ALGT Q4 2021 Earnings

Call Details

• Call Title: Allegiant Travel Company Q4 2021 Earnings Call
• Date: February 2, 2022 at 9:30 PM UTC
• Management Team:
  • Sherry Wilson (Managing Director of Investor Relations)
  • Maury Gallagher (Chairman and Chief Executive Officer)
  • John Redmond (President)
  • 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

• Total revenue in Q4 2021 came in 7.8% higher than 2019 on system ASM growth of 13%.
• The company reported adjusted earnings per share of $1.18 for Q4 2021 and adjusted net income of $35M for the full year 2021.
• Full year adjusted operating margin for 2021 was reported at 6.6% on an adjusted basis, net of one-time items.
• Cash balances increased to almost $1.2B, and the company reported a market capitalization of $3.2B as of December 2021.
• Fourth quarter third-party revenue beat 2019 by nearly 54%, while passenger revenue beat 2019 by nearly 9% per marketing commentary.
• The company noted three consecutive profitable quarters in 2021 and 69 consecutive quarters of historical profitability through Q1 2020 underlining historical operating margin strength.

Demand & Capacity

• System ASMs were up 13% in Q4 2021 versus 2019, with the company inducting 13 aircraft into the fleet during 2021.
• Boarded load factors in January finished just shy of 70%, and the company expects peak periods such as March to book over 85%.
• The first quarter ASM guide is stated at plus 19% to plus 23% versus 2019, with March capacity reduced around 11% to protect the schedule.
• Approximately 10% of ASMs in Q4 2021 were in their first 12 months, and just over 12% of first quarter scheduled service ASMs are in their first year of operation.
• The network added 56 new routes and five new airports during Q4, with nine cities added in the year and 13 markets inaugurating service in Q1 2022.
• Management highlighted that 75% of routes remain non-competitive, providing runway for future growth and pricing flexibility in new markets.