Allegiant Travel secures financing for Airbus A320, Boeing 737 MAX aircraft

Allegiant Travel (ALGT) announced financing commitments for seven Airbus (EADSY) A320 and four Boeing (BA) 737 MAX aircraft from BNP Paribas, Europe’s leading bank, and Jackson Square Aviation, a global commercial aircraft lessor. The innovative $412M deal combines banking and lessor capital to secure Allegiant’s aircraft financing needs into the second quarter 2024, while providing the airline with healthy liquidity at an attractive cost in today’s market. Allegiant has drawn down $196M on September 29, and the remainder will be drawn commensurate with its initial 737 MAX deliveries. Allegiant currently operates an all-Airbus fleet comprised of 127 Airbus A319s and A320s. Allegiant has agreed to purchase up to 130 Boeing 737-7 and 737-8-200 models in a multi-year deal, Boeing’s first with an ultra-low-cost carrier in the United States. The new 737 MAX additions will afford the airline flexibility, environmental benefits, and new customer features.