ALGT Q1 2022 Earnings

Call Details

• Call Title: Allegiant Travel Company Q1 2022 Earnings Call
• Date: May 4, 2022 at 8:30 PM UTC
• Management Team:
  • Sherry Wilson (Managing Director of Investor Relations)
  • Maury Gallagher (Chairman and Chief Executive Officer)
  • John Redmond (President and Incoming Chief Executive Officer)
  • Greg Anderson (EVP and Chief Financial Officer)
  • Scott Sheldon (EVP and Chief Operating Officer)
  • Scott DeAngelo (EVP and Chief Marketing Officer)
  • Drew Wells (SVP of Revenue and Planning)

Call Summary

Financial Performance

• The company reported a net loss of $7.9M for the first quarter of 2022.
• Total revenue for the quarter was $500M, the first time Allegiant exceeded that milestone.
• First quarter TRASM for the quarter finished at 10.78 cents, with March TRASM at 12.86 cents.
• March produced an operating margin north of 21% and net income of $36M for the month.
• Q1 results were impacted by $16M in customer compensation related to IROPS and a $7M team recognition bonus accrual.
• The company reported liquidity of $1.2B and net debt of approximately $550M as of the quarter end.

Guidance

• Second quarter guidance assumes system ASMs growth of roughly 9% to 13% and scheduled service ASMs of plus 10% to plus 14% versus 2019.
• The company expects total revenue in Q2 to be up approximately 28% to 32% versus 2019 and total revenue in excess of $600M for the quarter.
• Second quarter guidance assumes an average fuel price of $4.00 per gallon.
• The company expects an operating margin north of 12% for the second quarter.
• The company trimmed planned Q2 capacity by roughly 10 percentage points in February due to staffing and fuel volatility.
• The company expects second quarter CASM ex-fuel (CASMEC) to be up 14% year over three years.