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]

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]