Allegiant Air Anticipates Additional Boeing 737-8-200 Delivery Delays and Halves 2024 Targets
Allegiant Air, the American ultra-low-cost carrier based in Las Vegas, is bracing for further delays in the delivery of its first Boeing B737-8-200 aircraft, now expected in spring, marking a three-month postponement from the previously adjusted timeline announced in late 2023. Moreover, the airline has made a significant revision to its delivery expectations for the year, slashing the number of B737-8-200 aircraft it plans to receive by half.
During a recent earnings call, Robert Neal, Senior Vice-President and Chief Financial Officer of Allegiant Travel, the parent company, outlined the updated delivery schedule. “Initially, we anticipated the arrival of our first MAX aircraft in early 2024. However, current estimates suggest a late March or early April delivery. Consequently, we’ve adjusted our 2024 delivery forecast to twelve B737-8-200 aircraft, with ten expected to enter service by year’s end,” Neal explained. This adjustment represents a shift from the airline’s earlier projection of integrating twenty-four B737-8-200s into its fleet in 2024, indicating a cautious approach amid ongoing discussions with Boeing regarding the delivery timetable.
Allegiant Air’s order for fifty B737-8-200s, now expected to be fulfilled by late 2025, marks a significant investment in the carrier’s fleet expansion and modernization efforts. Despite the delivery delays, Allegiant is planning its 2024 capacity with these uncertainties in mind, ensuring operational flexibility. Greg Wells, Chief Revenue Officer, emphasized the airline’s strategic planning, noting that Allegiant’s operational model for the upcoming quarters does not heavily rely on the new Boeing aircraft, thereby minimizing potential impacts on service and growth.
The introduction of the B737-8-200s, which will feature 190 seats including Allegiant Extra premium seating, signifies Allegiant Air’s first acquisition of Boeing aircraft in seven years. This move also highlights a diversification in the carrier’s predominantly Airbus fleet, consisting of A319-100s and A320-200s, with plans to slightly reduce the A320 fleet by the end of the year while maintaining the number of A319s.
Allegiant Air’s proactive management of its fleet composition and delivery schedules reflects the airline’s commitment to maintaining operational resilience and adaptability. As the carrier navigates the challenges associated with aircraft deliveries, its focus remains on ensuring a gradual and sustainable expansion of its route network and service offerings, aiming for a 2-6% increase in available seat kilometers in 2024 compared to the previous year. This strategic approach underscores Allegiant’s dedication to enhancing its operational efficiency and customer experience despite the dynamic nature of the aviation industry.