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  • Joe Breitfeller

Allegiant Travel Reports First Quarter Net Loss of $7.9 Million or $0.44 per Share

Allegiant Travel has reported a first quarter 2022 net loss of $7.9 million or ($0.44) per diluted share on a year-over-three increase in revenue of 10.7 percent to $500.1 million. At March 31, 2022, the carrier had cash and investments totaling $1.2 billion.


Allegiant Airbus A320neo - Courtesy Airbus

On Wednesday (May 4, 2022), Allegiant Travel Company reported their first quarter financial results for the period ending March 31, 2022. The carrier reported a first quarter net loss of $7.9 million or ($0.44) per diluted share on a year-over-three revenue increase of 10.7 percent to $500.1 million. The company’s Q1 total revenue per available seat mile (TRASM) declined 6.3 percent versus the same period in 2019 to 10.78 cents, while cost per available seat mile (CASM) increased year-over-three by 15.7 percent to 10.67 cents. Costs excluding fuel (CASM-ex) for the first quarter increased 6.7 percent compared to Q1 2019 to 7.12 cents. At March 31, 2022, the company had total cash and investments of $1.2 billion, total debt of $1.8 billion, net debt of $563 million, and a total air traffic liability of $453 million.


In Wednesday’s announcment, Allegiant Travel Company’s Maurice J. Gallagher, Jr., said,


“The first quarter marked a sizable shift in the demand environment. For the first time since the onset of the pandemic, we observed both load factor and TRASM improvements over 2019 during the month of March. Despite a nearly 40 percent increase in the cost per fuel gallon throughout the quarter, we recognized a more than 21 percent operating margin during March. These demand trends have persisted, and we now expect second quarter total revenue to be up as much as 30 percent compared to 2019 revenue.


“We continue making progress on further expanding our Allegiant 2.0 strategy. We are awaiting DOT approval for our joint venture with Viva Aerobus and are on track to begin selling flights to Mexico by the end of the year. Our Allways Allegiant World Mastercard continues to exceed expectations. New cardholders were up 99 percent compared to the first quarter of 2019. During 2021 we averaged 10,000 new cardholders per month while in this most recent quarter we added 45 thousand (March was the first month with more than 18 thousand cardholders acquired).


“Our Allways Rewards program now has more than one million active members. Rewards members average more total itineraries annually as well as higher ancillary and third-party take rates compared to non-members. Overall our total ancillary fare per passenger was nearly $68 for the quarter. During the quarter we began accepting reservations for our Sunseeker Resort which is due to open this time next year. Although too early to determine trends, the average daily rate for bookings to date is more than 50 percent higher than the average daily rate we used in our model.


"We have adjusted our growth rate for the second quarter to better align with the high fuel cost environment and prioritize operational performance. We now expect capacity to increase roughly 12 percent year-over-three year. We expect these capacity adjustments will help drive TRASM increases of nearly 20 percent during the second quarter. Additionally, I have been encouraged by improvements in operational performance the past several weeks. While we are mindful of future slowdowns in the economy as the Fed begins its necessary tightening, we are bullish our historic industry leading performances in difficult times will continue as well as the substantial opportunities we see for new routes and continued growth in the coming years.


"In closing I want to thank our more than five thousand team members for their efforts throughout the quarter. The operating environment continues to be a challenge. In recognition of their hard work, we approved a special bonus accrual consistent with levels paid to our team members during 2019, despite not meeting internal profit-sharing targets during the quarter.”


Allegiant's First Quarter 2022 Financial Results and Updated Fleet Plan - Courtesy Allegiant Travel Company

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 recently placed an order for up to 100 Boeing 737-7 and 737-8-200 MAX jets.


In trading Thursday afternoon (May 5, 2022), shares in Allegiant Travel Company (NASDAQ: ALGT), were 0.12% higher at $153.70/share (3:30 PM EDT).



Source: Allegiant Travel Company/PRNewswire