48th Consecutive Profitable Quarter

Fourth Quarter 2014 Fully Diluted Earnings per Share of $0.27

Fourth Quarter 2014 Fully Diluted Earnings per Share Excluding Fourth Quarter 757 Write Down was $1.83

Full Year Fully Diluted Earnings per Share of $4.86

Full Year Fully Diluted Earnings per Share Excluding Fourth Quarter 757 Write Down was $6.37

Declares a Recurring Quarterly Cash Dividend of $0.25 per Share

LAS VEGAS, Jan. 28, 2015 (GLOBE NEWSWIRE) -- Allegiant Travel Company (Nasdaq:ALGT) today reported the following financial results for both the fourth quarter and full year 2014, as well as comparisons to prior year equivalents:

"We are very proud to report our 48th consecutive profitable quarter," stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. "Excluding the one-time charge related to the write down of our 757 fleet, full year operating margin increased again, for the third year in a row in spite of a number of operational challenges. Looking forward, we see better execution in 2015. Earlier this week, I'm pleased to announce, our Board of Directors approved a recurring $0.25 per share dividend to supplement our ongoing stock repurchase program. Allegiant's strong financial results and positive outlook reaffirms our commitment to reinvest in the business, grow our network and our people while returning value to our shareholders. I want to acknowledge all of the hard work from our Team Members this past year as we look forward to a successful 2015."

Notable fourth quarter and full year 2014 company highlights

• Recurring dividend -On January 27, 2015 the board approved a quarterly cash dividend of $0.25 per share with the initial distribution to be made on March 17, 2015 to all shareholders of record as of March 4, 2015
• Share repurchase - We returned $139.1 million to shareholders through the repurchase of 1.3 million shares during 2014
• Special dividend - We paid a special dividend of $43.7 million or $2.50 per share in early January 2015
• New service - We announced service to six new cities including Pittsburgh, Pa, Indianapolis, Ind, Omaha, Neb, Richmond, Va, New Orleans, La, and Jacksonville, Fl
• New routes - Added 25 routes during 2014. Announced 18 new routes and six new cities starting service in the first quarter 2015
• Airbus aircraft - We ended 2014 with four A319 and seven A320 Airbus aircraft in service. A320 series aircraft account for approximately 16 percent of our total fleet. In-service A320 series aircraft accounted for over 20 percent of total ASM production in the quarter
• New COO - We named Steve Harfst Chief Operating Officer of Allegiant Air
• New PAO - We promoted Greg Anderson to Vice President, Principal Accounting Officer of Allegiant Travel Company

Fourth quarter and full year 2014 revenue performance

• East Coast TRASM - Fourth quarter East Coast TRASM increased 1.3 percent, while capacity in these markets grew 24.9 percent. Flying on the East Coast accounted for 48 percent of entire network versus 42 percent a year ago
• Airbus growth - ASM growth in the fourth quarter was primarily driven by an approximate 200 percent growth in Airbus ASMs
• Ancillary air related charges - Both fourth quarter and full year 2014 average fare - ancillary air-related were the highest in the company's history

Third party products performance

• Rental car days - Fourth quarter rental car days, primarily driven by growth in our Florida destinations, increased 19.2 percent on a 28.4 percent increase in East Coast scheduled service passengers. Car rental production drove a net revenue increase of 33.8 percent versus the prior year
• Hotel room nights - Fourth quarter hotel room night production decreased only 1.4 percent despite a 5.2 percent decrease in Las Vegas departures as hotel room production, excluding Las Vegas, increased 14.3 percent versus the prior year 

Fourth quarter and full year 2014 cost performance

• CASM - For the full year, total operating expense per ASM (CASM) increased 6.0 percent year over year.
• CASM ex fuel impacted - Throughout 2014 CASM ex fuel was substantially impacted by nonrecurring expenses related to training and crew availability delays. These delays drove an additional $25 million in incremental expense in the form of labor inefficiencies, aircraft sub-service, crew training and displacement costs. Also in 2014 we incurred $7.3 million in accelerated compensation expense related to the departure of our former President and COO, Andrew Levy. And lastly during the fourth quarter we incurred a $43.3 million non-cash impairment charge related to our Boeing 757 fleet. Excluding the effect of these nonrecurring items, full year 2014 CASM ex fuel would have increased by approximately 2.9 percent vs the prior year
• Aircraft fuel - Fourth quarter fuel expense decreased 12.0 percent driven by a 19.9 percent decrease in our price per gallon which was offset by a 9.6 percent increase in gallons consumed. Fuel efficiency performance was positively impacted by a 2.6 percent reduction in average stage length and a larger portion of the system flown by Airbus aircraft. Both of these helped to contribute to a 4.7 percent reduction in gallons per passenger
• Salary and benefits - Fourth quarter salary and benefits expense increased 19.7 percent versus the prior year primarily due to a 16.8 percent increase in full time equivalent (FTE) employees. Headcount growth was mostly attributable to flight crews as pilots and flight attendants accounted for more than 60 percent of our FTE increase in an effort to build scheduled service staffing level requirements for first quarter 2015 flying. In addition, stock compensation expense contributed to the increase primarily due to a 23.7 percent increase in average share price
• Maintenance and repairs - Fourth quarter maintenance and repairs expense increased 38.3 percent due to an 11.6 percent increase in average number of aircraft in service and a higher number of heavy maintenance and engine overhaul events versus the prior year
• Aircraft lease rentals - Fourth quarter aircraft lease expense decreased 44.9 percent driven by the purchase of two operating leased aircraft in the current year and the reduced reliance on sub-service lift for scheduled service operations
• Depreciation and amortization - Fourth quarter depreciation and amortization expense increased 32.7 percent due to an 11.6 percent increase in average number of aircraft in service and depreciation related to twelve owned A319 aircraft currently on lease to a European carrier. Excluding the twelve A319s, which are non ASM producing aircraft, depreciation and expense would have increased 16.9 percent
• Other expenses - Fourth quarter other expenses increased by 360.5 percent due to a $43.3 million non-cash impairment charge of our 757 fleet and increased flight simulator events required for projected first quarter staffing requirements

First quarter and full year 2015 cost trends

• Full year CASM ex fuel -We expect CASM ex fuel to decrease between six and ten percent. Excluding the fourth quarter 2014 non-cash impairment charge of $43.3 million, our CASM ex fuel is expected to be flat to down four percent versus last year. We expect full year maintenance and repairs expense per aircraft per month between $95 thousand and $105 thousand and total ownership expense per aircraft per month between $110 thousand and $115 thousand
• First quarter 2015 CASM ex fuel - We expect an increase of between six and eight percent. Salaries and wages are expected to increase as a result of elevated flight crew staffing levels and maintenance support staff for increased East Coast flying operations. Maintenance and repairs expense is expected to increase due to incremental engine overhaul events versus the prior year. Aircraft lease expense is expected to decrease as we have returned to normalized staffing levels to support our scheduled service operations reducing our need for sub-service. Depreciation and amortization expense is expected to increase due to the growth of our Airbus A320 fleet and depreciation related to non-ASM producing aircraft currently on lease to a European carrier

Balance sheet highlights

• Recurring dividend - Our board of directors declared a $0.25 per share dividend to be paid on March 17, 2015, to all shareholders of record as of March 4, 2015. The Company intends to pay a $0.25 dividend each quarter, however, future payment dates are to be established each quarter
• Cumulative return of capital - Share repurchases and special dividends totaled $182.8 million for full year 2014. The Company has approximately $86 million in remaining share repurchase authority as of the end of the year
• Capital expenditures in 2014 - There were $421.4 million in capital expenditures during 2014, 85 percent of which was driven by the purchase of 17 Airbus A319/A320 series aircraft
• Raised and/or assumed $527 million in total debt in 2014 - We raised $300 million in an unsecured bond offering, assumed $142 million in debt in conjunction with the purchase of 12 A319 aircraft on lease to a European carrier, raised $45 million secured by our MD80 fleet and $40 million secured by 6 Boeing 757 aircraft
• Debt reduction - We paid down $169 million in higher interest debt including $121 million term loan secured by all company assets
• 2015 CAPEX - We expect between $175 and $185 million in CAPEX this year primarily driven by purchase of six A320 series aircraft

At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, January 28, 2015 to discuss its fourth quarter and full year 2014 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, Travel is our deal.®

Las Vegas-based Allegiant Travel Company® (Nasdaq:ALGT) is focused on linking travelers in small cities to world-class leisure destinations. Through its subsidiary, Allegiant Air, the company operates a low-cost, high-efficiency, all-jet passenger airline, and offers other travel-related products such as hotel rooms, rental cars, and attraction tickets through its website, allegiant.com. The company has been named one of America's 100 Best Small Companies by Forbes Magazine for four consecutive years.  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 unit revenue, future operating expense, ASM growth, departure growth, fixed-fee and other revenues, expected capital expenditures, number of contracted aircraft to be placed in service in the future, as well as other 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," "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, volatility of fuel costs, labor issues, the effect of economic conditions on leisure travel, debt covenants, terrorist attacks, risks inherent to airlines, demand for air services to our leisure destinations from the markets served by us, our dependence on our leisure destination markets, our competitive environment, an accident involving or problems with our aircraft, our reliance on our automated systems, 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, aging aircraft and other 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
Non-GAAP Presentations
Three and Twelve Months Ended December 31, 2014 and 2013 
(Unaudited)

"EBITDA" represents earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is EBITDA calculated without regard to the one-time impairment charge on our Boeing 757 fleet. Neither EBITDA nor Adjusted EBITDA is a calculation based on generally accepted accounting principles and should not be considered as alternatives to net income or operating income as indicators of our financial performance or to cash flow as a measure of liquidity. EBITDA and Adjusted EBITDA are included as supplemental disclosures because we believe they are useful indicators of our operating performance. Further, EBITDA is a well-recognized performance measurement that is frequently used by securities analysts, investors and other interested parties in comparing the operating performance of companies. We believe EBITDA and Adjusted EBITDA are useful in evaluating our operating performance compared to our competitors because the calculation generally eliminates the effects of financing and income taxes and the accounting effects of capital spending and acquisitions and lease versus purchase decisions, which items may vary between periods and for different companies for reasons unrelated to overall operating performance. Further, Adjusted EBITDA, Adjusted income before income taxes, Adjusted net income, Earnings per share as adjusted for special item, Total Operating expenses less fuel and one time items and Operating income as adjusted for special item all eliminate the effect of the impairment charge which is a non-cash charge not reflective of our operating performance. The following represents the reconciliation of EBITDA and Adjusted EBITDA to net income for the periods indicated below. Reconciliations of Adjusted EBITDA, Adjusted income before income taxes, Adjusted net income and Operating income as adjusted for special item to net income are reflected on Appendix A as are reconciliations of Earnings per share as adjusted for special item to Earnings per share and of Operating expenses less fuel and one time items to Operating expenses.

The SEC has adopted rules (Regulation G) regulating the use of non-GAAP financial measures. Because of our use of non-GAAP financial measures in this press release 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 measure, which is net income or operating expenses as indicated above, and a reconciliation of the non-GAAP measures to the most comparable GAAP measure.  Our utilization of non-GAAP measurements is not meant to be considered in isolation or as a substitute for net income or other measures of financial performance prepared in accordance with GAAP. Neither EBITDA, Adjusted EBITDA, Adjusted income before income taxes, Adjusted net income, Earnings per share as adjusted for special item, Total Operating expenses less fuel and one time items nor Operating income as adjusted for special item are GAAP measurements and our use of these measures may not be comparable to similarly titled measures employed by other companies in the airline and travel industry. The reconciliations of EBITDA and Adjusted EBITDA to GAAP net income follow.

To provide more transparency into operating expenses for the quarter, the company experienced the following non-cash expense items in the fourth quarter of 2014.

CONTACT: Media Inquiries: Jessica Wheelermediarelations@allegiantair.com

         Investor Inquiries: Chris Allenir@allegiantair.com