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Jun 30, 2020
Allegiant Q2 2020 Earnings Report
Allegiant reported a significant decrease in revenue and earnings per share due to the impact of the COVID-19 pandemic.
Key Takeaways
Allegiant Travel Company experienced a turbulent second quarter due to the COVID-19 pandemic, with a substantial decrease in total operating revenue and a GAAP fully diluted loss per share. The company focused on managing capacity, cutting costs, and strengthening its liquidity position to navigate the uncertain environment. Despite the challenges, Allegiant maintained a broad network and saw progressive improvement in revenue throughout the quarter, with June bookings resulting in cash breakeven for the month.
Adjusted loss per share of $5.96, excluding COVID-19 related charges and CARES Act benefits.
Load factor in June was 56.8 percent, a significant increase from April.
Total revenue decreased by 72.9 percent year over year to $133.3 million.
Maintained a broad network and selling presence, cutting capacity when necessary and capturing demand when it returned.
Revenue by Segment
Forward Guidance
Allegiant anticipates third quarter capacity reductions to be 25 percent of planned capacity but will adjust in accordance with demand trends. 3Q20 daily cash burn is expected to be slightly above $1 million assuming gross bookings average roughly $2 million per day.
Positive Outlook
- Completed the quarter with load factor in the month of June of 56.8 percent, up 38 points from April
- Progressive improvement in revenue throughout the quarter with April, May, and June decreases of 95 percent, 75 percent, and 52 percent, respectively
- Despite yield pressure, average air ancillary revenue per passenger for the quarter was $51.57, remaining consistent with prior year
- Total operating expense was $246.6 million, down 35.7 percent year over year on reduced capacity of 50.1 percent
- Conducted minimal close-in cancellations for the months of June and July to date
Challenges Ahead
- Although we were able to manage through the chaos of the quarter, arguably better than most, this environment is unsustainable long-term.
- It continues to be of utmost importance to strengthen liquidity positions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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