Category Archives: Allegiant Travel Company

Allegiant Air to acquire six ex-Cebu Pacific Air Airbus A319s

Allegiant Travel Company (Allegiant Air) (Las Vegas) today (February 23) announced that it has entered into an agreement to purchase six additional Airbus A319 aircraft. The aircraft are currently being operated by Cebu Pacific Air and are scheduled to enter the Allegiant operating fleet from the end of 2015 through 2017.

“We continue to be able to find high quality, used A319s that fit our specification,” said Jude Bricker, Senior Vice President of Planning. “These aircraft will have 156 seats which is similar to our current A319s. Including these aircraft, we have added commitments for ten additional A320 series aircraft so far this year and will remain active in the used A320 market,” concluded Bricker.

Two of the aircraft will be purchased in 2015 and the company expects the remainder to be purchased in 2016. Allegiant’s expected fleet plan including all aircraft currently under contract is as follows:

Meanwhile, Cebu Pacific Air issued this statement:

Cebu Pacific (CEB) signed a forward sale agreement with a subsidiary of Allegiant Travel Company, covering Cebu Pacific’s sale of six Airbus A319 aircraft. Allegiant is the parent company of Las Vegas-based low-cost airline, Allegiant Air. Delivery of aircraft to Allegiant is scheduled this year until 2016.

“This agreement is in line with CEB’s efforts to continuously improve operational efficiency by replacing and upgrading our fleet with the larger, more fuel efficient, and longer range A321neo aircraft,” said Lance Gokongwei, CEB President and CEO.

The A321neo is the largest model in the A320neo series, which incorporates new engines and large wing tip devices called sharklets. The advances will deliver fuel savings of 20 percent and additional payload or range capability. The fuel savings translate into some 5,000 tonnes less CO2 per aircraft per year. In addition, the aircraft will provide a double-digit reduction in NOx emissions and reduced engine noise.

CEB currently operates a fleet of 54 aircraft comprised of 10 Airbus A319, 31 Airbus A320, 5 Airbus A330 and 8 ATR 72-500 aircraft. Between 2015 and 2021, Cebu Pacific will take delivery of 7 more brand-new Airbus A320, 1 Airbus A330, and 30 Airbus A321neo aircraft.

CEB’s Airbus A321neo aircraft will be equipped with the Pratt and Whitney PurePower Geared Turbofan™ engine. The aircraft has a flying radius of over 6 hours and can be configured to have up to 240 seats. This will enable CEB to access new markets in the Indian subcontinent and Australia, including Perth, Brisbane and Adelaide.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. The pictured Airbus A319-111 N301NV (msn 2319) is leased from GECAS and was previously operated by easyJet (Switzerland) as HB-JZK) and by easyJet (UK) as G-EZEX.

Allegiant Air aircraft slide show:

Due to the write down of the Boeing 757 fleet, Allegiant reports a lower profit

Allegiant Travel Group (Allegiant Air) (Las Vegas) reported financial results for the fourth quarter and full year 2014. For the 4Q, the company reported net income of only $4.8 million, down 72.6 percent from the same period a year ago when it reported a 4Q net profit of $17.5.

For 2014, the company reported a net profit of $86.7 million versus $92.3 million for 2013.

This represents the 48th consecutive profitable quarter. The lower earnings were due to a write down in the value of its Boeing 757-200 fleet of $43.3 million in the fourth quarter as previously reported.

“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.”

Read the full report: CLICK HERE

Allegiant Air aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/Allegiant-Air

Allegiant Travel Company reports its 47th consecutive profitable quarter

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported a third quarter net profit of $14.2 million, down 17 percent from the same quarter a year ago. The holding company has reported the following financial results for the third quarter 2014, as well as comparisons to prior year equivalents:

“We are very proud to report our 47th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “During this quarter we saw the departure of Andrew Levy, our President and COO. Andrew will be missed. He has left the company in great shape. His legacy includes building a solid, capable management team which ensures the company will maintain its strong performance into the future. In addition, we have also welcomed back Kris Bauer as the airline’s Senior Vice President of Operations and COO while we conduct our search for a replacement. Earlier this week, our Board of Directors approved an increase to our share repurchase authority to $100 million from its current level of $7.4 million. We continue to see strength in the business model and are demonstrating that confidence by actively returning cash to shareholders. Lastly, I want to thank all of our Team Members for their continued efforts during the past quarter.”

Notable company highlights

Repurchased 456,296 shares during the quarter, which brings the total to 1,199,740 shares for the first nine months of 2014. Since the inception of the share repurchase program, the company has repurchased 4,692,385 shares for a total of $316.3 million through the third quarter 2014

Purchased two A319s in August off operating lease

Added three new destinations to Cincinnati. Cincinnati has become the fastest growing origination city in the company’s history

In-service Airbus fleet accounted for over 21 percent of total ASM production in the quarter. In the quarter the company operated ten Airbus aircraft which is 14 percent of the total fleet

Third quarter 2014 revenue performance

East Coast TRASM declined 1.4 percent, however capacity in these markets grew 27.3 percent. Flying on the East Coast accounted for 40 percent of entire network versus 36 percent a year ago

Hawaii TRASM grew 12.7 percent versus the same period a year ago

Average fare – ancillary air-related charges increased 2.1 percent, as we implemented a fee to print a boarding pass at the ticket counter in

September 2014, and also due to continued strength in existing ancillary categories such as assigned seat fees, trip flex and priority boarding

Copyright Photo: Ken Petersen/AirlinersGallery.com. The McDonnell Douglas fleet is holding steady at 53 aircraft while newer Airbus A319s and A320s are being added. McDonnell Douglas DC-9-83 (MD-83) N418NV (msn 49615) arrives at the Las Vegas home.

Allegiant Air:

Allegiant’s President and COO Andrew C. Levy steps down

Allegiant (Las Vegas) announced Andrew C. Levy, President and COO of Allegiant Travel Company, has resigned from his executive positions with the company and will step down from the Allegiant board.

For the past 13 years, Mr. Levy has led Allegiant in a variety of roles, including most recently as President, Chief Operating Officer and Board Member and previously as Managing Director and Chief Financial Officer. During his tenure, Allegiant has grown from a single aircraft company to a billion dollar leader in the leisure travel space that has posted 46 consecutive profitable quarters.

Mr. Gallagher and the executive team will temporarily assume his duties while Allegiant, in conjunction with its Board of Directors, identifies Mr. Levy’s successor. Mr. Levy will continue to serve as an advisor to the company for the next several months.

In accordance with Mr. Levy’s separation agreement all unvested equity incentive options and restricted stock will immediately vest, thus impacting stock compensation expense during the third quarter. The company will update its cost guidance in the upcoming September traffic release.

According to Bloomberg Businessweek, “Mr. Andrew C. Levy has been the President of Allegiant Travel Company since October 2009 and has been its Chief Operating Officer and a Director since October 21, 2013. Mr. Levy has been the Chief Financial Officer of Allegiant Air, LLC. since August 2007 and also has been its President served as its since October 2009. Mr. Levy served as Managing Director of Planning and Secretary at Allegiant Travel Co. until October 2009, and as its Chief Financial Officer since October 18, 2007 until May 2010. He served as Managing Director of Planning of Allegiant Air, LLC. Mr. Levy joined Allegiant in June 2001 and is responsible for Allegiant Travel Co. market planning, fleet planning, scheduling, fuel risk management, fuel purchasing and corporate development. From February 1998 to March 2001, Mr. Levy served various management positions at Mpower Communications, Savoy Capital and ValuJet Airlines. From July 1996 to February 1998, Mr. Levy served on Airline Advisory and Transactional as Vice President with Savoy Capital. From 1994 to 1996, Mr. Levy served various positions with ValuJet Airlines including Director of Contracts and was responsible for stations agreements, insurance, fuel purchasing and other related activities.”

Allegiant Air’s pilots allege pilot attrition is accelerating at the company

Allegiant Air‘s (Las Vegas) pilots, represented by the Airline Professionals Association Teamsters Local 1224, have issued this statement:

Pilot attrition is accelerating at Allegiant Air as pilots, even senior captains with many years invested, have been leaving in increasing numbers for companies luring them with better and safer operations, better working conditions, better schedules and increased compensation and benefits packages.

A significant number of pilots have recently left and more indicate they are planning to leave Allegiant Air in pursuit of greener pastures. Flights have been cancelled and Allegiant Air continues to deploy sub service due to a lack of crews to fly their airplanes. The airline’s management and investors should equally be concerned with pilot attrition, as it has a direct impact on the operation.

Not only is Allegiant Air having trouble retaining qualified pilots, but the management team is struggling to replace the losses by attempting to hire from a dwindling pool of qualified candidates who, once exposed to the realities of employment at Allegiant Air and the difficult relationship with an anti-union management team, often elect to leave as well.

Even as the number of new hires replacing former pilots at the airline is steadily climbing, some new hires elect not to show up for training.

The accelerating loss of pilots is not a sustainable model for the company, it’s not favorable for shareholders, and it certainly doesn’t offer perks for the remaining pilots on payroll. Already flying full schedules, some of the remaining pilots are finding themselves forced into covering additional flights, keeping them away from home for weeks and even months at a time.

The pilots, and the union representing them, are urging the management team to address the underlying conditions at the root of the crew shortage.

“Addressing several key issues would go a long way towards stemming the company’s losses,” said Teamsters Local 1224 President Daniel Wells, speaking on behalf of the Allegiant Air pilots. “The Teamsters have presented the company with a comprehensive proposal, to which they have refused to reply. The proposal addresses key and legitimate concerns held by the Allegiant Air pilots. An honest effort by the company to reach an agreement during contract negotiations would have a positive effect, stem the unsustainable losses they are experiencing, and allow the company to succeed going forward.”

In August 2012 the pilots overwhelmingly voted for Teamster representation. Following the union vote, working conditions at Allegiant Air began to plummet. Many pilot benefits were reduced below prior negotiated levels, resulting in a lawsuit and a court-ordered injunction against the company which directed Allegiant Air to restore benefits to previous levels.

“We want to work with the management team at Allegiant Air to build an airline where pilots will want to come and stay,” said Wells. “It’s time to stop spending money fighting in Federal Court and blaming government regulatory agencies for operational challenges.”

The pilots have taken their concerns to management and repeatedly extended their assistance to help Allegiant Air become a sustainable, successful airline. However, offers for a team effort and support from the pilots are met with disregard and disdain.

The union has begun surveying pilots who are leaving Allegiant Air in order to best identify and trend the causal factors leading to a pilot’s decision to leave. As soon as enough statistical data has been documented to ensure sound statistics, the pilots intend to present the data to their management team in another effort to stem meaningful change.

The Airline Professionals Association Teamsters Local 1224 is affiliated with the International Brotherhood of Teamsters Airline Division and represents nearly 4000 members among 11 air carriers that operate both passenger and cargo aircraft. Local 1224 is the certified bargaining unit that represents all flight crew members employed by ABX Air, Inc., Allegiant Air, Atlas Air, Inc., Brendan Airways, LLC, Horizon Air Industries, Inc., Hyannis Air Services, Inc., Kalitta Air, LLC, Kalitta Charters II, LLC, Miami Air International, Omni Air International, Silver Airways Corporation, and Southern Air, Inc.

Allegiant has not yet responded with a public statement.

Copyright Photo: Jay Selman/AirlinersGallery.com. Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N881GA (msn 49708) arrives at the Las Vegas base.

Allegiant Air:

Allegiant announces its 46th consecutive profitable quarter

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported net income of $33.5 million for the second quarter 2014, ending on June 30, up 29.8 percent from the previous second quarter net profit of $25.8 million in 2013.

“We are very proud to report our 46th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “We have been working very hard to mitigate the crew training issues that have impacted us in the past two quarters. Although these issues did contribute to operational inefficiencies and incremental costs during this past quarter we are trending in the right direction and hope these issues have minimal impact in the third quarter. On a much more positive note, in June we completed multiple aircraft transactions to add 14 additional aircraft to our future fleet and raised $300 million of debt in the high yield market with very competitive terms. We could not have done this without the tremendous effort of our Team Members.”

Notable company highlights:

Increased operating margin, EBITDA margin and return on capital employed versus the same time last year

Acquired 12 incremental A319 Airbus aircraft for delivery in 2018. See table below for financial impact of this transaction

Signed agreements to acquire one A320 and one A319 to be in service in 2015 and 2016, respectively

Entered into a letter of intent to purchase eight A319s, previously committed to under operating leases.

Two of these are currently under operating lease to Allegiant, one is expected to be delivered in 2014 and five are expected to be delivered in 2015

In-service Airbus fleet of 10 aircraft accounted for 21.9 percent of total ASM production during the quarter

Prepaid $121.1 million, 5.75 percent term loan facility due 2017

Raised $300 million, 5.50 percent senior unsecured notes due 2019, corporate rating of BB- by Standard & Poor’s and Ba3 by Moody’s

Raised $85.3 million collateralized by 53 MD-80 and six 757 aircraft

Initiated service on 12 new routes in the second quarter

Named Top-Performing Airline in North America by Aviation Week for third consecutive year. The Company also has the best five-year average score of any airline worldwide, 76.9, more than 5 points higher than the second-ranked carrier

Read the full report: CLICK HERE

Fleet Details:

Copyright Photo: The fleet will grow by 10 aircraft (mainly Airbus A319s and A320s) in the next two years while the Boeing 757s remain constant at six aircraft. Boeing 757-204 N903NV (msn 26966) is tugged off the gate at Los Angeles International Airport.

Allegiant:

Allegiant to add 13 Airbus A319s and one A320

Allegiant Travel Company (Allegiant Air) (Las Vegas) has announced three separate aircraft transactions for 14 additional growth aircraft and a fourth transaction for the purchase of two leased aircraft and the conversion of future operating lease obligations to forward purchases.

“We continue to find purchase transactions for high quality Airbus aircraft to secure our future growth,” said Andrew C. Levy, Allegiant Travel Company President and Chief Operating Officer. “We will now have 32 Airbus series aircraft, all owned, in our fleet by the end of 2018. We expect to use debt financing along with cash reserves to purchase these aircraft. Importantly, the additional A320/A319 aircraft are all sister ships to aircraft we currently operate. We remain active in the used Airbus market and hope to add more aircraft to our fleet during 2016 and 2017.”

The company has agreed to purchase twelve Airbus A319 aircraft currently leased to a European carrier until 2018. This purchase transaction is expected to be completed by the end of June. As each aircraft lease expires, Allegiant will transition the aircraft into its operating fleet. Allegiant expects to recognize approximately $30 million in annual lease revenue beginning in June 2014 through 2018 and plans to assume $142 million of secured debt under this transaction. The remaining two growth aircraft – one A319 and one A320 – will be purchased in 2015 and 2016 upon aircraft delivery.

The company has also agreed to purchase the two currently leased A319 aircraft in its fleet. This purchase is expected to be completed in July. The remaining six aircraft under the lease agreement executed in 2012 will be purchased at the time of delivery to Allegiant, expected to be in late 2014 through 2015.

The company expects its capital expenditures (CAPEX) to be approximately $315 million in 2014 and approximately $220 million in 2015. Upon completion of the above transactions, the company’s fleet plan will be as follows:

Airbus A319-100 (156 seats) will grow to 22 aircraft by 2018

Airbus A320-200 (177 seats) will grow to 10 aircraft by the end of 2015

Boeing 757-200 (215 seats) will remain at 6 aircraft through 2018

McDonnell Douglas MD-80 (DC-9-82s, DC-9-83s and MD-88s) (166 seats) will remain at 53 aircraft through 2018 (Allegiant is not expected to add any more MD-80s)

Overall the fleet will grow from the current 70 aircraft to 91 aircraft by 2018

This plan and guidance is subject to revision.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-112 N302NV (msn 2387) prepares to touch in Los Angeles.

Allegiant Air:

Allegiant starts seasonal service between Cincinnati and Myrtle Beach

Allegiant Air (Las Vegas) yesterday (May 31) started nonstop, seasonal jet service from Cincinnati-Northern Kentucky International Airport to Myrtle Beach. The new flights will operate two times a week until August 11, 2014, flying nonstop from Cincinnati-Northern Kentucky International Airport (CVG) to Myrtle Beach International Airport (MYR). Myrtle Beach becomes the fourth destination available to Allegiant travelers flying out of CVG, including Sanford, Punta Gorda and St. Petersburg/Clearwater.

In other news, Allegiant Travel Company also announced it has borrowed $40.0 million under a loan agreement with CIT, secured by six Boeing 757-200 aircraft (above) and twelve RB211 engines. The notes payable issued under the loan agreement, bear interest at a floating rate based on London Interbank Offered Rate (LIBOR). The term of the loan is 48 months and the proceeds are to be used for general corporate purposes.

Copyright Photo: James Helbock/AirlinersGallery.com. Allegiant’s Boeing 757-204 N906NV (msn 27236) approaches the runway at Las Vegas.

Allegiant Air:

Allegiant Air posts its 45th consecutive profitable quarter

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported net income of $34.2 million for the first quarter, up 7.2 percent from the same quarter a year ago. The travel company issued the following financial results for the first quarter 2014, as well as comparisons to prior year equivalents:

“We are very proud to report our 45th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “We are pleased to produce another profitable quarter despite significant operational challenges and unusually high one-time costs that impacted our overall financial performance. This was a very difficult operational quarter as we navigated through significant flight crew availability issues stemming from external factors that occurred last year. I am happy to report that our Team Members overcame this adversity and pulled together another solidly profitable quarter.”

Notable company highlights:

Integrated A320 aircraft into scheduled operations. Ended the quarter operating three A319 and seven A320 aircraft

A319 and A320 fleet accounted for 17.9 percent of total ASM production during the quarter

Integrated two MD-80 aircraft configured with 166 seats to the fleet in March. Ended the quarter operating 53 166 seat MD-80 aircraft

Completed the reconfiguration of the 757 fleet from 223 seats to 215 seats and added six Giant Seats per aircraft

Announced a seasonal base in Myrtle Beach, SC, which will support two aircraft beginning in late May

Announced 12 new routes to begin operation in the second quarter

Returned $114 million to shareholders through share repurchases and a special dividend paid in January
In April, prepaid $121.3 million term loan facility using unrestricted cash and proceeds from a new $45.3 million loan through Wells Fargo Bank, collateralized by 53 MD-80 aircraft

Read the full report: CLICK HERE

Copyright Photo: Jay Selman/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) brings another group of vacationers to the Las Vegas base.

Allegiant Air:

Allegiant Air reports its fourth quarter (44th consecutive profitable quarter) and 2013 financial results

Allegiant Travel Company (Allegiant Air) (Las Vegas) meanwhile has reported the following financial results for both the fourth quarter and full year 2013, as well as comparisons to prior year equivalents:

“We are very proud to report our 44th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “This is the second consecutive year that we have grown both full year EBITDA and operating margin. As we continue to add more efficient Airbus aircraft to our operating fleet, we have the opportunity to continue margin improvement going forward. Thank you for the tireless efforts of our Team Members whose contributions were critical to our successful 2013.”

Notable fourth quarter and full year 2013 company highlights

Added the Airbus A320 and A319 onto the Allegiant operating certificate
Ended 2013 with three A319 and five A320 aircraft in service. Added two more A320 aircraft in January 2014
Retired five MD-80 aircraft
Completed the conversion of 51 MD-80 aircraft to 166 seats. Will add two more MD-80 aircraft configured with 166 seats to the fleet in March 2014. We expect our MD-80 fleet to remain at 53 aircraft for the foreseeable future
Returned $83 million to shareholders through the repurchase of 913,806 shares in 2013
Paid a special dividend of $2.25 per share in early January 2014
Added 44 new routes in 2013. Announced five new routes and two new cities starting service first quarter 2014
Delivered Allegiant2Go Mobile Boarding Pass functionality in the fourth quarter
Broadened third-party purchase options via one-way package and hotel-only booking path
Executed a new agreement with a large Las Vegas gaming company for the pre-purchase of rooms at discounted rates
Entered into a new three year agreement with Enterprise Holdings Inc. for the sale of rental cars
Included on the 100 America’s Best Small Companies list by Forbes magazine

Fourth quarter and full year 2013 revenue performance

Full year ancillary air-related charges per passenger has increased every year for eight consecutive years
16th consecutive quarter of year over year increases in total fare, four percent higher than a year ago
Fourth quarter Florida TRASM grew by two percent despite a 35 percent growth in ASMs
Same store routes, those operated in both the fourth quarter 2013 and 2012, generated a three percent increase in TRASM

Fourth quarter and full year 2013 cost performance

Full year 2013 fuel expense per ASM declined six percent primarily due to a two percent decrease in gallons per passenger. This fuel savings more than offset the one percent increase in average fuel cost per gallon. Full year system ASMs per gallon increased seven percent versus 2012
Full year 2013 CASM ex fuel rose five percent versus last year in part because aircraft utilization declined four percent. CASM ex fuel was also negatively impacted by expenses due to an operational disruption in September, and the FAA shutdown and the subsequent delay in placing A320s into service in December. The A320 delay drove higher expense in aircraft lease rentals as we contracted with other carriers for sub-service to fly scheduled flights, reduced crew productivity and increased expenses to temporarily assign flight crews to bases to support unplanned MD-80 flying in place of planned A320 flying
Fourth quarter salary and benefits expense increased 17 percent due to a 13 percent increase in full time equivalent employees to support fleet growth and more inflight staff to crew larger gauge MD-80 aircraft, increased bonus accrual which is tied to higher levels of profitability and higher stock compensation expense
Fourth quarter sales and marketing expense increased 46 percent due to advertising to support the launch of new routes
Fourth quarter aircraft lease rental expense was $5.5 million due to having two leased aircraft (none a year ago) and $4.2 million of sub-service expense due to the delays in planned A320 flying
Fourth quarter other expense increased 16 percent due to increases in flight crew training, contractor IT development resources, and losses on consignment and disposal of assets
Certain fourth quarter non-cash expenses totaled $5.4 million for the quarter and $19.3 million for the year. Please see the non-cash expense table in the Non-GAAP presentation for further detail

Full year and first quarter 2014 cost trends

Full year CASM ex fuel is expected to increase between four and seven percent due to a more normalized maintenance and repair expense of between $100 thousand and $110 thousand per aircraft per month, start-up expenses in non-airline subsidiaries (which do not generate airline capacity or ASMs) and continued investment in operations and IT management
First quarter 2014 CASM ex fuel is expected to increase between 13 and 15 percent due to expenses associated with the delay in training A320 crews resulting from the FAA shutdown and its continued effects and the subsequent delay in placing the A320 on the certificate, lower than planned capacity growth due to the same issue, higher maintenance expense due to substantially more heavy maintenance events scheduled in the quarter, and start-up expenses in two new non airline initiatives which do not generate airline capacity or ASMs. The effects of the A320 delays and non-airline activities are expected to account for 53 percent of the increase in CASM ex fuel for the quarter

Third party products performance

Full year transportation net revenue (revenue derived from car rentals) increased 11 percent
Las Vegas represented 82 percent of hotel net revenue in 2013, down from 87 percent in 2012 and 90 percent in 2011
Full year hotel net revenue excluding the effect of an air discount increased 25 percent versus last year. In the fourth quarter of 2012, the company phased out offering an air discount tied to hotel sales in order to increase overall company profitability

Balance Sheet highlights:

Returned $42 million to shareholders through a special dividend of $2.25 per share
Repurchased 913,806 shares of common stock for $83 million in 2013. The company has $40 million in repurchase authority remaining
Cumulative return of capital in the form of re-purchases of shares and special dividends totals $277 million as of January 2014
$178 million in capital expenditures during 2013, 83 percent for the purchase of eight Airbus series aircraft and a new headquarters building
Issued $106 million in debt in 2013, $96 million secured by eight A320 series aircraft and $10 million by the new headquarters building
Paid down $23 million in debt including $10.5 million previously secured by four 757 aircraft. $9 million in debt remains secured by the remaining two 757 aircraft in our fleet as well as a term loan due in 2017 of $122 million secured by MD-80 aircraft and parts
2014 CAPEX is expected to be between $60 and $80 million primarily driven by two A320 purchases occurring at the end of 2014 and IT projects

Unaudited (millions)	12/31/2013	12/31/2012	Change
Unrestricted cash*	$387.1	$352.7	9.8	%
Total debt	$234.3	$150.9	55.3	%
Total Allegiant Travel Company stockholders’ equity	$375.7	$400.5	(6.2	)%

	For the Year ended December 31,
Unaudited (millions)	2013	2012	Change
Capital expenditures	$177.6	$105.1	69.0%

* – Unrestricted cash includes investments in marketable securities.

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

Guidance, subject to revision

Revenue guidance	January 2014	1Q14
Estimated PRASM year-over-year change	6.5 to 8.5%	(2) to 0%
Estimated TRASM year-over-year change	2 to 4%	(4) to (2)%

Fixed fee and other revenue guidance		1Q14
Fixed fee and other revenue (millions)		$1 to $3

Capacity guidance
System	1Q14	2Q14	FY14
Departure year-over-year growth	8 to 12%	10 to 14%
ASM year-over-year growth	10 to 14%	8 to 12%	9 to 13%
Scheduled
Departure year-over-year growth	8 to 12%	10 to 14%
ASM year-over-year growth	10 to 14%	8 to 12%	9 to 13%

Cost guidance	1Q14		FY14
CASM ex fuel – year-over-year change	13 to 15%		4 to 7%
CASM – year-over-year change	4 to 6%		1 to 4%
Assumed fuel cost per gallon	$3.32		$3.22

CAPEX guidance			FY14
Capital expenditures (millions)			$60 to $80

CASM ex fuel – cost per available seat mile excluding fuel expense
CASM – total operating expenses / system ASMs
Fuel assumptions are modeled as of January 20, 2014

Aircraft fleet plan by end of period

Aircraft	YE13	1Q14	YE14	YE15
MD-80 (150)	1	–	–	–
MD-80 (166*)	51	53	53	53
757	6	6	6	6
A319	3	3	4	10
A320	5	7	7	9
Total	66	69	70	78

Aircraft listed in table above include only in service aircraft
* – MD-80s converted to 166 seats from 150 seats

Copyright Photo: James Helbock/AirlinersGallery.com. Allegiant is now operating three Airbus A319s and seven A320s. Airbus A319-112 N310NV (msn 2224) approaches the runway at Los Angeles International Airport.

Allegiant Air: