Allegiant Travel has reported a second quarter net profit of $4.4 million or $0.24 per diluted share on a year-over-three increase in revenue of 28.1 percent $629.8 million. At June 30, 2022, the carrier had cash and investments totaling $1.2 billion.
On Wednesday (August 3, 2022), Allegiant Travel Company reported their second quarter financial results for the period ending June 30, 2022. The carrier reported a second quarter net profit of $4.4 million or $0.24 per diluted share on a year-over-three increase in revenue of 28.1 percent to $629.8 million. The company’s total revenue per available seat mile (TRASM) was up 15.7 percent compared to Q2 2019 to 12.69 cents, while costs per available seat mile (CASM) were up year-over-three by 40.2 percent to 12.10 cents. Costs excluding fuel and recognition bonus (CASM-ex) increased 17 percent compared to Q2 2019 to 6.94 cents. At June 30, 2022, Allegiant had cash and investments totaling $1.2 billion, total debt of $2.0 billion, and total net debt of $752.2 million. The company’s air traffic liability at the end of the quarter was $451.1 million.
In Wednesday’s announcment, Allegiant Travel Company’s CEO, John Redmond, said,
“Demand surged in the second quarter resulting in the highest revenue-generating quarter in company history. Total operating revenue was up over 28 percent as compared with 2019. We saw impressive increases in TRASM of over 15 percent, year over three-year, particularly considering scheduled capacity was up over 13 percent. Earnings per share, adjusted to exclude the impact from the 2022 recognition bonus, was $0.62, pressured by lower productivity levels due to heightened fuel prices and a challenging operating environment.
“As we head into the third quarter, we continue to focus on operational integrity, ensuring safe and reliable travel for our customers. Our operations and planning teams have made significant progress combating the challenges present within the current operating environment. We have seen significant improvements in reliability into the third quarter, with a July controllable completion factor of 99 percent, as compared with 97 percent in June. We expect to finish the quarter with a controllable completion of over 99 percent.
“Looking ahead to 2023, we remain focused on improving margins and our major strategic initiatives, including integration of the Boeing MAX fleet, and the opening of Sunseeker Resort Charlotte Harbor. These are major undertakings for the company, but I believe these ventures will create significant shareholder value in the coming years. Retaining our talented leaders is critical to ensuring success with these initiatives. I was pleased to announce the appointments of Scott Sheldon and Gregory Anderson to President. Their superior leadership skills and combined 30 years of experience at Allegiant will play an integral role in the long-term success of the company.
“In closing, I am humbled by the hard work and dedication of our more than 5,000 team members across the network. This industry is not for the faint of heart, but we truly have the best employees. I cannot thank them enough for making Allegiant the successful airline we are today.”
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 (August 4, 2022), shares in Allegiant Travel Company (NASDAQ: ALGT) were down 2.46% to $114.82/share. (4:00 PM EDT).
Source: Allegiant Travel Company/PRNewswire