ALGT News & Events

Navan (NAVN) announced that Allegiant (ALGT) has selected Navan as its internal platform for employee business travel management. Allegiant will use Navan to coordinate and manage company-related travel for employees, including flight crews and team members traveling for training, temporary work assignments and operational support needs across the airline's network. The platform is intended solely for internal employee travel and is not a customer-facing product or booking service.

Reports Q1 revenue $732.4M, consensus $716.41M. Reports Q1 System capacity down 5.9% year-over-year and available seat miles per gallon of fuel of 86.7, up 1.2% year-over-year. "We had a great start to the year, delivering another quarter of strong operational and financial results," stated Gregory Anderson, CEO of Allegiant Travel Company. "Customer service continues to be a top priority, and I'm pleased to report the team once again achieved a controllable completion rate exceeding 99.9%. We know that when we operate well, we perform well, and that is evidenced by our first-quarter adjusted operating margin of 14.9 percent, which marked more than a five-point improvement year-over-year and the highest first quarter level since COVID. We believe it will be the highest among U.S. airlines. Q1 demand was exceptional, particularly during peak periods, driving more than a 16 percent year-over-year increase in TRASM, with total yields up over 20 percent year-over-year. That performance allowed us to set an all-time quarterly record despite a 5.9% year-over-year reduction in capacity. We are pleased to see our commercial initiatives taking hold and contributing to our results, including an 8.9 percent increase in co-brand remuneration compared to the prior year."

The company said. "The below guidance is for Allegiant on a stand-alone basis and excludes any contribution from our planned acquisition of Sun Country". Sees Q2 System ASMs - year-over-year change (~6.5%); Scheduled service ASMs - year-over-year change (~6.5%); and fuel cost per gallon $4.35. Gregory Anderson, CEO of Allegiant Travel Company, said, "As we move into the Q2, leisure demand remains healthy despite geopolitical dynamics that have impacted the broader economy. We have proactively reduced capacity during off-peak times and shortened average stage lengths as we navigate the higher fuel environment. We now expect Q2 capacity to be down 6.5% year-over-year. A core tenet of our long-term success is flexing our capacity to focus on profitability over utilization. We are confident that the strength of our business model and strong financial position will allow us to navigate this elevated fuel environment as well as any airline in our sector. With regulatory approvals now behind us, and pending shareholder approvals, we expect to close on the acquisition of Sun Country by as early as mid-May. Closing in just over four months after announcement highlights the agility and capabilities of the company. We look forward to combining our complementary networks, advancing our commitment to connect our travelers with attractive destinations, and delivering a stronger, more valuable airline for our shareholders. This combination should extend our leadership position in the value segment of the industry. We are excited about what's ahead."