Allegiant Travel (ALGT) 10-Q 2 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Allegiant Travel CO
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		16,636,843
Amendment Flag	false
Entity Central Index Key	1,362,468
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Well Known Seasoned Issuer	Yes
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 64,732	$ 64,711
Restricted cash	11,253	11,647
Short-term investments	288,727	269,269
Accounts receivable	17,327	40,667
Expendable parts, supplies and fuel, net	16,345	16,797
Prepaid expenses	25,194	16,277
Other current assets	2,569	2,686
TOTAL CURRENT ASSETS	426,147	422,054
Property and equipment, net	1,121,230	1,095,314
Long-term investments	172,845	124,834
Deferred Maintenance Costs, Net, Noncurrent	17,550	17,347
Deposits and other assets	11,972	12,027
TOTAL ASSETS	1,749,744	1,671,576
CURRENT LIABILITIES:
Accounts payable	25,295	16,010
Accrued liabilities	85,927	96,661
Air traffic liability	244,920	194,001
Current maturities of notes payable, net of related costs	88,198	86,226
TOTAL CURRENT LIABILITIES	444,340	392,898
Long-term debt, net of current maturities and related costs	715,383	722,048
Deferred income taxes	77,807	75,338
Other noncurrent liabilities	9,112	7,670
TOTAL LIABILITIES:	1,246,642	1,197,954
SHAREHOLDERS' EQUITY:
Common stock, par value $.001	23	22
Treasury stock	(522,726)	(517,803)
Additional paid in capital	243,039	238,236
Accumulated other comprehensive loss, net	(592)	(230)
Retained earnings	783,358	753,397
TOTAL EQUITY	503,102	473,622
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,749,744	$ 1,671,576

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash dividends declared per share:	$ 0.70	$ 0.30
OPERATING REVENUE:
Scheduled service revenue	$ 212,097	$ 201,606
Ancillary revenue:
Air-related charges	131,565	120,929
Third party products	12,742	11,258
Total ancillary revenue	144,307	132,187
Fixed fee contract revenue	11,259	6,800
Other revenue	8,174	8,022
Total operating revenue	375,837	348,615
OPERATING EXPENSES:
Aircraft fuel	84,662	53,659
Salary and benefits	96,298	69,208
Station operations	31,832	30,734
Maintenance and repairs	30,095	26,492
Depreciation and amortization	30,549	24,685
Sales and marketing	9,998	5,808
Aircraft lease rentals	164	233
Other	19,351	16,670
Total operating expenses	302,949	227,489
OPERATING INCOME	72,888	121,126
OTHER (INCOME) EXPENSE:
Interest expense	8,401	7,239
Interest income	(1,264)	(612)
Other, net	(360)	(363)
Total other expense	6,777	6,264
INCOME BEFORE INCOME TAXES	66,111	114,862
PROVISION FOR INCOME TAXES	24,479	42,882
NET INCOME	41,632	71,980
NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY	$ 41,632	$ 71,980
Earnings per share to common stockholders:
Basic	$ 2.50	$ 4.29
Diluted	$ 2.50	$ 4.29
Shares used for computation:
Basic	16,382	16,678
Diluted	16,404	16,699

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net income	$ 41,632	$ 71,980
Other comprehensive (loss) income:
Change in available for sale securities, net of tax	225	291
Foreign currency translation adjustments	(83)	(105)
Change in derivatives, net of tax	(215)	(331)
Reclassification of derivative gains into Other revenue	(289)	(266)
Total other comprehensive loss	(362)	(411)
TOTAL COMPREHENSIVE INCOME	$ 41,270	$ 71,569

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
OPERATING ACTIVITIES:
Net income	$ 41,632	$ 71,980
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	30,549	24,685
Loss/(gain) on aircraft and other equipment disposals	2,548	(1,950)
Provision for obsolescence of expendable parts, supplies and fuel	830	495
Amortization of deferred financing costs	365	357
Share-based compensation expense	4,349	2,287
Deferred income taxes	2,386	2,234
Changes in certain assets and liabilities:
(Increase) decrease in accounts receivable	23,162	5,581
(Increase) decrease in prepaid expenses	(8,917)	1,960
Increase (decrease) in accounts payable	9,394	4,269
Increase (decrease) in accrued liabilities	(10,561)	3,852
Increase (decrease) in air traffic liability	50,919	43,082
Increase Decrease for Deferred Major Maintenance, Net	(1,504)	0
Other, net	1,799	1,607
Net cash provided by operating activities	146,951	160,439
INVESTING ACTIVITIES:
Purchase of investment securities	(146,625)	(89,994)
Proceeds from maturities of investment securities	79,381	91,533
Aircraft pre-delivery deposits	(5,907)	0
Purchase of property and equipment, including capitalized interest	(52,629)	(71,689)
Other investing activities	382	4,061
Net cash used in investing activities	(125,398)	(66,089)
FINANCING ACTIVITIES:
Cash dividends paid to shareholders	(11,671)	(32,783)
Proceeds from the issuance of long-term debt	22,000	28,000
Repurchase of common stock	(4,923)	(55,633)
Principal payments on long-term debt	(26,425)	(18,677)
Other financing activities	(513)	(235)
Net cash used in financing activities	(21,532)	(79,328)
Net change in cash and cash equivalents	21	15,022
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	64,711	87,112
CASH AND CASH EQUIVALENTS AT END OF PERIOD	64,732	102,134
CASH PAYMENTS FOR:
Interest paid, net of amount capitalized	14,080	10,906
Income taxes paid, net of refunds	$ 374	$ 27,846

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Allegiant Travel Company (the “Company”) and its majority-owned operating subsidiaries. The Company has no independent assets or operations, and all guarantees of the Company's publicly held debt are full and unconditional and joint and several. Any subsidiaries of the parent company other than the subsidiary guarantors are minor. Investments in affiliates in which the Company’s ownership interest ranges from 20 to 50 percent and in which the Company has the ability to exercise significant influence over operating and financial policies are accounted for under the equity method. All intercompany balances and transactions have been eliminated. These unaudited consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the financial position, results of operations, and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto included in the annual report of the Company on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" intended to create a unified model to determine when and how revenue is recognized. Under this ASU and subsequently issued amendments, the core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. Under the new standard, revenue related to certain air-related ancillary fees directly related to ticket revenue, such as seat fees and baggage fees, will likely no longer be considered distinct performance obligations separate from passenger travel and as a result will be reclassified into scheduled service revenue. In addition, change fees previously recognized when incurred by the customer, will likely be recognized when air travel is provided and reclassified into scheduled service revenue. In August 2016, the FASB issued ASU 2016-15, which amends the guidance in Accounting Standards Codification ("ASC") 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistency on this topic. The standard is effective for annual and interim periods beginning after December 15, 2017, and the Company will adopt it effective January 1, 2018. Significant classification modifications are not currently expected as a result of adoption.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure	Property and Equipment Property and equipment (in thousands): As of March 31, 2017 As of December 31, 2016 Flight equipment, including pre-delivery deposits $ 1,418,787 $ 1,377,829 Computer hardware and software 106,680 101,850 Other property and equipment 84,870 81,786 Total property and equipment 1,610,337 1,561,465 Less accumulated depreciation and amortization (489,107 ) (466,151 ) Property and equipment, net $ 1,121,230 $ 1,095,314

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt (in thousands): As of March 31, 2017 As of December 31, 2016 Fixed-rate notes payable due through 2020 $ 465,656 $ 465,748 Variable-rate notes payable due through 2022 337,925 342,526 Total long-term debt, net of related costs 803,581 808,274 Less current maturities, net of related costs 88,198 86,226 Long-term debt, net of current maturities and related costs $ 715,383 $ 722,048 Weighted average fixed-interest rate 5.41 % 5.41 % Weighted average variable-interest rate 3.29 % 3.16 % Maturities of long-term debt for the remainder of 2017 and for the next five years and thereafter, in the aggregate, are: remaining in 2017 - $66.6 million ; 2018 - $148.8 million ; 2019 - $515.1 million ; 2020 - $49.6 million ; 2021 - $22.4 million ; 2022 - $1.1 million ; and none thereafter. Secured Debt In January 2017, the Company borrowed $22.0 million under a loan agreement secured by two Airbus A320 series aircraft. The notes bear interest at a floating rate based on LIBOR plus 1.70 percent and are payable in quarterly installments through January 2022.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value, Measurement Inputs, Disclosure	Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received by selling an asset or paid to transfer a liability in an orderly transaction between market participants. Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company uses the market approach valuation technique to determine fair value for investment securities. The assets classified as Level 1 consist of money market funds for which original cost approximates fair value. The assets classified as Level 2 consist of commercial paper, municipal debt securities, federal agency debt securities, US Treasury Bonds, and corporate debt securities, which are valued using quoted market prices or alternative pricing sources including transactions involving identical or comparable assets and models utilizing market observable inputs. The Company has no investment securities classified as Level 3. For those assets classified as Level 2 that are not in active markets, the Company obtains fair value from pricing sources using quoted market prices for identical or comparable instruments, and uses pricing models which include all significant observable inputs: maturity dates, issue dates, settlement dates, benchmark yields, reported trades, broker-dealer quotes, issue spreads, benchmark securities, bids, offers and other market related data. These inputs are observable or can be derived from, or corroborated by, observable market data for substantially the full term of the asset. The fair value of the Company's derivative instrument is determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and therefore have been classified as Level 2. Inputs used in these standard valuation models for derivative instruments include the applicable exchange and interest rates. Financial instruments measured at fair value on a recurring basis (in thousands): As of March 31, 2017 As of December 31, 2016 Total Level 1 Level 2 Total Level 1 Level 2 Cash equivalents Municipal debt securities $ 4,639 $ — $ 4,639 $ 1,843 $ — $ 1,843 Money market funds 598 598 — 123 123 — Federal agency debt securities — — — 19,399 — 19,399 Total cash equivalents 5,237 598 4,639 21,365 123 21,242 Short-term Municipal debt securities 113,819 — 113,819 78,826 — 78,826 Commercial paper 93,273 — 93,273 108,372 — 108,372 Corporate debt securities 77,772 — 77,772 76,570 — 76,570 US Treasury Bonds 2,997 — 2,997 1,606 — 1,606 Federal agency debt securities 866 — 866 3,895 — 3,895 Total short-term 288,727 — 288,727 269,269 — 269,269 Long-term Corporate debt securities 87,380 — 87,380 25,048 — 25,048 Municipal debt securities 54,581 — 54,581 72,623 — 72,623 Federal agency debt securities 30,884 — 30,884 24,160 — 24,160 Derivative instruments 1,320 — 1,320 1,660 — 1,660 US Treasury Bonds — — — 3,003 — 3,003 Total long-term 174,165 — 174,165 126,494 — 126,494 Total financial instruments $ 468,129 $ 598 $ 467,531 $ 417,128 $ 123 $ 417,005 The fair value of the Company’s publicly held long-term debt is determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company has categorized its publicly held debt as Level 2. The remaining debt agreements are not publicly held. The Company has determined the estimated fair value of these notes to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable and, therefore, could be sensitive to changes in inputs. The Company utilizes the discounted cash flow method to estimate the fair value of Level 3 debt. Carrying value and estimated fair value of long-term debt, including current maturities and excluding related costs (in thousands): As of March 31, 2017 As of December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Hierarchy Level Publicly held debt $ 451,964 $ 467,783 $ 452,179 $ 468,005 2 Non-publicly held debt 356,599 336,686 360,999 340,866 3 Total long-term debt $ 808,563 $ 804,469 $ 813,178 $ 808,871 Due to the short-term nature, carrying amounts of cash, cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair value.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Mar. 31, 2017
Derivative Instruments [Abstract]
Derivative Instruments and Hedging Activities Disclosure	Derivative Instruments The Company entered into a foreign currency swap in order to mitigate the foreign currency exchange rate risk associated with the forecasted lease revenue from 12 Airbus A320 series aircraft leased to a European carrier until 2018. The Company uses a cash flow hedge to minimize the variability in cash flows of assets, liabilities and forecasted transactions caused by fluctuations in foreign currency exchange rates. For the three months ended March 31, 2017 , the net change in fair value recorded in accumulated other comprehensive income related to an unrealized loss on the hedge was $0.2 million compared to $0.3 million for the three months ended March 31, 2016 . At inception, the Company formally designated and documented this financial instrument as a hedge of a specific underlying exposure, the risk management objective, and the strategy for undertaking the hedge transaction. The Company also assessed whether the financial instrument used in the hedging transactions was effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. This assessment is monitored on at least a quarterly basis, and the change in fair market value of any ineffective portion of a financial instrument would be immediately recognized into earnings. For each of the three months ended March 31, 2017 and March 31, 2016 , the Company realized $0.3 million in gains from its cash flow hedge into Other revenue. As of March 31, 2017 , the Company expects $0.7 million to be reclassified from Other comprehensive income into Other revenue within the next 12 months. At March 31, 2017 , the fair value of the Company's derivative instrument was $1.3 million compared to $1.7 million at December 31, 2016, and is reported in the Company's consolidated balance sheet within deposits and other assets. Refer to Note 4 - Fair Value Measurements for additional information related to the estimated fair value.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders' Equity	Shareholders’ Equity The Company is authorized by the Board of Directors to acquire its stock through open market purchases under its share repurchase program. As repurchase authority is used, the Board of Directors has, to date, authorized additional expenditures for share repurchases. Share repurchases consisted of the following during the periods indicated: Three Months Ended March 31, 2017 2016 Shares repurchased (not in thousands) 15,440 314,849 Average price per share $ 161.92 $ 171.54 Total (in thousands) $ 2,500 $ 54,009 During the three months ended March 31, 2017 , the Company declared and paid recurring cash dividends of $0.70 per share, or $11.7 million .

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share 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. 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. Diluted net income per share is calculated using the more dilutive of the two methods. Under both methods, the exercise of employee stock options is assumed using the treasury stock method. The assumption of vesting of restricted stock, however, differs: 1. Assume vesting of restricted stock using the treasury stock method. 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. For the three months ended March 31, 2017 , the second method, which assumes unvested awards are not vested, was used in the computation because it was more dilutive than the first method. The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands): Three Months Ended March 31, 2017 2016 Basic: Net income $ 41,632 $ 71,980 Less net income allocated to participating securities (682 ) (370 ) Net income attributable to common stock $ 40,950 $ 71,610 Net income per share, basic $ 2.50 $ 4.29 Weighted-average shares outstanding 16,382 16,678 Diluted: Net income $ 41,632 $ 71,980 Less net income allocated to participating securities (682 ) (370 ) Net income attributable to common stock $ 40,950 $ 71,610 Net income per share, diluted $ 2.50 $ 4.29 Weighted-average shares outstanding 16,382 16,678 Dilutive effect of stock options and restricted stock 90 50 Adjusted weighted-average shares outstanding under treasury stock method 16,472 16,728 Participating securities excluded under two-class method (68 ) (29 ) Adjusted weighted-average shares outstanding under two-class method 16,404 16,699 For the three months ended March 31, 2017 , anti-dilutive shares excluded from the calculation of earnings per share were 27,621 (shares not in thousands).

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of March 31, 2017 , the Company had firm commitments to purchase the following aircraft: Aircraft Type Number of Aircraft Under Contract Airbus A319 5 Airbus A320 25 Future minimum fixed payments for the Company's commitments related to the acquisition of aircraft, airport fees under use and lease agreements, and other operating lease obligations are as follows as of March 31, 2017 (in thousands): As of March 31, 2017 Remaining in 2017 $ 369,825 2018 117,245 2019 79,178 2020 41,546 2021 672 Thereafter 2,988 Total commitments $ 611,454 Contingencies The Company is subject to certain legal and administrative actions it considers routine to its business activities. The Company believes the ultimate outcome of any pending legal or administrative matters will not have a material adverse impact on its financial position, liquidity or results of operations.

Related Party

Related Party	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions Disclosure	Related Party Transactions The Company previously entered into a lease agreement for approximately 70,000 square feet of office space in a building in which the Company’s Chairman and Chief Executive Officer ("CEO") and the Company's President owned minority interests as limited partners. The Company exercised its option to terminate the lease effective in May 2015 and paid $1.3 million in January 2016 in settlement of related litigation. Entities owned or controlled by the Company's Chairman and CEO have been paid for the building of corporate training content, with a current focus on the Company's operating groups. This approach to training focuses on concept mastery, recognizing that individuals learn at varying paces, through different styles, and is designed to ensure the trainee fully understands each module before moving on to more advanced training. The Company also expects program development to facilitate recurrent training and to contribute to cost savings in the future. During the three months ended March 31, 2017 and 2016, the Company made payments to these entities of $0.2 million and $0.4 million , respectively, and no further payments are expected.

Subsequent Events

Subsequent Events - aircraft	3 Months Ended
	Mar. 31, 2017	Apr. 01, 2017
Subsequent Event [Line Items]
Subsequent Events [Text Block]	Subsequent Events In April 2017, the Company executed an agreement for the purchase of one Airbus A320 series aircraft which was delivered in April 2017.
Subsequent Event [Member]
Subsequent Event [Line Items]
Number Of Aircraft Committed To Purchase		1

Summary of Significant Accoun16

Summary of Significant Accounting Policies - (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Allegiant Travel Company (the “Company”) and its majority-owned operating subsidiaries. The Company has no independent assets or operations, and all guarantees of the Company's publicly held debt are full and unconditional and joint and several. Any subsidiaries of the parent company other than the subsidiary guarantors are minor. Investments in affiliates in which the Company’s ownership interest ranges from 20 to 50 percent and in which the Company has the ability to exercise significant influence over operating and financial policies are accounted for under the equity method. All intercompany balances and transactions have been eliminated. These unaudited consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the financial position, results of operations, and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto included in the annual report of the Company on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.
New Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" intended to create a unified model to determine when and how revenue is recognized. Under this ASU and subsequently issued amendments, the core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. Under the new standard, revenue related to certain air-related ancillary fees directly related to ticket revenue, such as seat fees and baggage fees, will likely no longer be considered distinct performance obligations separate from passenger travel and as a result will be reclassified into scheduled service revenue. In addition, change fees previously recognized when incurred by the customer, will likely be recognized when air travel is provided and reclassified into scheduled service revenue. In August 2016, the FASB issued ASU 2016-15, which amends the guidance in Accounting Standards Codification ("ASC") 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistency on this topic. The standard is effective for annual and interim periods beginning after December 15, 2017, and the Company will adopt it effective January 1, 2018. Significant classification modifications are not currently expected as a result of adoption.

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	Property and equipment (in thousands): As of March 31, 2017 As of December 31, 2016 Flight equipment, including pre-delivery deposits $ 1,418,787 $ 1,377,829 Computer hardware and software 106,680 101,850 Other property and equipment 84,870 81,786 Total property and equipment 1,610,337 1,561,465 Less accumulated depreciation and amortization (489,107 ) (466,151 ) Property and equipment, net $ 1,121,230 $ 1,095,314

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Summary of Long-Term Debt	Long-term debt (in thousands): As of March 31, 2017 As of December 31, 2016 Fixed-rate notes payable due through 2020 $ 465,656 $ 465,748 Variable-rate notes payable due through 2022 337,925 342,526 Total long-term debt, net of related costs 803,581 808,274 Less current maturities, net of related costs 88,198 86,226 Long-term debt, net of current maturities and related costs $ 715,383 $ 722,048 Weighted average fixed-interest rate 5.41 % 5.41 % Weighted average variable-interest rate 3.29 % 3.16 %

Long-Term Debt Schedule of Matu

Long-Term Debt Schedule of Maturities of Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Maturities of Long-Term Debt [Abstract]
Schedule of Maturities of Long-term Debt	Maturities of long-term debt for the remainder of 2017 and for the next five years and thereafter, in the aggregate, are: remaining in 2017 - $66.6 million ; 2018 - $148.8 million ; 2019 - $515.1 million ; 2020 - $49.6 million ; 2021 - $22.4 million ; 2022 - $1.1 million ; and none thereafter.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Assets Measured at Fair Value On a Recurring Basis	Financial instruments measured at fair value on a recurring basis (in thousands): As of March 31, 2017 As of December 31, 2016 Total Level 1 Level 2 Total Level 1 Level 2 Cash equivalents Municipal debt securities $ 4,639 $ — $ 4,639 $ 1,843 $ — $ 1,843 Money market funds 598 598 — 123 123 — Federal agency debt securities — — — 19,399 — 19,399 Total cash equivalents 5,237 598 4,639 21,365 123 21,242 Short-term Municipal debt securities 113,819 — 113,819 78,826 — 78,826 Commercial paper 93,273 — 93,273 108,372 — 108,372 Corporate debt securities 77,772 — 77,772 76,570 — 76,570 US Treasury Bonds 2,997 — 2,997 1,606 — 1,606 Federal agency debt securities 866 — 866 3,895 — 3,895 Total short-term 288,727 — 288,727 269,269 — 269,269 Long-term Corporate debt securities 87,380 — 87,380 25,048 — 25,048 Municipal debt securities 54,581 — 54,581 72,623 — 72,623 Federal agency debt securities 30,884 — 30,884 24,160 — 24,160 Derivative instruments 1,320 — 1,320 1,660 — 1,660 US Treasury Bonds — — — 3,003 — 3,003 Total long-term 174,165 — 174,165 126,494 — 126,494 Total financial instruments $ 468,129 $ 598 $ 467,531 $ 417,128 $ 123 $ 417,005
Fair Value, Liabilities Measured on Recurring Basis	Carrying value and estimated fair value of long-term debt, including current maturities and excluding related costs (in thousands): As of March 31, 2017 As of December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Hierarchy Level Publicly held debt $ 451,964 $ 467,783 $ 452,179 $ 468,005 2 Non-publicly held debt 356,599 336,686 360,999 340,866 3 Total long-term debt $ 808,563 $ 804,469 $ 813,178 $ 808,871

Stockholders' Equity Repurchase

Stockholders' Equity Repurchases (Tables)	3 Months Ended
	Mar. 31, 2017
Equity, Class of Treasury Stock [Line Items]
Treasury Stock [Text Block]	Share repurchases consisted of the following during the periods indicated: Three Months Ended March 31, 2017 2016 Shares repurchased (not in thousands) 15,440 314,849 Average price per share $ 161.92 $ 171.54 Total (in thousands) $ 2,500 $ 54,009

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Computation of Net Income Per Share, Basic and Diluted	The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands): Three Months Ended March 31, 2017 2016 Basic: Net income $ 41,632 $ 71,980 Less net income allocated to participating securities (682 ) (370 ) Net income attributable to common stock $ 40,950 $ 71,610 Net income per share, basic $ 2.50 $ 4.29 Weighted-average shares outstanding 16,382 16,678 Diluted: Net income $ 41,632 $ 71,980 Less net income allocated to participating securities (682 ) (370 ) Net income attributable to common stock $ 40,950 $ 71,610 Net income per share, diluted $ 2.50 $ 4.29 Weighted-average shares outstanding 16,382 16,678 Dilutive effect of stock options and restricted stock 90 50 Adjusted weighted-average shares outstanding under treasury stock method 16,472 16,728 Participating securities excluded under two-class method (68 ) (29 ) Adjusted weighted-average shares outstanding under two-class method 16,404 16,699

Commitments and Contingencies C

Commitments and Contingencies Commitments to Purchase (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments to Purchase Aircraft [Abstract]
Long-term Purchase Commitment	As of March 31, 2017 , the Company had firm commitments to purchase the following aircraft: Aircraft Type Number of Aircraft Under Contract Airbus A319 5 Airbus A320 25

Commitments and Contingencies P

Commitments and Contingencies Payments Related to Commitments to Purchase (Tables)	3 Months Ended
	Mar. 31, 2017
Payments Related to Commitments to Purchase [Abstract]
Long-term Purchase Commitment [Table Text Block]	Future minimum fixed payments for the Company's commitments related to the acquisition of aircraft, airport fees under use and lease agreements, and other operating lease obligations are as follows as of March 31, 2017 (in thousands): As of March 31, 2017 Remaining in 2017 $ 369,825 2018 117,245 2019 79,178 2020 41,546 2021 672 Thereafter 2,988 Total commitments $ 611,454 Contingencies The Company is subject to certain legal and administrative actions it considers routine to its business activities. The Company believes the ultimate outcome of any pending legal or administrative matters will not have a material adverse impact on its financial position, liquidity or results of operations.

Summary of Significant Accoun25

Summary of Significant Accounting Policies Policies (Details)	Mar. 31, 2017
Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity Method Investment, Ownership Percentage	20.00%
Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity Method Investment, Ownership Percentage	50.00%

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Flight equipment, including pre-delivery deposits	$ 1,418,787	$ 1,377,829
Computer Hardware and Software	106,680	101,850
Other property and equipment	84,870	81,786
Total property and equipment	1,610,337	1,561,465
Less accumulated depreciation and amortization	489,107	466,151
Property and equipment, net	$ 1,121,230	$ 1,095,314

Long-Term Debt Long-Term Debt -

Long-Term Debt Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Notes Payable	$ 808,563	$ 813,178
Secured Long-term Debt, Noncurrent	803,581	808,274
Less current maturities	88,198	86,226
Long-term debt, net of current maturities and related costs	715,383	722,048
Fixed Rate Notes Payable Through 2020
Debt Instrument [Line Items]
Notes Payable	465,656	465,748
Variable Rate Notes Payable Through 2021 [Domain]
Debt Instrument [Line Items]
Notes Payable	$ 337,925	$ 342,526

Long-Term Debt (Detail)

Long-Term Debt (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Long-term Debt, Maturities, Repayments of Principal in Year Five	$ 22,377
Long-term Debt, Maturities, Repayments of Principal after Year Five	1,086
Secured Long-term Debt, Noncurrent	803,581	$ 808,274
Due January 2022 [Member] [Domain]
Secured Long-term Debt, Noncurrent	$ 22,000
Airbus A320 Aircraft Series [Member]
Debt Instrument, Collateral	12
Airbus A320 Aircraft Series [Member] | Due January 2022 [Member] [Domain]
Debt Instrument, Collateral	two
Due January 2022 [Member] [Domain]
Debt Instrument, Interest Rate, Stated Percentage	1.70%

Long-Term Debt Schedule of Ma29

Long-Term Debt Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 66,568
Long-term Debt, Maturities, Repayments of Principal in Year Two	148,798
Long-term Debt, Maturities, Repayments of Principal in Year Three	515,132
Long-term Debt, Maturities, Repayments of Principal in Year Four	49,620
Long-term Debt, Maturities, Repayments of Principal in Year Five	22,377
Long-term Debt, Maturities, Repayments of Principal after Year Five	1,086
Long-term Debt, Fair Value	$ 803,581	$ 808,274

Fair Value Measurements (Detail

Fair Value Measurements (Detail) - Fair Value Measurements at Reporting Date Using - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Measurements, Recurring
Available-for-sale Securities	$ 468,129	$ 417,128
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Available-for-sale Securities	598	123
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Available-for-sale Securities	467,531	417,005
Short-term Investments | Fair Value, Measurements, Recurring
Available-for-sale Securities	288,727	269,269
Short-term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Short-term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Available-for-sale Securities	288,727	269,269
Short-term Investments | Fair Value, Measurements, Recurring | Commercial paper
Available-for-sale Securities	93,273	108,372
Short-term Investments | Fair Value, Measurements, Recurring | Commercial paper | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Short-term Investments | Fair Value, Measurements, Recurring | Commercial paper | Fair Value, Inputs, Level 2
Available-for-sale Securities	93,273	108,372
Short-term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities
Available-for-sale Securities	866	3,895
Short-term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Short-term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 2
Available-for-sale Securities	866	3,895
Short-term Investments | Fair Value, Measurements, Recurring | Municipal debt securities
Available-for-sale Securities	113,819	78,826
Short-term Investments | Fair Value, Measurements, Recurring | Municipal debt securities | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Short-term Investments | Fair Value, Measurements, Recurring | Municipal debt securities | Fair Value, Inputs, Level 2
Available-for-sale Securities	113,819	78,826
Short-term Investments | Fair Value, Measurements, Recurring | Corporate debt securities
Available-for-sale Securities	77,772	76,570
Short-term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Short-term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | Fair Value, Inputs, Level 2
Available-for-sale Securities	77,772	76,570
Short-term Investments | Fair Value, Measurements, Recurring | US Treasury Securities
Available-for-sale Securities	2,997	1,606
Short-term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Short-term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | Fair Value, Inputs, Level 2
Available-for-sale Securities	2,997	1,606
Long Term Investments | Municipal debt securities | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Long Term Investments | Municipal debt securities | Fair Value, Inputs, Level 2
Available-for-sale Securities	54,581	72,623
Long Term Investments | Fair Value, Measurements, Recurring
Available-for-sale Securities	174,165	126,494
Long Term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Long Term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Available-for-sale Securities	174,165	126,494
Long Term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities
Available-for-sale Securities	30,884	24,160
Long Term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Long Term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 2
Available-for-sale Securities	30,884	24,160
Long Term Investments | Fair Value, Measurements, Recurring | Municipal debt securities
Available-for-sale Securities	54,581	72,623
Long Term Investments | Fair Value, Measurements, Recurring | Corporate debt securities
Available-for-sale Securities	87,380	25,048
Long Term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Long Term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | Fair Value, Inputs, Level 2
Available-for-sale Securities	87,380	25,048
Long Term Investments | Fair Value, Measurements, Recurring | US Treasury Securities
Available-for-sale Securities	0	3,003
Long Term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Long Term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | Fair Value, Inputs, Level 2
Available-for-sale Securities	0	3,003
Long Term Investments | Fair Value, Measurements, Recurring | Derivative Financial Instruments, Assets
Available-for-sale Securities	1,000	1,660
Long Term Investments | Fair Value, Measurements, Recurring | Derivative Financial Instruments, Assets | Fair Value, Inputs, Level 1
Available-for-sale Securities	0	0
Long Term Investments | Fair Value, Measurements, Recurring | Derivative Financial Instruments, Assets | Fair Value, Inputs, Level 2
Available-for-sale Securities	1,320	1,660
Cash Equivalents [Member] | Fair Value, Measurements, Recurring
Cash Equivalents	5,237	21,365
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Cash Equivalents	598	123
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Cash Equivalents	4,639	21,242
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | US Treasury Bonds
Cash Equivalents	598	123
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | US Treasury Bonds | Fair Value, Inputs, Level 1
Cash Equivalents	598	123
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | US Treasury Bonds | Fair Value, Inputs, Level 2
Cash Equivalents	0	0
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Federal agency debt securities
Cash Equivalents	0	19,399
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 1
Cash Equivalents	0	0
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 2
Cash Equivalents	0	19,399
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Municipal debt securities
Cash Equivalents	4,639	1,843
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Municipal debt securities | Fair Value, Inputs, Level 1
Cash Equivalents	0	0
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Municipal debt securities | Fair Value, Inputs, Level 2
Cash Equivalents	$ 4,639	$ 1,843

Fair Value Measurements Estimat

Fair Value Measurements Estimated Fair Value of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured Long-term Debt, Noncurrent	$ 803,581	$ 808,274
Notes Payable	808,563	813,178
Fair Value, Measurements, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured Long-term Debt, Noncurrent	804,469	808,871
Publicly Held Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured Long-term Debt, Noncurrent	451,964	452,179
Publicly Held Debt | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured Long-term Debt, Noncurrent	467,783	468,005
Non-Publicly Held Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured Long-term Debt, Noncurrent	356,599	360,999
Non-Publicly Held Debt | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured Long-term Debt, Noncurrent	$ 336,686	$ 340,866

Derivative Instruments Derivati

Derivative Instruments Derivative Instruments - Textuals (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	$ (215)	$ (331)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax	289	$ 266
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 697
Airbus A320 Aircraft Series
Derivative [Line Items]
Debt Instrument, Collateral	12

Stockholders' Equity (Detail)

Stockholders' Equity (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock Repurchased During Period, Shares	15,440	314,849
Treasury Stock Acquired, Average Cost Per Share	$ 161.92	$ 171.54
Stock Repurchased During Period, Value	$ 2,500	$ 54,009
Dividends	$ 11,671
Common Stock, Dividends, Per Share, Cash Paid	$ 0.70

Earnings per Share (Detail) - E

Earnings per Share (Detail) - Earnings Per Share - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	27,621
Basic:
Net income attributable to Allegiant Travel Company (in Dollars)	$ 41,632	$ 71,980
Less: Net income allocated to participating securities (in Dollars)	(682)	(370)
Net income attributable to common stock (in Dollars)	$ 40,950	$ 71,610
Net income per share, basic (in Dollars per share)	$ 2.50	$ 4.29
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted	$ (682)	$ (370)
Net Income (Loss) Available to Common Stockholders, Diluted	$ 40,950	$ 71,610
Net income per share, diluted (in Dollars per share)	$ 2.50	$ 4.29
Weighted-average shares outstanding	16,382,000	16,678,000
Dilutive effect of stock options, restricted stock and stock-settled stock appreciation rights	90,000	50,000
Adjusted weighted-average shares outstanding under treasury stock method	16,472,000	16,728,000
Participating securities excluded under two-class method	(68,000)	(29,000)
Two-Class Method, Weighted Average Number of Shares Outstanding, Diluted	16,404,000	16,699,000

Commitments and Contingencies (

Commitments and Contingencies (Detail)	Mar. 31, 2017aircraft
Airbus A319
Long-term Purchase Commitment [Line Items]
Number Of Aircraft Committed To Purchase	5
Airbus A320
Long-term Purchase Commitment [Line Items]
Number Of Aircraft Committed To Purchase	25

Related Party (Details)

Related Party (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	$ 200	$ 400
Lease Termination
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction		$ 1,300
Building 1
Related Party Transaction [Line Items]
Related Party Transaction, Description of Transaction			70,000