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Allegiant Reports June 2016 Traffic

LAS VEGAS, NV -- (Marketwired) -- 07/07/16 -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for June 2016.

"June was a difficult operational month for us," stated Jude Bricker, COO and SVP of Planning. "This drove a high number of cancellations and subsequent passenger refunds. Without these refunds, TRASM for the quarter would have been about 0.5 percentage points better than we are estimating in this release."

"During the second quarter, we received a significant fuel tax refund from the State of Florida," stated Scott Sheldon, CFO and Senior Vice President. "This reduction in fuel expense nets out to an average cost of $1.36 per gallon for the quarter versus $1.55 per gallon had we not received the refund. Also during this quarter we incurred our first major maintenance event for the Airbus aircraft and adopted the deferral method to account for these costs. The application of the deferral method for Airbus major maintenance costs coupled with lower than expected salary and benefits expense are the primary drivers of CASM ex fuel coming in under forecast."

Scheduled Service

    June 2016   June 2015   Change
Passengers   1,128,111   934,332   20.7%
Revenue passenger miles (000)   1,025,627   867,613   18.2%
Available seat miles (000)   1,181,113   978,592   20.7%
Load factor   86.8%   88.7%   (1.9) pts
Departures   7,905   6,428   23.0%
Average stage length (miles)   881   894   (1.5%)
             
    Q2 2016   Q2 2015   Change
Passengers   2,850,112   2,426,985   17.4%
Revenue passenger miles (000)   2,626,770   2,279,600   15.2%
Available seat miles (000)   3,072,135   2,628,205   16.9%
Load factor   85.5%   86.7%   (1.2) pts
Departures   20,171   16,949   19.0%
Average stage length (miles)   897   912   (1.6%)

Total System *

    June 2016   June 2015   Change
Passengers   1,137,690   945,224   20.4%
Revenue passenger miles (000)   1,039,829   875,645   18.8%
Available seat miles (000)   1,219,344   999,222   22.0%
Load factor   85.3%   87.6%   (2.3) pts
Departures   8,181   6,677   22.5%
Average stage length (miles)   879   879   0.0%
    Q2 2016   Q2 2015   Change
Passengers   2,878,460   2,462,822   16.9%
Revenue passenger miles (000)   2,665,753   2,307,065   15.5%
Available seat miles (000)   3,178,904   2,690,457   18.2%
Load factor   83.9%   85.7%   (1.8) pts
Departures   20,969   17,659   18.7%
Average stage length (miles)   893   896   (0.3%)

*Total system includes scheduled service and fixed fee contract.

Preliminary Financial Results

    Change

May 2016 actual year-over-year
   
 
Scheduled total revenue per scheduled ASM (TRASM) change
  (7.4%)
     
     

June 2016 estimated year-over-year TRASM change
  (9.0%) to (8.6%)

Q2 2016 estimated year-over-year TRASM change
  (9.6%) to (9.2%)
     
    $ per gallon
     

June 2016 estimated average fuel cost per gallon - system
  $1.68
June 2016 estimated average fuel cost per gallon - scheduled   $1.68
     
    $ per gallon
     

Q2 2016 estimated average fuel cost per gallon - system
  $1.55
Q2 2016 estimated average fuel cost per gallon - scheduled   $1.55
     

Q2 2016 estimated average fuel cost per gallon - system (net of tax refund)
  $1.36
     

Guidance


Capacity guidance, subject to revision
  Year over Year Growth
    Departures   ASMs
July 2016        
    Scheduled   +18%   +17%
         
3rd Quarter 2016        
    System   +18 to 22%   +15 to 19%
    Scheduled   +18 to 22%   +15 to 19%
         
4th Quarter 2016        
    System   +14 to 18%   +9 to 13%
    Scheduled   +14 to 18%   +9 to 13%

ASMs - Available seat miles

 

Cost and revenue guidance, subject to revision
     

Cost guidance
   
    2nd Quarter 2016
Cost per available seat mile excluding fuel (CASM-ex fuel) - year over year change   1.6 to 2.0%
     
Fixed fee and other revenue guidance    
    2nd Quarter 2016
Fixed fee revenue and other revenue (millions)   $14.0 to $15.0
     

Allegiant, Travel is our deal.®
Las Vegas-based Allegiant (NASDAQ: ALGT) is focused on linking travelers in small cities to world-class leisure destinations. The airline offers industry-low fares on an all-jet fleet while also offering other travel-related products such as hotel rooms, rental cars and attraction tickets. All can be purchased only through the company website, Allegiant.com. Beginning with one aircraft and one route in 1999, the company has grown to over 80 aircraft and more than 300 routes across the country with airfares less than half the cost of average domestic roundtrip ticket. For downloadable press kit, including photos, visit: http://gofly.us/YFuyb.

ALGT/G

Note: This news release was accurate at the date of issuance. However, information contained in the release may have changed. If you plan to use the information contained herein for any purpose, verification of its continued accuracy is your responsibility.

For further information please visit the company's investor website: http://ir.allegiantair.com/

Reference to the Company's website above does not constitute incorporation of any of the information thereon into this news release.

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding future departure and capacity growth. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "guidance", "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "hope" or similar expressions.

Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov.

Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.

Allegiant Media Contact:
Hilarie Grey
e-mail: mediarelations@allegiantair.com

Investor Inquiries:
Chris Allen
e-mail: ir@allegiantair.com

Source: Allegiant Travel Company