Allegiant Air concerned about government shutdown as Thanksgiving nears

The federal government shutdown isn’t affecting Allegiant Air yet, but a prolonged stalemate could become a problem within three weeks, the airline’s executives said Tuesday.

In the third-quarter earnings call of Las Vegas-based Allegiant Travel Co., parent company of Allegiant Air, newly promoted company President Robert “BJ” Neal said even though Allegiant operates primarily at small airports where there aren’t as many federal employees, the shutdown could affect operations if the shutdown lasts much longer.

“We haven’t seen anything meaningful flow through with bookings or demand at this point,” Neal said in response to an analyst’s question.

“I do feel pretty confident that the longer this drags on, the more likely we are to see impact. And certainly, if it does stretch all the way to Thanksgiving, that would be a huge, huge problem for the industry as a whole. I have some confidence that we will get through this as a country and a government ahead of that and strongly urge Congress to unlock this.”

Neal joined a chorus of airline executives that have urged senators to resolve the shutdown that on Tuesday entered a record 35th day.

In a recent press conference, United Airlines CEO Scott Kirby warned that with air traffic controllers and Transportation Security Administration agents not showing up for work in some airports across the nation, a higher level of stress is being placed on aviation safety and the national economy.

So far, operations at Harry Reid International Airport, a key hub for Allegiant, have not been disrupted, but there are growing concerns that delays and cancellations at other airports could eventually affect Las Vegas.

For the third quarter, which ended Sept. 30 and traditionally is the airline’s weakest, Allegiant still managed a record number of departures (33,000) and passengers served (4.6 million) while completing an industry-leading controllable completion factor of 99.9 percent.

Allegiant Travel CEO Greg Anderson said holiday demand is “shaping up nicely” and the company now expects a double-digit percentage fourth-quarter operating margin.

The airline is continuing to transition its fleet from twin-engine Airbus jets to Boeing 737s. Allegiant will have 16 737s by the end of 2025 and with the retirement of some Airbus jets, the fleet will increase from 121 to 123.

The new jets will add some seats with greater legroom that will enable the company to generate higher levels of revenue on each flight.

During the quarter, the company also closed on the sale of Sunseeker Resort in Port Charlotte, Florida, on Sept. 4 at a $200 million sale price.

For the quarter, Allegiant Travel reported a net loss of $43.6 million, $2.41 a share, on revenue of $561.9 million. That compares with a loss of $36.8 million, $2.05 a share, down 18.4 percent, on revenue of $562.2 million, flat against the third quarter of 2024.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.