Allegiant Travel has reported a second quarter adjusted net income of $60 million or $3.46 per diluted share, excluding COVID related special charges and the net benefit from the Payroll Support Program extension (PSP3).
On Wednesday (July 28, 2021), Allegiant Travel Company reported their second quarter financial results for the period ending June 30, 2021. The airline reported a second quarter adjusted net income of $60 million or $3.46 per diluted share, excluding pandemic-related special charges and the net benefit of the U.S. Cares Act Payroll Support extension (PSP3). Allegiant’s GAAP net income was reported at $95 million or $5.49 per diluted share. The airline’s second quarter revenue increased year-over-year by 254 percent to $472 million. When compared to Q2 2019 (year-over-two), the carrier’s second quarter revenue declined 3.9 percent. On June 30, 2021, Allegiant’s cash and investments totaled $1.2 billion, up from $728 million on March 31, 2021.
In Wednesday’s announcement, Allegiant Travel Company’s Chairman and CEO, Maurice J. Gallagher, Jr., said,
“The second quarter marked the return of leisure demand to pre-pandemic levels. Earnings per share came in at $5.49 on a year over two-year revenue decline of just 3.9 percent, with total revenue in June exceeding 2019 levels. We made significant progress towards achieving pre-pandemic unit revenues with TRASM of 10.36 cents (on a load factor of 70.8 percent), up 50 percent from the first quarter. The revenue team did an outstanding job optimizing loads and unit revenues during the quarter. This strong revenue performance, coupled with continued cost discipline as evidenced by our adjusted CASM, excluding fuel, of 5.86 cents, led to our adjusted operating margin of 20 percent for the quarter.
“These results suggest we are close if not back to 'normal', where we were in the early days of 2020. We were the first domestic carrier to grow capacity from 2019 levels. Given the reduced operations of the past year, this ramp up came with challenges - delays in infrastructure preparedness at some of our airports, labor constraints, and severe weather. Our operations team has done a great job reacting and adapting to these headwinds. During the third quarter we will continue our growth - capacity will increase nearly 20 percent, year over two-year.
“Last year at this time I stressed the importance of strengthening our liquidity to both weather the storm and position us favorably for growth post-pandemic. The team has done just that. We currently have $1.2 billion of cash on hand, up 79 percent from a year ago. Our total net debt continues to improve at under $400 million, a 52 percent reduction from a year ago. This strong liquidity leaves us well positioned for future growth. The fleet team has executed agreements to acquire 21 additional aircraft since the beginning of the year. These airplanes will all be placed into service by the end of 2022, thus supporting the remainder of this year as well as most of next year's growth plan.
“The next year will be an exciting one for the company. We are preparing the launch of our new loyalty program in the coming months, Allways Rewards. This program will enable us to further enhance the customer experience. We also recently announced a new partnership with Live Nation venues, Ticketmaster and music festivals - kicking off a multi-year, strategic relationship with the world's premier live entertainment company. This partnership will ultimately unlock another layer of leisure offerings, further enhancing a one-stop shop for our customer. Finally, we will continue to grow and expand our network, connecting more customers to world-class vacation destinations.
“I cannot thank our 4,000 team members enough for their continued efforts in supporting growth while prioritizing customer safety. Ramping up the operation the past few months has been a challenge, but our team members continue to work hard to support the operation. I could not be more proud of their efforts.”
Founded in 1999, Las Vegas, Nevada-based Allegiant Travel Company (NASDAQ: ALGT) links 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 operates an all-Airbus A320 Family fleet of 103 aircraft.
In trading Thursday afternoon (July 29, 2021), shares in Allegiant Travel Company (NASDAQ: ALGT) were up 2.38% at $196.47/share (3:09 PM EDT).
Source: Allegiant Travel Company