Allegiant Travel Company (ALGT) Q4 2023 earnings summary

Executive summary

• FY2023 diluted EPS was $6.29 GAAP and $7.31 excluding special charges; airline-only adjusted EPS was $8.82.

• Q4 GAAP diluted loss per share was $0.13; excluding special charges, consolidated diluted EPS was $0.11 and airline-only diluted EPS was $0.86.

• Operations delivered 99.8% controllable completion for FY2023, while management emphasized restoring margins and peak-period utilization in 2024.

Financial highlights

• Q4 operating revenue was $611.0M, flat YoY; operating income was $10.6M versus $89.2M in Q4 2022, and net loss was $2.0M.

• Q4 adjusted consolidated operating income was $19.5M, operating margin 3.2%, and EBITDA $77.8M, margin 12.7%.

• FY operating revenue rose 9.0% to $2.51B; operating income reached $221.0M, up 141.1% YoY, and net income was $117.6M.

• FY adjusted income before tax was $187.7M with a 7.5% margin; airline-only adjusted pretax income was $223.3M with an 8.9% margin.

Outlook and guidance

• Q1 2024 airline guidance: system and scheduled ASMs each ~1% YoY growth; fuel $2.85/gallon; operating margin 8.0%–10.0%; airline EPS $1.00–$2.00.

• Q1 2024 consolidated EPS guidance is $0.50–$1.50.

• FY2024 airline system and scheduled ASMs are each guided to grow 2%–6%; interest expense $140M–$150M and interest income $35M–$45M.

• FY2024 airline CAPEX guidance: $535M–$555M for aircraft and related costs, $80M–$90M for deferred heavy maintenance, and $155M–$165M for other airline CAPEX.

• Sunseeker is expected to be EBITDA-positive in 2024; FY guidance lists EBITDA up to $15M, occupancy ~60%, average daily rate ~$350, and CAPEX ~$10M.