Allegiant Travel Company has reported a slightly uptick (2.3%) in scheduled passengers during the month of June 2021 to 1.630m compared to June 2019 figures. Load factor dropped by 8.2 percentage points to 77.7%, however, as capacity ASKs increased by 13.8%. Allegiant figures for the second quarter of 2021 show a 10.9% drop in the number of passengers carried compared to Q2 2019, with load factors down by 12.8 percentage points to 70.8%
"Demand strength persisted throughout the quarter with average daily bookings in excess of the same time period in 2019," stated Gregory Anderson, executive vice president and chief financial officer. "We continued to see load factor improvement throughout June with a nearly 10-point increase from May on year over two-year capacity growth of roughly 14 percent. Given the demand strength, scheduled service revenue, excluding fixed fee and other revenue, is estimated to be $467 million, down 1.3 percent when compared with 2019. This is better than initial expectations due to significantly increased breakage revenue related to the elevated issuance of credit vouchers throughout the pandemic as well as sustained yield strength throughout the quarter. Excluding breakage, yield was up nearly two percent when compared with the second quarter of 2019. Given the revenue strength observed throughout the quarter, we estimate an adjusted EBITDA margin of roughly 29 percent.