Allegiant Reports May 2020 Traffic

"We are continuing to see material improvement in demand from the April lows," stated Gregory Anderson executive vice president, chief financial officer and principal accounting officer of Allegiant Travel Company. "For the entire month we averaged over $2 million in gross bookings per day. As such, we are anticipating our cash burn per day in the second quarter to be down to approximately $1.75 million. This number includes variable components related to increased capacity and a higher fuel price than previously forecasted, as well as an increased rate of voucher redemptions. This daily cash burn improves upon our previously expected estimate of $2.1 million per day, which was based on $750 thousand in daily gross bookings. In addition, we are anticipating the third quarter cash burn to be less than $1 million per day if $2.0 million in daily gross bookings were to remain consistent. This is less than the $1.5 million per day we spoke about during our earnings call. Even with this improvement in demand, we are continuing to focus on finding ways to reduce costs. As we have stated previously, the flexibility which is central to our business model allows us to take advantage of these periods of extremely low demand - which is clearly unique in our industry."