Allegiant Travel Company (NASDAQ: ALGT) has announced additional measures to address the impact of the outbreak of COVID-19, protect health and safety, and ensure a solid foundation for future operations, the company said.
In the face of the downturn in leisure travel, Allegiant is withdrawing its 2020 full-year guidance. As reported in a filing with the Securities and Exchange Commission on April 7, the company anticipates revenue for March 2020 to be 40 to 45 percent lower than the previous year. The company has received and is reviewing term sheets for the federal Payroll Support Grant program and loan assistance under the CARES Act, in addition to exploring other financing alternatives.
Allegiant anticipates reducing airline capacity by 80 to 90 percent during April and May, with additional schedule reductions to come for the summer travel season. Two new aircraft bases scheduled to open in 2020 at Des Moines International Airport (DSM) in Iowa and Concord-Padgett International Airport in North Carolina will be delayed. The airline will also delay its announced start of service from William P. Hobby Airport (HOU) in Houston and Boston-Logan International Airport (BOS).
To assist customers in accessing information about Allegiant´s onboard and in-terminal health and safety measures, the company launched an online resource page, Going the Distance for Health and SafetyTM , highlighting cleaning and disinfection, air purity, low-touch service initiatives aimed at preventing cross-contamination, and social distancing efforts.
On March 18, the company announced a number of measures designed to limit expenditures, expected to result in up to USD 320 million in cash outlay reductions. These included immediate suspension of non-airline projects, and 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 were also suspended.
Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with premier leisure experiences – from vacations to hometown family entertainment.