Allegiant Travel Co.’s shares fell the most in more than two years after the beleaguered carrier suspended its quarterly dividend hours after announcing a CEO change.
The 60-cent-a-share cash payout will be halted immediately “in anticipation of capital requirements related to fleet investments,” the parent of Allegiant Air said Thursday in a regulatory filing. The surprise announcement comes less than a year after the company reinstated its dividend from a pandemic-driven pause.
Allegiant said earlier Thursday that President Gregory Anderson will become chief executive officer on Sept. 1, succeeding Maury Gallagher, who will remain executive chairman. Anderson joined Allegiant in 2010 and was named president last year, after serving as chief financial officer.