The Allegiant Travel Company has said that its subsidiary Allegiant Air has amended its delivery agreement with Boeing for its order of 50 737 MAX aircraft.
Under the amended agreement, the aircraft delivery schedule has been revised to reduce the number of aircraft expected in 2024 and 2025. The new agreement means that all 50 firm aircraft are now due for delivery by the end of 2027, rather than the end of 2025, as previously stipulated.
The amended agreement provides for other benefits and considerations related to delivery delays in 2024 as well as the deferred schedule through 2027.
The Company accepted delivery of its first Boeing 737-8200 aircraft in September of this year, with that aircraft entering service in mid-October. Following cessation of the recent machinist strike at the American manufacturer, the airline expects it could receive up to three additional aircraft during fourth quarter 2024.
Boeing delivered just 14 aircraft in October this year - the lowest since November 2020 with only seven deliveries, signalling the impact of the strike action that took place over the course of the month. In addition, it had made 13 deliveries in October 2020.
Additionally, Allegiant’s consolidated operating revenue for the third quarter of 2024 dropped by 0.6% to $562.2 million, compared to the same period of the previous year. The company’s consolidated operating loss reached $26.3 million during the quarter, up from $17.9 million during the third quarter of 2023.