Bonuses
 

Congrats guys... 2.7% for the Q3/Q4 bonus. Keep up the hard work 👍

I still can’t get a clear answer as to how they come up with this number. Why was it only 2.7 this time? I get the Daily snapshot emails. Everyday we are flying more flights and passengers than the same day the last year.

Is it the transition that is bringing this down?

Operating revenue was up 12.7% in Q4, which makes sense with your statement of increased passenger counts etc. However, our bonus is based on Operating Income, which was down 61.6% in Q4. Why? Operating expenses, 757 retirements, increased lease payments, aircraft acquisitions, training, aircraft standardization, and other factors probably all influenced the increased spending. I agree with a number between 2.5% and 3.0% for what will be announced for profit sharing. Possibly on the lower side of the range due to an increased number of team members and pilots sharing the 5% contributed to the profit sharing pool.

The wrong number is being used here. Its not Operating Income but Adjusted Operating Income which was only down -9.7% vs the -61.6% you were referencing. See the slide at:
https://g4connect.allegiantair.com/profit-sharing
Then you throw in the Trump bump and its gonna be a great payout!

I stand corrected. It does appear to be AOI.... So we’re looking at a total Q3/Q4 AOI of 104.4 million. Compare this to 158.1 million where we earned 6.4% in Q1/Q2, should give us about 4.2%, maybe a little less to account for an increased number of team members.

As for the Trump bump... My breath is held.

The company puts in 5% of "operating income" which is earnings before tax and interest. They only way we are getting any benefit for G4's 74 million in tax savings is if they go outside the bonus structure and give a one time additional payout like many other companies did. Careful holding your breath on that...unless you are above me on the seniority list ;)

Anything mentioned in the town hall today regarding profit sharing? Or anything else worth repeating for that matter?

Yeah. Anyone want to give us the hi and Lois about the town hall today... for those of us too lazy to find out for ourselves.

Everyone got a subscription to the jelly of the month club and VPS is becoming a base.

Said end of 2019 will be 100 airplanes. 5-8 airframes a year after that. Predict 135 airframes 5 years from now.