LAS VEGAS, Sept. 9, 2021 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for August 2021.

"As we have transitioned from our peak summer flying season into the off-peak fall season we have seen a softening in demand," stated Drew Wells, senior vice president, revenue. "Consistent with industry trends, the increase in COVID-19 cases coupled with return to school and work for many has contributed to an increase in cancellations and a deceleration of demand. The off-peak periods continue to underperform, while peak periods remain strong, a trend that has persisted throughout the pandemic. By way of example, Labor Day weekend performed well with load factors of roughly 80 percent on peak days, consistent with levels observed in 2019."

"We expect third quarter capacity to be up roughly 13.5 percent as compared with 2019, a 4.5 percentage point reduction from initial expectations," stated Gregory Anderson, executive vice president, chief financial officer. "Although we did observe demand weakness, these reductions were driven primarily by operational challenges observed throughout the quarter. Given these capacity reductions, we have updated our guidance, which is included in the table below. We expect an increase in total operating revenue from 2019 of between 3.0 and 5.0 percent, which should yield an adjusted¹ EBITDA margin between 16 and 18 percent for the third quarter. We will continue to monitor trends and tweak fourth quarter capacity accordingly but given peak-period performance, we remain encouraged about the upcoming holiday travel season."

Scheduled Service – Year Over Two-Year Comparison

Total System* - Year Over Two-Year Comparison

Scheduled Service – Year Over Year Comparison

Total System* - Year Over Year Comparison

*Total system includes scheduled service and fixed fee contract.  System revenue passenger miles and system load factor are not useful statistics as system available seat miles include both ASMs flown by fixed fee flying as well as non-revenue producing repositioning flights used for operational needs.  Fixed fee flying is better measured through dollar contribution versus operational statistics.

Preliminary Financial Results

Allegiant Travel Company

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant's all-Airbus fleet serves communities across the nation, with base airfares less than half the cost of the average domestic roundtrip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF

ALGT/G

Note: This news release was accurate at the date of issuance. However, information contained in the release August 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.

¹ Adjusted to exclude COVID related special charges, the net benefit from the payroll support program, and profit sharing bonus accruals related to the benefit of the payroll support program
² Year over two-year percentage changes compare 2021 to 2019

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SOURCE Allegiant Travel Company