LAS VEGAS, Oct. 26, 2016 (GLOBE NEWSWIRE) -- Allegiant Travel Company (NASDAQ:ALGT) today reported the following financial results for the third quarter 2016, as well as comparisons to prior year equivalents:

* - see appendix for calculation

“We had a very busy summer this year,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company and I want to thank all of our team members for their tremendous effort and hard work through a challenging set of months.  It is due to them that we can announce another profitable quarter, our 55th consecutive.  In addition, John Redmond joined the company as President of Allegiant Travel Company.  John has a terrific background in the hospitality space with years of executive experience at large organizations such as MGM Resorts International and Caesars Entertainment. We also are underway in our transition of the company to an all Airbus fleet with current expectations to operate over 90 aircraft by the end of the decade.  Finally, we also launched the Allegiant World MasterCard Credit Card program in conjunction with Bank of America.  While it is too early to determine any trends, we are excited about the opportunities from this program."

Notable highlights

• Appointment of new President - Announced John Redmond, current board member and previously chief executive officer of MGM Grand Resorts, has assumed the role of President
  
• Allegiant World MasterCard - Launched the Allegiant credit card issued by Bank of America
• Pilot agreement - Implemented new pilot agreement on August 1
• Network growth - As of September 30, 2016 the company is operating 337 routes versus 271 at the same time last year
  
  

* - ASMs are scheduled available seat miles

• New routes - Announced eighteen new routes that are expected to begin through the first quarter of 2017
• New cities - Announced service to three new cities
  • One new destination: San Juan, Puerto Rico beginning in the fourth quarter of 2016
  • Two new origination cities: Trenton, New Jersey and Cleveland, Ohio beginning in the fourth quarter of 2016 and first quarter of 2017, respectively
• Shareholder returns - $11.5 million was returned through the recurring dividend paid in September 2016 - year to date $28.2 million was returned to shareholders through recurring dividends
  
  • The Company will pay a fourth quarter dividend of $0.70 per share on December 6, 2016 to all shareholders of record as of November 23, 2016
  • The Company has $92 million of share repurchase authority remaining as of September 30, 2016
• Dispatcher union vote - 34 Allegiant dispatchers voted to join the Teamsters union

Fourth quarter 2016 revenue trends

• TRASM guidance - Fourth quarter TRASM is expected to decrease between 7.5 and 5.5 percent versus the fourth quarter last year
  
  • Impact of Hurricane Matthew during Columbus Day weekend is expected to negatively account for a half point of TRASM reduction in the fourth quarter
  • Impact of the later Christmas travel season in the year versus last year is expected to negatively account for one point of TRASM reduction in the fourth quarter
  • Scheduled ASMs of flights that occur during both peak flying days and the peak flying season, the highest unit revenue flights, are expected to grow 13 percent versus last year.
  • New markets (markets operating less than one year) are expected to be almost 11 percent of ASMs for the fourth quarter versus approximately 15 percent last year

Fourth quarter and full year 2016 cost trends

• Full year 2016 CASM ex fuel - Consistent with prior guidance, full year 2016 CASM ex fuel is expected to increase between one and three percent
  
• Fourth quarter 2016 CASM ex fuel - CASM ex fuel for the fourth quarter is expected to increase between ten and twelve percent versus the same period last year, primarily driven by the implementation of the new pilot agreement and increased depreciation of MD-80s as the company has solidified its plan for MD-80 retirements through the end of the summer of 2019
  
  • The MD80 retirement schedule will add incremental depreciation expense of three million dollars in the fourth quarter and seven million dollars for the full year 2017 
• Maintenance and repairs expense - Consistent with prior guidance, maintenance and repair expense per in service aircraft per month is expected to be between $105 and $110 thousand for full year 2016
  
• Total ownership expense per aircraft per month - Consistent with prior guidance, full year 2016 ownership expense per in service aircraft per month is expected to remain between $105 and $110 thousand
  

* - CASM ex fuel – cost per available seat mile excluding fuel expense

Aircraft listed in table above include only in service aircraft, planned retirements and future aircraft under contract (subject to change)

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, October 26, 2016 to discuss its third quarter 2016 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.

Las Vegas-based Allegiant (NASDAQ:ALGT) is focused on linking travelers in small cities to world-class leisure destinations. The airline offers industry-low fares on an all-jet fleet while also offering other travel-related products such as hotel rooms, rental cars and attraction tickets. All can be purchased only through the company website, Allegiant.com. Beginning with one aircraft and one route in 1999, the company has grown to over 80 aircraft and more than 300 routes across the country with airfares less than half the cost of average domestic roundtrip ticket. For downloadable press kit, including photos, visit: http://gofly.us/YFuyb.

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, timing of aircraft retirements, as well as other information concerning future results of operations, business strategies, financing plans, industry environment and potential growth opportunities. 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, an accident involving, or problems with, our aircraft, our reliance on our automated systems, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed , 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, 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, 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:

(1) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of earnings per share. The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.

* Except load factor and percent of sales through website, which is percentage point change.
** Various components of this measurement do not have a direct correlation to ASMs.  These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.

(1) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of earnings per share. The two-class method adjusts both the net income and shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.

* Except load factor and percent of sales through website, which is percentage point change.
** Various components of this measurement do not have a direct correlation to ASMs.  These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.
*** Includes effect of fuel tax refund of $8.3 million in the second quarter of 2016.

Summary Balance Sheet

Summary Cash Flow

* Includes aircraft pre-delivery deposits.

Media Inquiries: mediarelations@allegiantair.com

Investor Inquiries: ir@allegiantair.com

Allegiant Travel Company