ALGT Q2 2024 Earnings

Call Details

• Call Title: Allegiant Travel Company Q2 2024 Earnings Call
• Date: July 31, 2024 at 8:30 PM UTC
• Management Team:
  • Sherry Wilson (Managing Director of Investor Relations)
  • Maury Gallagher (Executive Chairman and CEO)
  • Greg Anderson (President and incoming CEO)
  • Scott DeAngelo (EVP and Chief Marketing Officer)
  • Drew Wells (SVP and Chief Revenue Officer)
  • Robert Neal (SVP and Chief Financial Officer)
  • Micah Richins (President of Sunseeker Resort)

Call Summary

Financial Performance

• Consolidated net income for the quarter was $32.5M, producing consolidated EPS of $1.77 on an adjusted basis.
• Consolidated EBITDA was $118.3M, representing an EBITDA margin of 17.8% for the quarter.
• Airline adjusted net income was $41M, yielding an airline EPS of $2.24 for the quarter.
• Airline EBITDA was $126.3M, corresponding to an airline EBITDA margin of 19.4% for the quarter.
• Second quarter airline revenue was $649.5M and system TRASM was 13.03 cents, with TRASM down approximately 4.5% versus 2Q23.
• System ASMs decreased 0.8% year over year versus 2Q23 while remarking double-digit TRASM and ASM gains versus the first half of 2019 on a comparable basis.

Guidance

• Third quarter unit revenues are expected to be down approximately 7.5% year over year.
• For the third quarter, the company estimates fuel cost of $2.80 per gallon and expects the systems outage to reduce margin by about three points.
• Third quarter CASMX is expected to increase roughly 7% year over year with roughly three points related to the system outage and four points from labor and ground handling.
• Full year capacity is now expected to increase roughly 1.5% versus 2023 due to Boeing delivery delays.
• Full year 2024 capital expenditures are now expected to be roughly $400M, of which $190M is aircraft or engine related.
• The company removed roughly three points of capacity from the fourth quarter and now expects fourth quarter CASMX to be up low single digits year over year.