Financial Data and Key Metrics Changes - The company achieved an adjusted airline only operating margin of over 13% for December, marking a 6.5% increase from the previous year [6] - The airline segment reported a net income of $55.6 million for the fourth quarter, yielding earnings of $3 per share, while the full year consolidated net income was $45.7 million, resulting in a consolidated EPS of $2.48 [27][28] - The airline earned $139.2 million in EBITDA during the fourth quarter, resulting in an EBITDA margin of 22.8%, which is nearly seven points higher than the fourth quarter of 2023 [28] Business Line Data and Key Metrics Changes - The airline revenue for 2024 was $2.44 billion, approximately 2.6% below the prior year, with total ASMs 1.1% higher [16] - Total ancillary revenue per passenger improved to nearly $76, an increase of almost $3 versus 2023 [16] - The airline segment generated full year 2024 net income of $107.5 million or $5.84 of airline only earnings per share [27] Market Data and Key Metrics Changes - The company expects capacity growth of over 15% throughout 2025, with first quarter capacity expected to grow 14% compared to Q1 2024 [13][18] - The dynamics of flying are expected to differ from typical years, with over half of all growth coming in shoulder months like February, April, and August [19] Company Strategy and Development Direction - The company is focused on optimizing existing infrastructure and maintaining a flat aircraft count while driving higher absolute earnings [43] - A significant strategic goal is to transition Sunseeker off Allegiant's balance sheet, with a competitive process for a potential sale or stake sale already underway [9][10] - The company plans to retire 12 aircraft during 2025, closing the year with a total of 122 aircraft in service [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the consumer and the constructive industry capacity backdrop, positioning the company to capitalize on these trends [13] - The midpoint of the airline's full year EPS guidance of $9 suggests an improvement in earnings of over 50% compared to 2024 [13] - Management emphasized the importance of cost discipline and operational excellence as key focuses for 2025 and beyond [36] Other Important Information - The company ended the year with $1.1 billion in available liquidity, including $833 million in cash and investments [29] - A total non-cash impairment of $322 million was recorded in the fourth quarter related to Sunseeker assets [32] Q&A Session Summary Question: Can you help us think about the progression of capacity growth across the quarters? - Management indicated that the first quarter is guided at approximately 14%, with the second and third quarters likely in the low 20s, and the fourth quarter expected to have the lowest year-over-year growth [41] Question: How are you accomplishing the debt paydown related to Sunseeker? - Management explained that the debt on Sunseeker was beginning to amortize, and they wanted to get ahead of it by utilizing cash flow production from the asset and proceeds from equipment sales [50][51] Question: What is the seasonality of the Sunseeker resort? - Management noted that typically the first quarter is the strongest for Sunseeker, followed by the fourth quarter, with summer being the softest period [69] Question: How is spring break booking up across all products? - Management mentioned that while the final week of spring break may look relatively poor due to Easter timing, overall March bookings are looking solid [62] Question: What are the implications for year-end debt and leverage metrics from the potential sale of Sunseeker? - Management stated that the primary focus is on continued improvement of the balance sheet, and cash proceeds from the Sunseeker transaction were not included in the deleveraging assumptions [77]