Allegiant has reported that it has repaid the US$24.8 million (£21.6 million) emergency relief loan the company received under the Coronavirus Aid, Relief and Economic Security (CARES) Act in April 2020.
The government assistance, coupled with proactive initiatives from Allegiant and its employees, allowed the airline to preserve liquidity and strategically position itself to withstand the uncertainty surrounding the outbreak of COVID-19. Allegiant’s unique business model, focused entirely on leisure travel, helped the company respond to the unprecedented challenges that the entire airline industry faced when demand for air travel dropped so suddenly and precipitously in 2020, as a result of the global pandemic.
The CARES Act, signed into law in April 2020, established the Payroll Support Program to provide assistance to U.S. companies that were impacted by the global pandemic. The funds helped Allegiant support the airline’s employee salaries and benefits.
