Allegiant Travel Company has reported a fourth quarter net income of $10.7 million or $0.59 per diluted share on a 7.8 percent year-over-two increase in revenue to $497 million. For the full year 2021, the carrier reported a net income of $152 million or $8.68 per diluted share.
On Wednesday (February 2, 2022), Allegiant Travel Company (NASDAQ: ALGT) reported their fourth quarter and full year 2021 financial results for the period ending December 31, 2021. The carrier reported a fourth quarter GAAP net income of $10.7 million or $0.59 per diluted share on a year-over-two increase in revenue of 7.8 percent to $497 million. Allegiant’s fourth quarter adjusted net income was $21.3 million or $1.18 per diluted share. For the full year 2021, the company reported a net income of $152 million or $8.18 per diluted share on a year-over-two decline in revenue of 7.2 percent to $1.7 billion. Allegiant’s full year 2021 adjusted net income was $35.1 million or $2.04 per diluted share.
In Wednesday’s announcement, Allegiant Travel Company’s CEO, Maurice J. Gallagher, Jr., said,
“We finished the year with adjusted earnings per share of $2.04, one of the only domestic carriers to record a full-year adjusted profit. This is a remarkable feat and could not have been accomplished without the support of our team members. 2021 was a challenging year, yet we remained nimble and continued to learn and adapt. Despite impacts from multiple variants throughout the year, we grew scheduled capacity more than eight percent when compared to 2019. Load factors sequentially improved throughout the year with fourth quarter loads of 77.1 percent, a more than twenty-point increase from the first quarter. We grew fourth quarter revenue by 7.8 percent when compared with 2019, finishing the year with total operating revenue of $1.7 billion, just seven percent below 2019.
“As we exited 2021, the operation was challenged by impacts from the Omicron variant. We saw unprecedented crew shortages due to COVID, resulting in cancelled flights during the peak holiday travel season and persisting throughout January. Case counts have started to recede, thus the worst should be behind us. I expect the operation to return to a more normalized state in time for peak March travel. Given the cancellations from Covid, irregular operations expenses were $23 million during the fourth quarter. As noted last quarter, it is imperative and good business practice to reimburse our customers for the inconvenience we have caused, in addition to refunding the ticket price.
“Despite the Omicron variant, forward bookings are strong for upcoming peak leisure travel periods. Spring break bookings have been particularly strong. Over the past several months, the booking curve has normalized to its pre-COVID state, and although early, we are beginning to see positive demand trends into early summer. In addition, third-party revenues have outperformed 2019 due primarily to strength with our cobrand credit card program. We acquired more than 100 thousand new cardholders in 2021, a program record. This trend continues in 2022, with January now the program's best month for new cardholder acquisitions.
“The future of Allegiant is bright. We expect to end 2022 with 127 aircraft. All incoming aircraft will have 186 seats, increasing our seats per departure. The recently announced Boeing transaction will increase incremental route opportunities to 1,400, which represents more than ten years of growth. Additionally, progress on Sunseeker is on track to open in early 2023. This project will diversify our ecosystem of travel offerings available to our customers.
“Once again our team members have shown their mettle in the past 90 days. They have been on the front lines in one of the worst periods I have seen with regard to the uncertainty and fear we are all experiencing from Covid. I want to personally thank each and every one of them.”
During 2021, the airline received $204 million in funds from the U.S. Treasury under extensions of the Payroll Support Program (PSP2 and PSP3). At December 31, 2021, Allegiant Travel had cash and investments totaling $1.2 billion, an air traffic liability of $307 million and total debt of $1.7 billion. The carrier’s net debt at the end of 2021 was $560 million, a 42.5 percent decrease compared to year-end 2020.
Founded in 1999, Allegiant is an integrated travel company with an airline at its heart, and a focus on linking passengers from small to medium cities to world-class leisure destinations with all non-stop flights and industry-low average fares. The company offers base airfares that are often half the price of a typical roundtrip ticket and currently operates an all-Airbus A320 Family fleet. Allegiant recently placed an order for up to 100 Boeing 737-7 and 737-8-200 MAX jets.
In trading Thursday morning (February 3, 2022), Shares in Allegiant travel Company (NASDAQ: ALGT) were up 1.10% to $178.10/share (10:59 AM EST).
Source: Allegiant Travel Company/PRNewswire