Third quarter 2018 Fully Diluted Earnings per Share of $0.94

LAS VEGAS, Oct. 24, 2018 (GLOBE NEWSWIRE) -- Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the third quarter 2018, as well as comparisons to the prior year:

	Three Months Ended September 30,									Nine Months Ended September 30,
Unaudited	2018			2017			Change			2018			2017			Change
Total operating revenue (millions)	$	393.1		$	350.2		12.3	%		$	1,255.3		$	1,132.0		10.9	%
Operating income (millions)	26.2			44.3			(41.0	)		180.4			203.9			(11.5	)
Net income (millions)	15.1			23.4			(35.2	)		120.4			114.8			4.9
Diluted earnings per share	$	0.94		$	1.45		(35.2	)		$	7.45		$	6.99		6.6

"We are proud to announce our 63rd consecutive profitable quarter," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company.  "Our transition to an all-Airbus fleet is nearly complete.  Our decision to move the transition up by a year from 2019 to 2018 has proven to be an excellent one given the higher fuel cost environment.  Compared to our all-MD-80 fleet from 2010, we expect our ASMs per gallon to increase by almost 40 percent in 2019, from 59 ASMs per gallon to the low 80s.

"This has been a busy couple of years across the Company as we transitioned our fleet.  Since the end of 2016:

1. We will have purchased and inducted 43 Airbus aircraft, while retiring 47 MDs.  We will have trained more than 350 Airbus pilots and 300 maintenance technicians as well as our flight attendants, ground staff and other operations personnel by the time we fly the final MD-80 flight at the end of November.
2. We have grown the Company 20 percent in capacity (ASMs), adding 51 routes and carrying 13.6 million passengers during the last twelve months, an increase of 1.64 million passengers over 2016.
3. We have dramatically improved our operations.  Since last October, we have led the industry in monthly completion factor six times and have been among the top three except for a few months.  Our on-time performance is improving nicely as well; this September we were up ten percentage points in A14, from 72 percent to 82 percent.

"I couldn’t be more excited about where we are at this point in our history.  As we outlined in our Sunseeker Resort investor day, we are ready for Allegiant 2.0.  Stay tuned!

"Needless to say, we couldn’t have accomplished this difficult transition without our great group of team members.  They have done an amazing job this quarter - as well as over this entire past year - with the highly complex effort to transition our fleet and improve our operations.  Hats off to the entire team for their tireless professionalism in any environment."

Shareholder returns

• 2018 shareholder returns - over $33 million in the first three quarters of the year through dividends
  ° Will pay dividends of $0.70 per share on December 5, 2018 to shareholders of record as of November 23, 2018

2018 outlook

• Fourth quarter scheduled and system ASMs are expected to grow between four and six percent vs last year
  ° The remaining MD-80s will be retired immediately after the Thanksgiving travel period
• 2018 full year ASM growth is expected to be between 9.5 and 10.5 percent
• 2018 full year tax rate is expected to be between 18 and 19 percent
• 2018 full year average fuel cost is expected to be $2.38 per gallon using the forward curve as of October 23, 2018
• Due to several one-time maintenance events, 2018 maintenance per aircraft per month is expected to be between $90 and $95 thousand
• 2018 EPS is expected to be between $9 and $10 per share even with the higher than expected fuel cost

Guidance, subject to revision
Full year 2018 guidance	Previous*		Current
Fuel cost per gallon	$2.35		$2.38
Available seat miles (ASMs) / gallon	77.5 to 78.5		77.5 to 78.5
Interest expense (millions)	$50 to $60		$50 to $60
Tax rate	21 to 22%		18 to 19%
Share count (millions)	15.9		15.9
Earnings per share	$9 to $10		$9 to $10
System ASMs - year over year change	9 to 11%		9.5 to 10.5%
Scheduled service ASMs - year over year change	9 to 11%		9.5 to 10.5%
Depreciation expense / aircraft / month (thousands)	$115 to $120		$115 to $120
Maintenance expense / aircraft / month (thousands)	$80 to $85		$90 to $95
Full year 2018 CAPEX guidance
Capital expenditures (millions) **	$300		$300
Capitalized Airbus deferred heavy maintenance (millions) ***	$45		$45
Sunseeker CAPEX
2018 year to date (millions)			$15
Project since inception (millions)			$46

* - Previous guidance as of July 25, 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		35		43		44
Total		88		93		93		76

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

Non-airline business

For greater transparency around the non-airline portion of the business, we are providing what we believe is a better measure of controllable airline costs that excludes costs driven by non-airline entities as well as their revenue contribution.

Adjusted CASM ex fuel	Three Months Ended September 30,
	2018				2017				Change
CASM (cents)	10.07				9.50				6.0%
Adjusted for:
Aircraft fuel	3.12				2.50				24.8
Non-airline	0.16				0.08				100.0
Adjusted CASM ex	6.79				6.92				(1.9)
Non-airline revenue (millions)	$	2.7			$	1.7			58.8

Adjusted CASM ex fuel	Nine Months Ended September 30,
	2018				2017				Change
CASM (cents)	9.52				9.12				4.4%
Adjusted for:
Aircraft fuel	3.03				2.46				23.2
Non-airline	0.11				0.07				57.1
Adjusted CASM ex	6.38				6.59				(3.2)
Non-airline revenue (millions)	$	6.0			$	3.4			76.5

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, October 24, 2018 to discuss its third 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 and mid-sized 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, our reliance on third parties to deliver aircraft under contract to us on a timely basis, 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 resort 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 September 30,										Percent
	2018					2017					change
OPERATING REVENUE:
Passenger revenue (1)	$		355,100			$		315,308			12.6
Third party products		15,921					12,348				28.9
Fixed fee contract revenue		14,791					11,831				25.0
Other revenue		7,297					10,708				(31.9	)
Total operating revenue		393,109					350,195				12.3
OPERATING EXPENSES:
Aircraft fuel		113,525					80,421				41.2
Salary and benefits		97,706					88,788				10.0
Station operations		43,128					37,148				16.1
Maintenance and repairs		31,983					28,870				10.8
Depreciation and amortization		34,658					31,894				8.7
Sales and marketing		16,798					13,884				21.0
Aircraft lease rentals		671					533				25.9
Other		28,459					24,315				17.0
Total operating expense		366,928					305,853				20.0
OPERATING INCOME		26,181					44,342				(41.0	)
OTHER (INCOME) EXPENSE:
Interest expense		14,309					10,041				42.5
Interest income		(2,425		)			(1,454		)		66.8
Other, net		(118		)			(400		)		(70.5	)
Total other expense		11,766					8,187				43.7
INCOME BEFORE INCOME TAXES		14,415					36,155				(60.1	)
PROVISION FOR INCOME TAXES		(732		)			12,771				NM
NET INCOME	$		15,147			$		23,384			(35.2	)
Earnings per share to common shareholders (2):
Basic	$	0.94				$	1.45				(35.2	)
Diluted	$	0.94				$	1.45				(35.2	)
Weighted average shares outstanding used in computing earnings per share to common shareholders (2):
Basic		15,957					15,852				0.7
Diluted		15,962					15,862				0.6

NM - Not meaningful
(1) Passenger revenue previously reported as Scheduled service revenue and Ancillary air-related 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 September 30,								Percent
	2018				2017				change (1)
OPERATING STATISTICS
Total system statistics:
Passengers	3,503,849				3,045,642				15.0
Revenue passenger miles (RPMs) (thousands)	3,037,540				2,672,963				13.6
Available seat miles (ASMs) (thousands)	3,643,948				3,220,246				13.2
Load factor	83.4		%		83.0		%		0.4
Operating expense per ASM (CASM) (cents)	10.07				9.50				6.0
Fuel expense per ASM (cents)	3.12				2.50				24.8
Operating CASM, excluding fuel (cents)	6.95				7.00				(0.7	)
ASMs per gallon of fuel	77.5				72.6				6.7
Departures	25,601				22,723				12.7
Block hours	56,329				49,932				12.8
Average stage length (miles)	838				842				(0.5	)
Average number of operating aircraft during period	95.6				89.7				6.6
Average block hours per aircraft per day	6.4				6.1				4.9
Full-time equivalent employees at end of period	3,835				3,704				3.5
Fuel gallons consumed (thousands)	47,016				44,346				6.0
Average fuel cost per gallon	$	2.41			$	1.81			33.1
Scheduled service statistics:
Passengers	3,461,267				2,998,476				15.4
Revenue passenger miles (RPMs) (thousands)	2,988,962				2,618,446				14.2
Available seat miles (ASMs) (thousands)	3,485,800				3,073,360				13.4
Load factor	85.7		%		85.2		%		0.5
Departures	24,281				21,498				12.9
Block hours	53,723				47,481				13.1
Total passenger revenue per ASM (TRASM) (cents) (2)	10.64				10.66				(0.2	)
Average fare - scheduled service (3)	$	59.23			$	61.34			(3.4	)
Average fare - air-related charges (3)	$	43.36			$	43.81			(1.0	)
Average fare - third party products	$	4.60			$	4.12			11.7
Average fare - total	$	107.19			$	109.27			(1.9	)
Average stage length (miles)	845				849				(0.5	)
Fuel gallons consumed (thousands)	44,910				42,193				6.4
Average fuel cost per gallon	$	2.41			$	1.80			33.9
Percent of sales through website during period	93.7		%		93.3		%		0.4

(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 of revenue in accordance with revenue recognition accounting rules adopted by us as of January 1, 2018.
(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

Allegiant Travel Company
Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
	Nine Months Ended September 30,										Percent
	2018					2017					change
OPERATING REVENUE:
Passenger Revenue (1)	$		1,157,443			$		1,030,395			12.3
Third party products		44,045					39,394				11.8
Fixed fee contract revenue		33,000					34,120				(3.3	)
Other revenue		20,845					28,140				(25.9	)
Total operating revenue		1,255,333					1,132,049				10.9
OPERATING EXPENSES:
Aircraft fuel		342,006					250,470				36.5
Salary and benefits		312,314					277,307				12.6
Station operations		122,265					107,979				13.2
Maintenance and repairs		75,864					87,611				(13.4	)
Depreciation and amortization		92,641					92,571				0.1
Sales and marketing		54,224					40,707				33.2
Aircraft lease rentals		767					3,098				(75.2	)
Other		74,881					68,440				9.4
Total operating expense		1,074,962					928,183				15.8
OPERATING INCOME		180,371					203,866				(11.5	)
OTHER (INCOME) EXPENSE:
Interest expense		40,188					27,332				47.0
Interest income		(6,259		)			(4,193		)		49.3
Other, net		(408		)			(1,254		)		(67.5	)
Total other expense		33,521					21,885				53.2
INCOME BEFORE INCOME TAXES		146,850					181,981				(19.3	)
PROVISION FOR INCOME TAXES		26,494					67,208				(60.6	)
NET INCOME		120,356					114,773				4.9
Earnings per share to common shareholders (2):
Basic	$	7.46				$	7.00				6.6
Diluted	$	7.45				$	6.99				6.6
Weighted average shares outstanding used in computing earnings per share to common shareholders (2):
Basic		15,929					16,142				(1.3	)
Diluted		15,938					16,160				(1.4	)

(1) Passenger revenue previously reported as Scheduled service revenue and Ancillary air-related 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)
	Nine Months Ended September 30,								Percent
	2018				2017				change (1)
OPERATING STATISTICS
Total system statistics:
Passengers	10,510,913				9,233,083				13.8
Revenue passenger miles (RPMs) (thousands)	9,408,944				8,340,269				12.8
Available seat miles (ASMs) (thousands)	11,294,805				10,181,292				10.9
Load factor	83.3		%		81.9		%		1.4
Operating expense per ASM (CASM) (cents)	9.52				9.12				4.4
Fuel expense per ASM (cents)	3.03				2.46				23.2
Operating CASM, excluding fuel (cents)	6.49				6.66				(2.6	)
ASMs per gallon of fuel	76.8				72.2				6.3
Departures	76,912				69,739				10.3
Block hours	174,838				159,181				9.8
Average stage length (miles)	868				870				(0.2	)
Average number of operating aircraft during period	92.4				86.6				6.7
Average block hours per aircraft per day	6.9				6.7				3.0
Full-time equivalent employees at end of period	3,835				3,704				3.5
Fuel gallons consumed (thousands)	147,172				141,054				4.3
Average fuel cost per gallon	$	2.32			$	1.78			30.3
Scheduled service statistics:
Passengers	10,422,579				9,110,745				14.4
Revenue passenger miles (RPMs) (thousands)	9,299,355				8,183,636				13.6
Available seat miles (ASMs) (thousands)	10,883,630				9,747,395				11.7
Load factor	85.4		%		84.0		%		1.4
Departures	73,537				66,355				10.8
Block hours	167,947				151,988				10.5
Total passenger revenue per ASM (TRASM) (cents) (2)	11.04				10.98				0.5
Average fare - scheduled service (3)	$	65.72			$	68.04			(3.4	)
Average fare - air-related charges (3)	$	45.33			$	45.06			0.6
Average fare - third party products	$	4.23			$	4.32			(2.1	)
Average fare - total	$	115.28			$	117.42			(1.8	)
Average stage length (miles)	874				875				(0.1	)
Fuel gallons consumed (thousands)	141,452				134,906				4.9
Average fuel cost per gallon	$	2.31			$	1.76			31.3
Percent of sales through website during period	93.8		%		94.1		%		(0.3	)

(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 of revenue in accordance with revenue recognition accounting rules adopted by us as of January 1, 2018.
(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

Summary Balance Sheet

(millions)	9/30/2018				12/31/2017				Change
	(unaudited)
Unrestricted cash
Cash and cash equivalents	$	140.8			$	59.4			137.0	%
Short-term investments	284.6				352.7				(19.3	)
Long-term investments	53.4				78.6				(32.1	)
Total unrestricted cash and investments	478.8				490.7				(2.4	)
Debt
Current maturities of long-term debt and capital lease obligations, net of related costs	654.7				214.8				204.8
Long-term debt and capital lease obligations, net of current maturities and related costs	658.4				950.1				(30.7	)
Total debt	1,313.1				1,164.9				12.7
Total Allegiant Travel Company shareholders’ equity	$	653.0			$	553.3			18.0	%

Summary Cash Flow

	Nine Months Ended September 30,
Unaudited (millions)	2018				2017				Change
Cash provided by operating activities	$	290.1			$	302.1			(4.0	)%
Purchase of property and equipment, including capitalized interest	274.0				333.7				(17.9	)
Repurchase of common stock	3.6				90.4				(96.0	)
Cash dividends paid to shareholders	33.9				34.5				(1.7	)
Proceeds from the issuance of long-term debt	191.7				292.5				(34.5	)
Principal payments on long-term debt & capital lease obligations	$	171.4			$	88.0			94.8	%

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 September 30,								Nine Months Ended September 30,
	2018				2017				2018				2017
Basic:
Net income	$	15,147			$	23,384			$	120,356			$	114,773
Less net income allocated to participating securities	(194		)		(331		)		(1,602		)		(1,784		)
Net income attributable to common stock	$	14,953			$	23,053			$	118,754			$	112,989
Earnings per share, basic	$	0.94			$	1.45			$	7.46			$	7.00
Weighted-average shares outstanding	15,957				15,852				15,929				16,142
Diluted:
Net income	$	15,147			$	23,384			$	120,356			$	114,773
Less net income allocated to participating securities	(194		)		(330		)		(1,601		)		(1,782		)
Net income attributable to common stock	$	14,953			$	23,054			$	118,755			$	112,991
Earnings per share, diluted	$	0.94			$	1.45			$	7.45			$	6.99
Weighted-average shares outstanding	15,957				15,852				15,929				16,142
Dilutive effect of stock options and restricted stock	35				18				42				60
Adjusted weighted-average shares outstanding under treasury stock method	15,992				15,870				15,971				16,202
Participating securities excluded under two-class method	(30		)		(8		)		(33		)		(42		)
Adjusted weighted-average shares outstanding under two-class method	15,962				15,862				15,938				16,160

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