Allegiant Travel Company · NASDAQ:ALGT
Allegiant Travel — Corporate Update (January 2022)
19 slides from Allegiant Travel's corporate update, Jan 6, 2022
Slide 1: Fleet Update January 6, 2022
1 Fleet Update January 6, 2022
Slide 2: Forward looking statements
2 Forward looking statements This presentation as well as oral statements made by officers or directors of Allegiant Travel Company, its advisors and affiliates (collectively or separately, the "Company“) will contain forward-looking statements that are only predictions and involve risks and uncerta
Slide 3: 737 MAX joins Allegiant's fleet
3 737 MAX joins Allegiant’s fleet Boeing 737-7 and 737-8-200 • 50 firm aircraft • 50 options CFM International LEAP-1B •Six Spare engines •Power by the hour agreement First delivery in 2023 • 10 deliveries in 2023 • 24 deliveries in 2024 • 16 deliveries in 2025 Boeing's first US ULCC customer
Slide 4: Opportunistic asset management has been key to sustained profitability
4 7% 10% 6% 6% 14% 11% 22% 16% 10% 14% 15% 12% 27% 25% 13% 12% 16% 1% (6%) (8%) (7%) 0% 2% (10%) (4%) 3% 1% 2% 5% 7% 15% 14% 11% 8% 10% (24%) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021¹ Allegiant Industry2 Opportunistic asset management has been key to
Slide 5: New aircraft purchases support low-cost, low-utilization model
5 New aircraft purchases support low-cost, low-utilization model 13 New Airbus A320 50 New Boeing 737 MAX Timing Opportunistic Opportunistic Delivery Availability Near-term Near-term Engine OEM CFM CFM Percentage of New Aircraft in Fleet at Delivery¹ ~16 percent ~30 percent EBITDA per Aircraft ~$8.0
Slide 6: Timing and economics aid long-term growth plan
6 Timing and economics aid long-term growth plan 21 16 34 22 52 16 7 11 20 - 25 15 - 19 10 - 14 5 - 9 0 - 4 Average Age A319 A320 A320 (177) Allegiant’s Fleet Distribution by Age December 2021 Fleet growth + replacement needs • Sourcing needs exceed 150 aircraft from 2023 through the end of the deca
Slide 7: Improved economic benefits and reliability enhance network
7 Improved economic benefits and reliability enhance network Line represents 2016 Deck for reference Variable economic benefits in newer generation aircraft – largely stemming from fuel burn savings •Favorable economic benefits increased viability of shoulder/off-peak season and off- peak day of wee
Slide 8: Creating additional network opportunities
8 Creating additional network opportunities • 80% have no nonstop competition • Evenly split amongst destination types: • Established • Developing • New • Unannounced • Only 20% have the potential for daily+ • 50% are connect-the-dots within our current network 1400+ incremental domestic routes Impr
Slide 9: Economics support mid-continent basing strategy
9 Economics support mid-continent basing strategy Line represents 2016 Deck for reference • Small, mid-continent bases constitute nearly 50% of flying aircraft in 2022 driving significant returns • Economic profile of A320 series aircraft and reliability unlocked opportunities in smaller markets • I
Slide 10: Bases are isolated system, reducing complexity by operating single fleet type
10 Bases are isolated system, reducing complexity by operating single fleet type at bases Nashville - BNALos Angeles - LAX Pittsburgh - PIT Cincinnati - CVG Four cities presented are for illustrative purposes only and not indicative of future MAX bases
Slide 11: Network evolution includes additional high utilization lines of flying
11 0.00 2.00 4.00 6.00 8.00 10.00 12.00 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 101103 S c h e d u le d B lo c k H o u rs p e r A C p e r D a y Aircraft Line of Flying Network evolution includes
Slide 12: B737 meets Allegiant's fleet needs
12 B737 meets Allegiant’s fleet needs 737 MAX A220-300 A320neo A320/19ceo Production Outlook In production In production In production Out of production Delivery Availability Short-term Short-term¹ Long-term Today Flexibility / Up-Gauge Optionality High (4 variants) Low (Uncertain) Medium (2 variant
Slide 13: Long-term fleet plan retains flexibility
13 Long-term fleet plan retains flexibility 73 92 89 78 68 35 35 35 35 31 17 20 17 30 8 9 22 2021 2022E 2023E 2024E 2025E A320 A319 737-8200 737-7 Placeholder 108 14.8 14.7 14.4 12.5 11.4 2021 2022E 2023E 2024E 2025E Fleet Count & Avg. Age 2021-2025E Avg. Age 71 percent of the fleet comprised of use
Slide 14: Supported by favorable economics
14 $1,039 $1,061 $4,061 $3,262 $2,887 $2,887 $1,689 $1,717 $2,350 $2,049 $12,026 $10,976 A320 CEO 737-8-200 Supported by favorable economics Cost per Departure Seat Cost per Departure Maintenance Stations Crew Fuel Ownership $5.58 $5.30 $21.8 $16.3 $15.5 $14.4 $9.1 $8.6 $12.6 $10.2 $64.7 $54.9 A320
Slide 15: Enhancing ability to match capacity with demand
15 Enhancing ability to match capacity with demand Aircraft Utilization 2016, 2019 and 2025E 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2019 2025E 2019 utilization higher due to transition out of MD80 Maintain optimal peak season utilization Utilization scales
Slide 16: 2019 utilization results in increased EBITDA per aircraft
16 2019 utilization results in increased EBITDA per aircraft $7.0M $10.0M A320 CEO 737-8200 EBITDA per 737 Aircraft vs Current Aircraft $5.0M $7.0M A319 CEO 737-7 Highest Gauge Mid-Gauge 177/ 186 seats 200 seats 156 seats 173 seats 7.3 Hrs/day 2019 8.1 Hrs/day 8.1 Hrs/day 7.3 Hrs/day 2019 737 EBITDA
Slide 17: Favorable EBITDA helps mitigate balance sheet risk
17 Favorable EBITDA helps mitigate balance sheet risk Cash & Equivalents Debt & (Net Debt) $1,029M $1,009M $1,147M$1,034M $1,066M $1,304M 2023E 2024E 2025E $2,234M $2,498M $2,528M $2,434M $2,818M $2,748M 2023E 2024E 2025E EBITDA & Net Leverage $536M $753M $803M $978M $1,187M 2.6x 2.4x 1.3x 1.5x 1.5x
Slide 18: Low fixed costs maintained
18 Low fixed costs maintained 1.9M 2.1M 2.2M 2.3M 2.0M 2.1M 2.4M 3.0M 5.0M 0.6M 0.4M 0.6M 0.7M 1.1M 1.2M 1.2M 0.9M 2.5M 2.5M 2.8M 3.0M 3.2M 3.3M 3.6M 3.9M 5.0M Ownership Expense per Aircraft (Mainline + Regionals) 3Q21TTM (millions) Source: Aerotransport DB, SEC (fillings), DOT (Form 41) Ownership E
Slide 19: Environmental considerations
19 Environmental considerations Fuel Efficiency per Aircraft Type, Gallons per Block Hour 2015-2021 112 86 737-7/8200 A320/A319 ASMS per Gallon per Aircraft Type 737 Estimate & A320/A319 Actuals as of 9/30/21 Expect to see a 19% reduction in gallons per block hour with new fleet ASMs per gallon will