Allegiant's Business Model and Performance - Allegiant operates a unique ULCC model focusing on leisure customers with diversified revenue streams and low competition on 75% of its routes[4] - As of March 31, 2023, Allegiant has $2.5 billion in revenue (TTM) and a 23% EBITDA margin for 1Q23[6] - Allegiant has optimized performance even in high fuel environments, as shown by its adjusted pre-tax margin from 2005-2022[7,8] Network and Capacity Management - Allegiant serves 572 routes, connecting 93 small/medium cities with 32 leisure destinations[11] - The airline expertly matches capacity with demand trends, adjusting aircraft utilization based on the day of the week and seasonality[16,17] - Allegiant has a high percentage of non-competitive routes, with 449 routes without competition as of 2023[14] Revenue and Financials - Third-party product sales contribute significantly, with cumulative revenue of $734 million as of 2022[19] - The Allways Rewards credit card program has over 400,000 active cardholders and generated over $100 million in remuneration in FY2022[26] - Allegiant's revenue per passenger in 1Q23 was $154, with TRASM increasing by 28% year-over-year[31,33] - The company projects a consolidated EPS of $9.75 for 2023[35] Future Investments and Fleet - Allegiant projects $986 million in capital expenditures for 2023, including $206 million for the Sunseeker Resort and $560 million for aircraft and engines[43] - The company is investing in Boeing 737 MAX aircraft, expecting a ~40% increase in EBITDA per aircraft over the current fleet[52]

Business Model & Performance - Allegiant operates a unique ULCC model focusing on leisure customers, with 75% of routes having no nonstop competition[4] - The company's revenue reached $2.5 billion (TTM as of June 30, 2023) with a 26% EBITDA margin in 2Q23[4] - Allegiant's adjusted pre-tax margin has shown resilience, even in high fuel environments, outperforming the industry in many years[7, 8] Fleet & Network - Allegiant has 126 aircraft, including 91 A320s and 35 A319s, and an order book for 50 Boeing 737 MAX aircraft with 50 options[5] - The airline serves 555 routes connecting 33 leisure destinations and 91 small/medium cities[4, 11] - The company strategically matches capacity with demand, adjusting aircraft utilization based on demand trends[16, 17] Revenue Diversification - Third-party product sales contribute significantly, with cumulative operating income of $789 million as of June 30, 2023[5] - The Allways Rewards credit card program has over 400,000 active cardholders and generated over $100 million in remuneration in FY2022[23, 27] - Allways Rewards members demonstrate 35% higher booking frequency and a 40% increase in average transaction size[30] Financial Position & Future Investments - Allegiant's net debt is $1.111 billion with a net debt to EBITDA ratio of 2.2x as of 2Q23[41] - The company's total unrestricted cash and investments stand at $1.047 billion as of 2Q23[43] - Projected capital expenditures for 2023 total $908 million, including $206 million for the Sunseeker Resort and $495 million for aircraft, engines, and related costs[46]

Business Model and Operations - Allegiant operates a unique leisure carrier model focusing on low-cost, low-utilization, and matching demand trends from small/medium cities to leisure destinations[6] - The company has diversified revenue streams, with airfare at $66.2 per passenger, air ancillary at $66.4 per passenger, and third-party revenue at $7.6 per passenger[6] - Allegiant's route network includes 558 routes, connecting 91 small/medium cities to 33 leisure destinations as of June 30, 2024[12] - The airline is increasing capacity during peak leisure months and reducing it during low-demand months, with 20% of departures per day in 2024[5] Fleet and Expansion - As of June 30, 2024, Allegiant operates 92 A320 and 34 A319 aircraft[7] - The company has an order book of 50 firm and 80 options for new aircraft[7] - The introduction of Boeing 737 aircraft is expected to increase fuel efficiency by up to 20% per passenger compared to the existing Airbus fleet[82] Financial Performance - Allegiant's total revenue for the trailing twelve months (TTM) as of June 30, 2024, was $2.5 billion[6] - The airline ended 2Q24 with approximately 525,000 total cardholders in its Allways Rewards Visa program[29] - The company's net debt as of 2Q24 is $1.368 billion, with a net debt to EBITDA ratio of 3.8x[67] - The airline's unrestricted cash and investments totaled $851 million as of 2Q24[69]

Aircraft Utilization & Operations - Aircraft utilization was approximately 20% below 2019 levels during July [4] - December aircraft utilization is scheduled to be within 6% of 2019 levels [4, 8] - March aircraft utilization is expected to be within 5% of 2019 levels [4, 8] - The company received its first Boeing 737 MAX in September 2024 and entered revenue service in mid-October 2024 [4, 14] Financial Performance & Outlook - The company expects 2024 cobrand remuneration to exceed $140 million with continued growth in 2025 [4] - Hurricane impact is expected to reduce 4Q24 Airline EPS by $1.25, from $2.25 to $1.00 [17] - Total liquidity at the end of the quarter was $1.1 billion, including $805 million in cash and investments and $275 million in undrawn revolver capacity [24] - The company made principal payments totaling $107 million, including $60.6 million prepayment of debt on PDP loans [24] - The company anticipates interest expense between $150 million and $160 million for FY 2024 [26] Fleet & Efficiency - The 737-8200 offers a 26% increase in ASMs per gallon compared to the A320 [12] - The 737-8200 adds 10 seats per departure compared to the A320 [12] Sunseeker Resort - Sunseeker is expected to have an EBITDA loss between $(25) million and $(30) million for FY 2024, excluding special charges [29]

Financial Performance - The company achieved an adjusted airline-only operating margin of 13.2% in 4Q24, a 6.6 percentage point increase from 6.6% in 4Q23[9, 12] - Consolidated adjusted earnings per share were $2.10 in 4Q24, up from $0.11 in 4Q23[23] - Airline-only adjusted earnings per share were $3.00 in 4Q24, compared to $0.86 in 4Q23[25] - Total airline revenue for the fourth quarter was nearly $610 million[17] Operational Efficiency and Growth - December capacity increased by 16% year-over-year[12] - Aircraft utilization averaged 9.6 hours per day in December, a 21% increase year-over-year[10, 12] - Adjusted airline non-fuel unit costs (CASM-ex) decreased by 2.5% year-over-year to 8.29 cents[26] Strategic Initiatives and Outlook - Scheduled service ASMs are projected to grow by 14% in 1Q25 and 17% for the full year 2025[17] - The company expects to fully recapture $2 per passenger from Navitaire optimization in the first half of 2025[17] - The company ended the year with $1.1 billion in available liquidity[29] - Full-year airline-only earnings per share, excluding special charges, are projected to be $7.75 - $10.25 in FY2025[34]

Industry Overview - The overall air travel demand in the United States remains strong despite some tariff-related challenges, supported by declining oil prices and easing geopolitical tensions [1][2] - The airline industry has experienced a price increase of over 34% in the past three months, outperforming the S&P 500 Index [3] Upcoming Travel Trends - The Transportation Security Administration (TSA) projects over 18.5 million passengers will be screened during the July 4 holiday weekend, with July 6 expected to be the busiest day [7][9] - U.S. airlines will operate 4% more flights compared to the previous year, translating to approximately 27,000 daily scheduled flights [7][9] Airline Stock Highlights - SkyWest (SKYW) has seen a stock gain of 32% over the past three months, with earnings surpassing estimates by an average of 17.1% in the last four quarters [11] - Delta Air Lines (DAL) has experienced a 34% stock increase in the last three months, with a recent 25% hike in quarterly dividend payouts [12][13] - Allegiant Travel Company (ALGT) is benefiting from strong air travel demand and aims to expand its fleet to 122 by the end of 2025, with an average earnings beat of 32.7% in the last four quarters [13][14]

Allegiant Travel (ALGT) shares rallied 6.2% in the last trading session to close at $58.37. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.4% loss over the past four weeks.The uptick was primarily due to ALGT's rosy traffic numbers for May. In May, scheduled traffic (measured in revenue passenger miles) rose 10.2% year over year at Allegiant. Capacity (measured in available seat miles) for scheduled servic ...

Core Insights - Allegiant Travel Company reported a 9.2% increase in scheduled service passengers for May 2025 compared to May 2024, totaling 1,545,033 passengers [2] - The company experienced a 10.2% rise in revenue passenger miles, reaching 1,391,969 thousand miles, while available seat miles increased by 16.3% to 1,732,505 thousand miles [2] - The load factor decreased by 4.5 percentage points to 80.3%, indicating a slight decline in seat occupancy [2] - Total system passengers also rose by 9.4% year-over-year, totaling 1,563,294 passengers, with available seat miles increasing by 16.5% [2] - The average fuel cost per gallon for May 2025 was estimated at $2.37 [4] Scheduled Service – Year Over Year Comparison - Passengers increased from 1,414,692 in May 2024 to 1,545,033 in May 2025, a change of 9.2% [2] - Revenue passenger miles rose from 1,263,087 thousand miles to 1,391,969 thousand miles, reflecting a 10.2% increase [2] - Available seat miles grew from 1,489,477 thousand miles to 1,732,505 thousand miles, marking a 16.3% increase [2] - The load factor decreased from 84.8% to 80.3%, a decline of 4.5 percentage points [2] - Departures increased from 9,615 to 11,174, a rise of 16.2% [2] - Average stage length remained relatively stable, increasing slightly from 882 miles to 884 miles [2] Total System – Year Over Year Comparison - Total system passengers increased from 1,428,599 in May 2024 to 1,563,294 in May 2025, a 9.4% increase [2] - Available seat miles for the total system rose from 1,538,208 thousand miles to 1,791,988 thousand miles, a 16.5% increase [2] - Departures for the total system increased from 9,976 to 11,641, a rise of 16.7% [2] - Average stage length for the total system increased slightly from 877 miles to 878 miles [2]

Core Viewpoint - Allegiant Travel Company (ALGT) has experienced a significant decline in share price, underperforming compared to its industry peers and facing multiple headwinds impacting its financial outlook [1][3][7]. Group 1: Stock Performance and Market Position - ALGT shares have declined in double digits this year, leading to underperformance relative to industry competitors such as Southwest Airlines and Ryanair [1]. - The company has withdrawn its 2025 guidance due to weak macroeconomic trends, fleet delays, and unpredictable travel demand [3][7]. Group 2: Operational Challenges - ALGT is facing challenges from tariff-induced economic uncertainties, which may reduce domestic air travel demand and consumer confidence [3]. - Production delays at Boeing are affecting ALGT's fleet expansion plans, leading to increased maintenance costs and limiting capacity growth [4]. - Labor costs are projected to increase by 19.2% in 2024, overshadowing a decrease in aircraft fuel costs by 9.8% [5]. Group 3: Financial Performance and Outlook - Despite challenges, ALGT reported a 6.5% year-over-year revenue growth in Q1 2025, primarily driven by a 6.3% rise in passenger revenues [7]. - The company ended Q1 2025 with cash and cash equivalents of $897.6 million, significantly higher than its current debt level of $266.6 million, indicating a strong liquidity position [15]. - ALGT's balance sheet allows for shareholder returns, with $21.9 million in dividends and $6 million in share repurchases in 2024, and $11.1 million in share repurchases in Q1 2025 [16]. Group 4: Fleet Modernization and Capacity Growth - ALGT is modernizing its fleet, transitioning to an all-Airbus fleet and incorporating new Boeing 737 MAX aircraft, which are expected to improve fuel efficiency [10][11]. - The company aims to increase its capacity by 15.5% year-over-year for scheduled service in Q2 2025, despite current operational challenges [9]. Group 5: Valuation and Investment Considerations - ALGT is currently trading at a discount compared to the industry based on its forward price-to-sales ratio, indicating an attractive valuation [17]. - The company has a Value Score of A, reflecting its potential for future growth despite current headwinds [17].

For second consecutive year, Allegiant wins for its exceptional customer serviceLAS VEGAS, June 23, 2025 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) has been named   2025's Best Low-Cost Airline in North America by Skytrax, the international air transport rating organization. This is the second consecutive year Allegiant has won this award.The Las Vegas-based airline received the recognition during Skytrax's World Airline Awards ceremony held at the Paris Air Show in June. Known as the "Oscars o ...