Allegiant Completes US Government CARES Act Loan Repayment

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LONDON – US carrier Allegiant completed its reimbursement received from the US government under the CARES Act in April 2020.

The loan, in the amount of $24.8 million, was provided to Allegiant as a loan to help the carrier through the disruptive COVID-19 pandemic.

This would have helped pay for the salaries and employee benefits she had on her payroll.

Commenting on this milestone, John Redmond, CEO of Allegiant:

“We are so grateful to the federal government and the American people for stepping up and helping the entire industry when the outlook for the future was so uncertain.”

“This loan helped us save jobs at a time when it was unclear how the United States would emerge from the pandemic. We are delighted that demand has increased so much in recent months that we have been able to fulfill our obligation much earlier than expected. »

A good Q2 helped that…


Starting out in a very strong position, Allegiant had recorded operating revenue of $629.8 million, an increase of 33.3% over the same period in 2021 to $472.4 million.

This quarter is the highest quarterly financial ranking ever recorded by the company. In addition to their operating profit, the carriers’ operating expenses totaled $603.7 million, a staggering 81% increase in expenses over the same period last year at $333.6 million. .

Allegiant’s GAAP operating income for this quarter was $26.1 million, an increase of 81.2% over the second quarter of 2021. The carrier’s GAAP income before income taxes was $5.8 million, and after tax, its net profit was $4.4 million.

Both figures represent a 95% increase from the second quarter of 2021.

Finally, Allegiant’s diluted earnings per share after the above financial numbers now stand at $0.24, a further 95% increase over 2021 diluted earnings per share of $5.49.

In terms of cash and liquidity position, Allegiant’s total cash and investments were $1.2 billion at the end of the quarter, with a total operating cash inflow of $227.8 million. dollars.

The carrier’s total debt now stands at $2 billion, with net debt of $752.2 million after the carrier made debt principal repayments of $33.2 million.

For their aircraft spend, Allegiant totaled $74 million for the quarter; this included $39 million for aircraft pre-delivery deposits, the purchase of an Airbus A320, and $35 million in other expenses.

Their projected aircraft spending for the year 2022 has been increased slightly from previous announcements to now reach around $380 million.

In addition, carriers’ deferred heavy maintenance costs were $13 million, and their cost for the year 2022 is now expected to be around $60 million.

Globally…


Allegiant appears to be on the rise as it aims to put the COVID-19 pandemic in its rearview mirror. However, the airline may have to deal with a whole new problem.

With inflation reaching unprecedented levels, as well as a predicted global recession, Allegiant will have to juggle this in its approach to generating profits over the next 12 months.

It will be an interesting time, because if things slow down again, Allegiant could ask for help again.

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