COVID 19: Allegiant Air – cash burn improves as bookings improve
Although demand in the US market continues to remain at historical lows, most of the country's airlines are seeing some movement off the bottom, as the normally busy summer travel season is now in full swing and popular leisure destinations in Las Vegas and Orlando are starting to open up for tourists.
The US ultra low cost operator Allegiant Air, which operated approximately 70% of its original schedule in early Jun-2020, was already seeing some positive trends before the partial reopening of large leisure destinations. Generally, the company believes a solid percentage of the US population wants to travel.
However, Allegiant is also understandably taking a cautious approach as it navigates the US slowly opening up after weeks under quarantine. Demand has risen from the bottom, but a complete rebound remains tough to predict.
As a result, Allegiant is working to rightsize its fleet, and reduce its daily cash burn.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.