Summary of Significant Accounting Policies - (Policies) | 12 Months Ended |
Dec. 31, 2013 |
Accounting Policies [Abstract] | ' |
Basis of Presentation [Policy Text Block] | ' |
Basis of Presentation: The accompanying consolidated financial statements include the accounts of Allegiant Travel Company and its majority-owned operating subsidiaries. The Company's investments in unconsolidated affiliates which are 50% or less owned are accounted for under the equity method. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates |
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The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Due to the prospective nature of these estimates, actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents |
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Cash and cash equivalents include investments and interest bearing instruments with maturities of three months or less at the date of acquisition. Such investments are carried at cost which approximates fair value. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Restricted Cash |
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Restricted cash represents escrowed funds under fixed fee contracts, cash collateral against notes payable and cash collateral against letters of credit required by hotel properties for guaranteed room availability, airports and certain other parties. |
Receivables, Policy [Policy Text Block] | ' |
Accounts Receivable |
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Accounts receivable are carried at cost which approximates fair value. They consist primarily of amounts due from credit card companies associated with the sale of tickets for future travel, and amounts due related to fixed fee charter agreements. If deemed necessary, the Company records an allowance for doubtful accounts for amounts not expected to be collected. The Company did not record allowance for doubtful accounts as of December 31, 2013, and 2012. In addition, accounts receivable write offs for the years ended December 31, 2013, 2012, and 2011 were immaterial. |
Marketable Securities, Policy [Policy Text Block] | ' |
Investment Securities |
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The Company’s investments in marketable securities are classified as available-for-sale and are reported at fair market value with the net unrealized gain or (loss) reported as a component of accumulated other comprehensive income in stockholders’ equity. Investment securities are classified as cash equivalents, short-term investments and long-term investments based on maturity date. Cash equivalents have maturities of three months or less, short-term investments have maturities of greater than three months but equal to or less than one year and long-term investments are those with a maturity date greater than one year. As of December 31, 2013, the Company’s long-term investments consisted of government debt securities and municipal debt securities with contractual maturities of less than 18 months. Investment securities consisted of the following: |
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| As of December 31, 2013 | | As of December 31, 2012 |
| | | Gross Unrealized | | | | | | Gross Unrealized | | |
| Cost | | Gains | | (Losses) | | Market Value | | Cost | | Gains | | (Losses) | | Market Value |
Money market funds | $ | 20,172 | | | $ | — | | | $ | — | | | $ | 20,172 | | | $ | 3,689 | | | $ | — | | | $ | — | | | $ | 3,689 | |
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Certificates of deposit | — | | | — | | | — | | | — | | | 5,862 | | | 1 | | | — | | | 5,863 | |
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Commercial paper | 75,905 | | | 8 | | | (2 | ) | | 75,911 | | | 82,163 | | | 16 | | | (42 | ) | | 82,137 | |
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Municipal debt securities | 181,870 | | | 17 | | | (19 | ) | | 181,868 | | | 190,507 | | | — | | | (33 | ) | | 190,474 | |
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Government debt securities | 10,008 | | | — | | | — | | | 10,008 | | | 22,011 | | | 2 | | | — | | | 22,013 | |
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Corporate debt securities | 45,150 | | | — | | | (16 | ) | | 45,134 | | | 33,310 | | | — | | | (13 | ) | | 33,297 | |
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Total | $ | 333,105 | | | $ | 25 | | | $ | (37 | ) | | $ | 333,093 | | | $ | 337,542 | | | $ | 19 | | | $ | (88 | ) | | $ | 337,473 | |
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The amortized cost of investment securities sold is determined by the specific identification method with any realized gains or losses reflected in other (income) expense. The Company had minimal realized losses during the years ended December 31, 2013 and 2012 and no realized gains or losses during the year ended December 31, 2011. |
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The Company believes unrealized losses related to debt securities are not other-than-temporary. |
Inventory, Policy [Policy Text Block] | ' |
Expendable Parts, Supplies and Fuel |
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Expendable parts, supplies and fuel inventories are valued at cost using the first-in, first-out method. Such inventories are charged to expense as they are used in operations. An allowance for obsolescence on aircraft spare parts is recognized over the remaining useful life of the Company’s aircraft fleet. |
Internal Use Software, Policy [Policy Text Block] | ' |
Software Capitalization |
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The Company capitalizes certain internal and external costs related to the acquisition and development of computer software during the application development stages of projects. The Company amortizes these costs using the straight-line method over the estimated useful life of the software, which typically ranges from three to five years. The Company had unamortized computer software development costs of $20,136 and $16,233 as of December 31, 2013 and 2012, respectively. Amortization expense related to computer software was $3,347, $1,539 and $986 for the years ended December 31, 2013, 2012 and 2011, respectively. Costs incurred during the preliminary and post-implementation stages of software development are expensed as incurred. |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Property and Equipment |
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Property and equipment are recorded at cost and depreciated using the straight-line method to their estimated residual values over their estimated useful lives as follows: |
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Aircraft and engines (years) | 15-Jan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Rotable parts (years) | 7 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ground equipment and leasehold improvements (years) | 7-Mar | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Aircraft and engines have an estimated average residual value of 14.7 percent of original cost; other property and equipment are assumed to have no residual value. |
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In estimating the useful lives and residual values of its aircraft, the Company primarily has relied upon actual experience with the same or similar aircraft types, current and projected future market information, and recommendations from aircraft manufacturers. Subsequent revisions to these estimates could be caused by changing market prices of the Company’s aircraft, changes in utilization of the aircraft, and other fleet events. These estimates are evaluated each reporting period and adjusted if necessary. Changes in the estimate for useful lives or residual values of the Company’s property and equipment could result an acceleration of depreciation expense. |
Leased Aircraft Return Costs, Policy [Policy Text Block] | ' |
Leased Aircraft Return Costs |
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The Company is party to operating lease agreements which contain aircraft return provisions. These provisions require the Company to compensate the lessor based on specific time remaining on certain aircraft and engine components between scheduled maintenance events. A liability associated with returning leased aircraft is accrued when it is probable that a cash payment will be made and that amount is reasonably estimable. Any accrual is based on the time remaining on the lease, planned aircraft usage and other provisions included in the lease agreement, although the actual amount due to any lessor upon return will not be known with certainty until lease termination. As of December 31, 2013 the Company has accrued $1.4 million in leased return conditions. |
Equity Method Investments, Policy [Policy Text Block] | ' |
Investment in Unconsolidated Affiliates |
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The Company uses the equity method to account for AFH Inc.’s, a wholly-owned subsidiary, investment in a fuel venture. AFH, Inc. has a 50 percent interest in a jointly owned entity with OSI (an affiliate of the Orlando Sanford International Airport) to handle certain fuel operations for the Orlando Sanford International Airport. The entity, SFB Fueling LLC, is responsible for the purchase and transport of jet fuel to a fuel farm facility owned and operated by OSI, and for the sale of jet fuel to air carriers at the Orlando Sanford International Airport. In addition, AFH, Inc. is responsible for the administrative functions for the joint venture. The Company’s proportionate allocation of net income or loss from this investment and from an investment in an aviation services company are reported in the Company’s consolidated statements of income in other (income) expense, with an adjustment to the recorded investment in the Company’s consolidated balance sheet. These investments treated under the equity method are not material to the financial position or results of operations of the Company. |
Interest Capitalization, Policy [Policy Text Block] | ' |
Capitalized Interest |
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Interest attributable to funds used to finance the refurbishment of aircraft prior to revenue service is capitalized as an additional cost of the related asset provided the refurbishment is extensive or requires an extended period of time to complete, generally longer than 90 days. Interest is capitalized at the Company’s average interest rate on long-term debt and ceases when the asset is ready for service. For the years ended December 31, 2013, 2012 and 2011, respectively, the Company recorded gross interest expense of $9,616, $9,237 and $7,580, of which $123, $498 and $405 respectively, was capitalized. |
Measurement of Impairment of Long-Lived Assets, Policy [Policy Text Block] | 'Measurement of Impairment of Long-Lived AssetsB The Company records impairment losses on long-lived assets used in operations, consisting principally of property and equipment, when events or changes in circumstances indicate, in managementbs judgment, that the assets might be impaired and the undiscounted future cash flows estimated to be generated by those assets are less than the carrying amount of those assets.B B In making these determinations, the Company utilizes certain assumptions, including, but not limited to: (i) estimated fair market value of the assets; and (ii) estimated future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, length of service the asset will be used in operations, and estimated salvage values.For the years ended December 31, 2013, 2012 and 2011, the Company incurred impairment losses on spare engine parts of $5,315, $2,768 and $2,486, respectively. |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition |
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Scheduled service revenue consists of passenger revenue generated from nonstop flights in the Company’s route network recognized when the travel-related service or transportation is provided or when the itinerary expires unused. Nonrefundable scheduled itineraries expire on the date of the intended flight, unless the date is extended by notification from the customer in advance. Itineraries sold for transportation, but not yet used, as well as unexpired credits, are included in air traffic liability. |
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Various taxes and fees assessed on the sale of tickets to customers are collected by the Company as an agent and remitted to taxing authorities. These taxes and fees have been presented on a net basis in the Company’s consolidated statements of income and recorded as a liability until remitted to the appropriate taxing authority. |
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Fixed fee contract revenue consists largely of agreements to provide charter service on a year-round and ad hoc basis. Fixed fee contract revenue is recognized when the transportation is provided. |
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Ancillary revenue is generated from air-related fees paid by ticketed passengers and the sale of third party products. Air-related charges consists of baggage fees, the use of the Company’s website to purchase scheduled service transportation, advance seat assignments, and other services. Revenues from air-related charges are recognized when the transportation is provided if the product is not deemed independent of the original ticket sale. Change and cancellation fees to nonrefundable itineraries are air-related charges deemed independent of the original ticket sale and are recognized as revenue as they occur. |
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Ancillary revenue is also generated from the sale of third party products such as hotel rooms, rental cars, ticket attractions, and other items. Revenues from the sale of third party products are recognized at the time the product is utilized, such as the time a purchased hotel room is occupied. The Company follows accounting standards for revenue arrangements with multiple deliverables to determine the amount of revenue to be recognized for each element of a bundled sale involving air-related charges and third party products in addition to airfare. Revenue from the sale of third party products is recorded net of amounts paid to wholesale providers, travel agent commissions, and transaction costs. |
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Other revenue is generated from leased out aircraft and flight equipment and other miscellaneous sources. Lease revenue is recognized on a straight-line basis over the lease term. |
Maintenance and Repair Costs, Policy [Policy Text Block] | 'Maintenance and Repair CostsB The Company accounts for aircraft maintenance activities under the direct expense method. Under this method, maintenance and repair costs for owned and leased aircraft, including major aircraft maintenance activities, are charged to operating expenses as incurred. |
Advertising Costs, Policy [Policy Text Block] | ' |
Advertising Costs |
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Advertising costs are charged to expense in the period incurred. Advertising expense was $4,160, $4,201 and $5,159 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings per Share |
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Basic and diluted earnings per share are computed pursuant to the two-class method. Under this method, the Company attributes net income to two classes, common stock and unvested restricted stock awards. Unvested restricted stock awards granted to employees under the Company’s Long-Term Incentive Plan are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. |
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Diluted net income per share is calculated using the more dilutive of two methods. Under both methods, the exercise of employee stock options and stock-settled stock appreciation rights are assumed using the treasury stock method. The assumption of vesting of restricted stock, however, differs: |
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1 | Assume vesting of restricted stock using the treasury stock method. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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2 | Assume unvested restricted stock awards are not vested, and allocate earnings to common shares and unvested restricted stock awards using the two-class method. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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For the years ended December 31, 2013, 2012 and 2011, the second method above which assumes unvested awards are not vested was used in the computation because it was more dilutive than the first method above which assumes vesting of awards using the treasury stock method. The following table sets forth the computation of net income per share on a basic and diluted basis for the periods indicated (shares in table below in thousands): |
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| Year ended December 31, | | | | | | | | | | | | | | | | | | | | |
| 2013 | | 2012 | | 2011 | | | | | | | | | | | | | | | | | | | | |
Basic: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to Allegiant Travel Company | $ | 92,273 | | | $ | 78,597 | | | $ | 49,398 | | | | | | | | | | | | | | | | | | | | | |
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Less: Net income allocated to participating securities | (381 | ) | | (295 | ) | | (283 | ) | | | | | | | | | | | | | | | | | | | | |
Net income attributable to common stock | $ | 91,892 | | | $ | 78,302 | | | $ | 49,115 | | | | | | | | | | | | | | | | | | | | | |
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Net income per share, basic | $ | 4.85 | | | $ | 4.1 | | | $ | 2.59 | | | | | | | | | | | | | | | | | | | | | |
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Weighted-average shares outstanding | 18,936 | | | 19,079 | | | 18,935 | | | | | | | | | | | | | | | | | | | | | |
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Diluted: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Net income attributable to Allegiant Travel Company | $ | 92,273 | | | $ | 78,597 | | | $ | 49,398 | | | | | | | | | | | | | | | | | | | | | |
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Less: Net income allocated to participating securities | (378 | ) | | (292 | ) | | (280 | ) | | | | | | | | | | | | | | | | | | | | |
Net income attributable to common stock | $ | 91,895 | | | $ | 78,305 | | | $ | 49,118 | | | | | | | | | | | | | | | | | | | | | |
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Net income per share, diluted | $ | 4.82 | | | $ | 4.06 | | | $ | 2.57 | | | | | | | | | | | | | | | | | | | | | |
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Weighted-average shares outstanding | 18,936 | | | 19,079 | | | 18,935 | | | | | | | | | | | | | | | | | | | | | |
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Dilutive effect of stock options, restricted stock and stock-settled stock appreciation rights | 154 | | | 228 | | | 209 | | | | | | | | | | | | | | | | | | | | | |
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Adjusted weighted-average shares outstanding under treasury stock method | 19,090 | | | 19,307 | | | 19,144 | | | | | | | | | | | | | | | | | | | | | |
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Participating securities excluded under two-class method | (40 | ) | | (31 | ) | | (19 | ) | | | | | | | | | | | | | | | | | | | | |
Adjusted weighted-average shares outstanding under two-class method | 19,050 | | | 19,276 | | | 19,125 | | | | | | | | | | | | | | | | | | | | | |
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Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Stock-Based Compensation |
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The Company accounts for stock-based compensation in accordance with accounting standards which require the compensation cost relating to share-based payment transactions be recognized in the Company’s consolidated statements of income. The cost is measured at the grant date, based on the calculated fair value of the award using the Black-Scholes option pricing model for stock options and stock appreciation rights (“SARs”), and based on the closing share price of the Company’s stock on the grant date for restricted stock awards. The cost is recognized as an expense over the employee’s requisite service period (the vesting period of the award). The vesting period of the Company’s awards is generally three years. The Company’s stock-based employee compensation plan is more fully discussed in Note 12—Employee Benefit Plans. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
Concentration Risk |
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The Company attempts to minimize its concentration risk with regard to its cash, cash equivalents, and its investment portfolio. This is accomplished by diversifying and limiting amounts among different counterparties, the type of investment, and the amount invested in any individual security, commercial paper, or money market fund. |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes |
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The Company recognizes deferred income taxes based on the asset and liability method required by ASC 740. Deferred tax assets and liabilities are determined based on the timing differences between book basis for financial reporting purposes and tax basis of the asset and liability and measured using the enacted tax rates. A valuation allowance for deferred tax assets is provided if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company determines the net current and non-current deferred tax assets or liabilities separately for federal, state, and other local jurisdictions. |
The Company’s income tax returns are subject to examination by the Internal Revenue Service (“IRS”) and other tax authorities in the jurisdictions where the Company operates. The Company assesses potentially unfavorable outcomes of such examinations based on the criteria set forth in uncertain tax position accounting standards. The accounting standards prescribe a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. |
Accounting standards for income taxes utilize a two-step approach for evaluating tax positions. Recognition (Step I) occurs when the Company concludes that a tax position, based on its technical merits, is more likely than not to be sustained upon examination. Measurement (Step II) is only addressed if the position is deemed to be more likely than not to be sustained. Under Step II, the tax benefit is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. |
The tax positions failing to qualify for initial recognition are recognized in the first subsequent interim period they meet the “more likely than not” standard. If it is subsequently determined that a previously recognized tax position no longer meets the “more likely than not” standard, it is required that the tax position be derecognized. As applicable, the Company will recognize accrued penalties and interest related to unrecognized tax benefits in the provision for income taxes. |