Allegiant Travel Co Stock Price, News & Analysis

Allegiant Travel Company (NASDAQ: ALGT) reported a 54% decline in total operating revenue for Q3 2020, totaling $201 million, down from $436.5 million in Q3 2019. The net loss reached $29.1 million, resulting in a loss per share of $1.82. Despite challenges, the company saw a reduction in operating expenses by 35.8% and recorded positive cash flows in September. Going forward, Allegiant aims to maintain a cash balance of $850 million, implementing rigorous cash management strategies. The airline aims for better performance, buoyed by improved consumer confidence in air travel.

Allegiant Travel Company (NASDAQ: ALGT) has announced its third-quarter 2020 financial results conference call scheduled for October 28, 2020, at 4:30 p.m. EDT. Investors can access the live broadcast via the company's Investor Relations website, where the webcast will also be archived. Allegiant is recognized for connecting small-to-medium cities to major vacation destinations with non-stop flights and low fares, leveraging an all-Airbus fleet. More details can be found at allegiantair.com.

Allegiant Travel Company (NASDAQ: ALGT) reported its preliminary passenger traffic results for September 2020 and the third quarter. The average daily cash burn was approximately $1.3 million, with gross bookings exceeding $2 million per day. The company paid about $15 million to Sixth Street Partners related to a loan agreement, impacting cash burn. Liquidity increased to over $850 million. However, third-quarter passenger numbers fell by 46.6% compared to 2019, with a load factor of 49.7%.

Allegiant Travel Company (NASDAQ: ALGT) has closed a private offering of $150 million in 8.500% Senior Secured Notes due 2024. The Notes are backed by security interests in nearly all assets except aircraft and certain other assets. With this issuance, Allegiant's total secured debt rises to approximately $693 million, alongside a Term Loan of $543 million, both bearing an average interest rate of about 4.5%. Proceeds will be used for general corporate purposes. This offering was made under Rule 144A and Regulation S, catering to institutional and non-U.S. buyers.

Allegiant Travel Company (NASDAQ: ALGT) announced a private offering of $150 million in 8.5% Senior Secured Notes due 2024, expected to be issued on October 7, 2020. The Notes will be guaranteed by the Company's subsidiaries, excluding minor ones, and secured by most of the Company's assets, excluding aircraft. This brings Allegiant's total secured debt to approximately $693 million at a 4.5% average interest rate. The proceeds will fund general corporate purposes. Allegiant opted not to pursue a $276 million loan under the CARES Act.

Allegiant (NASDAQ: ALGT) announces its annual in-flight fundraiser for Breast Cancer Awareness Month, donating a portion of proceeds from pink refreshments sold in October to the National Breast Cancer Foundation. Over seven years, Allegiant has contributed over $100,000 to NBCF. Passengers can purchase pink lemonade for $5 and rosé wine for $10, while crew members will wear pink attire. NBCF supports communities by funding programs for early detection and treatment. October is significant for Allegiant's crew, many of whom have personal connections to breast cancer.

Allegiant Travel Company (NASDAQ: ALGT) and its employee unions commend the introduction of the Air Carrier Worker Support Extension Act in Congress, aimed at extending the Payroll Support Program through March 2021. This legislation is crucial for maintaining aviation jobs amidst pandemic challenges. Allegiant's CEO, Maurice J. Gallagher, Jr., emphasized the act's importance to the economy and the livelihoods of 4,500 Allegiant workers. Union representatives also urged Congress to act swiftly to support airline workers before the October 1 deadline.

Allegiant Travel Company (NASDAQ: ALGT) reported preliminary passenger traffic results for August 2020, showing a considerable decline from August 2019. Passenger numbers dropped by 49.0% to 633,155, with revenue passenger miles down 48.4% to 540,317, and a load factor of 44.1%, down 41.1 percentage points. Average daily bookings remained around $2 million, although cash burn is projected to exceed $1 million in Q3. The company noted some weekly improvements in bookings and anticipates lower cash burn in Q4.

Allegiant (NASDAQ: ALGT) announced the launch of seven new nonstop routes, including three to Florida and two to Palm Springs, California. To celebrate, the airline offers introductory fares as low as $29 each way. The expansion includes routes from Houston and Chicago to Punta Gorda (PGD), a route from Boston to Sarasota (SRQ), and seasonal offerings to Phoenix and Denver as well. The new routes are set to begin by November 19, 2020, and will operate twice weekly.