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 /PRNewswire/ -- Allegiant Travel Company (NASDAQ:ALGT) today reported the following financial results for the first quarter 2024, as well as comparisons to the prior year: Consolidated Three Months Ended March 31, Percent Change (unaudited) (in millions, except per share amounts) 2024 2023 YoY Total operating revenue $                   656.4 $                   649.7 1.0 % Total operating expense 641.0 554.9 15.5 % Operating income 15.4 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 only Three Months Ended March 31, Percent Change(2) (unaudited) (in millions, except per share amounts) 2024 2023 YoY 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. (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  "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."     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.   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 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 margin 7.0% 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 change 2.0% to 4.0% Scheduled service ASMs - year over year change 2.0% 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.    Full-year 2024 Sunseeker guidance EBITDA (millions) ~(15) Depreciation expense (millions) ~$25 Interest expense (millions) ~$20 Occupancy rate ~45% Average daily rate ~$320   Aircraft Fleet Plan by End of Period Aircraft - (seats per AC) 2Q24 YE24 737-8200 (190 seats) — 6 A320 (177 seats) 17 11 A320 (180-186 seats) 75 75 A319 (156 seats) 34 34 Total 126 126   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. 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: Investor Inquiries: 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 ...