Third Quarter 2013 Cost Performance

• Fuel expense per ASM declined 3.9 percent primarily due to a 5.8 percent increase in ASMs per gallon versus last year, which more than offset a 1.9 percent increase in average cost per gallon
• Operating expense excluding fuel was negatively impacted by lower aircraft utilization and approximately $2 million in expense attributable to the evacuation slide interruption.  The expense associated with the slide event is isolated to September and resulted in higher aircraft lease rentals expense as we contracted with other carriers for sub-service of aircraft to move some of our customers, higher station operations expense due to customer interrupted trip costs, and increased salary and benefits expense due to additional overtime
• Salary and benefits expense per passenger increased 15 percent versus last year primarily due to an increase in the number of full time equivalents to support our growth, higher stock-based compensation expense and the continuation of the higher pay band for pilots which began in November 2012.  The current pay band will continue through April 2014 when it will be subject to adjustment based on a trailing 12 month profitability test.  Based on our forecasted profitability, we currently expect the pilot pay band to remain unchanged
• Depreciation and amortization expense per passenger increased 8 percent primarily due to a change in estimated MD-80 engine residual values and useful life, and operating a larger contingent of 166 seat MD-80 aircraft
• Other expense per passenger increased 31 percent due to a higher write-down of engine values in our consignment program compared to the prior year, non capitalizable information technology development costs, crew training for our growing Airbus fleet and costs to support a seasonal operating base in Los Angeles

*Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Fourth Quarter 2013 Cost Trends

• Salary and benefits expense is expected to increase due to additional staff required to support our growth
• Maintenance and repair expense is expected to be slightly higher than fourth quarter 2012.  For the full year, maintenance expense per aircraft per month is expected to be $100 thousand to $105 thousand as previously guided
• Aircraft utilization is expected to decline 1.5%, which will pressure ex fuel unit costs when compared to fourth quarter 2012
• Depreciation and amortization expense is expected to increase as seven A320 aircraft are scheduled to enter service in the fourth quarter.   For the full year, depreciation per aircraft per month is expected to be between $92 thousand and $95 thousand, as previously guided

Third Party Products Performance

• Rental car days increased 6.5 percent primarily due to a 18 percent increase in Florida passengers
• Hotel net revenue excluding the effect of an air discount was higher by 39 percent versus last year.  The company has phased out offering an air discount which has historically subsidized hotel sales

*Includes payment expenses and travel agency commissions.

Balance Sheet Highlights

• Repurchased 491,000 shares for $47 million and have over $43 million in repurchase authority remaining.  Year to date, the company has repurchased 880,991 shares at an average price of $85.64 per share
• Issued $48.0 million in debt secured by four Airbus aircraft
• Pre-paid $10.5 million in debt secured by four 757 aircraft
• Spent $84.5 million in capital expenditures in the third quarter, the majority of which was driven by the purchase of five Airbus A320 aircraft
• Closed a $10 million debt financing in October, secured by our new headquarters building acquired earlier this year

*Unrestricted cash includes investments in marketable securities.

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

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

*166 refers to MD-80s that have been converted to 166 seat aircraft, non 166 refers to those aircraft that will not be converted
 Aircraft listed in table above include only in service aircraft

In other news, the company announced new, nonstop jet service from Cincinnati-Northern Kentucky International Airport to Orlando-Sanford International Airport starting on February 12, 2014 and Punta Gorda Airport beginning on February 14, 2014.

This announcement marks the 100th U.S. city served by Allegiant’s low-cost, nonstop service to popular vacation destinations, more than any other low-cost carrier in the U.S.