First Quarter 2018 Fully Diluted Earnings per Share of $3.42

LAS VEGAS, April 25, 2018 (GLOBE NEWSWIRE) -- Allegiant Travel Company (NASDAQ:ALGT) today reported the following financial results for the first quarter 2018, as well as comparisons to the prior year:

	Three Months Ended  March 31,
Unaudited	2018			2017			Change
Total operating revenue (millions)	$	425.4		$	380.0		12.0	%
Operating income (millions)	80.0			73.7			8.5
Net income (millions)	55.2			42.2			30.9
Diluted earnings per share	$	3.42		$	2.53		35.2

"We are proud to announce our 61st consecutive profitable quarter," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. "We are in the final year of our fleet transition and are seeing impressive results. Our first quarter operating margin only declined approximately one percentage point in spite of a greater than 20 percent increase in the cost of fuel. The transition to an all-Airbus fleet has been and continues to be a substantial one-time effort.  We look forward to its completion.

“In addition, we are seeing a very positive impact from the transition to our new revenue management system. The year-over-year scheduled service load factor in March rose for the first time since 2011 without a sacrifice in March yields. Last but absolutely not least, we have continued to see a material improvement in our operations. According to the latest DOT statistics, in January our cancellation rate was the second lowest in the industry, which demonstrates our operational integrity and commitment to safety and reliability. This is directly correlated with the hard work of team members and the strong safety culture embedded throughout our system."

Shareholder returns

• 2018 shareholder returns - $11 million in the first quarter through dividends
  • Will pay dividends of $0.70 per share on June 1, 2018 to shareholders of record as of May 18, 2018
  • Current share repurchase authority of $100 million as of April 25, 2018

Balance sheet update

• Amended senior secured revolving credit facility to increase borrowing limit to $81 million, in the first quarter
  • The revolver is currently undrawn
• 24 Airbus aircraft are unencumbered as of April 25, 2018

Changes to Accounting Standards

• On January 1, Allegiant adopted several new accounting standards, including the new revenue recognition standard
• The prior periods presented here have been recast to reflect adoption of these new standards. In particular, Allegiant is no longer disaggregating passenger revenue by scheduled service and air-related ancillary revenue
  • Including all adjustments related to the New Revenue Standard, TRASM increased 1.4 percent
  • Excluding these items, TRASM would have increased 2.5 percent over the same period last year

2018 outlook

• Second quarter TRASM impact - Earlier Easter in the quarter is expected to decrease TRASM by two percentage points as part of Easter travel was in the first quarter of this year
• Second quarter scheduled and system ASMs are expected to grow between ten and fourteen percent vs last year
• 2018 fuel cost is expected to be $2.20 per gallon
• 2018 tax rate  - 2018 effective tax rate is expected to decline to between 21 and 22 percent impacted by:
  • Adjustment of deferred tax balances due to the dissolution of foreign subsidiaries which are special purpose entities that were set up for the 12 aircraft on lease to a European carrier

Guidance, subject to revision
Full year 2018 guidance		Previous*		Current
Fuel cost per gallon		$2.17		$2.20
Available seat miles (ASMs) / gallon		77.5 to 79.5		77.5 to 79.5
Interest expense (millions)		$50 to $60		$50 to $60
Tax rate		24 to 25%		21 to 22%
Share count (millions)			15.9		15.9
Earnings per share		$10 to $12		$10 to $12
System ASMs - year over year change		11 to 15%		11 to 15%
Scheduled service ASMs - year over year change		11 to 15%		11 to 15%
Depreciation expense / aircraft / month (thousands)		$120 to $130		$120 to $130
Maintenance expense / aircraft / month (thousands)		$95 to $105		$95 to $105
Full year 2018 CAPEX guidance
Capital expenditures (millions) **		$290		$300
Capitalized Airbus deferred heavy maintenance (millions) ***		$45		$45

* - Previous guidance as of January 31, 2018
** - Excludes Sunseeker Resorts
*** - Not included in capital expenditure total

Aircraft fleet plan by end of period
Aircraft - (seats per AC)		1Q18		2Q18		3Q18		YE18
MD-80 (166 seats)		32		27		19		—
A319 (156 seats)		26		31		31		32
A320 (177/186 seats)		30		41		45		50
Total		88		99		95		82

Aircraft listed in table above include only in-service aircraft, planned retirements and future aircraft under contract (subject to change)

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, April 25, 2018 to discuss its first quarter 2018 financial results. A live broadcast of the conference call will be available via the Company’s Investor Relations website homepage at http://ir.allegiantair.com. The webcast will also be archived in the “Events & Presentations” section of the website.

Allegiant.®

Las Vegas-based Allegiant (NASDAQ:ALGT) is focused on linking travelers in small cities to world-class leisure destinations. The airline offers industry-low fares on an all-jet fleet while also offering other travel-related products such as hotel rooms and rental cars. All can be purchased only through the company website, Allegiant.com. Beginning with one aircraft and one route in 1999, the company has grown to more than 80 aircraft and approximately 400 routes across the country with base airfares less than half the cost of the average domestic roundtrip ticket. For downloadable press kit, including photos, visit: http://gofly.us/iiFa303wrtF.

Media Inquiries: mediarelations@allegiantair.com

Investor Inquiries: ir@allegiantair.com

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding future expenses, ASM growth, expected capital expenditures, number of contracted aircraft to be placed in service in the future, timing of aircraft retirements, as well as other information concerning future results of operations, business strategies, financing plans, industry environment and potential growth opportunities. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," “guidance,” "anticipate," "intend," "plan," "estimate", “project”, “hope” or similar expressions.

Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, limitation on growth as we transition to a single fleet type, risk of breach of security of personal data, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed , the effect of economic conditions on leisure travel, debt covenants and balances, the ability to finance aircraft under contract, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to successfully develop a hotel-condo project in Southwest Florida, governmental regulation, increases in maintenance costs and cyclical and seasonal fluctuations in our operating results.

Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.

Detailed financial information follows:

Allegiant Travel Company Consolidated Statements of Income (in thousands, except per share amounts) (Unaudited)
	Three Months Ended March 31,										Percent
		2018					2017				change
OPERATING REVENUE:
Passenger revenue (1)	$		396,771			$		347,836			14.1
Third party products		10,325					12,742				(19.0	)
Fixed fee contract revenue		10,556					11,259				(6.2	)
Other revenue		7,792					8,174				(4.7	)
Total operating revenue		425,444					380,011				12.0
OPERATING EXPENSES:
Aircraft fuel		106,027					84,662				25.2
Salary and benefits		112,963					96,298				17.3
Station operations		37,584					31,832				18.1
Maintenance and repairs		19,270					30,095				(36.0	)
Depreciation and amortization		28,149					30,549				(7.9	)
Sales and marketing		19,078					13,331				43.1
Aircraft lease rentals		21					164				(87.2	)
Other		22,384					19,351				15.7
Total operating expense		345,476					306,282				12.8
OPERATING INCOME		79,968					73,729				8.5
OTHER (INCOME) EXPENSE:
Interest expense		12,724					8,401				51.5
Interest income		(1,907		)			(1,264		)		50.9
Other, net		(240		)			(360		)		(33.3	)
Total other (income) expense		10,577					6,777				56.1
INCOME BEFORE INCOME TAXES		69,391					66,952				3.6
PROVISION FOR INCOME TAXES		14,198					24,785				(42.7	)
NET INCOME	$		55,193			$		42,167			30.9
Earnings per share to common shareholders (2):
Basic	$	3.43				$	2.53				35.6
Diluted	$	3.42				$	2.53				35.2
Weighted average shares outstanding used in computing earnings per share to common shareholders (2):
Basic		15,889					16,382				(3.0	)
Diluted		15,898					16,405				(3.1	)

*NM - Not meaningful
(1) Passenger revenue previously reported as Scheduled service revenue.
(2) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.

Allegiant Travel Company Operating Statistics (Unaudited)
	Three Months Ended March 31,								Percent
	2018				2017				change (1)
OPERATING STATISTICS
Total system statistics:
Passengers	3,302,951				2,881,248				14.6
Revenue passenger miles (RPMs) (thousands)	3,094,805				2,708,498				14.3
Available seat miles (ASMs) (thousands)	3,728,563				3,376,837				10.4
Load factor	83.0		%		80.2		%		2.8
Operating expense per ASM (CASM) (cents)	9.27				9.07				2.2
Fuel expense per ASM (cents)	2.84				2.51				13.1
Operating CASM, excluding fuel (cents)	6.43				6.56				(2.0	)
ASMs per gallon of fuel	76.7				72.1				6.4
Departures	24,248				22,295				8.8
Block hours	57,803				53,193				8.7
Average stage length (miles)	910				903				0.8
Average number of operating aircraft during period	90.7				84.7				7.1
Average block hours per aircraft per day	7.1				7.0				1.4
Full-time equivalent employees at end of period	3,776				3,536				6.8
Fuel gallons consumed (thousands)	48,640				46,850				3.8
Average fuel cost per gallon	$	2.18			$	1.81			20.4
Scheduled service statistics:
Passengers	3,279,368				2,845,480				15.2
Revenue passenger miles (RPMs) (thousands)	3,064,619				2,661,934				15.1
Available seat miles (ASMs) (thousands)	3,602,015				3,237,164				11.3
Load factor	85.1		%		82.2		%		2.9
Departures	23,264				21,248				9.5
Block hours	55,689				50,876				9.5
Total passenger revenue per ASM (TRASM) (cents) (2)	11.30				11.14				1.4
Average fare - scheduled service (3)	$	73.81			$	75.24			(1.9	)
Average fare - air-related charges (3)	$	47.18			$	47.00			0.4
Average fare - third party products	$	3.15			$	4.48			(29.7	)
Average fare - total	$	124.14			$	126.72			(2.0	)
Average stage length (miles)	916				908				0.9
Fuel gallons consumed (thousands)	46,872				44,892				4.4
Average fuel cost per gallon	$	2.17			$	1.80			20.6
Percent of sales through website during period	93.8		%		95.1		%		(1.3	)

(1) Except load factor and percent of sales through website, which is percentage point change.
(2) Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis. The 2017 figure reflected has been adjusted from previously reported as a result of recast.
(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

Summary Balance Sheet

(millions)	3/31/2018				12/31/2017				Change
	(unaudited)
Unrestricted cash
Cash and cash equivalents	$	50.8			$	59.4			(14.5	)%
Short-term investments	341.3				352.7				(3.2	)
Long-term investments	85.6				78.6				8.9
Total unrestricted cash and investments	477.7				490.7				(2.6	)
Debt
Current maturities of long-term debt, net of related costs	150.5				214.8				(29.9	)
Long-term debt, net of current maturities and related costs	912.3				950.1				(4.0	)
Total debt	1,062.8				1,164.9				(8.8	)
Total Allegiant Travel Company shareholders’ equity	$	598.3			$	551.8			8.4	%

Summary Cash Flow

	Three Months Ended March 31,
Unaudited (millions)	2018				2017				Change
Cash provided by operating activities	$	176.3			$	146.6			20.3	%
Purchase of property and equipment, including capitalized interest*	72.5				58.5				23.9
Repurchase of common stock	2.2				4.9				(55.1	)
Cash dividends paid to shareholders	11.3				11.7				(3.4	)
Proceeds from the issuance of long-term debt	—				22.0				(100.0	)
Principal payments on long-term debt & capital lease obligations	$	102.9			$	26.4			289.8	%

* Includes aircraft pre-delivery deposits.

EPS Calculation

The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands):

	Three Months Ended March 31,
	2018				2017
Basic:
Net income	$	55,193			$	42,167
Less net income allocated to participating securities	(768		)		(691		)
Net income attributable to common stock	$	54,425			$	41,476
Net income per share, basic	$	3.43			$	2.53
Weighted-average shares outstanding	15,889				16,382
Diluted:
Net income	$	55,193			$	42,167
Less net income allocated to participating securities	(768		)		(690		)
Net income attributable to common stock	$	54,425			$	41,477
Net income per share, diluted	$	3.42			$	2.53
Weighted-average shares outstanding	15,889				16,382
Dilutive effect of stock options and restricted stock	46				91
Adjusted weighted-average shares outstanding under treasury stock method	15,935				16,473
Participating securities excluded under two-class method	(37		)		(68		)
Adjusted weighted-average shares outstanding under two-class method	15,898				16,405

Appendix A
Consolidated Statements of Income
As Recast for Adoption of New Accounting Standard on January 1, 2018
Twelve Months Ended December 31, 2017
(in thousands, except per share amounts)
(Unaudited)

On January 1, 2018, the Company adopted Accounting Standard Update ("ASU") 2014-09: Revenue from Contracts with Customers (the “New Revenue Standard”). In accordance with the transition provisions of this new standard, the Company has recast certain 2017 financial information previously reported in accordance with GAAP in effect as of December 31, 2017 to reflect the expected effects of adoption. This recast financial information is labeled “As Recast” and is included for supplemental purposes only. The adoption and related disclosures required by GAAP will be reported in the Company’s report on Form 10-Q for the quarter ended March 31, 2018.

						New Revenue Standard
		As Reported				Deferred Revenue Method				Reclassifications				As Recast
OPERATING REVENUE:
Passenger revenue*		$	818,136			$	3,463			$	550,440			$	1,372,039
Ancillary revenue:
Air-related charges		546,476								(546,476		)		—
Third party products		52,707												52,707
Fixed fee contract revenue		48,708												48,708
Other revenue		37,751												37,751
Total operating revenue		1,503,778				3,463				3,964				1,511,205
OPERATING EXPENSES:
Aircraft fuel		343,333												343,333
Salary and benefits		371,599												371,599
Station operations		142,581												142,581
Maintenance and repairs		113,481												113,481
Depreciation and amortization		121,713												121,713
Sales and marketing		52,711								3,964				56,675
Aircraft lease rentals		3,098												3,098
Other		92,840												92,840
Special charge		35,253												35,253
Total operating expense		1,276,609				—				3,964				1,280,573
OPERATING INCOME		227,169				3,463				—				230,632
OTHER (INCOME) EXPENSE:
Interest expense		38,990												38,990
Interest income		(5,808		)										(5,808		)
Other, net		(1,559		)										(1,559		)
Total other (income) expense		31,623				—				—				31,623
INCOME BEFORE INCOME TAXES		195,546				3,463				—				199,009
PROVISION FOR INCOME TAXES		644				1,178								1,822
NET INCOME		$	194,902			$	2,285			$	—			$	197,187
Earnings per share to common shareholders (1):
Basic		$	11.94											$	12.08
Diluted		$	11.93											$	12.07
Weighted average shares outstanding used in computing earnings per share to common shareholders (1):
Basic		16,073												16,073
Diluted		16,095												16,095

*Labeled as "Scheduled service revenue" in previous filings.

		As Reported			As Recast
Operating Stats:
Total System ASMs		13,612,003			13,612,003
Scheduled Service ASMs		13,031,824			13,031,824
TRASM (cents)		10.88			10.93
CASM (cents)		9.38			9.41

Consolidated Statements of Income
As Recast for Adoption of New Accounting Standard on January 1, 2018
(in thousands, except per share amounts)
(Unaudited)

As previously discussed, on January 1, 2018, the Company adopted the New Revenue Standard. The following table presents the As Recast quarterly and annual 2017 Consolidated Statements of Income.

		1Q17				2Q17				3Q17				4Q17				FY17
OPERATING REVENUE:
Passenger revenue*		$	347,836			$	367,250			$	315,308			$	341,645			$	1,372,039
Third party products		12,742				14,304				12,348				13,313				52,707
Fixed fee contract revenue		11,259				11,029				11,831				14,589				48,708
Other revenue		8,174				9,261				10,708				9,608				37,751
Total operating revenue		380,011				401,844				350,195				379,155				1,511,205
OPERATING EXPENSES:
Aircraft fuel		84,662				85,387				80,421				92,863				343,333
Salary and benefits		96,298				92,221				88,788				94,292				371,599
Station operations		31,832				38,998				37,148				34,603				142,581
Maintenance and repairs		30,095				28,645				28,870				25,871				113,481
Depreciation and amortization		30,549				30,129				31,894				29,141				121,713
Sales and marketing		13,331				13,492				13,884				15,968				56,675
Aircraft lease rentals		164				2,400				533				1				3,098
Other		19,351				24,777				24,315				24,397				92,840
Special charge		—				—				—				35,253				35,253
Total operating expense		306,282				316,049				305,853				352,389				1,280,573
OPERATING INCOME		73,729				85,795				44,342				26,766				230,632
OTHER (INCOME) EXPENSE:
Interest income		(1,264		)		(1,475		)		(1,454		)		(1,615		)		(5,808		)
Interest expense		8,401				8,889				10,041				11,659				38,990
Other, net		(360		)		(493		)		(400		)		(306		)		(1,559		)
Total other (income) expense		6,777				6,921				8,187				9,738				31,623
INCOME BEFORE INCOME TAXES		66,952				78,874				36,155				17,028				199,009
PROVISION FOR INCOME TAXES		24,785				30,018				12,955				(65,936		)		1,822
NET INCOME		$	42,167			$	48,856			$	23,200			$	82,964			$	197,187
Earnings per share to common shareholders (1):
Basic		$	2.53			$	2.97			$	1.44			$	5.16			$	12.08
Diluted		$	2.53			$	2.96			$	1.44			$	5.16			$	12.07
Weighted average shares outstanding used in computing earnings per share to common shareholders (1):
Basic		16,382				16,198				15,852				15,868				16,073
Diluted		16,404				16,220				15,862				15,879				16,095

*Labeled as "Scheduled service revenue" in previous filings.

		1Q17			2Q17			3Q17			4Q17			FY17
Operating Stats:
Total System ASMs		3,376,837			3,584,209			3,220,246			3,430,711			13,612,003
Scheduled Service ASMs		3,237,164			3,436,872			3,073,360			3,284,429			13,031,824
TRASM (cents)		11.14			11.10			10.66			10.81			10.93
CASM (cents)		9.07			8.82			9.50			10.27			9.41

2017 Quarterly Adjustments to Statements of Income
Resulting From Adoption of New Accounting Standard on January 1, 2018
(in thousands)
(Unaudited)

As previously discussed, on January 1, 2018, the Company adopted the New Revenue Standard. The following table presents certain selected line items As Recast from the Company's quarterly and annual 2017 Consolidated Statements of Income.

		FY17 As Reported				1Q17				2Q17				3Q17				4Q17				FY17 As Recast
Passenger revenue		$	1,364,612			$	4,174			$	1,230			$	1,426			$	597			$	1,372,039
Sales and marketing		52,711				3,333				631				—				—				56,675
Provision for income taxes		644				306				218				519				135				1,822

Consolidated Balance Sheets
As Recast for Adoption of New Accounting Standard on January 1, 2018
December 31, 2017
(in thousands)
(Unaudited)

As previously discussed, on January 1, 2018, the Company adopted the New Revenue Standard. The following table presents the effects of the adoption of the New Revenue Standard on the December 31, 2017 consolidated balance sheet.

		As Reported				New Revenue Standard				As Recast
CURRENT ASSETS:
Cash and cash equivalents		$	59,449			$	—			$	59,449
Restricted cash		11,190				—				11,190
Short-term investments		352,681				—				352,681
Accounts receivable		71,057				—				71,057
Expendable parts, supplies and fuel, net		17,647				—				17,647
Prepaid expenses		23,931				—				23,931
Other current assets		5,320				—				5,320
TOTAL CURRENT ASSETS		541,275				—				541,275
Property and equipment, net		1,512,415				—				1,512,415
Long-term investments		78,570				—				78,570
Deferred major maintenance, net		31,326				—				31,326
Deposits and other assets		16,571				—				16,571
TOTAL ASSETS		$	2,180,157			$	—			$	2,180,157
CURRENT LIABILITIES:
Accounts payable		$	20,108			$	—			$	20,108
Accrued liabilities		105,127				—				105,127
Air traffic liability		210,184				(5,885		)		204,299
Current maturities of notes payable, net of related costs		214,761				—				214,761
TOTAL CURRENT LIABILITIES		550,180				(5,885		)		544,295
Long-term debt, net of current maturities and related costs		950,131				—				950,131
Deferred income taxes		118,492				2,064				120,556
Other noncurrent liabilities		13,407				—				13,407
TOTAL LIABILITIES:		1,632,210				(3,821		)		1,628,389
SHAREHOLDERS' EQUITY:
Common stock, par value $.001		23				—				23
Treasury stock		(605,655		)		—				(605,655		)
Additional paid in capital		253,840				—				253,840
Accumulated other comprehensive loss, net		(2,840		)		—				(2,840		)
Retained earnings		902,579				3,821				906,400
TOTAL EQUITY		547,947				3,821				551,768
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	2,180,157			$	—			$	2,180,157