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. Allegiant also saw a rise in operating expenses to $588.5 million, an increase of 0.9% from 2023. Consolidated EBITDA of $46.3 million for the third quarter, excluding special items, achieving an adjusted EBITDA margin of 8.2%.
The company reported a total available liquidity of $1.1 billion as of September 30, 2024, comprising $804.6 million in cash and investments and $275 million in undrawn credit facilities. Cash from operations reached $17.3 million for the third quarter.
Taking a look at the company’s airline performance for the quarter, Allegiant reported a total operating revenue of $549.1 million, down by 2.9% from $565.4 during the same period of 2023. Airline operating expenses decreased also during the period, down by 0.6% to $556.2 million. Airline-only EBITDA was $56.6 million for the third quarter, excluding special items, resulting in an adjusted EBITDA margin of 10.3%.
Passenger revenues fell during the quarter in comparison to revenues seen in the third quarter of the year prior. The airline recorded a total passenger revenue of $488,989, that is a drop of 5.3% when compared to the same period of 2023 where passenger revenues totalled $516,251.
"Our seasonally weakest quarter concluded with a diluted loss per share of $2.05," stated Gregory Anderson, president and CEO of Allegiant Travel Company. "Despite facing challenges from Crowdstrike and Hurricane Helene, the airline surpassed our initial expectations by achieving a positive operating margin for the quarter.
He added: “Throughout the quarter, we observed sustained strength in demand, with unit revenues turning positive on a year-over-year basis in the final weeks. Particularly noteworthy was the ancillary revenue per passenger, which reached $74.02, reflecting a three percent increase from the previous year due in part to the success of both the Allegiant Extra product and the cobrand credit card. “
The company’s Sunseeker Resort Charlotte Harbor reported third-quarter occupancy at 31% with an average daily rate of $204 per night, reflecting ongoing market challenges. The company incurred an estimated $2 million in property damage from Hurricane Helene, which has been recorded as a special charge in the company third quarter income statement.
During the quarter Allegiant took delivery of its first 737 MAX aircraft. “The airplane began revenue service mid-October and initial data supports improvements in the operating economics of this aircraft type over Allegiant's current fleet," said the company in a statement.