Allegiant Travel Company · NASDAQ:ALGT
Allegiant Travel — Q2 2024 Earnings Presentation
22 slides from Allegiant Travel's earnings presentation, Jul 31, 2024
Slide 1: Management Presentation
Management Presentation
Slide 2: Forward looking statements
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 uncertain
Slide 3: Low Competition, Unique Business Model, Diversified Revenue
Low Competition Unique Business Model Diversified Revenue 2024 Routes 2024 Available Seat Miles 2024 % of Departures per Day Reduced capacity for low demand months $2.5 Billion Revenue Routes with TTM as of June 30, 2024 competition 132 20% 20% 20% 19% Airfare $66.2/passenger 11% Routes with no Incr
Slide 4: Adjusted Pre-Tax Margin 2005 – 2Q24
Unique model drives optimized performance – even in high fuel environments Adjusted Pre-Tax Margin (millions) 2005 – 2Q24 30% $111/bbl. 27% 25% $100/bbl. $97/bbl. 22% 20% 16% 15% 16% 14% 14% 13% 11% 12% 12% 10% 10% 15% Adjusted Pre-Tax Margin 14% 9% 10% 7% 6% 6% 11% 10% 5% 8% 3% 3% 7% 5% 0% 2% 3% 2%
Slide 5: A very large niche
A very large niche with room to grow to 1,400 new domestic markets 558 routes 91 small/medium cities 33 leisure destinations Routes as of June 30, 2024 5
Slide 6: Limited competition
Limited competition* Historic Level of Non-competitive Routes 2007-2024 442 448 449 425 418 363 314 309 294 255 207 221 168 181 161 136 132 114 98 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2024* Routes with competition Routes without competition* Comp
Slide 7: Expertly matching capacity with demand trends
Expertly matching capacity with demand trends Average Daily Aircraft Utilization % of Seats Flown Each Day of the Week 2018 – 2024E FY 2023 11 10 20% 9 Allegiant reduces AC utilization to % of total weekly seats Block Hours/AC/Day adjust for low 15% 8 demand 7 10% 6 5 ULCC’s ex-Allegiant Allegiant 5
Slide 8: Added contribution of third-party product sales
Added contribution of third-party product sales Third-Party Annual & Cumulative Net Revenue Summary (millions) Third-Party – Co-Brand Revenue 2005 – 2023 2019-2Q24 LTM $846M 34% CAGR 77M Cumulative 3rd 65M party revenue 52M 33M 24M Asset-light revenue with 90%+ margins FY2019 FY2021 FY2022 FY2023 2Q
Slide 9: Allways Rewards Visa cobrand credit card
Allways Rewards Visa® cobrand credit card Quarterly New Cardholder Acquisition (thousands) 2019 – 2Q24 • Ended 2Q24 with ~525K total cardholders • FY 2023 total remuneration of $121M 45 44 • Named best airline credit card in 2024 for the 6th year in a row in USA TODAY’s 37 39 37 33 35 35 31 32 Reade
Slide 10: Awards that set us apart
Awards that set us apart Best low-cost airline in Four Star Low-Cost Best Airline Credit Card and North America 2024 Carrier 2024 Best Frequent Flyer Program Newsweek Wall Street Journal Forbes Most Responsible #3 Best Airlines 2023 America’s Best Midsize Companies 2024 #1 Best ULCC Airlines 2023 Em
Slide 11: Financial performance
Financial performance Revenue per Passenger TRASM 2022 – 2Q24 2022 – 2Q24 $154 13.89¢ 13.64¢ 13.60¢ $142 $143 $151 13.23¢ 13.03¢ $138 12.78¢ $129 Ancillary Air & 3rd Party 75 76 72 73 75 72 Base Fare 79 71 70 75 57 63 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Airline CASM ex-Fuel 1
Slide 12: Addressing headwinds to deliver industry-leading results
Addressing headwinds to deliver industry-leading results Aircraft utilization currently ~20% below Existing functionality loss and delayed Boeing delivery delays, first deliveries 2019 levels implementation of added functionality originally expected in 2023 Pilot’s staffing levels have stabilized Wo
Slide 13: Line of sight to sustained peak utilization increases
Line of sight to sustained peak utilization increases Peak Months Aircraft Utilization (Block Hours per Aircraft-Day) March July December +1 hour 9.5 9.4 Peak weeks in 9.7 improvement 9.8 +1 hour improvement Dec. scheduled for 9 hours/day 8.7 8.4 7.8 8.0 Target 7.7 7.3 range 7.5 7.4 7.4 7.0 6.7 6.1
Slide 14: Only airline with double-digit unit revenue and capacity growth
Only airline with double-digit unit revenue and capacity growth TRASM & ASM % Change FY2023 vs FY2019 36% 33% 24% 21% 20% 19% 18% 18% 17% 11% 8% 7% 6% 7% 6% 5% TRASM 3% 3% ASMs (1%) (3%) TRASM ASMs 14 Sources: SEC (10-K/S-1) & airline schedules
Slide 15: A class of its own for leisure travel
A class of its own for leisure travel TRASM CASMex Fuel 1 2Q24 TTM 2Q24 TTM Brand Carriers ULCCs Brand Carriers ULCCs 15.20¢ 15.17¢ 13.78¢ 13.50¢ 13.06¢ 11.43¢ 11.35¢ 10.31¢ 10.22¢ 9.12¢ 9.10¢ 8.52¢ 7.22¢ 6.37¢ ALK LUV JBLU HA ALGT SAVE ULCC HA LUV ALK JBLU ALGT SAVE ULCC Allegiant stands out with a
Slide 16: Unique balance of revenue and costs drives higher margins
Allegiant’s unique balance of revenue and costs drives higher margins TRASM & CASMex Differential 2Q24 TTM 34% 32% 35% 26% 25% 30% 20¢ Margin 18¢ (Ex. Fuel) 16¢ 14¢ 12¢ 10¢ CASMex 8¢ 6.68¢ 6¢ 4.89¢ 4.54¢ 3.56¢ 3.82¢ 4¢ TRASM 2.73¢ Margin 2¢ 0¢ 16 Sources: SEC (10-Q/10-K)
Slide 17: 737 improved variable economics create additional network opportunities
737 improved variable economics create additional network opportunities ASMs per Gallon Seats per Departure Allegiant Extra & Legroom+ Allegiant Incremental Routes Higher Yield Offering Domestic Routes 30% +10 +400 increase +10 incremental routes added seats added +33 premium seats added 112 premium
Slide 18: Balance sheet snapshot
Balance sheet snapshot Allegiant’s Net Debt (millions) Allegiant’s Cash Position (millions) 1Q20 vs 2Q24 1Q20 vs 2Q24 $851 $1,368 $1,024 3.8x $464 2.2x 1.5x 3.2x 1Q20 2Q24 1Q20 2Q24 Net Debt Total unrestricted cash and investments Net Debt / EBITDA TTM Cash and investments / Air traffic liability 18
Slide 19: Leverage Outlook: Headwinds & Tailwinds
Leverage Outlook: Headwinds & Tailwinds ’24 Key Drivers Net Leverage Outlook (Net Debt/Adj. EBITDA) 2022 – 2026E ↑ 737 MAX delays • $466mm in PDP paid to date • $72mm in CapEx related to Boeing paid to date • $30mm OpEx impact Deleverage ↑ Navitaire transition starting 3Q25E • ~$2/pax impact on lost
Slide 20: Committed to reducing our CO2 emissions intensity
Committed to reducing our CO2 emissions intensity gCO2e per RTK – Tank-to-Wake Emissions Intensity Emissions Intensity Reduction Goal Excluding ‘20 and ‘21 due to COVID-19 impact. ’23 Estimate Reduce tank-to-wake GHG emissions by 10% per revenue 1,000 ton kilometer (RTK) by the end of 2030 from 2023
Slide 21: Appendix
Appendix 21
Slide 22: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Reconciliation of airline earnings (loss) per share excluding special charges (in millions except per share amounts) Net income as reported (GAAP) 56.1 88.5 (25.1) (2.0) (0.9) 13.7 Plus (minus) non-airline (income) loss befo
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