LAS VEGAS, June 9, 2020 /PRNewswire/ -- Allegiant Travel Company /zigman2/quotes/208507686/composite ALGT -2.90% today reported preliminary passenger traffic results for May 2020.
"We are continuing to see material improvement in demand from the April lows," stated Gregory Anderson executive vice president, chief financial officer and principal accounting officer of Allegiant Travel Company. "For the entire month we averaged over $2 million in gross bookings per day. As such, we are anticipating our cash burn per day in the second quarter to be down to approximately $1.75 million. This number includes variable components related to increased capacity and a higher fuel price than previously forecasted, as well as an increased rate of voucher redemptions. This daily cash burn improves upon our previously expected estimate of $2.1 million per day, which was based on $750 thousand in daily gross bookings. In addition, we are anticipating the third quarter cash burn to be less than $1 million per day if $2.0 million in daily gross bookings were to remain consistent. This is less than the $1.5 million per day we spoke about during our earnings call. Even with this improvement in demand, we are continuing to focus on finding ways to reduce costs. As we have stated previously, the flexibility which is central to our business model allows us to take advantage of these periods of extremely low demand – which is clearly unique in our industry."
"We have been pleased to see that May demand trends were stronger than anticipated," stated Drew Wells, vice president of revenue. "In fact, during Memorial Day weekend Allegiant accounted for approximately eight percent of all travelers going through a TSA checkpoint versus two percent last year. During the first week of June we operated 70 percent of our schedule versus roughly 50 percent of the schedule in May. Even with the increases in capacity, we were able to maintain load factors just shy of 50 percent. With Las Vegas casinos opening early June, we expect modest improvements to continue throughout the month."
||May 2020||May 2019||Change|
|Revenue passenger miles (000)||326,748||1,093,781||(70.1%)|
|Available seat miles (000)||690,624||1,308,911||(47.2%)|
|Average stage length (miles)||856||843||1.5%|
||May 2020||May 2019||Change|
|Available seat miles (000)||710,712||1,357,963||(47.7%)|
|Average stage length (miles)||855||844||1.3%|
*Total system includes scheduled service and fixed fee contract. System revenue passenger miles and system load factor are not useful statistics as system available seat miles include both ASMs flown by fixed fee flying as well as non-revenue producing repositioning flights used for operational needs. Fixed fee flying is better measured through dollar contribution versus operational statistics.
|Preliminary Financial Results|
||$ per gallon|
|May 2020 estimated average fuel cost per gallon – system||$.91|
Allegiant Travel Company
Las Vegas-based Allegiant /zigman2/quotes/208507686/composite ALGT -2.90% 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
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.
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SOURCE Allegiant Travel Company
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