Allegiant Travel(ALGT) - 2023 Q1 - Quarterly Report

Financial Performance - Operating revenue for Q1 2023 was $649.7 million, a 29.9% increase year-over-year[62] - Operating income was $94.8 million, resulting in an operating margin of 14.6%[62] - Operating cash inflows increased to $215.4 million in Q1 2023 from $176.0 million in Q1 2022, primarily due to a $64.0 million increase in net income[97] Revenue Sources - Passenger revenue increased by 31.3% compared to Q1 2022, driven by a 24.8% rise in average base fare[78] - The average ancillary revenue per passenger was $75.19, up 10.7% year-over-year, driven by core product strength[62] Passenger Metrics - Total passengers increased by 11.1% year-over-year to 4,148,453 in Q1 2023 from 3,734,262 in Q1 2022[91] - Revenue passenger miles (RPMs) rose by 10.3% to 3,925,362 thousand in Q1 2023 compared to 3,558,045 thousand in Q1 2022[91] - Load factor improved to 85.8%, a 6.9 percentage point increase from the previous year[62] Cost and Expenses - Aircraft fuel expense rose by $25.4 million, or 15.5%, due to an 11.4% increase in average fuel cost per gallon[82] - Salaries and benefits expense increased by $25.6 million, or 19.1%, attributed to a 17.1% rise in full-time equivalent employees[83] - Interest expense increased by $15.9 million, or 80.4%, due to new fixed-rate debt and a rise in the weighted average variable interest rate[88] Debt and Cash Position - Cash, cash equivalents, and investment securities rose to $1.08 billion as of March 31, 2023, up from $1.02 billion at December 31, 2022[92] - Total debt and finance lease obligations slightly increased to $2.13 billion as of March 31, 2023, from $2.12 billion at December 31, 2022[95] - Approximately 82% of the company's debt and finance lease obligations are fixed-rate as of March 31, 2023[96] Future Growth - The company has identified 1,400 incremental routes for future growth, with over 80% lacking current non-stop service[60] Fuel Cost Impact - Average fuel cost per gallon increased by 11.4% to $3.42 in Q1 2023 from $3.07 in Q1 2022[91] - A hypothetical 10% increase in the average price per gallon of fuel would have increased fuel expense by approximately $18.9 million for Q1 2023[107]