Allegiant Travel (ALGT) 4 Feb 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Q4 2020 Allegiant Travel Company Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker for today, Sherry Wilson.

You may begin.

Towanda. you, Thank Allegiant earnings the fourth and quarter Welcome Travel XXXX call. full-year to Company's

of call and are Officer; Drew the of On Company's me EVP Marketing Chief with the today Officer; Sheldon, Scott our a Chief Anderson, EVP answer and questions. others our Officer; Revenue EVP Financial Greg Chief Officer; Chairman Chief to Maury SVP Executive John DeAngelo, help President; Wells, Redmond, Operating handful our Company's and our Planning; and Scott and the Gallagher, and

obligation undue update ir.allegiantair.com. statements, the may at and feel site free today. To not The as and the differ to We no it that, information view those of Investor us be in disclosed strategic will statements cautions on statements otherwise. Company's Maury. will materialize. whether the then factors Any by results it events over of Relations risk start with and are to rebroadcast future call, some statements events, from the information forward-looking do Various These well plans. commentary statements. to to result comments forward-looking based actual up SEC. undertake and that or to open cause publicly forward-looking this I'll filings and concerning expressed others contain earnings new or more as release performance Company's turn our assumptions could factors The to visit on With statements, any forward-looking Company not assumptions future investors as with reliance the risk our our to questions. are We on underlying implied our today a fully place materially forward-looking of based which available these

for call Thank our you, everyone. good joining today. Thank you and afternoon, Sherry,

qualified through revenue problems we – to his to noticeable and had did improvements My in you to continue again to that this off he X,XXX bullish as times time to let team, I right at during unit me Thank deliver. job had quarter, maneuvering and report what their more over they we and hard your go work quarter. their our and And time for Last carry able it a passengers of through us quarter, were we our To flights quarter. quarter thank end, our navigate all difficult or of hats through to members, than fly were December. destinations. But excellent little and November did the the to dedication. optimism. COVID in Drew able last statement we third optimism. the as way increased families, by their this we call team spouses First, all way They I had as these declining we that though, that saw X% some on flew up. my less turned fewer Nevertheless, months. can navigate more terms out we the the demand say, than were Wells those saying in the some, an during we numbers

that did one Some fair were total guess was XX% we a of this increased up year numbers, points revenues and passengers X%, by increased were $XXX, X,XXX up load million – first from XX% well, increased I'm $XX, flights. X been there the to XX%, to up overall factor the may but EBITDA we again, quarter, for our with first we say $XX total average to with TRASM quarter, after happy during positive fewer to $X.XXX, I have combination

go, to progress. we was over making excellent are still a in just have XXXX way we While TRASM $X.XX,

with even balance our the middle. position improved the sandwiched we the sheet XXXX, from front, in On pandemic

airlines at We million months, $XXX flat over of year-over-year. up we was net essentially past new were our refunds. said the the and year-end by few raises, not few was the $XXX of one these as difficult of flow But while debt equivalent NOL times. debt before the XXXX cash million in approach equity our during to I raised equity we're generating Our markets

the of We not and million coming as company during advantage the decisions past our the portion. total to gives during the million year-end his our us a they Adding difficult with Can't of industry year DeAngelo company the required. do this have over seeing will balance, job cash in am working particularly cash the to just balances. the you show end tell in disruption last marvelous equivalents and proud the the management did our take both and add and balance over at of and or million group mobile are We've website but future the CASM-X, this cash group. our too we in spring $XXX-some $XXX have $XXX summer, that coming app forward thereafter. has one of IT going of distant I user mobile are this Scott important, they how team difficult XXXX. million positioned and it down-days only increase friendly times the leaned revamped and $XXX nicely making to in Not in out more our will year,

was and meaningful use do to moment. to on our the positive. more It seeing and it Scott other are been has will turned initial learning and we products. packages in while uptakes how with it, are a last what We have the still response in in comments month,

tenfold, success. our be dramatically to as Our in April. shrink sale, flexibility as available total with did almost to our can for direction, we you past in to XXXX. year-over-year capacity the us this we industry were capacity if We did that lead down model to or either go continues It in to amazing believe key provides in

team year, that developed to we last half independent an going. quarters, two were and that down as tool where help not the using forecasting were XX% gauge us only on of does well period. see Our only the down ASMs where demand is the XX% and Year-over-year year for we at to has are work. The comparisons back for

For four weekly been attempt and the to doing data to air three or data our show we've These number future a points of months, include people understand to meaningful metrics to components are looking other past survey what at demand. activity, that correlate travel.

this travel the believe are step We the so to it's marker is and a up we comfortable. to pointing well This as for so gas. good much that right, time future the on is

act and a of ago You it. weeks couple XX we want new on heard to announcement our routes, of see an opportunity

this We have the our we in to system the company now flexibility use in will grow coming months.

aircraft us to sufficient the and have allow increase capacity. We crews to

this to backwards, duty excellent year, We for crews, this including While we laying increasing business I return quarter those numbers will crew in QX number into airline I XXXX the I'm of a revenue carryover particularly follow-on to during time. But we U.S. shortly. we to respect report international these industry believe our and last will are felt reduce some to see had place opportunities struggle off summarized with to the we come, asking staff members will happy in We and beyond. the and looking traffic. to a of believe years better in be years. for

aircraft. from up talk much able QX. are this about forecasting months? either for example, our we to model. industry utilization to of seven on growing Once differently, focus separate are per the we again, per for we flying days to of QX historically operated on the in In benefit will day a and our days. are or the particular, other week of the same off-peak carriers so remainder or peak down and not capacity The Drew an has X.X% hours period. X.X% are XX the has XX days a XX% Most up coming result to As showing compared on of XXXX you as more flying Why our said others per

structure, the hence customers more or Today, to good day in customer to the for I advantage of business to available, opinion. on only our reason in This pattern. and does our Tuesday, hours cost coming leisure to traffic. domestic with focusing With compared industry the approach Namely, to not flexible namely is to travel for the say, our focus leisure flying approach, Tuesday average our seven XX or is better XX per traffic when other peak our excellent a most game. be has with the all matching is months. to leisure leisure on rationalizing fly customer them The flying not this the minimal and on most There that that's should playing Wednesday. six guy their like given aircraft part of than But as move want industry our appears foray the an leisure on Our moving. period the XXXX. they my model XX% is or week reduction is to our Tuesday's and emerge same on offerings the from their and traffic stopped have exclusively we Allegiant to in days customers

and they have again months. members to in for our thank personally been XX I all Lastly, our this heroes want been during have and the them world, true each team everyone trying doing

this care are company. the meantime, backbone airline in we take In will of You the the business. space, of

and an excellent a model. with survivors the are company business We great John?

everyone. you, and Thank good Maury, morning,

and model history of have domestic we vaccination to timing today leisure rollouts. our that don't of and flying fortunate are sit the predict We customers, here

future events beyond aware the of are We all benefits control. air our the were but happening upside, and

cost, $XX With directional it been Without to cost balance guide, we in significant to carrier. deleveraging have things have I some are number ultra-low we cost see in is network, specific difficult but work no We hard all be baseline, for XXXX. assume impressive difficult decisions, you data we directional to helpful environment changes might an These in out capacity, sheet pulled which on structure, our the the control, using especially and laser-focused of a to thought roughly can today. points which provide guides changes giving help capital, we structural what leads million operating how as improvement. and understand XXXX the and

full-year result, than CASM-X. As our CASM-X XXXX commentary provide on for Greg QX XXXX some a will be less of QX should XXXX.

lower XXXX. of our expense in be can airline best interest of margins another are make not top us statement. think XXXX and XXXX that, such behind. a will I and Given than our ahead don't On that, results

up Drew, quarter QX of a course, give versus XXXX. XXXX be same in will on XXXX. color will little more capacity quarter every Our in of

We the XXXX. be EPS expect first of quarter positive to in

capital. meaningful each believers significant today. in operating changes In less than opportunities will any all these how we net of and end Sunseeker remain flexibility assume future the project Again, and debt explore guides other to we to regards equity resort options option quarter more greater directional not will far Resort, than is other invest We provides in are it thesis and/or continue XXXX. incredible environment more year-end built Our XXXX including The and no investors today. be more to the the sits non-recourse and out financing. valuable

and numerous had continue of interested the possible parties. the have have We to various with about discussions art

about the I've We beyond. been team are up if and this XXXX effects moment and way, and are in market Greg airline never faster a planes we never management has members. The thank achievable, a anyone excited time advantage stepped With commentary. about more will the XX our in The to business a I working, have future one at to Scott aggressively, significant our level, showing generational to with significant year chart performing in Tina terrible ourselves than that. this better. simply of and of of the continuing pandemic had each To of a are I'll of a the at at fleet ahead and the understand little opportunities provide take and is which brightest all how Turner, potential year-end. in the XXXX from pandemic devastating acquisition find not refined XXX the take anyone. about never fleet planes of a and in our been The allowing growing intend for has to would and count been, or and by color to excited but for The steal beyond over turn best. a release In deterred us be not the his future. model DeAngelo. we intend staying more been has has position every that, us. you valued aircraft especially We the it home quickly are more my why which remiss line opportunities when recover highest to years is we I grow team today

disciplined against exist do in We approach a our leisure XXXX, map, to Thanks, serve. high road costs did the data-driven by stay commercial our recovery multiple still to enabled capturing continued John. share marketing things. the of In while travel we that markets us disproportionately which executing demand reduced

continued in in a groundwork digital and to We to customer the leisure faster out building and post-pandemic the laid transformational areas stronger well-equipped ultimately, the era. we drive and commerce capabilities recovery enter XXXX travel loyalty

Our our how behaving. our direct-to-customer customers close model continues customers stay to distribution us what to are are and allow saying to

they nearly As of the Sunday, survey two-thirds more as recently this travel they to to weekly to customers half responded said plan our said and than spring summer. who plan this travel

traffic for searches relative the continue for month and beaches in nature. than are Total vacation marketed March, last rental, spring small Panhandle destination above for residence as they between allegiant.com in clicking allegiant.com link and and overall. stayed their nearly traveled national both visitors break prior show Memorial outdoor actually be at and visit hotels, by that flight other was in booked XX% would levels more to will or emails year a we flat along to third lowest fluctuate to sentiment parks was since primary friends in customer number relatives, weeks XXXX it's and mid-sized customers and what our versus that and season a the Day situation week in obviously service XXXX. the coming XX% average in strength home. cities And stayed that than or most of a continue West by direct appreciate the near were in a searches more URL on and ways XX% noteworthy to non-stop that bookings said entering our of next vacation gateways to allegiant.com second fluid, as recreation, nationwide like to key as by continue down the their XXXX, and but either the we for And cost Florida's versus While well about absolute Coast on XX% browser marketing web by

coming XX%. OTA benchmark. and marketing past advertising, and also nearly into we visitors cost XX% an achieved for booking While In plans XXXX, XX% higher strategically XX% the our our and tactically direct loyalty the quarters. fundamental and contracts fixed reduced we that marketing This pointed on advertising booking models less ways two cost search industry-leading $X.XX year engine XXXX, Yet restructuring down cost our and leveraging cost nearly from as market-specific to to create reworking variable was same digital and for sales in a across function. activities mix during analytics per optimizing by ecommerce marketing and ways: and of by three by in per were by cost, basis

continue existing travel XXXX hotel serve. collectively and central aggressive to to brand portion markets capture and approach efforts do NFL the played of brand, returns and the Stadium dollars exemplified partners. most-watched football equities at of to entities it book recap, four as build football Allegiant driven Continuing commented our the leisure with saw the We a an Rather, latter our awareness the relationships for XX is more any of a see the also nationally-broadcasted people by ones to awareness new maximizing seasons We've wasn't night most-watched kind half Sunday of Stadium And games, of we as of demand, which heightened where marketing drove email Monday flight. to efficacy final shows after our co-marketing the than TV Allegiant and Home off finished Allegiant the with would year by impressions strengthen other Allegiant great the marketing space our these night in home airport in of unprecedented partners with back tactics, ecosystem pulling was including for Marketing as Thanks the instantly to at our Stadium and that destination philosophy games, travel and believe stadium done before days We player. the top around with help leisure for program millions would and Allegiant goal it of remains exposures on year-over-year more of most-watched that web traffic Raiders that the the XXXX. in marketing and dynamic drive emails a across best Stadium's the XX%. increases marketing billions deal flight all increased less. Games

be who X.X our million the million the to Looking since based travel them this data XXXX to customer data, on virtually in survey balanced, forward, airline air of to customers said win Allegiant on XXXX. $XXX any us we at primary XX% will trip. Based consumer XXXX, say expect than this next that in our recent will began. flown more remains book behavioral and but some in group and for approach customers, not who jointly proprietary accounted they focus represent early in of considered And have months be XXXX of while estimate for revenue all with that for six research, with marketing flew pandemic back group point

function, for consumer Also, rates experience, attachment a and improve customers may XX% say seeing the I we're hotel functionality, improved car a the capability commercial only success car by driving air versus rental retail and traffic, part and website returns, showed to after as but platform greatly our And web overhauling offers not of features rolled enhanced to new be leisure industry-leading the they not they're search freedom a to by out past exhibits conversion, of incorporates foundation referenced while sustained lift travel the with beyond experience the which prime as remain grow We hotel of OTA of elements and also major degrees future, our And two going, hotel first group testing As communication merchandising, else. stay strong is tailoring Allegiant first such new allegiant.com, allegiant.com the are When the purchase inventory leisure legacy newly is we reduced ability and only other extensive the but as ancillary along do market. Already, ancillary affords travel new our advertising digital enhancing user levels us nearly we where we improved packages. third-party before not that travel such, the air the recall, our offerings holistic reenter we customers the travel present weeks also they you take to expand increased they'll the that website, earlier. make and measuring aircraft use of new as rental the the our selling ago to allegiant.com provider. during integrate foundation while welcomed with and represents for year. the to initial planning, which sizes. is to technical that and first redesigned and potential rate improved in higher leading rental it's parallel back our recommendations, air as and future levels anyone form with travel vigilant they know of at largely the result, transaction in we rollout, putting believe properties only to on our product revenue as by this us continue Internet their means travel them Stadium the developing of vacation focused personalized return winning to and position their showcase products

use of mirrors app, improved mobile users total now the which year to approval experience bookings book. include half functionality also app planned and to redesigned and Mastercard now because the credit World the in first opportunity come that to launch to is the meaningful through user fully instantly website apply, enables XX% the impact of drive expected will about and given can be mobile approved, Allegiant instant it this Our the be that

will has acquiring it's featured new leading that website to new this While app, and the our for years be method for the cardholders. functionality

above program Today's Speaking of Award addition co-branded half attitudes our this situation later the Choice best pending straight to summary, of our finally, of as technical planned itineraries winning strategic continuous of that travel launch X.X for impact along to nearly both XXXX, year, behaviors COVID-XX and the averaging their with each the ancillary rewards will consumer our first-ever are in And and this higher considerations. Allegiant cardholders card assessment with on In introduction card considerably the second and monitoring and flew USA building over Allegiant's Drew our air market that, capabilities rich informing product if, we And us third-party World non-credit we and take a tomorrow. more Wells. transaction I'll sizes year, for Readers' technical Mastercard, during than commercial airline foundation laying how, by and expanded reflected to where growth at turn while today, be loyalty that recovery rates. focus the the continue it with are

Scott, joining of things the for the depths able revenue you, everyone pleased All and the I'm Thank afternoon. we've maintain. very cadence the to considered, flying from considering of pandemic, this been level with especially results us of thanks

quarter load down year-over-year the revenue quarter third about the and factor XX.X% in points over yield metrics fourth quarter. X.X improved steadily terms, and was third performance better Our than our of absolute

was We year-over-year. X.XX% just encouraged up XXXX the year our ancillary passenger are while X% per by prior with down further quarter, in and remaining line for portfolio was

demand be versus the half plus we deploying. ASMs and being fly down XX% will approach XXXX, into in down weeks between X.X% versus were quarter quarter we levels looking as to persists flight of latter January were Despite first during quite we approximately plus mentioned while quarter low, January cut and call. demand quarter. XXXX Our the in that the during the are roughly the lower demand significantly decidedly previous fourth X.X% scheduled believe level ASMs as XX%, more high higher Service weeks, first the flew This as heavily ASMs

to well when down us low-cost, high-flexibility allows operate model Our exists. capacity while setting us to demand pull up

we matter our XXX seen haven't example, of this year. Tuesday a scheduled while about had single a As flights, flight typical yet has Sunday

the a of destination through we worked have profiles. last origination diversified Over several resiliency to and years, array increase

but to out more the and rapidly success marketing growth, last Some to days five also structure. routes leisure we is destinations market, unlock route around network us. of serving like the by the cities, the campaigns existing us the Allegiant XX of continue largest changing D. evident campaign, over the future the for which with announcements serving enabled with leisure-oriented this potential world the Allegiant is and immediate that a new more of pursue that of believe the Jackson XX is not these us of in definition definition and to team's new success from nonstop We This evolve any including route has avenue assisted Wyoming. expansion non-traditional of Scott nature can destinations and rollout solely Hole, only the network as as provided a to

We have X,XXX and that over airline of in a and will destination a make more originations runway and of the future. bevy profiles encompasses a stronger markets resilient us

further we put announce us strategy. Mid-Continent half develop basing has in of base Des remarkable team back us our job a to to open Moines the us efforts that yesterday in Their toward seat our enabled July, driver crew which will fleet done to the Our allow will XXXX.

half, that XXXX grow We growth. demand the such XX% will ability levels the dictates second versus have nearly now to that

and are pick with continue about are fleet solidifies ensuring to position to with only the over towards if network to what We already short-term of fleet where in manifesting and Greg. strategically realities. have We in revenue will not to capable a while it our ability capture and also to with I'd when be great further secured the the it's up our future upside, believe does And practical revenue environment replace like position. looking aircraft that pass we achieving earnest. I'm that, optimism, we expanding knowing that cautious we

value and and Thank Drew, core has business afternoon, the inherent you, good XXXX of our flexibility belief truly incredible our everyone. in the model. reinforced

us low time Our low has the a to allowed to of model utilization low-fare adapt low unprecedented cost, demand reasonably environment.

fortunate has but bedrock the the we have pandemic the value. of the has flexibility been our side, model, highlighted its always from further On fact that benefited environment

for we of I think illustrate noting Act, it's adjusting benefits produced After of and special this. XXXX points the $XX to a EBITDA full-year CARES worth charges million. the for positive a few

Our full-year a adjusted capacity These XX%. cost decreased impressive unitized decrease the despite pretty by are given X% results of full-year circumstances. in

quarter. For the of X.X in million sequentially than second with quarter, $XXX daily translates XX% third just quarter compares over This bookings into million. increase and averaged revenue, quarter this under fourth the XX% our favorably jump versus passenger an of more a

improvements reached recent We encouraged throughout positive adjusted another with we've While in peak see road bookings quarter. on result, we produced the X.X million the bookings consistent per EBITDA, flowed moved into trends the holiday ebbed recovery with key milestone building approximately season. The day and month. throughout quarter, fourth fourth in of the we remain averaged to January are the pleased to strength as we

adjusted an our down the averaged of XXXXs fourth just $X.XXXX front, fourth for below cost of only operating $X.XXXX, quarter which excludes during is special year-over-year quarter, XX% over of below and quarter a the adjusted this items This of was XX.X%. $X.XXXX. reduction the CASM-X the the well capacity On also full-year CASM-X expense translates despite for into XXXX

for any our cash one pro the our loan of $XXX without in million balance sheet $XXX We Turning the under financial pleased of has million, throughout today we defending noted ended in issuing calls, have with or as $XXX just CARES program. approximately balance million. equity to been and participating around the pandemic top achieved in refunds priorities sheet with earlier are and liquidity forma the results year NOL would when the carryback the been and adjusted our

have refund filed IRS within claims cash months. and receive already our the coming the We the with expect to

financing. quarter, year roughly engines, During than is This we aircraft three $XXX aircraft include of shifted We less as and into decided seller XXXX. three one spent ended million on year the XX late two acquisitions the which unencumbered aircraft. expected we we million only to $XX fourth with

XXXX total quarter reflected debt, of roughly fourth payments. $X.XX which $XX ended proceeds of offset we principal Additionally, million a $XXX by billion with increase in in debt million

and million Our if year-end more refunds. $XXX to roughly net flat be debt $XXX than remaining lower would forma for when in XXXX pro compared XX% of NOL million the is

of at of part to Looking the as first the we half allocated million the round $XX the received have XXXX, for second of PSPX. support federal us payroll

entire falls us the to below a grant, warrants. as the requires amount is $XXX loan and reminder, that a million issued a threshold As it

be We to XXXX touch aircraft full-year and a which the in million expect driven by we acquisitions, will total roughly majority $XXX bit. our CapEx on

debt and our XXXX. we roughly during payments further on we Based debt, million, be the and versus being expect principal XXXX. booking amortizing with Additionally, to $XXX expect scheduled remaining trends in our a current giving interest net and position interest of expect decrease $XXX our total million debt payments XX% expense to reduce

have the the XXXX would likely raises acquisitions. associated be markets debt capital with in aircraft markets, equity in of We any tapping no if intention targeted opportunistic

Drew the and down from be PSPX, capacity this X% Excluding we CASM-X mentioned. XXXX of to is X% between on expect that midpoint XQ our to XQ based XQ guide the from XXXX, benefits XXXX just

and We should ready to below to first first see the similar back levels. capacity in come parked point previously get quarter CASM-X be some expect XXXX carrying quarters on labor cost of the aircraft high the due The to XXXX fly. and maintenance part remaining our based adding in mobilizing quarter to of

plan, part driven These million with in expected the in mentioned. if capacity five-handle should with quarters. are respective our non-airline $XX CASM-X million $XX $XX the as profile annual million cost CASM-X were $XX in million in raising to support IT, on the labor, flirting our operating normalized in and These $XX and Xs $X the in the improvements fleet by demand about on be saving the perhaps other. marketing, in to million include cost in million for low However, John savings structural environment we XXXX remaining utilization

which been has the adjustment by last outlined however, million the savings reduced pilots, consistent You note the hire savings the potential note, XXXX the costs, in in our the we to of Back been amount are may back due quick. of total on non-airline non-airline on a will touch exciting $XX offset the has real ourselves by growth. to to XXXX recalling And positioning million momentarily. is and the $XX to pilots with I quarter, support we quick half labor

hard closed of their all the associated necessities to point efforts saving strategy. that As entertainment pandemic family building team the non-stop became to transition. and our of permanently of centers and actions work support of the due pandemic, we liquidated members our acknowledge assets. impact for enterprise a nearly our to result all the I want These through tremendous for cash make a of and and the the

almost business Regarding margin EBITDA team XXXX. we remarkable past making a the over from process pandemic, producing want Teesnap XXX% business. revenue sell am the the Teesnap, unusual flow net re-running to appreciation for on our the just this in In I with restructured to turnaround deepest of nine the increase goal Teesnap members of add self-sufficient. I to has also accomplished a started onset late the double-digit the at been months, particularly during my they've it XXXX, a positive, to report XX% time. pleased we cash

pre-COVID, signed five service, aircraft excluding pandemic, come added seats. signed returning will aircraft adding XXX onset one up Turning has growth retirement. three XXX All and XXXX aircrafts signed aircraft this aircraft to fleet aircrafts with by us fleet. and XXXX the XX agreements. in in current firm at a is one of XXXX ending ended previously achieved the plan parked in-service based on operation six by We in is offset aircraft, The since with aircraft to our up

not we sign beyond, well into forward the our at burdened up the discounted order, price which we XXXX look levels. with can are we As and and flexibility to fleet discretion maintain fleet from enormously pre-COVID is means costly aircraft

plan a on We of short plans. leading aircraft growth of significant supports opportunistic continue XXXX believe our long-term the fleet indicators, and appropriate to both number explore our deals. number for aircraft we Based

when and to take and a of any much X,XXX creative We as listening our of our is as $X not each not of continue only believe strategic. and appreciated. which profile serve know everyone to passenger flex a strong, support to moving serve XXX your aircraft, please work, further hours, environment be Please Being from every and passenger built-in XX every I'd may we unnoticed to to we of the are, not to producing aircraft. incredibly safely One eye situation be this all benefit positioned and close, a avoiding we the positioned moved very industry-leading extra up of us visits. the seat than maintenance our to per encounter annual possible so seamlessly highlight proportion post-pandemic course towards behind we this thrive up make more EBITDA that highest can team if volatility members our and not retirement there believe well us and back we future working ability scenes us status, metric if are catalyst in as the but will an team does are that without in forward, environment our aircrafts members operational getting also to going path helping However, day dedicated their plan, and demand how our continue it recovery. any is EBITDA fleet. and down and to preparation to note world, safety efforts a as didn't adjusting work crews, in does tirelessly in remissed increase keep one we travel every who for is the the mitigate in heavy we and be opportunity as our ensuring them, million importance to that to to on strongly well I call, for have valve the costly to our would fleet our thank frontline restoring help To

the reason turn prepared we'll are enough. in of it prepared of pandemic can't we to the meet be bring. that, thank well challenges future it's so we questions. because over anything will might continue to We greatest the have the to you, been You this With and for uncertain you environment,

Thank the and question that in time, to we interest gentlemen, you. ask of [Operator Ladies one you please. limit Instructions] and one yourself follow-up

comes the from with of Stifel. Joseph question Our line DeNardi first

open. is line Your

of maybe your did they've that you. travel hearing for more on Maybe or been Are Thank pent-up unable than lot you Scott support you there's about talk Great. notion. they from not to because you to asking seeing whether the been plan that post-COVID of Are wallet share to? they'll they customers DeAngelo, post-COVID a or demand, or more what any travel Or customers pre-COVID are that? devoting seeing opposite? support

had We're the Yes. the impacted. we has impacted we impact, When all hearing do been survey, the personal either negatively the they say at impact that vast still majority financial only neither ask pandemic somewhat about or financial that. and have

And data with some continues anecdotal One I that city they consistent get we fact have plans or half are point, obviously break summer to and two-thirds of Las hard. other travel items spring it. to saying, are travel live about quick Vegas, quoted the they make saying the all the it plan in while are summer

it have experiences up been this ability savings year tip of and commented and the the realizing high-end freely. to retail how the over iceberg as actually operators on year, spend high-end of Our dining travel have a psychology of other is of that some prior as forced going the well well maybe on suggesting have valuable to some casino behind

And for helpful. follow-up Sheldon and then That's a Greg. Scott maybe Okay.

some you pre-COVID, if favorable to XX if to on the Thank XX capacity. going the fly if you XXX% to airplanes would going given the to at thinking pricing, of in seeing need of to you five-handle of that could opportunities a that kind XXXX accelerate most, cap. saying was year you. induct the get a that I'm you were think stick CASM-X, I wondering what to And you're you're Is meant? or then Greg,

Yes. potentially But normal the opportunistic last those XX% a be this, probably to if and opportunity and XXX% first, profile. potentially that'd up more on you would aircraft start say a markets ability acquire have I'll certainly max or I the Joe. And XXXX like I'll and about down question than up that rule year. kick to kind aircraft, thumb good generally. induction XX% of it like But utilization we in were low we there infrastructure Xs we of aircraft in there the at about that's with fleet And good of the aircraft per there that mean what into were been to think capable is support the for just terms a That's take us growth the be five-handle. off Drew good capacity so of But we'll where for or yes, can inducting and it. XX team deploy I'd get of have you I to buy prices. and we feel to the and flex is yes,

you. Thank it. Got

Thank you.

the question next from with Duane line Our of Pfennigwerth Evercore. comes

is line Your open.

gift CASM quarter that keeps just time. capacity down Thanks and enough. fourth giving. to you quarter CASM what the said get the generally that? of begin the about the that for do Allegiant It's to level on reasons Close first just then and with, on Can how to you in repeat What but down? do like that's appreciate are airline on utilization the get lower XXXX relative CASM you capacity down this you're can a

management is that's Duane, the I'll take highest year Sure. And start that this that first quarter be that with moving we back, we're to bring the the Greg. need the labor we were to And pilots, pay maybe also only I'll but think – that. quarter not the CASM-X. on that is moved the or on. top in to going year, PSPX and really given folks going the the reason bringing to continue back

On first it's the that, put that's first this million recognized say. on we burden to that's not, so this may think you it I earnings the like along in the of a for through you're it's so quarter back I in recall getting for the members you and as an can't all in to place induction remember comment, their based and there Duane, think there that typically it's fly, you reinvestments, our quarter to and things with On quarter just in I just into will business to mentioned should there, as call, way aircraft quarter, going itself, CDA intersection get running I've fourth headwinds point there about first that. almost that. PTO been pressure guess the I've put puts $XX will, time. the start taking some question, things top if a and if I like but on starting going, and may headwind crew going it, And good So you're roughly just in thinking a your ready expense this of and some our then agreements. rules training for and mobilize or And are I at

infrastructure expense that's throughout. the the future we What in a quarter, support growth. And the say think short-term incremental type scalable ran there about have out – that as sense we that CARES all and Act is right. unique have had for I to didn't about there. and think On both because have we to off growth, labor, We you had we discretionary fourth scalable the and just long-term, ourselves positioning fallen just would of

so have spend And buck you of a to couple a to make bucks.

forward, all I quarter fourth that anomaly. sense. we – We And expenses, wouldn't rate and just so again, a use that discretionary as went run going like out was would that back pulled if makes I an but that

sense. maybe make my both. Scott Does and just for And follow-up for Maury then

it's but the opinions highlighted, the or Nature Vegas job again? look folks big to focus a just a advocate area, do travel as Mother a maybe right, to the of who the can have best York like I you we time not once whether various that was is reason leisure that doing job people travel, what New As a are you people you reason travel argue doing at of best destinations, best in you destinations York here think portfolio is here, giving upon are giving reason New the giving are to your destination, a of big for

break been it more may – Scott to level. high Florida. Caribbean, your a spring there, where to give testing forced international have coming test get coming to got wanting I'll point a people your traditional travel get difficult, All it's Latin impossible up, back, with Florida you've getting not of the lot is place they're place, better. American, to down shut lack historically California I is heard a for a to the is albeit compared better its full go, don't is back numbers it's still Las a to of out, detail, Well, had – come Vegas and is going down but good your the to usually now is but away of our here Highway-XX types a that's description year stat the have interesting you've got messages to ago.

going curve to little this get you you the much is people and get know from someone COVID to XX about who you're know We that did where the that population may worry unfortunately it, you had it. don't in that the of you away sense you're now, bell XX% to took from So move. passed aged you a I'm from country have coming a XX-year-old have getting, if LA, XX friends it, and people stuff out the as known want analysis, what but of

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simple it going money hole on, you all spending used this money extra lot stuff have all they're the not it's in burning pocket, is, bought if to So, of out travel the people eat, a cars. on to we your so a consume as

want a we that the traffic, come to norm, back but travel not going are to think traffic positioned. wouldn't model leisure on which make things Business Scott? quickly, business, these in business to and so I and So, well revert be why that and back that's leisure I'm are to I trying is

once Yes. are the beyond CES and is safety have big structurally the others required Clearwater, getting these but Pete's et an like operate a that eye vacationers visit I that to job like been go laying visit specifically specifically like good I would is from out and us attract down would just St. partners cetera., the push Sarasota part actively about double on simply to more I foundation to health related the Florida more destinations. add and and to in aggressive because a partnering their safety them a things conventions of all those again Florida, and with that doing the and I very back instead. think making the the Las mentioned to perspective, lot light to health and together airlines co-market was Vegas

the Appreciate thoughts.

Thank you.

Thank you.

the line of James. Syth from with next Our Raymond comes Savi question

open. line is Your

you. kind Greg, if lot Hey, I get if at everyone. vouchers, a cash about, just might, Thank of cash of bit think more on high cash to I booking, given not EBITDA the basis color you little to on but burn, talked looking kind I but items afternoon then of breakeven of know see pretty that how of and know level good voucher kind just or flow could versus you you're our you've us to for provide much wondering better? operating need are to ATL sales and you've a what seems ticket of

Sure, Savi.

redemptions you our to see number voucher. want didn't credit But some like stuff Drew we probably as or ATL. the percent on may it probably I'd add of outstanding ATL a me noticed of what first voucher off ATL, that Let is say didn't and reduce you kick in the on yes,

think seen, think kind million little the I quarter, When the there vouchers. fourth a are we've happened is credit issuances you've the in quarter really are is redemption that of what look that seen the was largely offsetting fourth what some and it I that consistent. $XXX So third take you and in bit it that a peel was the back quarter, of in still

the as we looked January. I that or first the trend, should the into nicely say issuances is credit vouchers of outpacing meaning in the but So, quarter redemption

to think what talked then to add other continue to true I door. thing and positive. we'll voucher, that's chew EBITDA not just may XXXX, highlight to I and we of out so to want that cash million the burning inclusive and through kind I then be X.X the we're in add currently need of seeing any Drew I one that we're commentary, that's some in just wants So what just about the and of your

now some that's roll-off the back today, there. at We've the So given we're a the of take more of breakeven, where seeing X your CARES get XXXX. is probably such in They're what the I headwind as closer Act. we're FET in things to little to X.X bit. of and And segment I which cash, bookings in think taxes, from the a play between that taxes, in million a spike daily think or putting seen million, you're on kind EBITDA fuel, taxes give little to

you've it. think captured I

fleet. the clarification if then, quickly on And just Great. I for might a ask

of just that storage anything that provided plan kind and release excludes plan fleet was kind you or the about, in the does that put that's in aircraft storage? is in So that of of short-term the include talked kind any

so end quarter, aircraft think in in storage about storage and talked additional incremental already those run yes, those the what I what three that of the and of we through then pipeline think it. aircraft, So of – of coming I'll are XXXX yes, is it take kind of aircraft service, we for does, the And XXXX six back we're as year XX of back. growth, now three the last are I Savi, in have aircraft three incremental

right. All Thank Perfect. Okay. you.

Thank you.

Hunter question comes the Keay of Wolfe next Our with from line Research.

open. is line Your

a Hey when you everybody. up curious for thousand the thought I'm this point about you vision draw Hi, to business the of sort because for enough sort you travel the of the good markets just Thanks. does organically, just is your that you like to and focusing Maury, comfortable of or that if still ecosystem crisis kind diversify this where for you of open think a anyway? the Sunseeker, company you're then Allegiant have mentioned, COVID idea it's airline growth on there

us. Hunter, operating just long Well, $XXX a made of third-party close – be a the income, it's again, of million. on it's done I pushing $X.X leopard, to huge XXXX, to $XXX of which revenue it's just We've million for change term, hard since number proving spots billion to we've

middleman do a our we can't no have difference you that for maker say and us. So been that us hasn't We things between like customer.

tool our Travel the developing the and no of the just change we have in is Expedia this airline were have whole revenues This that, partnering. to focused a tool. the we're any lot own new res branding in no whatsoever. want Company platform, the industry XXXXs has. a and we're as You the going can you and you assignments towards the reason strength up in leaders and we're we website control we're we short Having and what types cars all pick It's you of and things. we We can in in on that hotels for ancillary rental that's seating charges, move airline charges, those and using own else when said to do one our not this – opened doing much no that as have that we

all the done and lead in we much you these the can year that margin, as year and them towards out et add we of out revenue. So as industry wallet customer-oriented in as operating it a cetera because point share have customer we've up and attributes in get

There most we're a that's and to that answer have in there opportunity on the going We you really the we constant of at definitely a of separation, can focus that. like we we said year, It's grow level, need it take different basically advantage situation, seats who a to a so is we're person revenue something we're than airline carrier, leisure going this but don't than certainly our the same to different we with think some who focused business fighting those a over has long-winded and price customer use lower whatever. commoditize more on XX% is differentiation and that that. we're that average been now, I lot says have have that a or and

something head down Sunseeker of that it's that's – backburner, far is goes, As take us, think a let's term and long-term near good it's strategy keep as for on the I still our care business but here.

to we there for the such simply the may that. get Hunter, XX% one ability the in year, the that back of half year have demand I to guide we're full that not to trying thing growth, the add, calls

not So let's away with it. run

the All impact right, about across John. a the conversations from and of finding A or is the equity how that it the the you're the Sunseeker land Sunseeker, thinking to valuation parties, follow-up partner factoring for third that John. that how at the developed attractiveness prospect street does selling That land you're all, getting or having? of so

street in It's or up raised no aware the may scheme No, be not rather at grant happen conversation. one's the to honest what with, all. But having imagine I them would of you. people other it we're even brought things. with mean, all on the conversations side I insignificant it most the aren't my in of ever of

Thank you. it. Got Okay.

welcome. You're

Thank you.

from line of Our next Barclays. comes Brandon with Oglenski question the

Your open. line is

the for question. the would guiding aren't us come give can factors add some I I cash capacity levels of talking they good of are do? that to guess, comment those additions some you that on insight network. like, Are thanks you Hey, if of I or levels but my XX% give would taking you afternoon decision capacity matching how prior us to that do about back we EBITDAR level, to level actually drive flow full-year into in margins and and guess I everyone want the guys come to realize growth that

at I'm Sure. not we future back margin certainly point and profitability perspective, I'd as to we're EBITDA are more consideration not gross this a that to move past is but point, flights forward. Drew. fairly going to costs on threshold a is cash necessarily the come like I'm expanded thoughts This crew online in get PSP setting thinking baking where just and moving

because have hopefully on cash just that should more of is normalized for threshold relying thought company I what given a best not of terms long it's the a and perspective and is sustain you simply period. profitability, making while can specific that's what in So of not money we for something

the the we the we it about – back the for all is to support you had the just XXXX quick we not have Greg. the one might to in add the data pretty of much Brandon, point had the I it, the and half, and this then infrastructure Maybe most just was if aircraft for growth growth but crew XX% well. right. as to think pilots in place, part, extent

kind the XXXX support was to of So large infrastructure place. in

Brandon, as it's will do, results Yes. definitely that. simple as the

network to the level Okay. I the certain is this once where of profitability. we was expect just you attain around, guys more question going should grow, is guess

So we is don't right? focus that lose returns term, long that

company I'm that – we're specific this to we Yes, have think to this long-term able in be such Correct. place point, not we see don't I is anyone there. point, opportunity suggest infrastructure do to at trying think is Greg's demand that to I a XX% here

that's for the all trying reduce this no So case. the sake margin the are means by at no of we company profile of not simply growth, to

our if be now at in to we'll as long-term, Brandon, aircraft I so don't and to that's Maury get so we is to what to that that we million he well. get there – as threw you know said, we and XXXX, need balance, hey, that's $X the target, there and And the to speak EBITDA be that's that that to and mind, to where keeping in think that's that's that's back per catalyst support want we there well positive show we're what economically are why our true back that, out to we're but north that's think some said, looking

Yes.

we're grow type share thing. Let not me – market to of clarify. We're Brandon, just going not just purely

to of keep a there just like One and plenty there's and real to quicker, in of XX%, doing the treasured to this our we year see we that is we'll we out ability all it pointing much and infrastructure kind you're up some us suggest why we but and our values up, look I things. particularly by Greg's of margins or estate margins to year and the the XX% are very end cut of up, down it's can do longer-term, first do for bigger go, have go at half point where the numbers

you. Thank Okay.

Thanks, Brandon.

you. Thank

line of Our Linenberg from Mike next question comes Deutsche the with Bank.

open. is line Your

I the range good one, quarter. that positive just everyone. Greg, underlying fuel have Hey, price quick the EPS One afternoon, using? you're the to here. guide two What's March in just

per maybe just clarifying the is just from the number, so would that GAAP recognized us, paying $XX the we're offset. now I include that include a benefit in about think that $X.XX which million gallon as PSP, for quarter and too, right it would an first That's worth Yes. the all Michael

was know, where a expect or that it's be Wednesday's, a you think quite and about flying city type maybe in think which where four, haven't to second for When And to it's ads iron just say expanding frequency you've we markets. I'm strong a flying city could three probably even March and hot, shouldn't I'm flying you Allegiant, but type peak some then, the and flights and places pairs, of mentioned Thanks. sort like March especially maybe I these two talking strong like maybe I because is excuse days frequency striking knowing or because can he curious, this a question even cetera. and that really operating that and – of peak past of the interesting of Great. – are are three Okay. at away Florida and just, – time et I Tuesday's, quarter, the Fridays, did the upon cases Drew you peak past, and where it strategy during sort because model your – is look loaded, of the the even deviating schedule, Maury I March the maybe we the of used that decent but periods you're it is Sundays deviating in be not to number you're what have fact looks realize or sort away, just that or daily see there of several in pairs some seen in we when that you me,

you here, daily. those than times look more find certainly markets, and we operated can have historically Drew where two Yes.

and the in one frequencies take there so think of specifically are is you is rightsizing things it capitalize that peak with net that think a – on and regain it to part little lot strategy demand even and looking my you I'm see won't I and peak be pretty on it's the there, wide and net to wider putting more flexibility and resilient we on fight it out can successful be to markets easier ensuring I of that that pertains can dodge as to forward. that keen periods the looking is have that well the the that to same where the right to can have more during these we a where more another we're profile bit periods to customer able as can cancel the then day a team on

demand those need we down So the bit best on markets will in remain all in periods, we thicker of but to. intention way some operating of every the we in flexible the I of event expect pull it have quite in of our a manifests in little to

good. Thanks, Very Drew.

Thank you.

Research of Vertical from Partners. Genovesi Our next with comes question Darryl line the

Your open. line is

of don't? is direct that understand influence how go in survey opportunity or direct Hey time. that in is I D, customers as to how think help October, Hey, a us offer fly conference the desire everybody, on this you. question more case you Maury, talked how you this markets can based to you the third those you DeAngelo about serve and And on much just the – that's that I your to was in O is your back you particular, for versus a Scott an do important for quarter pre-pandemic, for passengers' work environment, thanks guide, can it guess, meaningfully specifically that direct then might if the much call lot it

Yes.

high, lot for World a of same share Harbor. Cincinnati, may push start. May, Thanks been happened distinction might hubs, Sky as The and the with we the might into to it Investor crowded Delta and question. I'll to tell customers Walt reason answer both the Universal showed then fly the they'll a reality give fly non-stop to So to on charts in but health where than Day, business has their is, the you, I'll point as own seen or it and be during to safety not remains the go happy they key one and money, Sanford it's benefits I continue for and is we it because they business rather Disney Orlando have family flying thing take in you while

wouldn't mix, that see remains and proceed of can't that we leisure get time convenience, that a much share leisure benefit lot of We dollar just they that just nonstop. high there you health is but airlines and a doubt the on other think with to the continue that to versus there's be want it point. on that how no speak continues to would distinctive the reason because their customers they I

listening the your perhaps talk a there guess have might number quarter better came expected number for more – is Greg, my and about Okay. than Thanks and little million XXXX, bit a in is you we you that heard optimistic sense, sounds just fourth same. that. you CASM-X the And outlook is then I little in bit than from what QX, $XX the

that about something pieces little there is fourth quarter perhaps in a guess and coming the the into better, bit I cost are So discretionary XXXX? more your profile both of

surprised helpful in came more and proceeds savings, on that's we the think year, what's giving worth a Hey, nature some pleasantly cost maybe us came structural conviction it I in in helpful Darryl. CASM-X, think talk X.X% was think question. this come so for that's an in about insurance the the that benefits thereabouts had a I think to and – too it's but year full but event could out obviously about as like items $XX potential range. be we what that in into some before that saw fourth of fair. we of was line other that in is I of about down on I there some the as we to Thanks sight that driver million the low and capacity X-handle getting kind just, yes, on we kind in in we that's there And, us – have the for of it's one-time were quarter But well. more

just a so, I'd or behind conviction little I I And us that. leave think more at that's giving it. confidence it guess.

Great. Thanks guys. Okay. lot a

the Thank now you. Ladies and interest I call gentlemen, in the of management turn time, closing will over remarks. back to for

Appreciate all we'll talk very you days. interest to you. Thank your much. and you after XX Thank another

and Ladies you for participation. gentlemen, Thank concludes this today's your conference call.

You may now disconnect.