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
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/allegiant-reports-september-2020-traffic-301148614.html
SOURCE Allegiant Travel Company