Allegiant Travel Company has reported a third quarter 2024 net loss of $36.8 million or ($2.05) per diluted share on a 0.6 percent year-over-year decline in revenue to $562.2 million.
On Wednesday (October 30, 2024), Allegiant Travel Company announced their third quarter financial results for the period ending September 30, 2024. The carrier reported a third quarter net loss of $36.8 million or ($2.05) per diluted share on a year-over-year decline in revenue of 0.6 percent to $562.2 million. Allegiant’s Q3 total passenger revenue per available seat mile (TRASM) declined 4.5 percent versus the same period last year to 12.21 cents, while cost per available seat mile (CASM) declined 2.1 percent to 12.35 cents. Costs excluding fuel (CASM-ex) increased 4.7 percent compared to Q3 2023 to 8.89 cents. At September 30, 2024, Allegiant Travel had $1.1 billion in total liquidity, including $804.6 million in cash and investments, as well as $275.0 million in undrawn revolving credit facilities.
In Wednesday’s announcement, Allegiant Travel Company’s CEO, Gregory Anderson, said,
“Our seasonally weakest quarter concluded with a diluted loss per share of $2.05. Despite facing challenges from CrowdStrike and Hurricane Helene, the airline surpassed our initial expectations by achieving a positive operating margin for the quarter. Throughout the quarter, we observed sustained strength in demand, with unit revenues turning positive on a year-over-year basis in the final weeks. Particularly noteworthy was the ancillary revenue per passenger, which reached $74.02, reflecting a three percent increase from the previous year due in part to the success of both the Allegiant Extra product and the cobrand credit card.
“As we entered the fourth quarter, our network experienced substantial disruptions due to the severe impact of Hurricane Milton and the continuing effects of Hurricane Helene. Ensuring the safety of our customers and team members remains our top priority, and I am extremely proud of our team’s response during these challenging times. The hurricanes have led to a temporary decline in demand in certain cities along the West Coast of Florida and in Asheville, North Carolina. Approximately 25 percent of the seats scheduled to be flown in the fourth quarter are to destinations currently facing this short-term demand weakness. We anticipate that demand will return to normal by the end of the year and have adjusted our capacity accordingly. Load factors in the affected areas are expected to stay lower, resulting in a four-percentage point decline in our airline-only operating margin during the fourth quarter, which we now estimate to be around seven percent.
“Despite these short-term headwinds, I am pleased with the progress the team has made towards our three key initiatives - restoring peak utilization, the integration of the Boeing MAX aircraft, and various revenue initiatives.
“Lastly we continue to work with our experienced hospitality team alongside our best-in-class advisors to help us optimize the value of the asset and appropriately navigate discussions with potential partners. Sunseeker is an amazing resort that we see meaningful asset value in and are committed to making decisions that align with the best interest of our stakeholders.
“I am incredibly proud of the progress the team is making to restore the earnings potential of our unique model. We are building the foundation to improved financial performance in 2025 and beyond.”
Founded in 1999, Las Vegas-based Allegiant Travel Company 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. The company also owns and operates the recently opened Sunseeker Resort Charlotte Harbor, located on the Gulf Coast in Southwest Florida.
Source: Allegiant Travel Company
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