Allegiant Travel(ALGT) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter 2024 total operating revenue was $627.7 million, a 2.7% increase from $611.0 million in Q4 2023[2] - Full-year 2024 total operating revenue reached $2.5 billion, up 0.1% year-over-year[3] - Total operating revenues for Q4 2024 increased by 2.7% year-over-year to $627.7 million, driven by a 20.6% increase in third-party products revenue[29] - Total operating revenues for the twelve months ended December 31, 2024, were $2,512.6 million, an increase from $2,440.8 million in 2023, representing a growth of 2.9%[56] Earnings and Losses - Fourth quarter 2024 adjusted airline-only diluted earnings per share was $3.00, a significant increase of 248.8% compared to $0.86 in Q4 2023[3] - Full-year 2024 adjusted airline-only diluted earnings per share was $5.84, down 33.8% from $8.82 in 2023[3] - The company recorded a net loss of $216.2 million in Q4 2024, compared to a net loss of $2.0 million in Q4 2023[2] - The company reported a net loss of $240.24 million for the twelve months ended December 31, 2024, compared to a net income of $117.60 million in 2023[36] - The company reported a net loss of $216.2 million for Q4 2024, compared to a loss of $2.0 million in Q4 2023, and a net loss of $240.2 million for the full year 2024, down from a profit of $117.6 million in 2023[58] Operating Expenses - Operating expenses for Q4 2024 rose by 48.5% year-over-year to $891.7 million, with significant increases in special charges and maintenance costs[29] - Total operating expenses rose to $2,752.6 million in 2024, compared to $2,288.9 million in 2023, marking an increase of 20.3%[38] - The company reported total operating expenses of $2,752.6 million for the twelve months ended December 31, 2024, compared to $2,298.6 million in 2023, an increase of 19.7%[56] Capacity and Guidance - The company plans a 17% increase in capacity for 2025, which is expected to pressure unit revenues but improve earnings due to efficient growth[5] - First quarter 2025 airline-only guidance projects a year-over-year change in System ASMs of approximately 13.5% and Scheduled service ASMs of approximately 14.0%[18] - Full-year 2025 airline-only guidance anticipates a year-over-year change in System ASMs of approximately 16.0% and Scheduled service ASMs of approximately 17.0%[18] Special Charges and Impairments - Special charges, net of recoveries, amounted to $368.13 million for the twelve months ended December 31, 2024, compared to $28.65 million in 2023[36] - The company incurred $321.8 million in impairment charges related to Sunseeker for the three months ended December 31, 2024[55] - The company incurred special charges of $368.1 million for the twelve months ended December 31, 2024, compared to $28.6 million in 2023, indicating increased restructuring costs[57] Liquidity and Debt - Total available liquidity at December 31, 2024, was $1.1 billion, including $832.8 million in cash and investments[16] - Total debt decreased to $2,066.5 million in 2024 from $2,259.6 million in 2023, representing a reduction of 8.5%[41] - Unrestricted cash and investments increased to $832.8 million in 2024, up 99.5% from $143.3 million in 2023[41] Passenger Metrics - Total passengers for the three months ended December 31, 2024, were 3,999,879, a decrease of 3.5% from 4,145,771 in 2023[34] - Total passengers carried decreased by 2.1% to 16,982,836 in 2024 from 17,342,236 in 2023[40] Fuel Costs and Load Factor - The average fuel cost per gallon decreased by 22.1% to $2.50 for the three months ended December 31, 2024, down from $3.21 in 2023[34] - The average fuel cost per gallon decreased to $2.76 in 2024 from $3.09 in 2023, a decline of 10.7%[40] - The load factor for scheduled service decreased to 80.2% for the three months ended December 31, 2024, compared to 83.3% in the same period of 2023[34] - The load factor for scheduled services dropped to 83.6% in 2024 from 85.9% in 2023, a decrease of 2.3 percentage points[40] Non-GAAP Measures - The company highlighted the importance of non-GAAP measures like EBITDA for evaluating operating performance and liquidity, which may not be comparable to similar measures used by other companies[50] - The SEC's Regulation G requires the company to reconcile non-GAAP measures to the most comparable GAAP measures, ensuring transparency in financial reporting[52]