Will Las Vegas be back in business by July 4? Hometown carrier Allegiant says it’s possible
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Independence Day on the Las Vegas Strip? It may happen, at least as outlined in a potential reopening timeline presented by executives of budget carrier Allegiant Air on Tuesday.
Allegiant has a lot riding on hotels on the Strip reopening. The carrier’s business is built around offering travelers cheap, no frill flights between smaller cities like Fargo, North Dakota (FAR), and Hagerstown, Maryland (HGR) and popular leisure destinations in places such as Las Vegas, Phoenix and Florida.
Maury Gallagher, CEO of the Las Vegas-based airline, told Wall Street analysts Tuesday that he would be surprised if “hotels here in Vegas are open within the next 30 to 45 days.” Beyond that — or after June 27 — however, is a definite possibility.
Get Coronavirus travel updates. Stay on top of industry impacts, flight cancellations, and more.
And based on the carrier’s own surveys of its passengers, as many has half are eager to travel again as concerns of the coronavirus pandemic abate.
Like nearly every airline around the world, Allegiant has been hit hard by the coronavirus crisis. The company, which includes both the airline as well as other travel-related businesses, reported a $33 million net loss during the three months ending in March. However, the airline alone eked out a nearly $39 million pre-tax profit for the period.
Allegiant has halted work on its Sunseeker Resort in Florida and stopped nearly all other planned investments for 2020. It delayed plans to open new bases in Concord, North Carolina (USA), near Charlotte, and in Des Moines (DSM). It also suspended plans to add Boston Logan (BOS) and Houston Hobby (HOU) to its route map.
Related: Allegiant picks secondary Charlotte airport for newest base
In addition, the carrier may permanently remove around 25 of its Airbus A320 family jets — more than a quarter of its fleet — as a result of the crisis.
Allegiant flew just less than 13% of its schedule in April, and continues to make comparable reductions on a week-by-week basis this month. But bookings appeared to hit the bottom in mid-April and have been trending up in the weeks since, Allegiant chief marketing officer Scott DeAngelo said on Tuesday.
The uptick in bookings are focused on beach communities in Florida, specifically on the state’s west coast and panhandle, he said. Florida began lifting its “safer at home” order at the end of April.
Allegiant has several major bases in those parts of Florida, including Destin/Fort Walton Beach (VPS), Punta Gorda (PGD) near Fort Myers, and St. Petersburg/Clearwater (PIE).
Related: Which US airlines are blocking middle seats, requiring masks?
Florida appears to be leading the recovery in air travel following the pandemic. JetBlue Airways and Spirit Airlines, which also have large bases in the state, have reported their own upticks in passenger numbers to the Sunshine State.
Airline executives and Wall Street analysts expect leisure travel, whether for a holiday or to visit friends and relatives, will lead the industry’s recovery. That’s an advantage for an airline like Allegiant, whose customers are almost exclusively holiday travelers.
“While we do not expect a faster demand recovery of any one particular region (within the U.S.), Allegiant’s network and leisure customer base fit well with our expectation of domestic/leisure recovering faster than international/business,” Raymond James analyst Savanthi Syth wrote in a report Wednesday. As such, she upgraded the bank’s recommendation of Allegiant stock to investors.
Related: Travelers starting to ‘want to move’ again, say Spirit, JetBlue execs
Featured image by DANIEL SLIM/AFP via Getty Images.
Sign-up Successful!
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.