0001362468falseLas VegasNV00013624682024-05-072024-05-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549 
_____________________________________________
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): May 7, 2024
algtheaderq417a17.jpg
Allegiant Travel Company
(Exact name of registrant as specified in its charter)
Nevada001-3316620-4745737
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
1201 North Town Center Drive
Las Vegas, NV
89144
(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code:              (702) 851-7300

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading SymbolName of each exchange on which registered
Common stock, par value $0.001
ALGT
NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as in Rule 405 of the Securities Act of 1933 (Section 17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 17 CFR §240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Section 2    Financial Information

Item 2.02    Results of Operations and Financial Condition.

On May 7, 2024, Allegiant Travel Company (the “Company”) issued the press release attached as Exhibit 99.1 to this Form 8-K concerning our results of operations for the quarter ended March 31, 2024.

This information is being furnished under Item 2.02 of Form 8-K. This report and Exhibit 99.1 are deemed to be furnished and are not considered “filed” with the Securities and Exchange Commission. As such, this information shall not be incorporated by reference into any of our reports or other filings made with the Securities and Exchange Commission.

Non-GAAP Financial Measures: The press release contains non-GAAP financial measures as such term is defined in Regulation G under the rules of the Securities and Exchange Commission. While the Company believes these financial measures are useful in evaluating the Company’s performance, this information should be considered to be supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Further, these non-GAAP financial measures may differ from similarly titled measures presented by other companies.

Forward-Looking Statements: Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in the press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding future airline and Sunseeker Resort operations, revenue, expenses and earnings, ASM growth, expected capital expenditures, the cost of fuel, the timing of aircraft acquisitions and retirements, the number of contracted aircraft to be placed in service in the future, our ability to consummate announced aircraft transactions, as well as other information concerning future results of operations, business strategies, financing plans, competitive position, industry environment, and potential growth opportunities. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," “guidance,” "anticipate," "intend," "plan," "estimate," “project”, “hope” or similar expressions.

Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, the impact of regulatory reviews of Boeing on its aircraft delivery schedule, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, our reliance on Boeing and other third parties to deliver aircraft under contract to us on a timely basis, risk of breach of security of personal data, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed , the effect of economic conditions on leisure travel, debt covenants and balances, the impact of government regulations on the airline industry, the ability to finance aircraft to be acquired, the ability to obtain necessary government approvals to implement the announced alliance with Viva Aerobus and to otherwise prepare to offer international service from our markets, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the impact of the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to successfully operate Sunseeker Resort, increases in maintenance costs and availability of outside maintenance contractors to perform needed work on our aircraft on a timely basis and at acceptable rates, cyclical and seasonal fluctuations in our operating results and the perceived acceptability of our environmental, social and governance efforts.

Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.



Section 9    Financial Statements and Exhibits

Item 9.01    Financial Statements and Exhibits.

a.Not applicable.
b.Not applicable.
c.Not applicable.
d.Exhibits



SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, Allegiant Travel Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Date:  May 7, 2024ALLEGIANT TRAVEL COMPANY 
    
    
By:/s/ Robert J. Neal
Name:Robert J. Neal
 Title:Senior Vice President and Chief Financial Officer 

 

 




EXHIBIT INDEX



Exhibit 99.1
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ALLEGIANT TRAVEL COMPANY
FIRST QUARTER 2024 FINANCIAL RESULTS
First quarter 2024 GAAP diluted loss per share of $(0.07)
First quarter 2024 diluted earnings per share, excluding special charges of $0.57(1)(4)(5)
First quarter 2024 airline only diluted earnings per share, excluding special charges of $1.08(1)(4)(6)

LAS VEGAS. May 7, 2024 — Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the first quarter 2024, as well as comparisons to the prior year:

ConsolidatedThree Months Ended March 31,Percent Change
(unaudited) (in millions, except per share amounts)20242023YoY
Total operating revenue$656.4 $649.7 1.0 %
Total operating expense641.0 554.9 15.5 %
Operating income15.4 94.8 (83.8)%
Income (loss) before income taxes(1.3)74.4 NM
Net income (loss)(0.9)56.1 NM
Diluted earnings (loss) per share(0.07)3.09 NM
Sunseeker special charges, net of recoveries (4)
(1.8)(1.6)NM
Airline special charges (4)
14.9 — NM
Net income, excluding special charges net of recoveries(1)(3)(5)
10.4 55.3 (81.2)%
Diluted earnings per share excluding special charges net of recoveries(1)(3)(5)
0.57 3.04 (81.3)%

Airline onlyThree Months Ended March 31,
Percent Change(2)
(unaudited) (in millions, except per share amounts)20242023YoY
Airline operating revenue
$632.5 $649.7 (2.6)%
Airline operating expense
608.3 552.1 10.2 %
Airline operating income
24.2 97.6 (75.2)%
Airline income before income taxes
12.5 78.9 (84.2)%
Airline net income (1)(3)
11.4 59.9 (81.0)%
Airline special charges (4)
14.9 — NM
Airline net income, excluding special charges (1)(3)(6)
19.8 59.9 (66.9)%
Airline operating margin, excluding special charges (1)(6)
6.2 %15.0 %(8.8)
Airline diluted earnings per share, excluding special charges (1)(3)(6)
1.08 3.30 (67.3)%

(1)Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information and for calculation of per share figures.
(2)Except Airline operating margin, excluding special charges, which is percentage point change.
(3)Refer to the Non-GAAP Presentation section within this document for the income tax effect of non-GAAP adjustments.
1

(4)In 2024 and 2023, we recognized as special charges the full amount of estimated property damage to Sunseeker Resort due to weather and other insured events less the amount of recognized insurance recoveries through the end of the applicable period. In first quarter 2024, we also recognized aircraft accelerated depreciation as special charges related to our revised fleet plan. We sometimes refer to these amounts as “specials” in this earnings release.
(5)Adjusted to exclude the impacts of property damage to Sunseeker Resort, net of recoveries, and aircraft accelerated depreciation charges resulting from our revised fleet plan.
(6)Adjusted to exclude aircraft accelerated depreciation charges recognized as special charges related to our revised fleet plan.
NM    Not meaningful
*    Note that amounts may not recalculate due to rounding
2

“We finished the quarter with diluted earnings per share, excluding special charges, of 57 cents,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “The peak demand environment remained strong throughout the quarter, with TRASM representing the second best first quarter TRASM in company history. Demand trends are holding into the second quarter, and although we expect TRASM to be down from the highs of 2023, we anticipate second quarter TRASM will again be among the best second quarters in company history – particularly impressive given expected growth during the peak month of June of roughly six percent, year-over-year.

“The first quarter marked the first full quarter of operations at Sunseeker Resort. Hats off to the team led by Micah Richins and Jason Shkorupa. The final product is truly amazing and unique to that part of Florida. It will take time to build to financial maturity. We are still in the early stages, but our marketing efforts are now in full swing. Encouragingly, food and beverage surpassed our initial expectations and accounted for nearly half of total Sunseeker revenue during the first quarter. I am excited to see the potential of this property unfold in the coming years.”

“I am happy to report another quarter of near industry-leading operational results,” stated Gregory Anderson, president of Allegiant Travel Company. “The team’s efforts yielded a controllable completion of 99.7 percent. Over the past 18 months we have prioritized operational integrity, and I could not be prouder of Team Allegiant as we continue to achieve record high net promoter scores from our customers.

"While I am pleased with our operational and customer service performance, our first quarter adjusted airline-only operating margin of roughly six percent is disappointing. These lower margins were largely driven by temporary headwinds such as Boeing’s inability to meet its delivery schedule, delayed pricing functionality due to the integration of Navitaire, our new reservations and revenue system, and lower aircraft utilization in our peak demand periods – we are fixing all three of these items. Excluding these headwinds and on a more normalized basis, our adjusted airline operating margin for the first quarter would have been approximately 13 percent.

“On the labor front, I am pleased to announce our flight attendants overwhelmingly voted to ratify their tentative agreement. This new contract will not only provide well-deserved pay increases, but also comes with several quality-of-life improvements. Our pilot contract remains in federal mediation. The Teamsters that represent our pilots appointed a new negotiating team, and I am encouraged by the improved collaboration and progress now being made at the table – getting a deal complete remains a top priority.

“2024 is a transitional year for the company. We expect to have all of our labor agreements finalized. We have a clear path to increasing utilization and improving productivity amongst our work groups. We expect to integrate the MAX aircraft into our fleet in the coming months. We are well on our way to unlocking the full power of our Navitaire reservation system and providing strong opportunities to further increase our ancillary revenues. Achieving these items will return us to our industry leading margins as our airline is one of the best proven models in the business.”
3

First Quarter 2024 Results and Highlights


•Total operating revenue of $656.4M, up 1.0 percent over the prior year
•Total fixed fee contracts revenue of $18.9M, up 33.6 percent year-over-year

•Operating income, excluding specials,(1)(2)(3) of $28.5M, yielding an adjusted operating margin of 4.3 percent
•Airline-only operating income, excluding specials,(1)(5) of $39.1M, yielding an airline-only adjusted operating margin of 6.2 percent

•Income before income tax, excluding specials,(1)(2)(3) of $11.8M, yielding an adjusted pre-tax margin of 1.8 percent
•Airline-only income before income tax, excluding specials,(1)(5) of $27.5M, yielding an adjusted pre-tax margin of 4.3 percent

•Consolidated EBITDA, excluding specials,(1)(2)(3) of $92.3M, yielding an adjusted EBITDA margin of 14.1 percent
•Airline-only EBITDA, excluding specials,(1) of $97.0M, an adjusted 15.3 percent margin

•Airline-only operating CASM, excluding fuel and special charges,(4) of 8.87 ¢, up 14.5 percent year-over-year
•Includes $20.4M in incremental cost related to accrual of pilot retention bonuses

•$34.7M in total cobrand credit card remuneration received from Bank of America, up 23.7 percent from the prior year

•Enrolled 540K new Allways Rewards members during the first quarter bringing total members to 17.9M

•In April, ratified a new five-year agreement with the Transport Workers Union of America, AFL-CIO Local 577, representing Allegiant's flight attendants
•Agreement includes immediate wage increases as well as certain quality-of-life improvements

•Ranked third on the American Customer Satisfaction Index for Airlines, moving up from spot seven in 2023

(1)Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information and for calculation of per share figures.
(2)In 2024 and 2023, we recognized as special charges the full amount of estimated property damage to Sunseeker Resort due to weather and other insured events less the amount of recognized insurance recoveries through the end of the applicable period. In first quarter 2024, we also recognized aircraft accelerated depreciation as special charges related to our revised fleet plan.
(3)Adjusted to exclude the impacts of property damage to Sunseeker Resort, net of recoveries, and aircraft accelerated depreciation charges resulting from our revised fleet plan.
(4)Adjusted to exclude aircraft accelerated depreciation recognized as special charges related to our revised fleet plan.
4

Balance Sheet, Cash and Liquidity

•Total available liquidity at March 31, 2024 was $1.1B, which included $853.7M in cash and investments, and $275.0M in undrawn revolving credit facilities
•$167.8M in cash from operations during the first quarter 2024
•Total debt at March 31, 2024 was $2.2B
•Net debt at March 31, 2024 was $1.4B
•Debt principal payments of $31.5M during the quarter
•Returned $11.0M in dividends during the quarter
•Scheduled payment of quarterly dividend in the amount of $0.60 per share on June 3, 2024 to shareholders of record on May 15, 2024
•Air traffic liability at March 31, 2024 was $432.6M

Airline Capital Expenditures

•First quarter capital expenditures of $122.2M, which included $82.6M for aircraft purchases and inductions, pre-delivery deposits, and other related costs, and $39.6M in other airline capital expenditures
•First quarter deferred heavy maintenance expenditures were $18.1M

Sunseeker Resort Charlotte Harbor

•Reported total operating revenues of $23.9M during its first quarter of operation
•First quarter occupancy was roughly 40 percent with an average daily rate of $330 per night

5

Guidance, subject to revision
Second quarter 2024 airline-only guidance
System ASMs - year over year change~(1.0%)
Scheduled service ASMs - year over year change~(1.0%)
Fuel cost per gallon$2.90 
Operating margin7.0% to 9.0%
Airline-only earnings per share, excluding special charges$1.25 - $1.75
Second quarter 2024 consolidated guidance
Consolidated earnings per share, excluding special charges$0.50 - $1.00
Full-year 2024 airline-only guidance
System ASMs - year over year change2.0% to 4.0%
Scheduled service ASMs - year over year change2.0% to 4.0%
Interest expense (millions)$135 to $145
Capitalized interest (1) (millions)
($40) to ($50)
Interest income (millions)$35 to $45
Airline full-year CAPEX
Aircraft, engines, induction costs, and pre-delivery deposits(2) (millions)
$230 to $250
Capitalized deferred heavy maintenance (millions)$80 to $90
Other airline capital expenditures (millions)$160 to $170
Recurring principal payments (millions)$135 to $145



(1)Includes capitalized interest related to pre-delivery deposits on new aircraft.
(2)Excludes capitalized interest related to pre-delivery deposits on new aircraft. Estimated capital expenditures are based on management's best estimate around aircraft deliveries, which differs from contractual obligations.









6

Full-year 2024 Sunseeker guidance
EBITDA (millions)~(15)
Depreciation expense (millions)~$25
Interest expense (millions)~$20
Occupancy rate~45%
Average daily rate~$320



7

Aircraft Fleet Plan by End of Period
Aircraft - (seats per AC)2Q24YE24
737-8200 (190 seats)— 6 
A320 (177 seats)17 11 
A320 (180-186 seats)75 75 
A319 (156 seats)34 34 
Total126 126 

The table above is provided based on the company’s current plans and is subject to change. The numbers exclude aircraft expected to be delivered during 2024 but will not be placed into revenue service until 2025.

The above plan is management's best estimate and differs from our contractual obligations.
8

Allegiant Travel Company will host a conference call with analysts at 12:30 p.m. ET Tuesday, May 7, 2024 to discuss its first quarter 2024 financial results. A live broadcast of the conference call will be available via the Company’s Investor Relations website homepage at http://ir.allegiantair.com. The webcast will also be archived in the “Events & Presentations” section of the website.

Allegiant Travel Company
Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in underserved cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant serves communities across the nation, with base airfares less than half the cost of the average domestic round trip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF.


Media Inquiries: mediarelations@allegiantair.com

Investor Inquiries: ir@allegiantair.com

 
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding future airline and Sunseeker Resort operations, revenue, expenses and earnings, available seat mile growth, expected capital expenditures, the cost of fuel, the timing of aircraft acquisitions and retirements, the number of contracted aircraft to be placed in service in the future, our ability to consummate announced aircraft transactions, as well as other information concerning future results of operations, business strategies, financing plans, industry environment and potential growth opportunities. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," “guidance,” "anticipate," "intend," "plan," "estimate", “project”, “hope” or similar expressions.
 
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, the impact of regulatory reviews of Boeing on its aircraft delivery schedule, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, our reliance on Boeing and other third parties to deliver aircraft under contract to us on a timely basis, risk of breach of security of personal data, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed , the effect of economic conditions on leisure travel, debt covenants and balances, the impact of government regulations on the airline industry, the ability to finance aircraft to be acquired, the ability to obtain necessary government approvals to implement the announced alliance with Viva Aerobus and to otherwise prepare to offer international service, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the impact of the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to successfully operate Sunseeker Resort, increases in maintenance costs and availability of outside maintenance contractors to perform needed work on our aircraft on a timely basis and at acceptable rates, cyclical and seasonal fluctuations in our operating results, and the perceived acceptability of our environmental, social and governance efforts.
 
Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.
 
Detailed financial information follows:
9

Allegiant Travel Company
Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
 Three Months Ended March 31,Percent Change
 20242023YoY
OPERATING REVENUES:  
Passenger$579,936 $609,277 (4.8)%
Third party products33,399 26,037 28.3 
Fixed fee contracts18,861 14,117 33.6 
Resort and other24,210 256 NM
Total operating revenues656,406 649,687 1.0 
OPERATING EXPENSES:
Salaries and benefits213,327 159,623 33.6 
Aircraft fuel170,087 189,546 (10.3)
Station operations66,468 61,520 8.0 
Depreciation and amortization63,844 54,680 16.8 
Sales and marketing30,419 26,928 13.0 
Maintenance and repairs30,278 26,442 14.5 
Aircraft lease rentals5,985 7,092 (15.6)
Other47,451 30,643 54.9 
Special charges, net of recoveries13,099 (1,612)NM
Total operating expenses640,958 554,862 15.5 
OPERATING INCOME15,448 94,825 (83.7)
OTHER (INCOME) EXPENSES:
Interest expense40,160 35,708 12.5 
Capitalized interest(11,185)(5,180)115.9 
Interest income(12,241)(10,128)20.9 
Other, net51 7 NM
Total other expenses16,785 20,407 (17.7)
INCOME (LOSS) BEFORE INCOME TAXES(1,337)74,418 NM
INCOME TAX PROVISION (BENEFIT)(418)18,269 NM
NET INCOME (LOSS)$(919)$56,149 NM
Earnings (loss) per share to common shareholders: 
Basic($0.07)$3.09 NM
Diluted($0.07)$3.09 NM
Weighted average shares outstanding used in computing earnings per share attributable to common shareholders(1):
  
Basic17,664 17,766 (0.6)
Diluted17,664 17,769 (0.6)

(1)The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The basic and diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the basic and diluted earnings per share for the periods presented.
NM    Not meaningful

10

Allegiant Travel Company
Operating Revenues and Expenses by Segment
(in thousands)
(Unaudited)

 Three Months Ended March 31, 2024Three Months Ended March 31, 2023
 AirlineSunseekerConsolidatedAirlineSunseekerConsolidated
OPERATING REVENUES:  
Passenger$579,936 $— $579,936 $609,277 $— $609,277 
Third party products33,399 — 33,399 26,037 — 26,037 
Fixed fee contracts18,861 — 18,861 14,117 — 14,117 
Resort and other323 23,887 24,210 251 5 256 
Total operating revenues632,519 23,887 656,406 649,682 5 649,687 
OPERATING EXPENSES:
Salaries and benefits199,508 13,819 213,327 157,521 2,102 159,623 
Aircraft fuel170,087 — 170,087 189,546 — 189,546 
Station operations66,468 — 66,468 61,520 — 61,520 
Depreciation and amortization57,868 5,976 63,844 54,622 58 54,680 
Sales and marketing28,878 1,541 30,419 26,640 288 26,928 
Maintenance and repairs30,278 — 30,278 26,442 — 26,442 
Aircraft lease rentals5,985 — 5,985 7,092 — 7,092 
Other34,315 13,136 47,451 28,711 1,932 30,643 
Special charges, net of recoveries14,915 (1,816)13,099 14 (1,626)(1,612)
Total operating expenses608,302 32,656 640,958 552,108 2,754 554,862 
OPERATING INCOME (LOSS)24,217 (8,769)15,448 97,574 (2,749)94,825 

11

Allegiant Travel Company
Airline Operating Statistics
(Unaudited) 
Three Months Ended March 31,
Percent Change(1)
20242023YoY
AIRLINE OPERATING STATISTICS
Total system statistics:   
Passengers 4,104,860 4,148,453 (1.1)%
Available seat miles (ASMs) (thousands)4,771,971 4,677,622 2.0 
Airline operating expense per ASM (CASM) (cents) 12.75  ¢11.80  ¢8.1 
Fuel expense per ASM (cents)3.56  ¢4.05  ¢(12.1)
Airline operating CASM, excluding fuel (cents)9.18  ¢7.75  ¢18.5 
Departures29,225 29,145 0.3 
Block hours72,632 71,790 1.2 
Average stage length (miles)919 908 1.2 
Average number of operating aircraft during period125.8 122.7 2.5 
Average block hours per aircraft per day6.3 6.5 (3.1)
Full-time equivalent employees at end of period 5,951 5,318 11.9 
Fuel gallons consumed (thousands)56,224 55,434 1.4 
ASMs per gallon of fuel84.9 84.4 0.6 
Average fuel cost per gallon$3.03 $3.42 (11.4)
Scheduled service statistics:  
Passengers 4,069,519 4,122,196 (1.3)
Revenue passenger miles (RPMs) (thousands)3,883,810 3,925,362 (1.1)
Available seat miles (ASMs) (thousands)4,636,922 4,573,766 1.4 
Load factor83.8 %85.8 %(2.0)
Departures28,177 28,273 (0.3)
Block hours70,365 70,009 0.5 
Average seats per departure177.5 176.0 0.9 
Yield (cents) (2)
7.86  ¢8.29  ¢(5.2)
Total passenger revenue per ASM (TRASM) (cents)(3)
13.23  ¢13.89  ¢(4.8)
Average fare - scheduled service(4)
$74.98 $78.93 (5.0)
Average fare - air-related charges(4)
$67.52 $68.87 (2.0)
Average fare - third party products$8.21 $6.32 29.9 
Average fare - total$150.71 $154.12 (2.2)
Average stage length (miles)926 915 1.2 
Fuel gallons consumed (thousands)54,566 54,145 0.8 
Average fuel cost per gallon$3.01 $3.42 (12.0)
Percent of sales through website during period96.5 %95.6 %0.9 
Other data:
Rental car days sold357,944 354,426 1.0 
Hotel room nights sold61,294 68,939 (11.1)

(1)Except load factor and percent of sales through website, which is percentage point change.
(2)Defined as scheduled service revenue divided by revenue passenger miles.
(3)Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.
(4)Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.
12

Summary Balance Sheet
Unaudited (millions)
March 31, 2024
(unaudited)		December 31, 2023Percent Change
Unrestricted cash and investments
Cash and cash equivalents$193.4 $143.3 35.0 %
Short-term investments616.5 671.4 (8.2)
Long-term investments43.8 56.0 (21.8)
Total unrestricted cash and investments853.7 870.7 (2.0)
Debt
Current maturities of long-term debt and finance lease obligations, net of related costs459.2 439.9 4.4 
Long-term debt and finance lease obligations, net of current maturities and related costs1,789.6 1,819.7 (1.7)
Total debt2,248.8 2,259.6 (0.5)
Debt, net of unrestricted cash and investments1,395.1 1,388.9 0.4 
Total Allegiant Travel Company shareholders’ equity1,322.2 1,328.6 (0.5)



EPS Calculation

The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands):
Three Months Ended March 31,
20242023
Basic:  
Net income (loss)$(919)$56,149 
Less income allocated to participating securities(354)(1,254)
Net income (loss) attributable to common stock$(1,273)$54,895 
Earnings (loss) per share, basic$(0.07)$3.09 
Weighted-average shares outstanding17,664 17,766 
Diluted:  
Net income (loss)$(919)$56,149 
Less income allocated to participating securities(354)(1,254)
Net income (loss) attributable to common stock$(1,273)$54,895 
Earnings (loss) per share, diluted$(0.07)$3.09 
Weighted-average shares outstanding (1)
17,664 17,766 
Dilutive effect of restricted stock— 104 
Adjusted weighted-average shares outstanding under treasury stock method17,664 17,870 
Participating securities excluded under two-class method— (101)
Adjusted weighted-average shares outstanding under two-class method17,664 17,769 

(1)Dilutive effect of common stock equivalents excluded from the diluted per share calculation is not material.
13

Appendix A
Non-GAAP Presentation
Three Months Ended March 31, 2024
(Unaudited)

Airline operating expense, airline income before income taxes, airline net income, and airline diluted earnings per share all eliminate the effects of non-airline activity as such activity is not reflective of airline operating performance. We also present these airline-only metrics excluding special charges related to aircraft accelerated depreciation on early retirement of certain airframes. Management believes the exclusion of these special charges enhances comparability of financial information between periods. Airline earnings before interest, taxes, depreciation and amortization ("Airline EBITDA") eliminates the effects of non-airline operating activity and other items. As such, all of these are non-GAAP financial measures. We believe the presentation of these measures is relevant and useful for investors because it allows them to better gauge the performance of the airline and to compare our results to other airlines.

We also present both operating expense and CASM excluding aircraft fuel expense as fuel price volatility impacts the comparability of year over year financial performance. We believe the adjustment for fuel expense allows investors to better understand our non-fuel costs and related performance.

We present consolidated operating income (loss), EBITDA, and diluted earnings (loss) per share excluding Sunseeker special charges, net of recoveries, and airline special charges, to exclude the impact of losses and insurance recoveries incurred primarily as the result of hurricanes and other insured events at Sunseeker and to exclude aircraft accelerated depreciation on early retirements of certain airframes. Management believes these measures enhance comparability of financial information between periods.

Consolidated EBITDA, Consolidated EBITDA excluding special charges, and Airline EBITDA excluding special charges, as presented in this press release, are supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). These are not measurements of our financial performance under GAAP and should not be considered in isolation or as an alternative to net income or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity.

We define “EBITDA” as earnings before interest, taxes, depreciation and amortization. We also adjust EBITDA within this release to exclude non-airline activity and special charges. We caution investors that amounts presented in accordance with this definition may not be comparable to similar measures disclosed by other issuers, because not all issuers and analysts calculate EBITDA in the same manner.

We use EBITDA and Airline EBITDA to evaluate our operating performance and liquidity, and these are among the primary measures used by management for planning and forecasting of future periods. We believe these presentations of EBITDA are relevant and useful for investors because they allow investors to view results in a manner similar to the method used by management and make it easier to compare our results with other companies that have different financing and capital structures. EBITDA has important limitations as an analytical tool. These limitations include the following:

•EBITDA does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments to purchase capital equipment;
•EBITDA does not reflect interest expense or the cash requirements necessary to service principal or interest payments on our debt;
•although depreciation and amortization are non-cash charges, the assets that we currently depreciate and amortize will likely have to be replaced in the future, and EBITDA does not reflect the cash required to fund such replacements; and
•other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.

Presented below is a quantitative reconciliation of these adjusted numbers to the most directly comparable GAAP financial performance measure.

The SEC has adopted rules (Regulation G) regulating the use of non-GAAP financial measures. Because of our use of non-GAAP financial measures in this press release to supplement our consolidated financial statements presented on a GAAP basis, Regulation G requires us to include in this press release a presentation of the most directly comparable GAAP measure, which is operating revenue, operating expenses, operating income, income (loss) before income taxes, net income (loss), and net income (loss) per share and a reconciliation of the non-GAAP measures to the most comparable GAAP measure. Our utilization of non-GAAP measurements is not meant to be considered in isolation or as a substitute for operating expenses, income (loss) before income taxes, net income (loss), earnings (loss) per share, or other measures of financial performance prepared in accordance with GAAP. Our use of these non-GAAP measures may not be comparable to similarly titled measures employed by other companies in the airline and travel industry. The reconciliation of each of these measures to the most comparable GAAP measure for the periods is indicated below.

14

Reconciliation of Non-GAAP Financial Measures

Three Months Ended March 31,
20242023
Reconciliation of net income and earnings per share excluding special charges net of recoveries (millions except share and per share amounts)
Net income (loss) as reported (GAAP)$(0.9)$56.1 
Special charges(2)
13.1 (1.6)
Income tax effect of adjustments(1.8)0.8 
Net income excluding special charges net of recoveries(1)(3)
10.4 55.3 
Net income allocated to participating securities(0.4)(1.2)
Net income attributable to common stock excluding special charges net of recoveries(1)(3)
10.0 54.1 
Diluted shares used for computation (GAAP) (thousands)17,664 17,769 
Diluted shares used for computation - excluding special charges net of recoveries (thousands)17,669 17,769 
Diluted earnings (loss) per share as reported (GAAP)$(0.07)$3.09 
Diluted earnings per share excluding special charges net of recoveries(1)(3)
$0.57 $3.04 


Three Months Ended March 31,
20242023
Reconciliation of airline net income excluding special charges and airline earnings per share excluding special charges (millions except share and per share amounts)
Net income (loss) as reported (GAAP)$(0.9)$56.1 
Non-airline loss before taxes13.9 4.4 
Airline special charges(2)
14.9 — 
Income tax effect of adjustments(8.1)(0.6)
Airline net income, excluding special charges(1)(4)
19.8 59.9 
Airline net (income) allocated to participating securities excluding special charges(0.7)(1.3)
Airline net income attributable to common stock excluding special charges(1)(4)
19.1 58.6 
Diluted shares used for computation (GAAP) (thousands)17,664 17,769 
Diluted shares used for computation - airline only excluding special charges (thousands)17,669 17,769 
Diluted earnings (loss) per share as reported (GAAP)$(0.07)$3.09 
Diluted airline earnings per share excluding special charges(1)(4)
$1.08 $3.30 

15

Three Months Ended March 31,
20242023
Reconciliation of airline operating expense, operating income, and income before income taxes excluding special charges (millions)
Operating expense as reported (GAAP)$641.0 $554.9 
Non-airline operating expense32.7 2.8 
Airline operating expense608.3 552.1 
Airline special charges(2)
14.9 — 
Airline operating expense, excluding special charges(1)(4)
$593.4 $552.1 
Operating income as reported (GAAP)$15.4 $94.8 
Non-airline operating loss8.8 2.8 
Airline special charges(2)
14.9 — 
Airline operating income, excluding special charges(1)(4)
$39.1 $97.6 
Airline operating margin, excluding special charges(4)
6.2 %15.0 %
Income (loss) before income taxes as reported (GAAP)$(1.3)$74.4 
Non-airline loss before income taxes13.9 4.4 
Airline special charges(2)
14.9 — 
Airline income before income taxes, excluding special charges(1)(4)
$27.5 $78.8 

Three Months Ended March 31,
20242023
Reconciliation of Airline net income (millions)
Net income (loss) as reported (GAAP)$(0.9)$56.1 
Non-airline loss before taxes13.9 4.4 
Income tax effect of adjustments(1.6)(0.6)
Airline net income(1)
$11.4 $59.9 


Three Months Ended March 31,
20242023
Reconciliation of operating income excluding special charges (millions)
Operating income as reported (GAAP)$15.4 $94.8 
Sunseeker special charges, net of recoveries(2)
(1.8)(1.6)
Airline special charges(2)
14.9 — 
Operating income, excluding special charges(1)(3)
$28.5 $93.2 


16

Three Months Ended March 31,
20242023
Reconciliation of airline operating CASM excluding fuel and special charges (millions)
Consolidated operating expense (GAAP)$641.0 $554.9 
Less fuel expense170.1 189.5 
Less non-airline operating expense32.7 2.8 
Less airline special charges(2)
14.9 — 
Total airline operating expense less fuel and airline special charges(1)(4)
$423.3 $362.6 
System available seat miles (millions)4,772.0 4,677.6 
Cost per available seat mile (cents)13.43 11.86 
Airline-only cost per available seat mile (cents)12.75 11.80 
Airline-only cost per available seat mile excluding fuel and airline special charges (cents)(4)
8.87 7.75 

Three Months Ended March 31,
20242023
Consolidated EBITDA and Consolidated EBITDA, excluding special charges(millions)
Net income (loss) as reported (GAAP)$(0.9)$56.1 
Interest expense, net16.7 20.4 
Income tax expense (benefit)(0.4)18.3 
Depreciation and amortization63.8 54.7 
Consolidated EBITDA(1)
$79.2 $149.5 
Special charges, net of recoveries(2)
13.1 (1.6)
Consolidated EBITDA, excluding special charges(1)(3)
$92.3 $147.9 
Airline EBITDA, excluding special charges (millions)
Income (loss) before taxes as reported (GAAP)$(1.3)$74.4 
Non-airline loss before taxes13.9 4.4 
Airline special charges(2)
14.9 — 
Airline income before taxes, excluding special charges(1)(4)
$27.5 $78.8 
Airline interest expense, net11.6 18.8 
Airline depreciation and amortization57.9 54.6 
Airline EBITDA, excluding special charges(1)(4)
$97.0 $152.2 

(1)Denotes non-GAAP figure.
(2)In 2024 and 2023, we recognized as special charges the full amount of estimated property damage to Sunseeker Resort due to weather and other insured events less the amount of recognized insurance recoveries through the end of the applicable period. Beginning in third quarter 2023, we also recognized aircraft accelerated depreciation as special charges related to our revised fleet plan.
(3)Adjusted to exclude the impacts of property damage to Sunseeker Resort, net of recoveries, and aircraft accelerated depreciation charges resulting from our revised fleet plan.
(4)Adjusted to exclude aircraft accelerated depreciation recognized as special charges related to our revised fleet plan.
*    Note that amounts may not recalculate due to rounding


17
v3.24.1.u1
Cover Page Document
May 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 07, 2024
Entity Registrant Name Allegiant Travel Company
Entity Incorporation, State or Country Code NV
Entity File Number 001-33166
Entity Tax Identification Number 20-4745737
Entity Address, Address Line One 1201 North Town Center Drive
Entity Address, City or Town Las Vegas
Entity Address, State or Province NV
Entity Address, Postal Zip Code 89144
City Area Code 702
Local Phone Number 851-7300
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001362468
Amendment Flag false
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