ALGT Q1 2023 Earnings

Call Details

• Call Title: Allegiant Travel Company Q1 2023 Earnings Call
• Date: May 3, 2023 at 4:30 PM UTC
• Management Team:
  • Sherry Wilson (Managing Director of Investor Relations)
  • John Redmond (Chief Executive Officer)
  • Greg Anderson (President)
  • Scott DeAngelo (EVP & Chief Marketing Officer)
  • Drew Wells (SVP and Chief Revenue Officer)
  • Robert Neal (SVP and Chief Financial Officer)
  • Kenny Wilford (Chief Operating Officer)

Call Summary

Financial Performance

• The company reported GAAP earnings per share of $3.09 for Q1 2023.
• Consolidated net income for Q1 2023 was $56.1 million and consolidated adjusted EPS was $3.04.
• Airline-only EPS excluding Sunseeker was $3.30 for the quarter.
• Total revenue for Q1 2023 was $650 million, which management stated was nearly 30% higher year-over-year.
• Cash from operations was roughly $215 million for the quarter, a first-quarter company high.
• Total available liquidity finished the quarter at $1.5 billion, including approximately $400 million of undrawn credit facilities and $1.1 billion of cash and cash equivalents.

Guidance

• The company raised its full-year airline estimated EPS midpoint by $4 and provided a new full-year airline EPS range of $9 to $13.
• The CEO separately referenced raising the midpoint of full-year EPS guidance to roughly $9.75 per share.
• The company trimmed full-year capacity by roughly 2.5 percentage points and is now guiding 0% to 3% ASM growth for 2023.
• Company guidance now assumes increased labor costs for pilots, flight attendants, dispatchers, and maintenance technicians beginning May 1, 2023 instead of July 1, 2023.
• The updated guidance incorporates a reduced full-year fuel cost forecast of $3.00 per gallon down from $3.60 per gallon.
• The company stated it is not providing a formal CHASM full-year number and is keeping quarterly cadence guidance limited.