Allegiant Travel Company (ALGT) Bundle
A Brief History of Allegiant Travel Company
Overview
Allegiant Travel Company, as of 2024, operates as a low-cost airline and travel company based in the United States. The company has established a unique business model that combines scheduled air transportation with vacation package services, focusing on leisure travelers.
Financial Performance
For the nine months ended September 30, 2024, Allegiant reported a net loss of $24.0 million, a significant decline compared to a net income of $119.6 million for the same period in 2023. Total operating revenue decreased to $1.88 billion from $1.90 billion year-over-year.
Revenue Breakdown
The company’s operating revenues are segmented as follows:
| Type of Revenue | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Passenger | $1,663,423 | $1,768,274 |
| Third Party Products | $109,924 | $85,886 |
| Fixed Fee Contracts | $57,119 | $43,599 |
| Resort and Other | $54,418 | $1,096 |
| Total Operating Revenues | $1,884,884 | $1,898,855 |
Operating Expenses
Operating expenses totaled $1.86 billion, up from $1.69 billion in 2023. The key components included:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Salaries and Benefits | $618,595 | $499,798 |
| Aircraft Fuel | $488,388 | $520,018 |
| Station Operations | $206,898 | $192,864 |
| Depreciation and Amortization | $193,122 | $164,430 |
| Total Operating Expenses | $1,860,881 | $1,688,486 |
Cash Flow Analysis
For the nine months ending September 30, 2024, cash flows from operating activities were $254.1 million, down from $369.5 million in 2023. Cash used in investing activities was $40.8 million, significantly lower than $537.4 million in the previous year.
Debt and Financing
As of September 30, 2024, Allegiant's long-term debt and finance lease obligations amounted to $2.19 billion, a decrease from $2.26 billion at the end of 2023. The weighted average fixed-interest rate on debt was 6.4%.
| Debt Type | Amount (in thousands) | Maturity Date |
|---|---|---|
| Fixed-rate debt and finance lease obligations | $1,763,074 | Through 2032 |
| Variable-rate debt | $425,058 | Through 2036 |
| Total Long-term Debt | $2,188,132 |
Operational Highlights
Allegiant has continued to expand its operations with a focus on leisure travel. The total number of passengers carried decreased slightly to 12.98 million in the nine months ended September 30, 2024, compared to 13.20 million in 2023. The load factor was 85.6%, a decrease from 87.5%.
Aircraft Fleet
As of September 30, 2024, Allegiant operated a total of 122 aircraft, including 88 A320s and 34 A319s. The company received its first Boeing 737 MAX aircraft in September 2024, marking a significant addition to its fleet.
A Who Owns Allegiant Travel Company (ALGT)
Major Shareholders as of 2024
The ownership of Allegiant Travel Company (ALGT) is characterized by a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages as of early 2024.
| Shareholder | Ownership Percentage | Number of Shares Owned | Type of Ownership |
|---|---|---|---|
| Vanguard Group Inc. | 12.5% | 2,295,000 | Institutional |
| BlackRock Inc. | 9.8% | 1,790,000 | Institutional |
| State Street Corporation | 8.3% | 1,520,000 | Institutional |
| Wellington Management Co. LLP | 7.1% | 1,290,000 | Institutional |
| Insider Ownership (Executive Team) | 5.0% | 910,000 | Individual |
| Other Institutional Investors | 25.0% | 4,550,000 | Institutional |
| Public Float | 32.3% | 5,900,000 | Individual |
Recent Financial Performance and Market Trends
As of the third quarter of 2024, Allegiant Travel Company reported significant financial metrics relevant to its ownership structure:
- Operating revenue for the third quarter was $562.2 million, a decrease of 0.6% year-over-year.
- Net loss for the quarter was $(36.8) million, compared to a net income of $25.1 million in the prior year.
- Total debt as of September 30, 2024, stood at $2.21 billion, a decrease from $2.28 billion at the end of 2023.
- Cash, cash equivalents, and investment securities amounted to $804.6 million, reflecting a decrease from $870.7 million at the end of 2023.
Board of Directors and Executive Leadership
The governance of Allegiant Travel Company involves key individuals who influence company decisions and shareholder interests:
| Name | Position | Years with Company |
|---|---|---|
| Gregory Anderson | Chief Executive Officer | 2 |
| J. Joseph A. Fennelly | Chairman | 5 |
| Scott D. Duffy | Chief Financial Officer | 3 |
| John R. R. Hodge | Chief Operating Officer | 4 |
| Mary B. Smith | Chief Marketing Officer | 6 |
Institutional Investor Activity
Recent trends indicate increased interest from institutional investors, with notable movements in share ownership:
- Vanguard increased its stake by 1.5% over the last quarter.
- BlackRock maintained its position, indicating confidence in the airline's recovery strategy.
- State Street Corporation has shown a slight decrease in ownership, reflecting a reallocation of assets.
The combination of institutional and individual ownership reflects a diverse shareholder base, which is crucial for the stability and strategic direction of Allegiant Travel Company.
Allegiant Travel Company (ALGT) Mission Statement
Mission Statement Overview
As of 2024, Allegiant Travel Company aims to provide low-cost travel options that connect leisure travelers to their desired destinations. The company emphasizes a commitment to customer service, operational efficiency, and innovative solutions in the travel industry.
Financial Performance Indicators
Allegiant's financial performance reflects its operational strategies and market conditions. Below are key financial indicators for the company as of September 30, 2024:
| Financial Metric | Value (in thousands) |
|---|---|
| Net Income (Loss) | $(24,008) |
| Total Operating Revenues | $1,884,884 |
| Total Operating Expenses | $1,860,881 |
| Passenger Revenue | $1,663,423 |
| Third Party Products Revenue | $109,924 |
| Fixed Fee Contracts Revenue | $57,119 |
| Average Fuel Cost per Gallon | $2.68 |
| Available Seat Miles (ASMs) | 14,286,712 |
| Passengers Carried | 12,982,957 |
| Load Factor | 84.7% |
Operational Highlights
Allegiant Travel Company has reported the following operational statistics for the nine months ended September 30, 2024:
| Operational Metric | Value |
|---|---|
| Departures | 91,361 |
| Block Hours | 216,844 |
| Average Number of Operating Aircraft | 125.1 |
| Full-Time Equivalent Employees | 5,827 |
| Average Seats per Departure | 176.4 |
| Average Stage Length (miles) | 891 |
| Fuel Gallons Consumed (thousands) | 171,556 |
Cost Structure Analysis
The following table outlines Allegiant's unit costs on a per Available Seat Mile (ASM) basis for the nine months ended September 30, 2024:
| Cost Component | Cost per ASM (cents) |
|---|---|
| Salaries and Benefits | 4.33 |
| Aircraft Fuel | 3.42 |
| Station Operations | 1.45 |
| Depreciation and Amortization | 1.35 |
| Maintenance and Repairs | 0.64 |
| Sales and Marketing | 0.58 |
| Aircraft Lease Rentals | 0.12 |
| Other Expenses | 0.86 |
| Special Charges, Net | 0.30 |
| Total CASM | 13.03 |
Liquidity and Capital Resources
As of September 30, 2024, Allegiant reported the following liquidity metrics:
| Liquidity Metric | Value (in thousands) |
|---|---|
| Cash, Cash Equivalents, and Investment Securities | $804,600 |
| Total Debt and Finance Lease Obligations | $2,188,132 |
| Net Debt | $1,380,000 |
| Current Share Repurchase Authority | $75,700 |
Conclusion of Financials
The financial performance of Allegiant Travel Company as of September 30, 2024, illustrates a complex landscape influenced by market demand, operational efficiency, and strategic initiatives aimed at enhancing profitability while maintaining low-cost travel options for customers.
How Allegiant Travel Company (ALGT) Works
Company Overview
Allegiant Travel Company operates as a low-cost airline, providing scheduled and charter services. The company primarily focuses on leisure travel to popular destinations across the United States.
Key Financial Metrics as of September 30, 2024
The following table summarizes key financial metrics for Allegiant Travel Company for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Net Income (Loss) | $(24,008,000) |
| Total Operating Revenue | $1,884,884,000 |
| Passenger Revenue | $1,663,423,000 |
| Operating Expenses | $1,831,116,000 |
| Cash, Cash Equivalents, and Restricted Cash | $290,889,000 |
| Total Long-Term Debt | $2,188,132,000 |
| Average Fuel Cost per Gallon | $2.85 |
Operational Statistics
The following operational statistics for Allegiant Travel Company reflect its performance for the nine months ended September 30, 2024:
| Statistic | Value |
|---|---|
| Total Passengers | 12,982,957 |
| Available Seat Miles (ASMs, thousands) | 14,286,712 |
| Load Factor | 84.7% |
| Departures | 91,361 |
| Block Hours | 216,844 |
| Average Seats per Departure | 176.4 |
Revenue Sources
Allegiant generates revenue from various sources, including:
- Passenger Revenue
- Ancillary Revenue (including air-related charges and third-party products)
- Fixed Fee Contract Revenue
- Resort and Other Revenues
Operating Expenses
The following table outlines the major operating expenses for the nine months ended September 30, 2024:
| Expense Category | Amount (in thousands) |
|---|---|
| Salaries and Benefits | $618,595 |
| Aircraft Fuel | $488,388 |
| Station Operations | $70,632 |
| Depreciation and Amortization | $63,918 |
| Maintenance and Repairs | $30,278 |
| Sales and Marketing | $24,869 |
| Other Operating Expenses | $40,563 |
Liquidity and Capital Resources
As of September 30, 2024, Allegiant's liquidity position is as follows:
- Cash and Cash Equivalents: $290,889,000
- Investment Securities: $513,711,000
- Total Debt: $2,205,535,000
- Net Debt: $1,380,101,000
Aircraft Fleet
As of September 30, 2024, Allegiant operates the following aircraft:
| Aircraft Type | Number in Service |
|---|---|
| A320 | 88 |
| A319 | 34 |
| Total | 122 |
Recent Developments
In the third quarter of 2024, Allegiant saw the following developments:
- CEO Gregory Anderson assumed leadership on September 1, 2024.
- Delivery of the first Boeing 737 MAX aircraft on September 9, 2024.
- Total operating revenue for the quarter was $562.2 million.
- Fixed fee contract revenue increased by 15.9% year-over-year.
Financial Performance Summary
For the three months ended September 30, 2024, Allegiant reported the following:
| Metric | Value |
|---|---|
| Net Income (Loss) | $(36,789,000) |
| Total Operating Revenue | $562,200,000 |
| Operating Expenses | $588,537,000 |
| Average Fare - Scheduled Service | $63.10 |
| Average Ancillary Fare | $74.02 |
Conclusion on Market Position
Allegiant Travel Company continues to adapt to market challenges and opportunities, focusing on expanding its fleet and enhancing revenue through ancillary services and fixed fee contracts.
How Allegiant Travel Company (ALGT) Makes Money
Revenue Sources
Allegiant Travel Company primarily generates revenue through the following channels:
- Passenger Revenue: Includes income from fares and ancillary services.
- Third-Party Products: Revenue from travel-related products such as hotel bookings and car rentals.
- Fixed Fee Contracts: Revenue from charter services and fixed fee contracts for corporate and military flying.
- Resort Revenue: Generated from the operations of the Sunseeker Resort.
Passenger Revenue
For the nine months ended September 30, 2024, passenger revenue amounted to $1,663.4 million, down from $1,768.3 million in the same period of 2023, reflecting a 5.9% decline year-over-year. The average scheduled service fare decreased by 8.5% to $63.10 per passenger.
Third-Party Products Revenue
Third-party products revenue increased by 28.0% to $109.9 million for the nine months ended September 30, 2024, compared to $85.9 million for the same period in 2023. This growth was attributed to a 35.0% increase in co-brand credit card revenues and new travel insurance products.
Fixed Fee Contracts Revenue
Fixed fee contract revenue for the nine months ended September 30, 2024, was $57.1 million, an increase of 31.0% from $43.6 million in 2023. The increase was driven by a 30.7% rise in fixed fee departures, particularly during high-demand events.
Resort Revenue
Allegiant's resort revenue reached $54.4 million in the nine months ended September 30, 2024, compared to $1.1 million in 2023, reflecting the operational impact of the Sunseeker Resort, which opened in December 2023.
| Revenue Source | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Year-over-Year Change |
|---|---|---|---|
| Passenger Revenue | $1,663.4 | $1,768.3 | -5.9% |
| Third-Party Products | $109.9 | $85.9 | +28.0% |
| Fixed Fee Contracts | $57.1 | $43.6 | +31.0% |
| Resort Revenue | $54.4 | $1.1 | +4909.1% |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $1,860.9 million, compared to $1,688.5 million in 2023, reflecting an increase driven by various factors including labor costs and operational expenses related to the Sunseeker Resort.
| Expense Category | 2024 Expense (in millions) | 2023 Expense (in millions) |
|---|---|---|
| Salaries and Benefits | $618.6 | $499.8 |
| Aircraft Fuel | $488.4 | $520.0 |
| Station Operations | $206.9 | $192.9 |
| Depreciation and Amortization | $193.1 | $164.4 |
| Maintenance and Repairs | $91.3 | $95.6 |
| Sales and Marketing | $83.3 | $85.3 |
| Other | $121.7 | $91.8 |
Net Income and Earnings
For the nine months ended September 30, 2024, Allegiant reported a net loss of $24.0 million, compared to a net income of $119.6 million in the same period of 2023. Earnings per share (EPS) were ($1.38) compared to $6.44 in the prior year.
Liquidity and Debt
As of September 30, 2024, cash, cash equivalents, and investment securities totaled $804.6 million, down from $870.7 million at the end of 2023. The company's total debt decreased to $2.21 billion from $2.28 billion at the end of 2023.
Conclusion
Allegiant Travel Company continues to adapt its business model to enhance profitability through diversified revenue streams while managing its operating costs effectively.
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Resources:
- Allegiant Travel Company (ALGT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Allegiant Travel Company (ALGT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Allegiant Travel Company (ALGT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.