"This is an unprecedented situation and our team has come together in extraordinary ways to ensure our customers can continue to fly with confidence, while taking steps to ensure the ongoing financial health of the company," said
In an effort to address reduced demand in leisure travel, Allegiant has already cut airline capacity by approximately 15 percent during April and May, a figure expected to grow to 30-35 percent with additional reductions to come. Flexible scheduling for seasonal peaks which is adjusted regularly to demand has been a core principal of Allegiant's business model, and allows the airline to decrease capacity quickly and inexpensively.
In an effort to limit prospective expenditures, the travel company will immediately cease activity on non-airline projects, including suspending construction of
Allegiant has also placed an immediate moratorium on all non-essential capital expenditures and discretionary spending across the company, and instituted an immediate hiring freeze on all non-essential positions. Stock buyback and dividend activity will also be suspended, and avenues for additional borrowing will be explored. Allegiant Chairman and CEO
"This set of initiatives could defer as much as $300 million in planned cash outlay for 2020," said
View original content to download multimedia:http://www.prnewswire.com/news-releases/allegiant-announces-strategic-measures-due-to-operational-impact-of-covid-19-pandemic-301026110.html