ALGT Q1 2024 Earnings

Call Details

• Call Title: Allegiant Travel Company Q1 2024 Earnings Call
• Date: May 7, 2024 at 4:30 PM UTC
• Management Team:
  • Sherry Wilson (Managing Director of Investor Relations)
  • Maury Gallagher (Chairman and Chief Executive Officer)
  • Greg Anderson (President)
  • Micah Richins (President, Sunseeker Resorts)
  • Scott DeAngelo (EVP & Chief Marketing Officer)
  • Drew Wells (SVP and Chief Revenue Officer)
  • Robert Neal (SVP and Chief Financial Officer)

Call Summary

Financial Performance

• Consolidated net income for Q1 2024 was $10.4M and diluted EPS was $0.57.
• Consolidated EBITDA for Q1 2024 was $92.3M, representing an EBITDA margin of just over 14%.
• Airline-only net income was $19.8M, yielding an airline EPS of $1.08 for the quarter.
• Airline EBITDA was $97M in Q1 2024, with an airline EBITDA margin of 15.3%.
• System TRASM for Q1 2024 was 13.23 cents, which was the second highest Q1 TRASM in company history.
• Reported first-quarter adjusted operating margin was 6.2% and was described as below company expectations.
• Fuel averaged $3.03 per gallon in Q1, approximately $0.18 above original expectations.

Guidance

• Second quarter airline adjusted EPS is guided to $1.50 at the midpoint and the airline operating margin is guided to around 8%.
• Second quarter consolidated EPS guidance is $0.75.
• CASMX is expected to increase approximately 7% year over year in Q2 2024.
• The company updated full-year airline CapEx to $475M, down approximately $315M from prior guidance.
• The company updated aircraft delivery and capacity expectations and now plans for six 737 MAX deliveries in 2024 versus 12 previously communicated.
• The first Allegiant-spec 737 MAX is expected to enter revenue service in Q3 2024 after FAA inspection.
• There are two publicly stated capacity expectations in the call: Drew said the company now expects 2% to 4% year-over-year ASM growth, and the CFO stated the company now plans for capacity to be up roughly 3% over prior year.