of urgent need for donors. Click here to schedule an appointment to give blood.