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Press Release | Investor Relations | Allegiant Air


Allegiant Travel Company Second Quarter 2015 Financial Results

LAS VEGAS, July 29, 2015 (GLOBE NEWSWIRE) -- Allegiant Travel Company (NASDAQ:ALGT) today reported the following financial results for the second quarter 2015.

“We are very proud to report our 50th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “This is rare in our industry and demonstrates the flexibility of the company and the model through the extremes of the past dozen years. During this streak, we have seen macro disruptions in our economy including extremely high oil prices, significant financial disruptions, and a recession. Throughout these years, our model of maintaining low costs and the flexibility to react to this constantly changing landscape has been critical to our long term success. Just as important to our success has been the contribution of our team members. Their meaningful efforts have been the foundation of our success."

Notable company highlights

Airbus aircraft - In April, purchased three additional Airbus aircraft to be placed in service in late 2015

Aircraft financing - Raised $26.5 million in debt secured by two A319 aircraft in June

Network growth - Second quarter scheduled ASMs grew by 17.4 percent; cities by 8.2 percent, routes by 16.7 percent. As of June 30, the company is selling 275 routes versus 230 routes during the same time period last year

Debt rating upgrade - In June, Standard & Poor's Rating Services raised Allegiant's corporate credit rating to BB from BB-

Reauthorization of share repurchase - In July, the Board of Directors authorized an increase in the share repurchase authority to $100 million

Share repurchase - Returned approximately $29 million to shareholders through the repurchase of 179,310 shares during the second quarter

Recurring dividend - In January 2015, the Board of Directors approved a recurring quarterly cash dividend of $0.25 per share. Shareholders of record as of May 20, 2015 were paid a total of $4.3 million on June 4, 2015

Increase to recurring dividend - In July, the Board of Directors approved an increase to the recurring quarterly cash dividend to $0.30 per share

Salary and benefits - Quarterly salary and benefits expense increased 13.3 percent versus the prior year primarily due to an increase of approximately 25 percent in flight crew FTEs to support increased flying. In addition, the company saw a meaningful increase in bonus accrual and as a result of the trailing twelve month operating margin exceeding 20 percent, the pilots' pay rates shifted to a higher pay band as of May 1, 2015. Moving to this pay band is the equivalent of a four to seven percent increase in their hourly rate

Maintenance and repairs - Quarterly maintenance and repairs expense increased by 10.7 percent as the average fleet size grew 9.4 percent and the number of engine maintenance events increased to six from three last year

Third quarter 2015 cost trends

CASM ex fuel - CASM ex fuel is expected to decrease between ten and eight percent compared to third quarter 2014

Salary and benefits expense - Expected to increase as a result of growth in FTEs to support scheduled service growth and moving the pilots into the higher pay band as detailed above

Maintenance and repairs expense - Expected to increase due to a higher number of expected engine overhauls versus last year and a shift in maintenance events from the second quarter to the third quarter

Depreciation and amortization expense - Expected to increase due to the growth of the Airbus A320 fleet