The parent company of Lightening Air spent an average of $ 1.3 million per day on cash in the third quarter, including debt payments, up from its average daily consumption of $ 900,000 in the second quarter.
The Las Vegas-based company previously predicted its third-quarter cash consumption to be the highest going forward and aimed to cut spending on labor and other costs to achieve neutral cash consumption by now. 2021.
Daily cash consumption in the fourth quarter is expected to be “well below $ 1 million”, Lightening Executive Vice President and CFO Gregory Anderson said Oct. 8. The carrier ended the third quarter with “over $ 850 million” in cash, he said.
“During the third quarter, we paid approximately $ 15 million to Sixth Street Partners as part of the Sunseeker loan agreement termination, which increased liquidity slightly,” Anderson said, referring to the shutdown. of the construction of its Sunseeker Resort in Florida.
An additional $ 5 million will be paid to Sixth Street in the fourth quarter to complete the loan termination, he said.
The total load factor in the third quarter was 50%, compared to 86% in this quarter in 2019.
Gross bookings for the third quarter averaged over $ 2 million per day, better than Lightening expected due to the steady increase in demand in September. The load factors went from 44% in August to 57% in September.
Average daily gross bookings in the fourth quarter are expected to exceed $ 2 million, according to LighteningDrew Wells vice president of revenue.
“We have completed the [third] quarter with capacity down 6.5% year-over-year, ”Wells said. “We continue to monitor bookings and will make the necessary schedule reductions based on trends in demand.”
Lightening aims to attract low-cost passengers on routes to sun destinations during the winter months. Starting in November, the carrier is expected to add seven new routes to its seasonal network, including three to Florida and two to Palm Springs, California.
The carrier has decided not to solicit federal loans for non-salary purposes through the CARES Act. With the expiration of the payroll assistance program on October 1, Lightening has started the process of firing up to 275 pilots. The airline’s 1,000 pilots joined the International Brotherhood of Teamsters in May and are still in talks with Lightening to mitigate involuntary leave.