Allegiant Travel CO Q3 FY2024 earnings call

1. Responded to Hurricanes Helene and Milton by providing aid and relief flights, with the team prioritizing customer and team member safety. 2. Business showed improvement with TRASM turning positive in the back half of September, and airline operating income positive in the seasonally weakest quarter. 3. Three near-term priorities: restoring peak period utilization, bringing MAX aircraft into service, and driving higher unit revenues. 4. Received first MAX aircraft in September, which entered revenue service in mid-October, showing significant operating efficiencies. 5. Retrofitting aircraft for Allegiant Extra and making progress integrating features into the Navitaire reservation system. 6. Sunseeker resort held up well structurally, with the team improving after each storm and showing positive signs in group business for 2025.

Airline: Third quarter airline revenue was $549 million, down slightly year-over-year. TRASM strengthened each month of the quarter, both year-over-year and versus expectations. Fixed-fee performance beat expectations and set a record 3Q performance. Sunseeker: The resort experienced minimal damage from the hurricanes but saw impacting cancellations, tracking slightly below the prior guidance of a $25 million EBITDA loss for the year.

1. Anticipates airline earnings per share of approximately $1 for the fourth quarter, including a $1.25 headwind attributable to Hurricanes Helene and Milton. 2. Consolidated earnings expected at the midpoint of $0.50. 3. Fourth quarter CASM-ex fuel is expected to be flat to up 2% with capacity up about 1% compared to 2023 fourth quarter. 4. Sunseeker is tracking slightly below the prior $25 million EBITDA loss guidance for the year. 5. In 2025, planning to take delivery of 11 MAX aircraft and remove 10 A320ceo family aircraft from operation.

1. Uncertainty in Boeing strike affecting aircraft delivery forecast. 2. Hurricanes causing impact on demand, revenue, and capacity. 3. Pilot strike authorization vote posing potential risk to operations and the business model.

Q: On the capacity side, given Boeing uncertainty, how is the thinking about increasing utilization?

A: For December, it's going full throttle over the holiday period. In the first quarter, there will be a higher percentage of ASMs on peak days than in 2019 and 2024.

Q: On Allegiant Extra, how many are there today and what's the plan in 2025?

A: Sitting at 39-40 today, will bring on 13 more in the next couple of weeks, and eligible Airbus aircraft will be retrofitted in the first half of 2025, with every Boeing received having Allegiant Extra.

Q: On Sunseeker recovery business, any line of sight?

A: About 80% of group business moved to 2025, connected to the FEMA channel, and seeing decent production for FEMA starting in November.

Q: On Navitaire optimization in 2025?

A: Vast majority of upside benefit recovery will take place in the back half of 2025, with some benefits showing through 2025 and the system enabling future agility.

Q: On fleet management and MAX aircraft?

A: Can isolate different fleet types by base, with all-say Airbus and all-Boeing bases, helping mitigate complexity.

Q: On Sunseeker strategic process and holiday bookings?

A: The asset is well-positioned, Q1 2025 EBITDA is expected to be positive, with group business for Q1 2025 at almost 19,000 rooms vs 10,000 last year.

Q: On CapEx next year and pilots?

A: Uncertain on CapEx guide, working in good faith with pilots during mediation.

Q: On Sunseeker book-value and sale?

A: Book-value is in the mid-$600 million area, impairment was $120-140 million, and sale of partial stake depends on circumstances.