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LAS VEGAS, Jan 26, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- FOURTH QUARTER EPS INCREASE 283%, OPERATING MARGIN EXCEEDS 23%
Allegiant Travel Company (Nasdaq: ALGT), parent company of Allegiant Air and Allegiant Vacations, today reported the following financial results for the fourth quarter and full year 2008 and comparisons to prior year equivalents:
Unaudited 4Q08 4Q07 Change 2008 2007 Change
Total operating
revenue
(millions) $122.4 $101.0 21.3% $504.0 $360.6 39.8%
Operating
income
(millions) $28.7 $6.1 373.6% $55.8 $44.1 26.8%
Operating
margin 23.4% 6.0% 17.4pp 11.1% 12.2% -1.1pp
Net income
(millions) $18.2 $4.8 281.5% $35.4 $31.5 12.4%
Diluted
earnings
per share $0.88 $0.23 282.6% $1.73 $1.53 13.1%
Scheduled
Service:
Average fare
- scheduled
service $83.04 $86.57 (4.1)% $84.97 $85.80 (1.0)%
Average fare
- ancillary 32.85 24.30 35.2% 29.43 21.53 36.7%
Average fare
- total $115.89 $110.87 4.5% $114.40 $107.33 6.6%
Average
passengers
per
departure 131 115 13.9% 132 120 10.0%
Load factor 89.7% 79.3% 10.4pp 89.9% 83.1% 6.8pp
Average stage
length (miles) 878 922 (4.8)% 882 923 (4.3)%
Total System*:
Operating
expense per
passenger $92.27 $106.05 (13.0)% $104.25 $96.96 7.5%
Operating
expense per
passenger,
excluding
fuel $55.57 $51.42 8.1% $50.83 $50.35 1.0%
Average
departures
per aircraft
per day 2.46 2.94 (16.3)% 2.69 2.83 (4.9)%
Average stage
length (miles) 831 899 (7.5)% 836 906 (7.8)%
* Total system includes scheduled service, fixed fee contract and
non-revenue flying
Allegiant Travel Company also reported the following balance sheet information:
Unaudited ($millions) December 31, September 30, Dollar
2008 2008 Change
Unrestricted cash (including
short-term investments) 174.8 138.6 36.2
Unrestricted cash net of air
traffic liability 105.8 60.8 45.0
Total debt, including capital
leases 64.7 70.1 (5.4)
"We had an outstanding fourth quarter, leading to a double-digit operating margin for the year," stated Maurice J. Gallagher, Jr., CEO and President of Allegiant Travel Company. "Similar to prior quarters, we had tuned the airline to handle high fuel prices in the fourth quarter, as evidenced by the year-over-year reduction in capacity, and substantial increases in passengers per departure, load factor and total average air fare. We were therefore well-positioned to benefit from the dramatic collapse in oil prices during the second half of the year. Our fourth quarter fuel price per gallon was down 21% year-over-year and a stunning 40% sequentially. The resulting reduction in fourth quarter operating cost helped pave the way to a record operating margin, with operating profit surging close to 400% year-over-year. Once again our team members have risen to the occasion, successfully rolling out 18 new routes in the fourth quarter alone."
Gallagher continued, "Looking forward, we are seeing a tighter booking curve, reduced passenger yields and thus a softer base air fare for our scheduled service operation. We estimate that for the first quarter of 2009 scheduled total average air fare (the sum of air fare plus ancillary revenue per passenger), will be down 4% to 6% over the prior year or between $4 and $7. But this decline in revenue per passenger should be more than offset by our expected reduction in fuel cost per passenger and non-fuel cost per passenger (due to increased aircraft utilization) in the first quarter. Our December fuel cost per passenger was less than $30 compared to an average of $60 during the second and third quarters of 2008 and $55 per passenger in first quarter of 2008. We will continue with our policy of maximizing passengers per departure, and will aim to achieve load factors in-line or, where possible, above those of last year."
Gallagher concluded, "Our Board of Directors has authorized a share repurchase program to acquire up to $25 million of the Company's common stock. This replaces a prior program the Board authorized last year at this time which is expiring. Our financial strength and cash flow generation allows us to continue to judiciously return cash to shareholders. Details of the stock repurchase program can be found in a separate SEC filing to be made tomorrow."
Andrew C. Levy, CFO & Managing Director - Planning, stated, "Our financial performance in the fourth quarter was exceptional, with a helping hand from more reasonable fuel prices. We ended our fuel hedging program about 18 months ago and are therefore fully participating in the rapid decline of fuel prices. Our fuel cost per gallon in December was $1.65.
"We continued to post very high load factors, ancillary revenue per passenger continued to climb, and average scheduled air fare declined proportionally with the reduction in average stage length, driving a total RASM increase of almost 24%. Demand for our product remains robust and we are well positioned to generate strong earnings and free cash flow going forward, assuming fuel prices remain moderate.
"We improved our already excellent balance sheet and liquidity position. We ended the quarter with unrestricted cash and short-term investments of $174.8 million, up from $138.6 million at the end of the prior quarter. Excluding air traffic liability, cash increased from $60.8 million to $105.8 million sequentially. Year-end 2008 total debt was $64.7 million, down from $70.1 million at the end of the prior quarter. We expect 2009 year-end total debt to decline by $25.3 million.
"The rapid deterioration in the global aircraft market has put even more pressure on MD-80 prices and we are able to acquire high quality aircraft at even lower prices than before. Our strong liquidity position enables us to purchase MD-80 aircraft for cash without external financing, so the current credit crisis does not constrain our ability to grow."
MD-80 Aircraft in Service* December 31, December 31,
2008 2007
Owned (including capital leases) 36 28
Leased 2 4
Total 38 32
* Does not include five aircraft owned but not yet placed in service,
three of which are currently leased to a third party
During the fourth quarter of 2008, we placed one aircraft in service previously leased to a third party. We expect to place two more such aircraft in service in the first quarter, one more in the second quarter and the last two in the first quarter of 2010. In addition, earlier this month we purchased an additional MD-80 which we expect to place in service late this quarter.
We summarize the state of our scheduled route network below. We added eighteen new scheduled routes during the fourth quarter. In addition, Allegiant Air entered into a one year contract to provide thrice-weekly charter service for the Beau Rivage Resort between Tampa Bay/St. Petersburg and Gulfport, MS. We initiated service on this contract in January.
Network Summary* December 31, December 31,
2008 2007
Major leisure destinations 5 5
Other leisure destinations 4 2
Small cities served 52 51
Total cities served 61 58
Routes to Las Vegas 39 37
Routes to Orlando 29 27
Routes to Tampa Bay/St. Petersburg 20 14
Routes to Phoenix-Mesa 15 13
Routes to Ft. Lauderdale 6 12
Other routes 4 2
Total routes 113 105
* includes cities served seasonally
At this time, Allegiant Travel Company provides the following guidance to investors. All of these items are subject to revision:
-- Allegiant Air expects first quarter 2009 year-over-year departure growth
of approximately 5% and ASM growth of approximately 7%.
-- Allegiant Air expects second quarter 2009 year-over-year departure
growth of approximately 18% and ASM growth of approximately 21%.
-- Allegiant Air expects to operate 41 aircraft by the end of 1Q09, at
least 42 MD-80 aircraft by the end of 2Q09 and at least 43 at 2009 year
end.
-- We expect 2009 capital expenditure of approximately $20-25 million, for
improvements to aircraft owned but not yet operated, purchase of
additional spare engines and other miscellaneous capital expenditure.
At this time we have no fuel hedges in place.
Allegiant Travel Company will host a conference call with analysts at 1 pm East Coast time tomorrow, January 27, 2009, to discuss its fourth quarter and full-year 2008 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.
About the Company
Las Vegas-based Allegiant Travel Company (NASDAQ: ALGT), is focused on linking travelers in small cities to world-class leisure destinations such as Las Vegas, Nev., Phoenix-Mesa, Ariz., Fort Lauderdale, Fla., Orlando, Fla. and Tampa Bay/St. Petersburg, Fla. Through its subsidiary, Allegiant Air, LLC the Company operates a low-cost, high-efficiency, all-jet passenger airline offering air travel both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services. ALGT/G
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 revenues, debt balance, load factors, ASM growth, departure growth, fleet growth, fuel cost per passenger, non-fuel cost per passenger, increased aircraft utilization and expected capital expenditures, as well as information concerning future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. 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," "anticipate," "intend," "plan," "estimate", "project" 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, the effect of the economic downturn on leisure travel, increases in fuel prices, terrorist attacks, risks inherent to airlines, demand for air services to Las Vegas, Orlando, Tampa/St. Petersburg, Phoenix-Mesa and Ft. Lauderdale from the markets served by us, our ability to implement our growth strategy, our fixed obligations, our dependence on our leisure destination markets, our ability to add, renew or replace gate leases, our competitive environment, problems with our aircraft, dependence on fixed fee customers, our reliance on our automated systems, economic and other conditions in markets in which we operate, governmental regulation, increases in maintenance costs and insurance premiums 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
Three Months Ended December 31, 2008 and 2007
(in thousands, except per share amounts)
(Unaudited)
Three months ended
December 31, Percent
2008 2007 change
OPERATING REVENUE:
Scheduled service revenue $77,794 $72,816 6.8
Fixed fee contract revenue 11,457 7,138 60.5
Ancillary revenue 30,779 20,443 50.6
Other revenue 2,398 559 329.0
Total operating revenue 122,428 100,956 21.3
OPERATING EXPENSES:
Aircraft fuel 37,283 48,884 (23.7)
Salary and benefits 20,449 15,307 33.6
Station operations 10,655 8,705 22.4
Maintenance and repairs 9,551 7,612 25.5
Sales and marketing 3,258 3,428 (5.0)
Aircraft lease rentals 354 879 (59.7)
Depreciation and amortization 6,299 4,379 43.8
Other 5,887 5,704 3.2
Total operating expenses 93,736 94,898 (1.2)
OPERATING INCOME 28,692 6,058 373.6
As a percent of total operating
revenue 23.4% 6.0%
OTHER (INCOME) EXPENSE:
Gain on fuel derivatives, net - (361) N/M
Earnings from joint venture,
net (126) (160) (21.3)
Interest income (1,092) (2,326) (53.1)
Interest expense 1,205 1,386 (13.1)
Total other income (13) (1,461) (99.1)
INCOME BEFORE INCOME TAXES 28,705 7,519 281.8
As a percent of total operating
revenue 23.4% 7.4%
PROVISION FOR INCOME TAXES 10,506 2,748 282.3
NET INCOME $18,199 $4,771 281.5
As a percent of total operating
revenue 14.9% 4.7%
Earnings per share:
Basic $0.90 $0.23 291.3
Diluted $0.88 $0.23 282.6
Weighted average shares
outstanding:
Basic 20,279 20,651 (1.8)
Diluted 20,579 20,939 (1.7)
Allegiant Travel Company
Operating Statistics
Three Months Ended December 31, 2008 and 2007
(Unaudited)
Three months ended
December 31, Percent
2008 2007 change*
OPERATING STATISTICS
Total system statistics
Passengers 1,015,938 894,834 13.5
Revenue passenger miles (RPMs)
(thousands) 905,582 848,933 6.7
Available seat miles (ASMs)
(thousands) 1,046,749 1,092,135 (4.2)
Load factor 86.5% 77.7% 8.8
Operating revenue per ASM
(cents) 11.70 9.24 26.6
Operating expense per ASM
(CASM) (cents) 8.95 8.69 3.0
Fuel expense per ASM (cents) 3.56 4.48 (20.5)
CASM, excluding fuel (cents) 5.39 4.21 28.0
Operating expense per
passenger $92.27 $106.05 (13.0)
Fuel expense per passenger $36.70 $54.63 (32.8)
Operating expense per
passenger, excluding fuel $55.57 $51.42 8.1
Departures 8,478 8,192 3.5
Block hours 19,307 19,603 (1.5)
Average stage length (miles) 831 899 (7.5)
Average number of operating
aircraft during period 37.4 30.3 23.4
Total aircraft in service end
of period 38 32 18.8
Average departures per
aircraft per day 2.46 2.94 (16.3)
Full-time equivalent employees
at end of period 1,348 1,180 14.2
Fuel gallons consumed
(thousands) 17,977 18,511 (2.9)
Average fuel cost per gallon $2.07 $2.64 (21.6)
Scheduled service statistics
Passengers 936,867 841,117 11.4
Revenue passenger miles (RPMs)
(thousands) 839,597 790,821 6.2
Available seat miles (ASMs)
(thousands) 935,661 996,759 (6.1)
Load factor 89.7% 79.3% 10.4
Departures 7,135 7,293 (2.2)
Average passengers per
departure 131 115 13.9
Block hours 17,017 17,835 (4.6)
Yield (cents) 9.27 9.21 0.7
Scheduled service revenue per
ASM (cents) 8.31 7.31 13.7
Ancillary revenue per ASM
(cents) 3.29 2.05 60.5
Total revenue per ASM (cents) 11.60 9.36 23.9
Average fare - scheduled
service $83.04 $86.57 (4.1)
Average fare - ancillary 32.85 24.30 35.2
Average fare - total $115.89 $110.87 4.5
Average stage length (miles) 878 922 (4.8)
Percent of sales through
website during period 85.4% 85.5% (0.1)
* except load factor and percent of sales through website, which is
percentage point change
Allegiant Travel Company
Non-GAAP Presentations
Three Months Ended December 31, 2008 and 2007
(in thousands, except per share and per ASM amounts)
(Unaudited)
We do not qualify for fuel hedge accounting treatment under FAS 133. To
facilitate investor comparisons with airlines that do qualify for fuel
hedge accounting, we provide adjusted non-GAAP measures of net income and
operating expense as if we did qualify for fuel hedge accounting, by
excluding the mark-to-market non-cash gains or losses on fuel derivatives
from net income and by treating cash gains or losses realized on fuel
derivatives as part of aircraft fuel expense. We believe use of these
non-GAAP measures assists investors in understanding the underlying
economic performance of the Company without regard to different accounting
treatment for fuel hedging activities.
The SEC has adopted rules (Regulation G) regulating the use of non-GAAP
financial measures. Because of our use of non-GAAP financial measures,
adjusted net income and adjusted aircraft fuel expense, to supplement our
consolidated financial statements presented on a GAAP basis, Regulation G
requires us to include in this press release a presentation of the most
directly comparable GAAP measures, which are net income (which reflects
the mark-to-market non-cash loss or gain on fuel derivatives), and
aircraft fuel expense (which is not impacted by the cash gain or loss on
fuel derivatives), and a reconciliation of the non-GAAP measures to the
most comparable GAAP measures. Our utilization of non-GAAP measurements
is not meant to be considered in isolation or as a substitute for net
income, aircraft fuel expense and other measures of financial performance
prepared in accordance with GAAP. Adjusted net income and adjusted
aircraft fuel expense are not GAAP measurements and our use of them may
not be comparable to similarly titled measures employed by other companies
in the airline industry. The reconciliations to GAAP measures follow.
Derivation of adjusted net income (excluding non-cash mark-to-market
loss on fuel derivatives) from net income:
Three months ended
(in thousands, except per share December 31, Percent
amounts) 2008 2007 change
Net income $18,199 $4,771 281.5
Mark-to-market non-cash loss on
fuel derivatives - 343 N/M
Tax impact of mark-to-market
non-cash loss on fuel
derivatives - (125) N/M
Net of mark-to-market non-cash
loss on fuel derivatives:
Adjusted net income $18,199 $4,989 264.8
Adjusted earnings per share:
Basic $0.90 $0.24 275.0
Diluted $0.88 $0.24 266.7
Derivation of adjusted aircraft fuel expense:
Three months ended
December 31, Percent
(in thousands) 2008 2007 change
Aircraft fuel expense $37,283 $48,884 (23.7)
Cash gain on fuel derivatives - (704) N/M
Adjusted aircraft fuel expense $37,283 $48,180 (22.6)
Derivation of CASM treating cash gain on fuel derivatives as a
reduction in operating expense:
Three months ended
December 31, Percent
(in cents) 2008 2007 change
CASM 8.95 8.69 3.0
Cash gain on fuel derivatives per
ASM - (0.06) N/M
CASM treating cash gain on fuel
derivatives as a reduction in
operating expense 8.95 8.63 3.7
Split of gain on fuel derivatives into cash-settled portion and
mark-to-market non-cash portion:
Three months ended
December 31, Percent
(in thousands) 2008 2007 change
Mark-to-market non-cash loss on
fuel derivatives - $343 N/M
Cash gain on fuel derivatives - (704) N/M
Gain on fuel derivatives, net - ($361) N/M
Allegiant Travel Company
Consolidated Statements of Income
Years Ended December 31, 2008 and 2007
(in thousands, except per share amounts)
(Unaudited)
Years ended December 31, Percent
2008 2007 change
OPERATING REVENUE:
Scheduled service revenue $330,969 $258,943 27.8
Fixed fee contract revenue 52,525 35,378 48.5
Ancillary revenue 114,625 64,988 76.4
Other revenue 5,893 1,264 366.2
Total operating revenue 504,012 360,573 39.8
OPERATING EXPENSES:
Aircraft fuel 229,640 152,149 50.9
Salary and benefits 72,007 55,593 29.5
Station operations 43,476 33,724 28.9
Maintenance and repairs 41,465 25,764 60.9
Sales and marketing 14,361 12,803 12.2
Aircraft lease rentals 2,815 3,004 (6.3)
Depreciation and amortization 23,489 15,992 46.9
Other 20,911 17,484 19.6
Total operating expenses 448,164 316,513 41.6
OPERATING INCOME 55,848 44,060 26.8
As a percent of total operating
revenue 11.1% 12.2%
OTHER (INCOME) EXPENSE:
Loss (gain) on fuel
derivatives, net 11 (2,613) N/M
Earnings from joint venture,
net (96) (457) (79.0)
Other expense - 63 N/M
Interest income (4,730) (9,161) (48.4)
Interest expense 5,411 5,523 (2.0)
Total other expense (income) 596 (6,645) N/M
INCOME BEFORE INCOME TAXES 55,252 50,705 9.0
As a percent of total operating
revenue 11.0% 14.1%
PROVISION FOR INCOME TAXES 19,845 19,196 3.4
NET INCOME $35,407 $31,509 12.4
As a percent of total operating
revenue 7.0% 8.7%
Earnings per share:
Basic $1.75 $1.56 12.2
Diluted $1.73 $1.53 13.1
Weighted average shares
outstanding:
Basic 20,289 20,243 0.2
Diluted 20,500 20,529 (0.1)
Allegiant Travel Company
Operating Statistics
Years Ended December 31, 2008 and 2007
(Unaudited)
Years ended December 31, Percent
2008 2007 change*
OPERATING STATISTICS
Total system statistics
Passengers 4,298,748 3,264,506 31.7
Revenue passenger miles (RPMs)
(thousands) 3,863,497 3,140,927 23.0
Available seat miles (ASMs)
(thousands) 4,442,463 3,865,337 14.9
Load factor 87.0% 81.3% 5.7
Operating revenue per ASM
(cents) 11.35 9.33 21.7
Operating expense per ASM
(CASM) (cents) 10.09 8.19 23.2
Fuel expense per ASM (cents) 5.17 3.94 31.2
CASM, excluding fuel (cents) 4.92 4.25 15.8
Operating expense per
passenger $104.25 $96.96 7.5
Fuel expense per passenger $53.42 $46.61 14.6
Operating expense per
passenger, excluding fuel $50.83 $50.35 1.0
Departures 35,839 28,788 24.5
Block hours 81,390 68,488 18.8
Average stage length (miles) 836 906 (7.8)
Average number of operating
aircraft during period 36.4 27.8 30.9
Total aircraft in service end
of period 38 32 18.8
Average departures per
aircraft per day 2.69 2.83 (4.9)
Full-time equivalent employees
at end of period 1,348 1,180 14.2
Fuel gallons consumed
(thousands) 76,972 66,035 16.6
Average fuel cost per gallon $2.98 $2.30 29.6
Scheduled service statistics
Passengers 3,894,968 3,017,843 29.1
Revenue passenger miles (RPMs)
(thousands) 3,495,956 2,844,358 22.9
Available seat miles (ASMs)
(thousands) 3,886,696 3,423,783 13.5
Load factor 89.9% 83.1% 6.8
Departures 29,548 25,088 17.8
Average passengers per
departure 132 120 10.0
Block hours 70,239 60,607 15.9
Yield (cents) 9.47 9.10 4.1
Scheduled service revenue per
ASM (cents) 8.51 7.56 12.6
Ancillary revenue per ASM
(cents) 2.95 1.90 55.3
Total revenue per ASM (cents) 11.46 9.46 21.1
Average fare - scheduled
service $84.97 $85.80 (1.0)
Average fare - ancillary 29.43 21.53 36.7
Average fare - total $114.40 $107.33 6.6
Average stage length (miles) 882 923 (4.3)
Percent of sales through
website during period 86.4% 86.6% (0.2)
* except load factor and percent of sales through website, which is
percentage point change
Allegiant Travel Company
Non-GAAP Presentations
Years Ended December 31, 2008 and 2007
(in thousands, except per share and per ASM amounts)
(Unaudited)
We do not qualify for fuel hedge accounting treatment under FAS 133. To
facilitate investor comparisons with airlines that do qualify for fuel
hedge accounting, we provide adjusted non-GAAP measures of net income
and operating expense as if we did qualify for fuel hedge accounting, by
excluding the mark-to-market non-cash gains or losses on fuel derivatives
from net income and by treating cash gains or losses realized on fuel
derivatives as part of aircraft fuel expense. We believe use of these
non-GAAP measures assists investors in understanding the underlying
economic performance of the Company without regard to different accounting
treatment for fuel hedging activities.
The SEC has adopted rules (Regulation G) regulating the use of non-GAAP
financial measures. Because of our use of non-GAAP financial measures,
adjusted net income and adjusted aircraft fuel expense, to supplement our
consolidated financial statements presented on a GAAP basis, Regulation G
requires us to include in this press release a presentation of the most
directly comparable GAAP measures, which are net income (which reflects
the mark-to-market non-cash loss or gain on fuel derivatives), and
aircraft fuel expense (which is not impacted by the cash gain or loss on
fuel derivatives), and a reconciliation of the non-GAAP measures to the
most comparable GAAP measures. Our utilization of non-GAAP measurements
is not meant to be considered in isolation or as a substitute for net
income, aircraft fuel expense and other measures of financial performance
prepared in accordance with GAAP. Adjusted net income and adjusted
aircraft fuel expense are not GAAP measurements and our use of them may
not be comparable to similarly titled measures employed by other companies
in the airline industry. The reconciliations to GAAP measures follow.
Derivation of adjusted net income (excluding non-cash mark-to-market loss
or gain on fuel derivatives) from net income:
Years ended
(in thousands, except per share December 31, Percent
amounts) 2008 2007 change
Net income $35,407 $31,509 12.4
Mark-to-market non-cash loss
(gain) on fuel derivatives 81 (1,702) N/M
Tax impact of mark-to-market
non-cash loss/gain on fuel
derivatives (30) 644 N/M
Net of mark-to-market non-cash
loss/gain on fuel derivatives:
Adjusted net income $35,458 $30,451 16.4
Adjusted earnings per share:
Basic $1.75 $1.50 16.7
Diluted $1.73 $1.48 16.9
Derivation of adjusted aircraft fuel expense:
Years ended December 31, Percent
(in thousands) 2008 2007 change
Aircraft fuel expense $229,640 $152,149 50.9
Cash gain on fuel derivatives (70) (911) (92.3)
Adjusted aircraft fuel expense $229,570 $151,238 51.8
Derivation of CASM treating cash gain on fuel derivatives as a reduction
in operating expense:
Years ended December 31, Percent
(in cents) 2008 2007 change
CASM 10.09 8.19 23.2
Cash gain on fuel derivatives per ASM - (0.02) N/M
CASM treating cash gain on fuel
derivatives as a reduction in
operating expense 10.09 8.17 23.5
Split of (gain) loss on fuel derivatives into cash-settled portion and
mark-to-market non-cash portion:
Years ended December 31, Percent
(in thousands) 2008 2007 change
Mark-to-market non-cash loss
(gain) on fuel derivatives $81 ($1,702) N/M
Cash gain on fuel derivatives (70) (911) (92.3)
Loss (gain) on fuel derivatives,
net $11 ($2,613) N/M
(Logo: http://www.newscom.com/cgi-bin/prnh/20060516/LATU102LOGO)
SOURCE Allegiant Travel Company
http://ir.allegiantair.com
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