Allegiant Reports Third Quarter 2023 Net Loss of $25.1 Million or $1.44 per Share Diluted Share
Allegiant Travel Company has reported a third quarter net loss of $25.1 million or ($1.44) per diluted share on a year-over-year increase in revenue of 0.9 percent to $565.4 million. At September 30, 2023, the company had total liquidity of $1.3 billion.
On Thursday (November 2, 2023), Allegiant Travel Company reported their third quarter financial results for the period ending September 30, 2023. The carrier reported a third quarter net loss of $25.1 million or ($1.44) per diluted share on a year-over-year increase in revenue of 0.9 percent to 565.4 million. At September 30, 2023, the company had total liquidity of $1.3 billion, including $1.0 billion in cash and equivalents and $279.9 million in undrawn revolving credit facilities and PDP facilities.
In Thursday’s announcement, Allegiant Travel Company’s Chairman and CEO, Maurice J. Gallagher, Jr., said,
“I am excited to be back in the role of CEO, particularly as the team continues to deliver strong operational and financial performance. The third quarter marked another quarter of airline operating profits, excluding special charges. Year to date we have delivered industry-leading financial performance yielding an adjusted airline-only operating margin of 13 percent. These accomplishments are directly attributable to Team Allegiant. You are the best in the industry, and I thank you for all your hard work and dedication.
“As we move into the fourth quarter, we are all but done with the completion of Sunseeker Resort. Construction crews are wrapping up the last details, and we expect the property to open on December 15. A main driver behind my endorsement of this property was the quality of the management team. They have navigated the project from its inception nearly five years ago and they are world renowned. My conviction around the success of the property remains strong, and I am thrilled to begin realizing the benefits that Sunseeker Resort will provide.
“One of our primary focuses remains on enhancing our brand. The Allegiant credit card continues to materially impact the bottom line through new cardholder acquisitions and continued increases in cardholder spend. Year to date, we have received $88 million in remuneration from our partner, Bank of America. We expect this number to continue growing. Our investment in the Allegiant Extra product also continues to surpass our expectations. Currently 14 aircraft have been retrofitted with this product and we expect roughly one-third of the fleet to be retrofitted by the end of 2024. These diversified revenue streams, coupled with our unique, low-utilization model will continue to differentiate us from our peers.
Also commenting on the company’s third quarter financial results, Allegiant Travel Company’s President, Gregory Anderson, said,
“I am proud of the teams’ efforts to deliver another profitable quarter in what is historically our weakest quarter of the year. Despite fuel costs rising nearly 30 percent intra-quarter, the team delivered an airline-only adjusted earnings per share of $0.31 driven by an increase in TRASM of 1.4 percent over the prior year. This increase in unit revenue was extra impressive given the unprecedented strength of off-peak leisure demand during the same period last year. While leisure demand during our peak periods continues to outperform pre-pandemic levels, we experienced a return of normalization during the off-peak periods. Our ability to match capacity with leisure demand trends was nicely put on display as we reduced capacity by 45 percent during the off-peak period of September versus the peak season of July.
“We are continuing to strengthen our foundation by reinvesting back into the airline’s future. During the third quarter, we successfully launched SAP and Navitaire – technology enhancements that will support our planned growth for years to come. Furthermore, we have readied ourselves for the delivery of our first Boeing 737 MAX aircraft in early 2024. This aircraft will strengthen our flexibility by providing more diversity in fleet composition, further enabling us to deploy the right gauge aircraft in the right markets at the right times.
“It’s an exciting time to be part of Team Allegiant. Several of our major initiatives will take shape in the coming months. These initiatives, coupled with our differentiated model, will help drive the long-term success of the company. This could not be achieved without the dedication and efforts of our team members throughout the organization. You are inspiring, and I extend my sincerest thanks.”
Founded in 1999, Las Vegas-based 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 has also placed an order for up to 100 Boeing 737-7 and 737-8-200 MAX jets.
In trading Friday afternoon (November 3, 2023), shares in Allegiant Travel Company (NASDAQ: ALGT) were up 0.51% to $64.74/share (12:32 PM EDT).
Source: Allegiant Travel Company/PRNewswire