分组1 - Allegiant Travel reported quarterly earnings of $1.81 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, and showing a significant increase from $0.57 per share a year ago, resulting in an earnings surprise of 17.53% [1] - The company achieved revenues of $699.07 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.28% and increasing from $656.41 million year-over-year [2] - Allegiant Travel has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed the market, losing approximately 46.4% since the beginning of the year, compared to a decline of 3.9% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $2.27 on revenues of $721.29 million, and for the current fiscal year, it is $5.27 on revenues of $2.75 billion [7] - The Transportation - Airline industry, to which Allegiant Travel belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Data and Key Metrics Changes - The company reported consolidated net income of $33.4 million, resulting in earnings per share of $1.81, with airline segment net income at $39 million and airline earnings per share at $2.11, both within original guidance [30] - Airline operating margin improved to 9.3%, up three percentage points year over year, with EBITDA reaching $121 million, a 25% increase from the previous year, resulting in an EBITDA margin of 18.1% [9][31] - Fuel costs were $2.61 per gallon, aligning with initial expectations, while total airline operating expenses were approximately $600 million, about 2% above the previous year [31] Business Line Data and Key Metrics Changes - The airline achieved a controllable completion rate of 99.9% on 32,000 departures, with over 4.4 million passengers, a first-quarter record, and 75% being repeat customers [8] - Ancillary revenue per passenger reached a record $79.28, up nearly 5% year over year, driven by the expansion of Allegiant Extra and improvements in the booking system [24] - The company increased aircraft utilization by approximately 19% to 7.5 hours per aircraft per day, although still more than 10% lower than other reported carriers [21][22] Market Data and Key Metrics Changes - The company noted robust demand for peak leisure travel, with adjustments made to capacity in response to economic uncertainty and consumer confidence [10][11] - The company removed approximately 7.5 points of capacity from May through August, focusing on off-peak days, with a significant portion of cuts coming from Tuesday, Wednesday, and Saturday flights [24] - Recent booking trends have shown promise, with expectations for continued recovery and growth in demand [27] Company Strategy and Development Direction - The company aims to maintain a strong industry-leading balance sheet while pursuing a transaction related to the sale of the Sunseeker resort, which is on track for completion this summer [18] - Allegiant's strategy focuses on minimizing competitive overlap, optimizing aircraft utilization, and maintaining a low-cost structure to cater to leisure travelers [12] - The company is committed to managing capacity and costs aggressively while adapting to changing demand environments [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt and deliver strong results despite economic challenges, emphasizing the importance of operational flexibility [19] - The outlook for the second quarter anticipates airline-only operating margin of approximately 7% and consolidated earnings per share of $0.50, with a focus on maintaining cost discipline [36] - Management highlighted the need for continued monitoring of the demand environment and the potential for further capacity adjustments in the second half of the year [52][78] Other Important Information - The company ended the quarter with $1.2 billion in available liquidity, including $906 million in cash and investments, and $275 million in undrawn revolvers [33] - Capital expenditures during the quarter were $83 million, with expectations for reduced capital expenditure forecasts due to a slower delivery schedule [35] - The company anticipates 12 MAX aircraft deliveries during 2025, three more than previously estimated, while planning to offset these with the removal of older aircraft [35] Q&A Session Summary Question: Can you speak to the margin trajectory for the second half of the year? - Management indicated that while they are not providing full-year guidance, they will continue to manage capacity and costs aggressively to optimize margins, with the third quarter typically being the softest [41][44] Question: Can you provide an update on the Sunseeker process and its revenue generation? - Management confirmed that the process remains on track for a summer transaction, with food and beverage revenues split 70% from hotel guests and 30% from locals, indicating sustainability in earnings [45][48] Question: What is the current fuel cost and capacity outlook? - The company is using $2.4 per gallon for fuel cost assumptions, with a capacity expectation of around 13% for the year, remaining flexible to adjust based on demand [50][51] Question: How does the company view the current demand stabilization? - Management noted recent improvements in demand, particularly in the last week, with expectations for a solid performance during peak periods [60][62] Question: What are the expectations for RASM in Q2? - Management anticipates a greater year-over-year decline in RASM for Q2 compared to Q1, with a mid-single-digit variance expected [66][67] Question: Why has the company not pulled down more capacity? - Management explained that the current capacity adjustments are margin-optimizing, and further cuts could jeopardize the infrastructure needed for future growth [75][85]

Financial Data and Key Metrics Changes - The company reported consolidated net income of $33.4 million, resulting in consolidated earnings per share of $1.81, with airline segment net income of $39 million yielding airline-only earnings per share of $2.11 [28] - Airline operating margin improved to 9.3%, up three percentage points year-over-year [7] - EBITDA for the airline segment reached $121 million, a 25% increase compared to Q1 2024, resulting in an EBITDA margin of 18.1% [28][29] Business Line Data and Key Metrics Changes - The airline achieved a controllable completion rate of 99.9% on 32,000 departures, a 14% increase from the previous year [6] - Ancillary revenue per passenger reached a record $79.28, up nearly 5% year-over-year, driven by the expansion of Allegiant Extra [22] - The number of active cardholders in the loyalty program increased by nearly 7% year-over-year [6] Market Data and Key Metrics Changes - The company experienced a 14.2% growth in total available seat miles (ASMs) with stage length increasing by about 1.6% [19] - Despite the growth, aircraft utilization increased by approximately 19% to 7.5 hours per aircraft per day, although it remains over 10% lower than other reported carriers [19] - The company anticipates a 15.5% year-over-year increase in ASMs for Q2 [23] Company Strategy and Development Direction - The company is focused on maintaining flexibility in capacity management and cost discipline to protect margins amid economic uncertainty [9][10] - Allegiant's strategic design emphasizes tactical utilization and a long-term fleet strategy aimed at minimizing fixed costs while maximizing profitability [10] - The company is pursuing a transaction related to the sale of the Sunseeker resort, which is expected to be completed by summer [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while peak leisure demand remains healthy, they are adapting capacity in response to economic uncertainty and consumer confidence [8][9] - The company is optimistic about recent booking trends and anticipates continued strength in strategic initiatives [24] - Management emphasized the importance of operational flexibility and the ability to adapt to changing market conditions [16] Other Important Information - The company ended the quarter with $1.2 billion in available liquidity, including $926 million in cash and investments [31] - Total debt decreased by 10% year-over-year to $2 billion, reflecting proactive debt repayment strategies [31] - The company plans to reduce capital expenditures by $80 million for the year, adjusting to a more moderated CapEx environment [33] Q&A Session Summary Question: Can you discuss the margin trajectory for the second half of the year? - Management indicated that they will continue to aggressively manage capacity and costs to optimize margins, with the third quarter typically being the softest [41][42] Question: What is the status of the Sunseeker resort sale process? - The process remains on track for completion by summer, with a focus on well-capitalized counterparties [46] Question: What are the current fuel cost assumptions? - The company is using $2.4 per gallon for fuel cost assumptions for the remainder of the year [49] Question: Can you provide insights on the RASM expectations for Q2? - Management expects RASM to face greater year-over-year pressure in Q2 compared to Q1, with a mid-single-digit decline anticipated [66] Question: How does the company view potential M&A opportunities in the current environment? - Management believes that while consolidation in the industry is necessary, Allegiant's strong model positions it well to outperform without needing to pursue M&A aggressively [84][85]

"Team Allegiant executed a successful first quarter, delivering an airline-only operating margin of 9.3 percent, a three-point improvement from last year and among the best in the industry," stated Gregory Anderson, president and CEO of Allegiant Travel Company. "These financial results were underscored by our excellent operations, as the team achieved a 99.9 percent controllable completion during the quarter on 14.2 percent capacity growth. Exhibit 99.1 ALLEGIANT TRAVEL COMPANY FIRST QUARTER 2025 FINANCIAL ...

Allegiant Travel Company (ALGT) Summary - Scheduled traffic increased by 15.9% in March 2025 compared to March 2024, while capacity rose by 20.7% year over year [1] - The load factor decreased to 82.4% in March 2025 from 85.9% in the previous year due to capacity expansion outpacing traffic growth [1] - Total departures for scheduled services rose by 21.1% year over year in March 2025, with an average stage length increase of 1.1% [2] - Allegiant carried 14.2% more passengers system-wide in March 2025 compared to the same month last year, with system-wide capacity improving by 20.2% [2] - The estimated fuel price per gallon was $2.52 in March 2025 and $2.61 for the first quarter of 2025 [3] Competitor Analysis - Copa Holdings reported a year-over-year increase in revenue passenger miles in March 2025, with available seat miles rising by 5.5% [6][7] - LATAM Airlines experienced a 7.2% increase in consolidated capacity and a 5.6% rise in revenue passenger kilometers, despite the impact of the Carnival holidays [9][10] - Ryanair Holdings transported 15 million passengers in March 2025, reflecting a 10% year-over-year increase, with a stable load factor of 93% [12][13] - Ryanair operated over 84,000 flights in March 2025, a significant increase from previous months, and achieved a milestone of carrying 200 million passengers in its fiscal year ending March 2025 [14]

Group 1 - Allegiant Travel Company has scheduled its first quarter 2025 financial results conference call for May 6 at 4:30 p.m. EST [1] - The conference call will be available via live broadcast on the company's Investor Relations website and will be archived for later access [1] - Allegiant is an integrated travel company with a focus on connecting customers to key destinations through its airline services [2] Group 2 - Allegiant Air has been operational since 1999, providing nonstop flights from small-to-medium cities to major vacation destinations [2] - The company offers base airfares that are less than half the cost of the average domestic roundtrip ticket, highlighting its competitive pricing strategy [2]

Core Insights - Allegiant Travel Company reported a significant increase in passenger traffic for March 2025, with a total of 1,887,902 passengers, representing a 14.4% increase compared to March 2024 [2] - The company also experienced growth in revenue passenger miles (RPM) and available seat miles (ASM), with RPM increasing by 15.9% and ASM by 20.7% year-over-year [2] - The load factor decreased by 3.5 percentage points to 82.4%, indicating a slight decline in seat occupancy [2] Scheduled Service – Year Over Year Comparison - March 2025 passengers: 1,887,902 vs. March 2024: 1,649,826, a change of 14.4% [2] - Revenue passenger miles (000): March 2025: 1,819,246 vs. March 2024: 1,569,978, a change of 15.9% [2] - Available seat miles (000): March 2025: 2,206,943 vs. March 2024: 1,828,212, a change of 20.7% [2] - Load factor: March 2025: 82.4% vs. March 2024: 85.9%, a decrease of 3.5 percentage points [2] - Departures: March 2025: 13,407 vs. March 2024: 11,075, an increase of 21.1% [2] - Average stage length (miles): March 2025: 940 vs. March 2024: 930, an increase of 1.1% [2] 1st Quarter 2025 Results - Passengers: 4,420,811 in Q1 2025 vs. 4,069,519 in Q1 2024, an increase of 8.6% [4] - Revenue passenger miles (000): Q1 2025: 4,271,328 vs. Q1 2024: 3,883,810, an increase of 10.0% [4] - Available seat miles (000): Q1 2025: 5,305,191 vs. Q1 2024: 4,636,922, an increase of 14.4% [4] - Load factor: Q1 2025: 80.5% vs. Q1 2024: 83.8%, a decrease of 3.3 percentage points [4] - Departures: Q1 2025: 32,133 vs. Q1 2024: 28,177, an increase of 14.0% [4] - Average stage length (miles): Q1 2025: 941 vs. Q1 2024: 926, an increase of 1.7% [4] Total System – Year Over Year Comparison - March 2025 total passengers: 1,904,613 vs. March 2024: 1,668,252, a change of 14.2% [5] - Available seat miles (000): March 2025: 2,275,018 vs. March 2024: 1,892,229, a change of 20.2% [5] - Departures: March 2025: 13,885 vs. March 2024: 11,585, an increase of 19.9% [5] - Average stage length (miles): March 2025: 935 vs. March 2024: 921, an increase of 1.6% [5] - Q1 2025 total passengers: 4,451,306 vs. Q1 2024: 4,104,860, an increase of 8.4% [5] - Q1 2025 available seat miles (000): 5,451,584 vs. Q1 2024: 4,771,971, an increase of 14.2% [5] - Q1 2025 departures: 33,235 vs. Q1 2024: 29,225, an increase of 13.7% [5] - Q1 2025 average stage length (miles): 935 vs. Q1 2024: 919, an increase of 1.8% [5] Preliminary Financial Results - Estimated average fuel cost per gallon for March 2025: $2.52 [6] - Estimated average fuel cost per gallon for Q1 2025: $2.61 [6] Company Overview - Allegiant Travel Company is an integrated travel company based in Las Vegas, focusing on connecting customers with various destinations through its airline services [7] - The company has been operational since 1999, providing nonstop flights from small-to-medium cities to vacation destinations at competitive fares [7]

Industry Overview - The Zacks Transportation - Airline industry is benefiting from declining fuel costs, which are a significant input cost for airlines [1][4] - Airlines are cutting capacity to address the tariff-induced decline in air travel demand, which is a shareholder-friendly approach [1][6] - The industry includes both legacy carriers and low-cost airlines, with operations supported by regional subsidiaries and third-party carriers [3] Financial Performance - The Zacks Airline industry has gained 23.7% over the past year, outperforming the S&P 500's rise of 7.7% and the broader sector's decline of 12.1% [12] - The industry's earnings estimate for 2025 has improved by 5% since September 2024, indicating positive earnings growth potential [10] Valuation Metrics - The industry has a forward 12-month price-to-sales (P/S) ratio of 1.16X, significantly lower than the S&P 500's 4.81X and the sector's 1.68X [15] Key Players - SkyWest (SKYW) has seen its stock surge 28% in the past year, with a 7.6% increase in the Zacks Consensus Estimate for 2025 earnings over the past 60 days [20] - Frontier Group (ULCC) has experienced a 42.2% increase in the Zacks Consensus Estimate for 2025 earnings, and is offering free checked bags for summer travel [23][24] - Allegiant (ALGT) has a Zacks Rank 2 (Buy) and has revised its current-year earnings estimate upward by 21.8% over the past 60 days [26]

Core Insights - Allegiant is recognized as the only U.S. airline on Newsweek's America's Most Loved Brands 2025 list, highlighting its strong customer loyalty and brand affection [1][2]. Company Overview - Allegiant operates a unique business model focused on nonstop flights, primarily connecting underserved cities to popular vacation destinations, which enhances convenience for travelers [3][4]. - The airline has been acknowledged for its customer experience, including an innovative in-flight menu and a popular loyalty program, Allways Rewards [4][5]. Recognition and Ratings - The recognition from Newsweek is based on a study involving over 359,000 brand reviews and a survey of 24,000 American consumers, where Allegiant received a four out of five-star rating across five key categories: brand love, credibility, reliability, purchase intent, and affinity [2][7]. - Allegiant was also named one of America's top airlines by the Wall Street Journal and awarded the title of Best Low-Cost Airline in North America at the 2024 World Airline Awards [5][6]. Customer Commitment - The airline emphasizes its commitment to safety, reliability, and exceptional service, which is attributed to the dedication of its team [6]. - Allegiant's focus on providing affordable travel solutions aims to empower customers to customize their travel experiences [3][4].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Allegiant (ALGT) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [2][4][6] Company Analysis - Allegiant (ALGT) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4] - The stock is trading at a P/E ratio of 6.84, significantly lower than the industry average P/E of 15.24, suggesting it may be undervalued [4] - Over the past 12 months, ALGT's Forward P/E has fluctuated between a high of 61.81 and a low of 6.50, with a median of 10.34, indicating volatility in its valuation [4] Industry Comparison - The P/S ratio for Allegiant is 0.41, compared to the industry average P/S of 0.53, further supporting the notion that ALGT is undervalued [5] - The metrics discussed, including P/E and P/S ratios, are commonly used by value investors to assess stock performance and potential [5][6]