Core Viewpoint - Allegiant Travel Company (ALGT) reported strong first-quarter 2025 earnings, exceeding expectations, with significant growth in operating revenues and passenger revenues despite a decrease in load factor. Financial Performance - First-quarter 2025 earnings per share (excluding non-recurring items) were $1.81, surpassing the Zacks Consensus Estimate of $1.54, and up from 57 cents per share in the same quarter last year [1] - Operating revenues reached $699.1 million, exceeding the Zacks Consensus Estimate of $690.3 million, and improved by 6.5% year-over-year [1] Revenue Breakdown - Passenger revenues, which constituted 88.2% of total revenues, increased by 6.3% year-over-year [2] - Air traffic, measured in revenue passenger miles, improved by 10% year-over-year, while capacity, measured in available seat miles (ASMs), grew by 14.4% [2] - The load factor decreased to 80.5% from 83.8% year-over-year, indicating that traffic growth did not keep pace with capacity expansion [2] Cost and Efficiency - Airline operating costs per available seat mile, excluding fuel, fell by 9% year-over-year to 8.07 cents [3] - Average fuel cost per gallon decreased by 12.2% year-over-year to $2.63 [3] - Total scheduled service passenger revenue per available seat mile declined to 12.29 cents from 13.23 cents a year ago [3] Liquidity and Debt - As of March 31, 2025, total unrestricted cash and investments were $906.3 million, up from $832.8 million at the end of 2024 [4] - Long-term debt and finance lease obligations totaled $1.75 billion, compared to $1.61 billion at the end of 2024 [4] Future Guidance - For Q2 2025, scheduled service ASM is expected to increase by 15.5% year-over-year, with total system ASM projected to gain 15% [5] - The operating margin is anticipated to be between 6% and 8%, with adjusted EPS expected to range from 50 cents to $1 [6] - Fuel cost per gallon is projected to be $2.40 [6] Interest and Fleet Projections - Interest expenses for 2025 are forecasted to be between $150 million and $160 million, with capitalized interest between $15 million and $25 million [7] - The company aims to have a fleet size of 126 by the end of Q2 2025, with projections of 123 and 122 by the end of Q3 2025 and 2025, respectively [7] Market Position - Allegiant currently holds a Zacks Rank 5 (Strong Sell) [8]

Financial Performance - Total operating revenue for Q1 2025 was $699.1 million, a 6.5% increase year-over-year, driven by a 14.2% growth in capacity and an 8.4% increase in passengers[60] - Operating income reached $65.0 million, resulting in an operating margin of 9.3%, with airline-only operating income at $60.9 million and a margin of 9.1%, reflecting a more than five-point improvement from the previous year[60] - The average ancillary fare per passenger was $79.28, up 4.7% year-over-year, supported by the introduction of new ancillary product offerings[60] - Resort and other revenue increased by 27.5% to $30.9 million, with resort occupancy improving to 70.3% compared to 39.2% in Q1 2024[82] - Total system passengers increased by 8.4% to 4,451,306 in Q1 2025 from 4,104,860 in Q1 2024[100] - Operating cash inflows from operating activities were $191.4 million in Q1 2025, up from $167.8 million in Q1 2024, attributed to a $33.0 million increase in net income[110] Cost Management - The airline operating cost per available seat mile (CASM) decreased by 12.6% to 11.14 cents, with CASM excluding fuel down 11.9% to 8.09 cents[84] - Airline operating CASM, excluding fuel and special charges, decreased 9.0% to 8.07¢ from 8.87¢ in Q1 2024, driven by a 14.2% increase in ASMs[85] - Aircraft fuel expense decreased by $3.8 million or 2.2% compared to Q1 2024, primarily due to a 13.9% decrease in average fuel cost per gallon[86] - Salaries and benefits expense increased by $20.9 million or 10.5% compared to Q1 2024, mainly due to a new collective bargaining agreement and a 15.5% increase in total block hours flown[87] - Aircraft fuel expenses accounted for 26.2% of total operating expenses for the three months ended March 31, 2025[118] Fleet and Capacity - The fleet consisted of 127 aircraft as of March 31, 2025, with plans to retire 21 aging airframes by December 2026 to facilitate fleet renewal[58][59] - The company identified over 1,400 incremental domestic nonstop routes for future growth, with 78% currently lacking nonstop service[61] Future Outlook and Risks - The new Navitaire reservation system is expected to restore lost ancillary revenue and generate incremental passenger revenue by the first half of 2026[70] - The company is awaiting U.S. government approval for a commercial alliance with VivaAerobus, which is anticipated to enhance competition and increase nonstop service between the U.S. and Mexico[75][76] - The company has made forward-looking statements regarding future aircraft deliveries and the implementation of a joint alliance with VivaAerobus[113] - Risks include reliance on Boeing for timely aircraft delivery and potential impacts from regulatory reviews[114] - The potential impact of economic conditions on leisure travel is a significant risk factor for the company[114] - The company does not hedge fuel price risk, exposing it to volatility in fuel costs[118] Financial Position - Cash, cash equivalents, and investment securities increased to $906.3 million as of March 31, 2025, from $832.9 million at December 31, 2024[101] - Debt and finance lease obligations decreased from $2.08 billion as of December 31, 2024, to $2.03 billion as of March 31, 2025[107] - Cash used for investing activities was $121.9 million in Q1 2025, compared to $93.6 million in Q1 2024, primarily due to purchases of investment securities[111] - Interest expense increased by $5.6 million or 33.6% compared to Q1 2024, including a $3.4 million loss on debt extinguishment related to the early repayment of the Sunseeker construction loan[97] - As of March 31, 2025, the company had $656.8 million of variable-rate debt, with a potential 100 basis point change in interest rates affecting interest expense by approximately $1.6 million[119] Accounting and Compliance - There have been no material changes to critical accounting estimates during the three months ended March 31, 2025[116] - The company is subject to market risks, particularly related to commodity prices such as aircraft fuel[117]

Core Insights - Allegiant Travel reported revenue of $699.07 million for the quarter ended March 2025, reflecting a 6.5% increase year-over-year, and an EPS of $1.81 compared to $0.57 in the same quarter last year, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Revenue of $699.07 million surpassed the Zacks Consensus Estimate of $690.25 million, resulting in a surprise of +1.28% [1] - EPS of $1.81 exceeded the consensus estimate of $1.54, delivering a surprise of +17.53% [1] - Total passenger revenue was reported at $616.75 million, compared to the average estimate of $605.58 million, marking a year-over-year increase of +6.4% [4] - Operating Revenues from third-party products were $35.20 million, slightly below the estimated $37.84 million, but still showing a +5.4% change year-over-year [4] - Fixed fee contracts revenue was $16.25 million, significantly lower than the estimated $22.04 million, representing a -13.8% change compared to the previous year [4] Key Metrics - Airline operating expense per ASM (CASM) was reported at 11.14 cents, better than the average estimate of 11.74 cents [4] - Available seat miles (ASMs) were 5.31 billion, exceeding the average estimate of 5.24 billion [4] - Revenue passenger miles (RPMs) were 4.27 billion, slightly below the estimated 4.28 billion [4] - Average fuel cost per gallon was $2.6, matching the average estimate [4] - Load factor was reported at 80.5%, slightly below the average estimate of 80.8% [4] - Airline operating CASM, excluding fuel, was 8.07 cents, outperforming the average estimate of 8.59 cents [4] - Total passenger revenue per ASM (TRASM) was 12.29 cents, slightly above the average estimate of 12.22 cents [4] Stock Performance - Allegiant Travel's shares returned +9.8% over the past month, while the Zacks S&P 500 composite increased by +11.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Allegiant Travel reported quarterly earnings of $1.81 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, and showing a significant increase from $0.57 per share a year ago, resulting in an earnings surprise of 17.53% [1] - The company achieved revenues of $699.07 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.28% and increasing from $656.41 million year-over-year [2] - Allegiant Travel has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed the market, losing approximately 46.4% since the beginning of the year, compared to a decline of 3.9% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $2.27 on revenues of $721.29 million, and for the current fiscal year, it is $5.27 on revenues of $2.75 billion [7] - The Transportation - Airline industry, to which Allegiant Travel belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Data and Key Metrics Changes - The company reported consolidated net income of $33.4 million, resulting in earnings per share of $1.81, with airline segment net income at $39 million and airline earnings per share at $2.11, both within original guidance [30] - Airline operating margin improved to 9.3%, up three percentage points year over year, with EBITDA reaching $121 million, a 25% increase from the previous year, resulting in an EBITDA margin of 18.1% [9][31] - Fuel costs were $2.61 per gallon, aligning with initial expectations, while total airline operating expenses were approximately $600 million, about 2% above the previous year [31] Business Line Data and Key Metrics Changes - The airline achieved a controllable completion rate of 99.9% on 32,000 departures, with over 4.4 million passengers, a first-quarter record, and 75% being repeat customers [8] - Ancillary revenue per passenger reached a record $79.28, up nearly 5% year over year, driven by the expansion of Allegiant Extra and improvements in the booking system [24] - The company increased aircraft utilization by approximately 19% to 7.5 hours per aircraft per day, although still more than 10% lower than other reported carriers [21][22] Market Data and Key Metrics Changes - The company noted robust demand for peak leisure travel, with adjustments made to capacity in response to economic uncertainty and consumer confidence [10][11] - The company removed approximately 7.5 points of capacity from May through August, focusing on off-peak days, with a significant portion of cuts coming from Tuesday, Wednesday, and Saturday flights [24] - Recent booking trends have shown promise, with expectations for continued recovery and growth in demand [27] Company Strategy and Development Direction - The company aims to maintain a strong industry-leading balance sheet while pursuing a transaction related to the sale of the Sunseeker resort, which is on track for completion this summer [18] - Allegiant's strategy focuses on minimizing competitive overlap, optimizing aircraft utilization, and maintaining a low-cost structure to cater to leisure travelers [12] - The company is committed to managing capacity and costs aggressively while adapting to changing demand environments [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt and deliver strong results despite economic challenges, emphasizing the importance of operational flexibility [19] - The outlook for the second quarter anticipates airline-only operating margin of approximately 7% and consolidated earnings per share of $0.50, with a focus on maintaining cost discipline [36] - Management highlighted the need for continued monitoring of the demand environment and the potential for further capacity adjustments in the second half of the year [52][78] Other Important Information - The company ended the quarter with $1.2 billion in available liquidity, including $906 million in cash and investments, and $275 million in undrawn revolvers [33] - Capital expenditures during the quarter were $83 million, with expectations for reduced capital expenditure forecasts due to a slower delivery schedule [35] - The company anticipates 12 MAX aircraft deliveries during 2025, three more than previously estimated, while planning to offset these with the removal of older aircraft [35] Q&A Session Summary Question: Can you speak to the margin trajectory for the second half of the year? - Management indicated that while they are not providing full-year guidance, they will continue to manage capacity and costs aggressively to optimize margins, with the third quarter typically being the softest [41][44] Question: Can you provide an update on the Sunseeker process and its revenue generation? - Management confirmed that the process remains on track for a summer transaction, with food and beverage revenues split 70% from hotel guests and 30% from locals, indicating sustainability in earnings [45][48] Question: What is the current fuel cost and capacity outlook? - The company is using $2.4 per gallon for fuel cost assumptions, with a capacity expectation of around 13% for the year, remaining flexible to adjust based on demand [50][51] Question: How does the company view the current demand stabilization? - Management noted recent improvements in demand, particularly in the last week, with expectations for a solid performance during peak periods [60][62] Question: What are the expectations for RASM in Q2? - Management anticipates a greater year-over-year decline in RASM for Q2 compared to Q1, with a mid-single-digit variance expected [66][67] Question: Why has the company not pulled down more capacity? - Management explained that the current capacity adjustments are margin-optimizing, and further cuts could jeopardize the infrastructure needed for future growth [75][85]

Financial Data and Key Metrics Changes - The company reported consolidated net income of $33.4 million, resulting in consolidated earnings per share of $1.81, with airline segment net income of $39 million yielding airline-only earnings per share of $2.11 [28] - Airline operating margin improved to 9.3%, up three percentage points year-over-year [7] - EBITDA for the airline segment reached $121 million, a 25% increase compared to Q1 2024, resulting in an EBITDA margin of 18.1% [28][29] Business Line Data and Key Metrics Changes - The airline achieved a controllable completion rate of 99.9% on 32,000 departures, a 14% increase from the previous year [6] - Ancillary revenue per passenger reached a record $79.28, up nearly 5% year-over-year, driven by the expansion of Allegiant Extra [22] - The number of active cardholders in the loyalty program increased by nearly 7% year-over-year [6] Market Data and Key Metrics Changes - The company experienced a 14.2% growth in total available seat miles (ASMs) with stage length increasing by about 1.6% [19] - Despite the growth, aircraft utilization increased by approximately 19% to 7.5 hours per aircraft per day, although it remains over 10% lower than other reported carriers [19] - The company anticipates a 15.5% year-over-year increase in ASMs for Q2 [23] Company Strategy and Development Direction - The company is focused on maintaining flexibility in capacity management and cost discipline to protect margins amid economic uncertainty [9][10] - Allegiant's strategic design emphasizes tactical utilization and a long-term fleet strategy aimed at minimizing fixed costs while maximizing profitability [10] - The company is pursuing a transaction related to the sale of the Sunseeker resort, which is expected to be completed by summer [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while peak leisure demand remains healthy, they are adapting capacity in response to economic uncertainty and consumer confidence [8][9] - The company is optimistic about recent booking trends and anticipates continued strength in strategic initiatives [24] - Management emphasized the importance of operational flexibility and the ability to adapt to changing market conditions [16] Other Important Information - The company ended the quarter with $1.2 billion in available liquidity, including $926 million in cash and investments [31] - Total debt decreased by 10% year-over-year to $2 billion, reflecting proactive debt repayment strategies [31] - The company plans to reduce capital expenditures by $80 million for the year, adjusting to a more moderated CapEx environment [33] Q&A Session Summary Question: Can you discuss the margin trajectory for the second half of the year? - Management indicated that they will continue to aggressively manage capacity and costs to optimize margins, with the third quarter typically being the softest [41][42] Question: What is the status of the Sunseeker resort sale process? - The process remains on track for completion by summer, with a focus on well-capitalized counterparties [46] Question: What are the current fuel cost assumptions? - The company is using $2.4 per gallon for fuel cost assumptions for the remainder of the year [49] Question: Can you provide insights on the RASM expectations for Q2? - Management expects RASM to face greater year-over-year pressure in Q2 compared to Q1, with a mid-single-digit decline anticipated [66] Question: How does the company view potential M&A opportunities in the current environment? - Management believes that while consolidation in the industry is necessary, Allegiant's strong model positions it well to outperform without needing to pursue M&A aggressively [84][85]

"Team Allegiant executed a successful first quarter, delivering an airline-only operating margin of 9.3 percent, a three-point improvement from last year and among the best in the industry," stated Gregory Anderson, president and CEO of Allegiant Travel Company. "These financial results were underscored by our excellent operations, as the team achieved a 99.9 percent controllable completion during the quarter on 14.2 percent capacity growth. Exhibit 99.1 ALLEGIANT TRAVEL COMPANY FIRST QUARTER 2025 FINANCIAL ...

Allegiant Travel Company (ALGT) Summary - Scheduled traffic increased by 15.9% in March 2025 compared to March 2024, while capacity rose by 20.7% year over year [1] - The load factor decreased to 82.4% in March 2025 from 85.9% in the previous year due to capacity expansion outpacing traffic growth [1] - Total departures for scheduled services rose by 21.1% year over year in March 2025, with an average stage length increase of 1.1% [2] - Allegiant carried 14.2% more passengers system-wide in March 2025 compared to the same month last year, with system-wide capacity improving by 20.2% [2] - The estimated fuel price per gallon was $2.52 in March 2025 and $2.61 for the first quarter of 2025 [3] Competitor Analysis - Copa Holdings reported a year-over-year increase in revenue passenger miles in March 2025, with available seat miles rising by 5.5% [6][7] - LATAM Airlines experienced a 7.2% increase in consolidated capacity and a 5.6% rise in revenue passenger kilometers, despite the impact of the Carnival holidays [9][10] - Ryanair Holdings transported 15 million passengers in March 2025, reflecting a 10% year-over-year increase, with a stable load factor of 93% [12][13] - Ryanair operated over 84,000 flights in March 2025, a significant increase from previous months, and achieved a milestone of carrying 200 million passengers in its fiscal year ending March 2025 [14]

Group 1 - Allegiant Travel Company has scheduled its first quarter 2025 financial results conference call for May 6 at 4:30 p.m. EST [1] - The conference call will be available via live broadcast on the company's Investor Relations website and will be archived for later access [1] - Allegiant is an integrated travel company with a focus on connecting customers to key destinations through its airline services [2] Group 2 - Allegiant Air has been operational since 1999, providing nonstop flights from small-to-medium cities to major vacation destinations [2] - The company offers base airfares that are less than half the cost of the average domestic roundtrip ticket, highlighting its competitive pricing strategy [2]

Core Insights - Allegiant Travel Company reported a significant increase in passenger traffic for March 2025, with a total of 1,887,902 passengers, representing a 14.4% increase compared to March 2024 [2] - The company also experienced growth in revenue passenger miles (RPM) and available seat miles (ASM), with RPM increasing by 15.9% and ASM by 20.7% year-over-year [2] - The load factor decreased by 3.5 percentage points to 82.4%, indicating a slight decline in seat occupancy [2] Scheduled Service – Year Over Year Comparison - March 2025 passengers: 1,887,902 vs. March 2024: 1,649,826, a change of 14.4% [2] - Revenue passenger miles (000): March 2025: 1,819,246 vs. March 2024: 1,569,978, a change of 15.9% [2] - Available seat miles (000): March 2025: 2,206,943 vs. March 2024: 1,828,212, a change of 20.7% [2] - Load factor: March 2025: 82.4% vs. March 2024: 85.9%, a decrease of 3.5 percentage points [2] - Departures: March 2025: 13,407 vs. March 2024: 11,075, an increase of 21.1% [2] - Average stage length (miles): March 2025: 940 vs. March 2024: 930, an increase of 1.1% [2] 1st Quarter 2025 Results - Passengers: 4,420,811 in Q1 2025 vs. 4,069,519 in Q1 2024, an increase of 8.6% [4] - Revenue passenger miles (000): Q1 2025: 4,271,328 vs. Q1 2024: 3,883,810, an increase of 10.0% [4] - Available seat miles (000): Q1 2025: 5,305,191 vs. Q1 2024: 4,636,922, an increase of 14.4% [4] - Load factor: Q1 2025: 80.5% vs. Q1 2024: 83.8%, a decrease of 3.3 percentage points [4] - Departures: Q1 2025: 32,133 vs. Q1 2024: 28,177, an increase of 14.0% [4] - Average stage length (miles): Q1 2025: 941 vs. Q1 2024: 926, an increase of 1.7% [4] Total System – Year Over Year Comparison - March 2025 total passengers: 1,904,613 vs. March 2024: 1,668,252, a change of 14.2% [5] - Available seat miles (000): March 2025: 2,275,018 vs. March 2024: 1,892,229, a change of 20.2% [5] - Departures: March 2025: 13,885 vs. March 2024: 11,585, an increase of 19.9% [5] - Average stage length (miles): March 2025: 935 vs. March 2024: 921, an increase of 1.6% [5] - Q1 2025 total passengers: 4,451,306 vs. Q1 2024: 4,104,860, an increase of 8.4% [5] - Q1 2025 available seat miles (000): 5,451,584 vs. Q1 2024: 4,771,971, an increase of 14.2% [5] - Q1 2025 departures: 33,235 vs. Q1 2024: 29,225, an increase of 13.7% [5] - Q1 2025 average stage length (miles): 935 vs. Q1 2024: 919, an increase of 1.8% [5] Preliminary Financial Results - Estimated average fuel cost per gallon for March 2025: $2.52 [6] - Estimated average fuel cost per gallon for Q1 2025: $2.61 [6] Company Overview - Allegiant Travel Company is an integrated travel company based in Las Vegas, focusing on connecting customers with various destinations through its airline services [7] - The company has been operational since 1999, providing nonstop flights from small-to-medium cities to vacation destinations at competitive fares [7]