Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-33166 | |
Entity Registrant Name | Allegiant Travel Co | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 20-4745737 | |
Entity Address, Address Line One | 1201 North Town Center Drive | |
Entity Address, City or Town | Las Vegas, | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89144 | |
City Area Code | 702 | |
Local Phone Number | 851-7300 | |
Title of 12(b) Security | Common stock, par value $0.001 | |
Trading Symbol | ALGT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,232,284 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001362468 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS_(un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 193,414 | $ 143,259 |
Restricted cash | 16,859 | 16,325 |
Short-term investments | 616,461 | 671,414 |
Accounts receivable | 72,494 | 70,743 |
Expendable parts, supplies and fuel, net | 35,806 | 36,335 |
Prepaid expenses and other current assets | 72,072 | 63,054 |
TOTAL CURRENT ASSETS | 1,007,106 | 1,001,130 |
Property and equipment, net | 3,523,343 | 3,447,111 |
Long-term investments | 43,799 | 56,004 |
Deferred major maintenance, net | 165,701 | 165,767 |
Operating lease right-of-use assets, net | 97,046 | 100,707 |
Deposits and other assets | 98,136 | 98,691 |
TOTAL ASSETS: | 4,935,131 | 4,869,410 |
TOTAL ASSETS: | ||
Accounts payable | 69,486 | 54,484 |
Accrued liabilities | 297,329 | 305,078 |
Current operating lease liabilities | 21,944 | 20,873 |
Air traffic liability | 432,561 | 353,488 |
Current loyalty program liability | 40,182 | 38,447 |
Current maturities of long-term debt and finance lease obligations, net of related costs | 459,171 | 439,937 |
TOTAL CURRENT LIABILITIES | 1,320,673 | 1,212,307 |
Long-term debt and finance lease obligations, net of current maturities and related costs | 1,789,577 | 1,819,717 |
Deferred income taxes | 384,036 | 384,602 |
Noncurrent operating lease liabilities | 77,519 | 82,410 |
Noncurrent loyalty program liability | 31,283 | 32,366 |
Other noncurrent liabilities | 9,887 | 9,448 |
TOTAL LIABILITIES: | 3,612,975 | 3,540,850 |
TOTAL LIABILITIES: | ||
Common stock, par value $0.001 | 26 | 26 |
Treasury shares | (682,075) | (681,932) |
Additional paid in capital | 747,873 | 741,055 |
Accumulated other comprehensive income, net | 2,783 | 3,991 |
Retained earnings | 1,253,549 | 1,265,420 |
TOTAL EQUITY: | 1,322,156 | 1,328,560 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY: | $ 4,935,131 | $ 4,869,410 |
CONSOLIDATED BALANCE SHEETS_(_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING REVENUES: | ||
Passenger | $ 579,936 | $ 609,277 |
Third party products | 33,399 | 26,037 |
Fixed fee contracts | 18,861 | 14,117 |
Resort and other | 24,210 | 256 |
Total operating revenues | 656,406 | 649,687 |
OPERATING EXPENSES: | ||
Salaries and benefits | 213,327 | 159,623 |
Aircraft fuel | 170,087 | 189,546 |
Station operations | 66,468 | 61,520 |
Depreciation and amortization | 63,844 | 54,680 |
Sales and marketing | 30,419 | 26,928 |
Maintenance and repairs | 30,278 | 26,442 |
Aircraft lease rentals | 5,985 | 7,092 |
Other | 47,451 | 30,643 |
Special charges, net of recoveries | 13,099 | (1,612) |
Total operating expenses | 640,958 | 554,862 |
OPERATING INCOME | 15,448 | 94,825 |
OTHER (INCOME) EXPENSES: | ||
Interest expense | 40,160 | 35,708 |
Capitalized interest | (11,185) | (5,180) |
Interest income | (12,241) | (10,128) |
Other, net | 51 | 7 |
Total other expenses | 16,785 | 20,407 |
INCOME (LOSS) BEFORE INCOME TAXES | (1,337) | 74,418 |
INCOME TAX PROVISION (BENEFIT) | (418) | 18,269 |
NET INCOME (LOSS) | $ (919) | $ 56,149 |
Earnings (loss) per share to common shareholders: | ||
Basic (in dollars per share) | $ (0.07) | $ 3.09 |
Diluted (in dollars per share) | $ (0.07) | $ 3.09 |
Shares used for computation: | ||
Basic (in shares) | 17,664 | 17,766 |
Diluted (in shares) | 17,664 | 17,769 |
Cash dividends declared per share (in dollars per share) | $ 0.60 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | $ (919) | $ 56,149 |
Other comprehensive income: | ||
Change in available for sale securities, net of tax | (1,208) | 1,985 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (2,127) | $ 58,134 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | AOCI Attributable to Parent | Retained Earnings | Treasury shares | Parent |
Beginning balance (in shares) at Dec. 31, 2022 | 18,128 | ||||||
Par value, beginning balance at Dec. 31, 2022 | $ 25 | ||||||
Beginning balance at Dec. 31, 2022 | $ 1,220,698 | $ 709,471 | $ 1,257 | $ 1,169,968 | $ (660,023) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation (in shares) | (5) | ||||||
Share-based compensation | 5,035 | $ 5,035 | |||||
Shares repurchased by the Company and held as treasury shares (in shares) | (125) | ||||||
Shares repurchased by the Company and held as treasury shares | (12,470) | (12,470) | |||||
Other comprehensive income (loss) | 1,985 | 1,985 | |||||
Net income (loss) | 56,149 | 56,149 | |||||
Ending balance (in shares) at Mar. 31, 2023 | 17,998 | ||||||
Par value, ending balance at Mar. 31, 2023 | $ 25 | ||||||
Ending balance at Mar. 31, 2023 | 1,271,397 | 714,506 | 3,242 | 1,226,117 | (672,493) | ||
Beginning balance (in shares) at Dec. 31, 2023 | 18,269 | ||||||
Par value, beginning balance at Dec. 31, 2023 | 26 | $ 26 | |||||
Beginning balance at Dec. 31, 2023 | 1,328,560 | 741,055 | 3,991 | 1,265,420 | (681,932) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation (in shares) | 15 | ||||||
Share-based compensation | 6,818 | 6,818 | |||||
Shares repurchased by the Company and held as treasury shares (in shares) | (2) | ||||||
Shares repurchased by the Company and held as treasury shares | (143) | (143) | |||||
Cash dividends | (10,952) | (10,952) | |||||
Other comprehensive income (loss) | (1,208) | (1,208) | |||||
Net income (loss) | (919) | $ (919) | |||||
Ending balance (in shares) at Mar. 31, 2024 | 18,282 | ||||||
Par value, ending balance at Mar. 31, 2024 | 26 | $ 26 | |||||
Ending balance at Mar. 31, 2024 | $ 1,322,156 | $ 747,873 | $ 2,783 | $ 1,253,549 | $ (682,075) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2024 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.60 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Cash Flows [Abstract] | ||
NET INCOME (LOSS) | $ (919) | $ 56,149 |
Depreciation and amortization | 63,844 | 54,680 |
Special charges, net of recoveries | 12,858 | (1,835) |
Other adjustments | 2,893 | 1,592 |
Air traffic liability | 79,072 | 100,071 |
Other - net | 10,057 | 4,743 |
Net cash provided by operating activities | 167,805 | 215,400 |
Cash flows from investing activities: | ||
Purchase of investment securities | (176,119) | (251,937) |
Proceeds from maturities of investment securities | 246,663 | 288,591 |
Aircraft pre-delivery deposits | (35,053) | (33,516) |
Purchase of property and equipment | (131,862) | (129,883) |
Other investing activities | 2,787 | 12,506 |
Net cash used in investing activities | (93,584) | (114,239) |
Cash flows from financing activities: | ||
Cash dividends paid to shareholders | (10,952) | 0 |
Proceeds from the issuance of debt and finance lease obligations | 18,755 | 59,516 |
Repurchase of common stock | (143) | (12,470) |
Principal payments on debt and finance lease obligations | (31,512) | (51,492) |
Debt issuance costs | 0 | (877) |
Other financing activities | 320 | (6,554) |
Net cash used in financing activities | (23,532) | (11,877) |
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 50,689 | 89,284 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 159,584 | 245,446 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | 210,273 | 334,730 |
CASH PAYMENTS FOR: | ||
Interest paid, net of amount capitalized | 31,971 | 41,645 |
Income tax payments | 32 | 14 |
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS: | ||
Right-of-use (ROU) assets acquired | 1,379 | 0 |
Purchases of property and equipment in accrued liabilities | $ 40,935 | $ 69,240 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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's investments in unconsolidated affiliates, which are 50 percent or less owned, are accounted for under the equity or cost method, and are insignificant to the consolidated financial statements. 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, 2023 and 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. The Company has reclassified certain prior period amounts to conform to the current period presentation. |
Special Charges
Special Charges | 3 Months Ended |
Mar. 31, 2024 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Special Charges | Special Charges As a result of Hurricane Ian's direct hit on the southwest coast of Florida on September 28, 2022, the construction site of Sunseeker Resort at Charlotte Harbor (the "Resort" or "Sunseeker Resort") was damaged. There was a subsequent weather-related event and a fire that caused additional damage in fourth quarter 2022. In addition, during third quarter 2023, the Sunseeker Resort construction site sustained additional damages related to Hurricane Idalia. The Company recorded estimated losses in 2022 and 2023 based on its assessment of these damages and the anticipated future restoration cost. The estimated losses were recorded to special charges and are offset by insurance recoveries in the period they are approved. To date, the Company has recorded $78.2 million in losses and $52.5 million in insurance recoveries. The Company has submitted additional insurance claims that remain outstanding at the date of this report. Due to the heavy maintenance needs on certain aging Airbus airframes and capacity constraints at the maintenance, repair, and overhaul contractors, the Company reevaluated its fleet plan and identified 21 airframes for early retirement to coincide with 737 MAX aircraft deliveries as scheduled under an amendment to the Company's agreement with The Boeing Company signed in September 2023. Two airframes were retired in 2023 and two airframes were retired in first quarter 2024. The remaining airframes are to be retired between May 2024 and September 2025. The accelerated depreciation on these airframes resulting from a change in the estimated useful life is recorded as a special charge. Special Charges The table below summarizes special charges recorded during the three months ended March 31, 2024, and 2023. Three Months Ended March 31, (in thousands) 2024 2023 Sunseeker weather and related events $ 100 $ 200 Sunseeker weather and related events, insurance recoveries (1) (1,916) (1,826) Accelerated depreciation on airframes identified for early retirement 14,915 14 Total special charges $ 13,099 $ (1,612) (1) Includes $0.7 million of business interruption insurance recoveries for the three months ended March 31, 2024. No business interruption insurance recoveries were recorded during the three months ended March 31, 2023. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition Passenger Revenue Passenger revenue is the most significant category in the Company's reported operating revenues, as outlined below: Three Months Ended March 31, (in thousands) 2024 2023 Scheduled service $ 289,879 $ 311,728 Ancillary air-related charges 274,793 283,902 Loyalty redemptions 15,264 13,647 Total passenger revenue $ 579,936 $ 609,277 Sales of passenger tickets not yet flown are recorded in air traffic liability. Passenger revenue is recognized when the underlying service is provided. As of March 31, 2024, the air traffic liability balance was $432.6 million, of which approximately $377.6 million was related to forward bookings, with the remaining $55.0 million related to credit vouchers for future travel. The normal contract term of passenger tickets is 12 months and passenger revenue associated with future travel will principally be recognized within this time frame. Of the $353.5 million that was recorded in the air traffic liability balance as of December 31, 2023, approximately 72.7 percent was recognized into passenger revenue during the three months ended March 31, 2024. The Company periodically evaluates the estimated amount of credit vouchers expected to expire unused and any adjustment is removed from air traffic liability and included in passenger revenue in the period in which the evaluation is complete. Estimates of passenger revenue to be recognized from air traffic liability for credit voucher breakage may be subject to variability and differ from historical experience due to the change in contract duration (which applied for vouchers issued in 2020 and in the first half of 2021) and uncertainty regarding demand for future air travel. Resort Revenue The Company's resort revenues for the three months ended March 31, 2024 are set forth in the table below: Three Months Ended March 31, (in thousands) 2024 2023 Food and beverage 10,772 — Rooms $ 9,957 $ — Other 3,158 5 Total resort revenue $ 23,887 $ 5 Revenue from banquets, golf, retail and spa services are included in other resort revenue. Resort revenue is recognized as the underlying services or goods have been provided. There is typically little to no lag between when the services are performed and when payment is remitted. Large group reservations, conventions, and other event bookings require advance deposits which are recorded as accrued liabilities in the Company's balance sheet until the related services and goods are provided. Guest receivables are recorded in accounts receivable on the Company's balance sheet for room nights stayed prior to payment at checkout. The amounts of advance deposit liabilities and guest ledger receivables were not material at March 31, 2024 and December 31, 2023. Loyalty redemptions In relation to the travel component of the Allways Rewards® co-brand credit card contract, the Company has a performance obligation to provide cardholders with points to be used for future travel award redemptions at the airline and resort. Therefore, consideration received related to the travel component is deferred based on its relative selling price and is recognized into passenger revenue and resort revenue when the points are redeemed and the underlying service is provided. Similarly, in relation to the Allways Rewards loyalty program, points earned through the program are deferred based on the stand-alone selling price and recognized into passenger revenue when the points are redeemed and the underlying service is provided. The following table presents the activity of the point liability for the periods indicated: Three Months Ended March 31, (in thousands) 2024 2023 Points balance at January 1 $ 70,813 $ 56,500 Points awarded (deferral of revenue) 15,923 16,780 Points redeemed (recognition of revenue) (15,271) (13,647) Points balance at March 31 $ 71,465 $ 59,633 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table summarizes the Company's property and equipment as of the dates indicated: (in thousands) March 31, 2024 December 31, 2023 Airline Flight equipment $ 3,427,671 $ 3,346,216 Computer hardware and software 293,403 274,927 Land and buildings/leasehold improvements 64,242 63,863 Other property and equipment 111,077 109,727 Sunseeker Resort Land and buildings/leasehold improvements 571,002 559,112 Other property and equipment 56,650 53,743 Construction in progress 3,596 4,389 Total property and equipment 4,527,641 4,411,977 Less accumulated depreciation and amortization (1,004,298) (964,866) Property and equipment, net $ 3,523,343 $ 3,447,111 As of March 31, 2024, the Company had firm commitments to purchase 50 aircraft which are expected to begin delivering in 2024. Accrued capital expenditures as of March 31, 2024 and December 31, 2023 were $40.9 million and $71.7 million,respectively. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table summarizes the Company's long-term debt and finance lease obligations, net of related costs, as of the dates indicated: (in thousands) March 31, 2024 December 31, 2023 Fixed-rate debt and finance lease obligations due through 2032 $ 1,811,098 $ 1,834,754 Variable-rate debt due through 2029 437,650 424,900 Total long-term debt and finance lease obligations, net of related costs 2,248,748 2,259,654 Less current maturities, net of related costs 459,171 439,937 Long-term debt and finance lease obligations, net of current maturities and related costs $ 1,789,577 $ 1,819,717 Weighted average fixed-interest rate on debt 6.3% 6.3% Weighted average variable-interest rate on debt 7.9% 7.9% Interest Rate(s) Per Annum at Balance as of (dollars in thousands) Maturity Dates March 31, 2024 March 31, 2024 December 31, 2023 Senior secured notes 2027 7.25% $ 550,000 $ 550,000 Consolidated variable interest entities 2024 - 2029 2.92% - 5.19% 126,762 130,650 Revolving credit facilities 2024 - 2027 7.92% 200,000 200,000 Debt secured by aircraft, engines, other equipment and real estate 2025 - 2031 1.87% - 8.25% 593,606 596,271 Finance leases 2028 - 2032 4.44% - 7.01% 449,044 455,248 Construction loan agreement 2028 5.75% 350,000 350,000 Total debt $ 2,269,412 $ 2,282,169 Related costs (20,664) (22,515) Total debt net of related costs $ 2,248,748 $ 2,259,654 Maturities of long term debt as of March 31, 2024, for the next five years and thereafter, in the aggregate, are: (in thousands) As of March 31, 2024 Remaining in 2024 $ 429,032 2025 180,611 2026 176,151 2027 709,354 2028 328,569 2029 142,531 Thereafter 282,500 Total debt and finance lease obligations, net of related costs $ 2,248,748 Debt Secured by Aircraft During the three months ended March 31, 2024, the Company received $18.8 million in advances on a pre-delivery payment (PDP) credit facility secured by certain of the Company's Boeing aircraft purchase rights. The notes under the facility bear interest at a floating interest rate based on SOFR and mature on June 30, 2025 or upon delivery of the applicable aircraft. Other Secured Debt |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded a $0.4 million income tax benefit at a 31.3 percent effective tax rate and an $18.3 million income tax provision at a 24.5 percent effective tax rate for the three months ended March 31, 2024 and 2023, respectively. The effective tax rate for the three months ended March 31, 2024 differed from the statutory federal income tax rate of 21.0 percent primarily due to state income taxes, permanent tax differences, and discrete items. During the quarter, the Company recognized a $0.2 million income tax benefit for discrete items which were related to share based compensation and to an immaterial adjustment to a prior year uncertain tax benefit. While the Company expects its effective tax rate to be fairly consistent in the near term, it will vary depending on recurring items such as the amount of income earned in each state and the state tax rate applicable to such income. Discrete items during interim periods may also affect the Company's tax rates. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company utilizes the market approach to measure the fair value of its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. The assets classified as Level 2 primarily utilize quoted market prices or alternative pricing sources including transactions involving identical or comparable assets and models utilizing market observable inputs for valuation of these securities. No changes in valuation techniques or inputs occurred during the three months ended March 31, 2024. Financial instruments measured at fair value on a recurring basis: As of March 31, 2024 As of December 31, 2023 (in thousands) Total Level 1 Level 2 Total Level 1 Level 2 Cash equivalents Commercial paper $ 45,906 $ — $ 45,906 $ 19,575 $ — $ 19,575 Money market funds 31,427 31,427 — 33,613 33,613 — US Treasury bonds 24,746 — 24,746 2,000 — 2,000 Municipal debt securities 20,004 — 20,004 7,848 — 7,848 Federal agency debt securities 12,077 — 12,077 8,201 — 8,201 Total cash equivalents 134,160 31,427 102,733 71,237 33,613 37,624 Short-term Corporate debt securities 225,735 — 225,735 210,982 — 210,982 Commercial paper 221,827 — 221,827 237,870 — 237,870 Federal agency debt securities 140,588 — 140,588 194,522 — 194,522 Municipal debt securities 14,013 — 14,013 13,914 — 13,914 US Treasury Bonds 7,298 — 7,298 14,126 — 14,126 Certificate of deposit 7,000 — 7,000 — — — Total short-term 616,461 — 616,461 671,414 — 671,414 Long-term Corporate debt securities 39,054 — 39,054 43,869 — 43,869 Federal agency debt securities 4,745 — 4,745 12,135 — 12,135 Total long-term 43,799 — 43,799 56,004 — 56,004 Total financial instruments $ 794,420 $ 31,427 $ 762,993 $ 798,655 $ 33,613 $ 765,042 None of the Company's debt is publicly held and as a result, the Company has determined the estimated fair value of these notes to be Level 3. Certain inputs used to determine fair value 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. The carrying value and estimated fair value of long-term debt, excluding finance leases, including current maturities and without reduction for related costs, are as follows: As of March 31, 2024 As of December 31, 2023 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Hierarchy Level Fair Value of Notes Payable $ 1,820,368 $ 1,815,856 $ 1,826,921 $ 1,815,351 3 Due to their short-term nature, the carrying amounts of cash, restricted cash, accounts receivable and accounts payable approximate fair value. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic and diluted earnings (loss) per share are computed pursuant to the two-class method. Under this method, the Company attributes net income (loss) 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, 2024, basic and diluted loss per share are the same because of the loss position. The following table sets forth the computation of net income (loss) per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in the table are in thousands): Three Months Ended March 31, 2024 2023 Basic: Net income (loss) $ (919) $ 56,149 Less income allocated to participating securities (354) (1,254) Net income (loss) attributable to common stock $ (1,273) $ 54,895 Earnings (loss) per share, basic $ (0.07) $ 3.09 Weighted-average shares outstanding 17,664 17,766 Diluted: Net income (loss) $ (919) $ 56,149 Less income allocated to participating securities (354) (1,254) Net income (loss) attributable to common stock $ (1,273) $ 54,895 Earnings (loss) per share, diluted $ (0.07) $ 3.09 Weighted-average shares outstanding 17,664 17,766 Dilutive effect of restricted stock — 104 Adjusted weighted-average shares outstanding under treasury stock method 17,664 17,870 Participating securities excluded under two-class method — (101) Adjusted weighted-average shares outstanding under two-class method 17,664 17,769 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 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 potential and pending legal or administrative matters will not have a material adverse impact on its financial position, liquidity or results of operations. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segments | Segments Operating segments are components of a company for which separate financial and operating information is regularly evaluated and reported to the Chief Operating Decision Maker ("CODM"), and is used to allocate resources and analyze performance. The Company's CODM is the executive leadership team, which reviews information about the Company's two operating segments: Airline and Sunseeker Resort. Airline Segment The Airline segment operates as a single business unit and includes all scheduled service air transportation, ancillary air-related products and services, third party products and services, fixed fee contract air transportation and other airline-related revenue. The CODM evaluation includes, but is not limited to, route and flight profitability data, ancillary and third party product and service offering statistics, and fixed fee contract information when making resource allocation decisions with the goal of optimizing consolidated financial results. Sunseeker Resort Segment The Sunseeker Resort segment operates as a single business unit and includes hotel rooms and suites for occupancy, group meeting facilities, food and beverage options, the Aileron Golf Course and other Resort amenities. The CODM evaluation includes, but is not limited to, demand for hospitality offerings, occupancy rates, room pricing, food and beverage offerings, other charge points at the Resort and competitive information when making resource allocation decisions with the goal of optimizing consolidated financial results. Selected information for the Company's segments and the reconciliation to the consolidated financial statement amounts are as follows: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Airline Sunseeker Consolidated Airline Sunseeker Consolidated OPERATING REVENUES: Passenger $ 579,936 $ — $ 579,936 $ 609,277 $ — $ 609,277 Third party products 33,399 — 33,399 26,037 — 26,037 Fixed fee contracts 18,861 — 18,861 14,117 — 14,117 Resort and other 323 23,887 24,210 251 5 256 Total operating revenues 632,519 23,887 656,406 649,682 5 649,687 OPERATING EXPENSES: Salaries and benefits 199,508 13,819 213,327 157,521 2,102 159,623 Aircraft fuel 170,087 — 170,087 189,546 — 189,546 Station operations 66,468 — 66,468 61,520 — 61,520 Depreciation and amortization 57,868 5,976 63,844 54,622 58 54,680 Sales and marketing 28,878 1,541 30,419 26,640 288 26,928 Maintenance and repairs 30,278 — 30,278 26,442 — 26,442 Aircraft lease rentals 5,985 — 5,985 7,092 — 7,092 Other 34,315 13,136 47,451 28,711 1,932 30,643 Special charges, net of recoveries 14,915 (1,816) 13,099 14 (1,626) (1,612) Total operating expenses 608,302 32,656 640,958 552,108 2,754 554,862 OPERATING INCOME (LOSS) 24,217 (8,769) 15,448 97,574 (2,749) 94,825 Interest income (12,241) — (12,241) (10,128) — (10,128) Interest expense 34,737 5,423 40,160 30,343 5,365 35,708 Capitalized interest (10,859) (326) (11,185) (1,510) (3,670) (5,180) Capital expenditures 122,175 14,004 136,179 92,432 85,620 178,052 Total assets were as follows as of the dates indicated: (in thousands) As of March 31, 2024 As of December 31, 2023 Airline $ 4,265,765 $ 4,213,288 Sunseeker Resort 669,366 656,122 Consolidated $ 4,935,131 $ 4,869,410 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn April 15, 2024, the Company and the Transport Workers Union of America, AFL-CIO Local 577, representing the Company's flight attendants, ratified a new five |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
NET INCOME (LOSS) | $ (919) | $ 56,149 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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's investments in unconsolidated affiliates, which are 50 percent or less owned, are accounted for under the equity or cost method, and are insignificant to the consolidated financial statements. 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, 2023 and 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. The Company has reclassified certain prior period amounts to conform to the current period presentation. |
Special Charges (Tables)
Special Charges (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Summary of Special Charges | The table below summarizes special charges recorded during the three months ended March 31, 2024, and 2023. Three Months Ended March 31, (in thousands) 2024 2023 Sunseeker weather and related events $ 100 $ 200 Sunseeker weather and related events, insurance recoveries (1) (1,916) (1,826) Accelerated depreciation on airframes identified for early retirement 14,915 14 Total special charges $ 13,099 $ (1,612) (1) Includes $0.7 million of business interruption insurance recoveries for the three months ended March 31, 2024. No business interruption insurance recoveries were recorded during the three months ended March 31, 2023. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Passenger revenue is the most significant category in the Company's reported operating revenues, as outlined below: Three Months Ended March 31, (in thousands) 2024 2023 Scheduled service $ 289,879 $ 311,728 Ancillary air-related charges 274,793 283,902 Loyalty redemptions 15,264 13,647 Total passenger revenue $ 579,936 $ 609,277 The Company's resort revenues for the three months ended March 31, 2024 are set forth in the table below: Three Months Ended March 31, (in thousands) 2024 2023 Food and beverage 10,772 — Rooms $ 9,957 $ — Other 3,158 5 Total resort revenue $ 23,887 $ 5 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table presents the activity of the point liability for the periods indicated: Three Months Ended March 31, (in thousands) 2024 2023 Points balance at January 1 $ 70,813 $ 56,500 Points awarded (deferral of revenue) 15,923 16,780 Points redeemed (recognition of revenue) (15,271) (13,647) Points balance at March 31 $ 71,465 $ 59,633 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table summarizes the Company's property and equipment as of the dates indicated: (in thousands) March 31, 2024 December 31, 2023 Airline Flight equipment $ 3,427,671 $ 3,346,216 Computer hardware and software 293,403 274,927 Land and buildings/leasehold improvements 64,242 63,863 Other property and equipment 111,077 109,727 Sunseeker Resort Land and buildings/leasehold improvements 571,002 559,112 Other property and equipment 56,650 53,743 Construction in progress 3,596 4,389 Total property and equipment 4,527,641 4,411,977 Less accumulated depreciation and amortization (1,004,298) (964,866) Property and equipment, net $ 3,523,343 $ 3,447,111 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The following table summarizes the Company's long-term debt and finance lease obligations, net of related costs, as of the dates indicated: (in thousands) March 31, 2024 December 31, 2023 Fixed-rate debt and finance lease obligations due through 2032 $ 1,811,098 $ 1,834,754 Variable-rate debt due through 2029 437,650 424,900 Total long-term debt and finance lease obligations, net of related costs 2,248,748 2,259,654 Less current maturities, net of related costs 459,171 439,937 Long-term debt and finance lease obligations, net of current maturities and related costs $ 1,789,577 $ 1,819,717 Weighted average fixed-interest rate on debt 6.3% 6.3% Weighted average variable-interest rate on debt 7.9% 7.9% Interest Rate(s) Per Annum at Balance as of (dollars in thousands) Maturity Dates March 31, 2024 March 31, 2024 December 31, 2023 Senior secured notes 2027 7.25% $ 550,000 $ 550,000 Consolidated variable interest entities 2024 - 2029 2.92% - 5.19% 126,762 130,650 Revolving credit facilities 2024 - 2027 7.92% 200,000 200,000 Debt secured by aircraft, engines, other equipment and real estate 2025 - 2031 1.87% - 8.25% 593,606 596,271 Finance leases 2028 - 2032 4.44% - 7.01% 449,044 455,248 Construction loan agreement 2028 5.75% 350,000 350,000 Total debt $ 2,269,412 $ 2,282,169 Related costs (20,664) (22,515) Total debt net of related costs $ 2,248,748 $ 2,259,654 |
Schedule of Maturities of Long-Term Debt | Maturities of long term debt as of March 31, 2024, for the next five years and thereafter, in the aggregate, are: (in thousands) As of March 31, 2024 Remaining in 2024 $ 429,032 2025 180,611 2026 176,151 2027 709,354 2028 328,569 2029 142,531 Thereafter 282,500 Total debt and finance lease obligations, net of related costs $ 2,248,748 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value On a Recurring Basis | Financial instruments measured at fair value on a recurring basis: As of March 31, 2024 As of December 31, 2023 (in thousands) Total Level 1 Level 2 Total Level 1 Level 2 Cash equivalents Commercial paper $ 45,906 $ — $ 45,906 $ 19,575 $ — $ 19,575 Money market funds 31,427 31,427 — 33,613 33,613 — US Treasury bonds 24,746 — 24,746 2,000 — 2,000 Municipal debt securities 20,004 — 20,004 7,848 — 7,848 Federal agency debt securities 12,077 — 12,077 8,201 — 8,201 Total cash equivalents 134,160 31,427 102,733 71,237 33,613 37,624 Short-term Corporate debt securities 225,735 — 225,735 210,982 — 210,982 Commercial paper 221,827 — 221,827 237,870 — 237,870 Federal agency debt securities 140,588 — 140,588 194,522 — 194,522 Municipal debt securities 14,013 — 14,013 13,914 — 13,914 US Treasury Bonds 7,298 — 7,298 14,126 — 14,126 Certificate of deposit 7,000 — 7,000 — — — Total short-term 616,461 — 616,461 671,414 — 671,414 Long-term Corporate debt securities 39,054 — 39,054 43,869 — 43,869 Federal agency debt securities 4,745 — 4,745 12,135 — 12,135 Total long-term 43,799 — 43,799 56,004 — 56,004 Total financial instruments $ 794,420 $ 31,427 $ 762,993 $ 798,655 $ 33,613 $ 765,042 |
Fair Value, Liabilities Measured on Recurring Basis | The carrying value and estimated fair value of long-term debt, excluding finance leases, including current maturities and without reduction for related costs, are as follows: As of March 31, 2024 As of December 31, 2023 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Hierarchy Level Fair Value of Notes Payable $ 1,820,368 $ 1,815,856 $ 1,826,921 $ 1,815,351 3 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Net Income Per Share, Basic and Diluted | The following table sets forth the computation of net income (loss) per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in the table are in thousands): Three Months Ended March 31, 2024 2023 Basic: Net income (loss) $ (919) $ 56,149 Less income allocated to participating securities (354) (1,254) Net income (loss) attributable to common stock $ (1,273) $ 54,895 Earnings (loss) per share, basic $ (0.07) $ 3.09 Weighted-average shares outstanding 17,664 17,766 Diluted: Net income (loss) $ (919) $ 56,149 Less income allocated to participating securities (354) (1,254) Net income (loss) attributable to common stock $ (1,273) $ 54,895 Earnings (loss) per share, diluted $ (0.07) $ 3.09 Weighted-average shares outstanding 17,664 17,766 Dilutive effect of restricted stock — 104 Adjusted weighted-average shares outstanding under treasury stock method 17,664 17,870 Participating securities excluded under two-class method — (101) Adjusted weighted-average shares outstanding under two-class method 17,664 17,769 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Selected information for the Company's segments and the reconciliation to the consolidated financial statement amounts are as follows: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Airline Sunseeker Consolidated Airline Sunseeker Consolidated OPERATING REVENUES: Passenger $ 579,936 $ — $ 579,936 $ 609,277 $ — $ 609,277 Third party products 33,399 — 33,399 26,037 — 26,037 Fixed fee contracts 18,861 — 18,861 14,117 — 14,117 Resort and other 323 23,887 24,210 251 5 256 Total operating revenues 632,519 23,887 656,406 649,682 5 649,687 OPERATING EXPENSES: Salaries and benefits 199,508 13,819 213,327 157,521 2,102 159,623 Aircraft fuel 170,087 — 170,087 189,546 — 189,546 Station operations 66,468 — 66,468 61,520 — 61,520 Depreciation and amortization 57,868 5,976 63,844 54,622 58 54,680 Sales and marketing 28,878 1,541 30,419 26,640 288 26,928 Maintenance and repairs 30,278 — 30,278 26,442 — 26,442 Aircraft lease rentals 5,985 — 5,985 7,092 — 7,092 Other 34,315 13,136 47,451 28,711 1,932 30,643 Special charges, net of recoveries 14,915 (1,816) 13,099 14 (1,626) (1,612) Total operating expenses 608,302 32,656 640,958 552,108 2,754 554,862 OPERATING INCOME (LOSS) 24,217 (8,769) 15,448 97,574 (2,749) 94,825 Interest income (12,241) — (12,241) (10,128) — (10,128) Interest expense 34,737 5,423 40,160 30,343 5,365 35,708 Capitalized interest (10,859) (326) (11,185) (1,510) (3,670) (5,180) Capital expenditures 122,175 14,004 136,179 92,432 85,620 178,052 Total assets were as follows as of the dates indicated: (in thousands) As of March 31, 2024 As of December 31, 2023 Airline $ 4,265,765 $ 4,213,288 Sunseeker Resort 669,366 656,122 Consolidated $ 4,935,131 $ 4,869,410 |
Special Charges - Narrative (De
Special Charges - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 Aircraft | Mar. 31, 2024 USD ($) Aircraft | Dec. 31, 2023 Aircraft | |
Unusual or Infrequent Item, or Both [Line Items] | |||
Number of aircraft retired | Aircraft | 21 | 2 | 2 |
Hurricane Ian | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Unusual or infrequent item, or both, loss, gross | $ 78.2 | ||
Unusual or infrequent item, or both, insurance proceeds | $ 52.5 |
Special Charges - Summary of Sp
Special Charges - Summary of Special Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | ||
Sunseeker weather and related events | $ 100 | $ 200 |
Sunseeker weather and related events, insurance recoveries(1) | (1,916) | (1,826) |
Accelerated depreciation on airframes identified for early retirement | 14,915 | 14 |
Total special charges | 13,099 | $ (1,612) |
Proceeds from business interruption insurance | $ 700 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 579,936 | $ 609,277 |
Passenger Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 579,936 | 609,277 |
Resort Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 23,887 | 5 |
Scheduled service | Passenger Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 289,879 | 311,728 |
Ancillary air-related charges | Passenger Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 274,793 | 283,902 |
Loyalty redemptions | Passenger Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 15,264 | 13,647 |
Rooms | Resort Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,957 | 0 |
Food and beverage | Resort Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,772 | 0 |
Total resort revenue | Resort Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 3,158 | $ 5 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands, number in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Revenue Recognition [Abstract] | ||
Contract with Customer, Liability, Current | $ 432,561 | $ 353,488 |
Contract with Customer, Liability, Forward Bookings | 37,760% | |
Contract with Customer, Liability, Credit Voucher Bookings | 5,500% | |
Revenue, Performance Obligation, Description of Timing | 12 months | |
Air Traffic Liability, Recognized | $ 353,500 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Contract Asset, Contract Liability, and Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue Recognition [Abstract] | ||
Points balance at January 1 | $ 70,813 | $ 56,500 |
Points awarded (deferral of revenue) | 15,923 | 16,780 |
Points redeemed (recognition of revenue) | (15,271) | (13,647) |
Points balance at March 31 | $ 71,465 | $ 59,633 |
Property and Equipment (Details
Property and Equipment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) Aircraft | Dec. 31, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Flight equipment | $ 3,427,671 | $ 3,346,216 |
Computer hardware and software | 293,403 | 274,927 |
Land and buildings/leasehold improvements | 64,242 | 63,863 |
Other property and equipment | 111,077 | 109,727 |
Total property and equipment | 4,527,641 | 4,411,977 |
Less accumulated depreciation and amortization | 1,004,298 | 964,866 |
Property and equipment, net | $ 3,523,343 | 3,447,111 |
Number Of Aircraft Committed To Purchase | Aircraft | 50 | |
Capital Expenditures Incurred but Not yet Paid | $ 40,900 | 71,700 |
Sunseeker Resort | ||
Property, Plant and Equipment [Line Items] | ||
Land and buildings/leasehold improvements | 571,002 | 559,112 |
Other property and equipment | 56,650 | 53,743 |
Construction in progress | $ 3,596 | $ 4,389 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Secured Long-term Debt, Noncurrent | $ 2,248,748 | $ 2,259,654 |
Less current maturities | 459,171 | 439,937 |
Long-term debt and capital leases, net of current maturities and related costs | 1,789,577 | 1,819,717 |
Finance Lease, Liability | 449,044 | 455,248 |
Debt and Lease Obligation | (20,664) | (22,515) |
Debt Issuance Costs, Net | $ 2,248,748 | 2,259,654 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.44% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 7.01% | |
Weighted average fixed-interest rate on debt | ||
Debt Instrument [Line Items] | ||
Notes Payable | $ 1,811,098 | $ 1,834,754 |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 6.30% | 6.30% |
Weighted average variable-interest rate on debt | ||
Debt Instrument [Line Items] | ||
Notes Payable | $ 437,650 | $ 424,900 |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 7.90% | 7.90% |
Construction Loan Agreement Due 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital leases, net of current maturities and related costs | $ 350,000 | $ 350,000 |
Debt instrument, interest rate, stated percentage | 5.75% | |
Revolving Credit Facilities Due 2027 | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital leases, net of current maturities and related costs | $ 200,000 | 200,000 |
Debt instrument, interest rate, stated percentage | 7.92% | |
Senior Secured Notes Due 2027 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital leases, net of current maturities and related costs | $ 550,000 | 550,000 |
Senior Secured Notes Due 2027 | Senior Notes | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 7.25% | |
Consolidated Variable Interest Entities Due 2029 | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital leases, net of current maturities and related costs | $ 126,762 | 130,650 |
Consolidated Variable Interest Entities Due 2029 | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.92% | |
Consolidated Variable Interest Entities Due 2029 | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.19% | |
Secured Debt By Aircraft, Engines, Other Equipment And Real Estate | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital leases, net of current maturities and related costs | $ 593,606 | 596,271 |
Secured Debt By Aircraft, Engines, Other Equipment And Real Estate | Secured Debt | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.87% | |
Secured Debt By Aircraft, Engines, Other Equipment And Real Estate | Secured Debt | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 8.25% | |
Long-term Debt [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital leases, net of current maturities and related costs | $ 2,269,412 | $ 2,282,169 |
Long-Term Debt - Summary of Mat
Long-Term Debt - Summary of Maturities of Long-Term Debt (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Schedule of Maturities of Long-Term Debt [Abstract] | |
Remaining in 2024 | $ 429,032 |
2025 | 180,611 |
2026 | 176,151 |
2027 | 709,354 |
2028 | 328,569 |
2029 | 142,531 |
Thereafter | 282,500 |
Total debt and finance lease obligations, net of related costs | $ 2,248,748 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2024 | May 31, 2023 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Proceeds from lines of credit | $ 18.8 | ||
Line of Credit | Secured Debt | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 218.5 | ||
Long-Term Debt, Term | 12 years | 12 years | |
Line of Credit | Secured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 3 months |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | $ (418) | $ 18,269 |
Effective Income Tax Rate Reconciliation, Percent | 31.30% | 24.50% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | |
Income Tax Expense (Benefit), Discrete Items | $ 200 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | $ 794,420 | $ 798,655 |
Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 31,427 | 33,613 |
Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 762,993 | 765,042 |
Cash Equivalents | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 134,160 | 71,237 |
Cash Equivalents | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 31,427 | 33,613 |
Cash Equivalents | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 102,733 | 37,624 |
Short-Term Investments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 616,461 | 671,414 |
Short-Term Investments | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Short-Term Investments | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 616,461 | 671,414 |
Long Term Investments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 43,799 | 56,004 |
Long Term Investments | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Long Term Investments | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 43,799 | 56,004 |
Money market funds | Cash Equivalents | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 31,427 | 33,613 |
Money market funds | Cash Equivalents | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 31,427 | 33,613 |
Money market funds | Cash Equivalents | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 0 | 0 |
Commercial paper | Cash Equivalents | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 45,906 | 19,575 |
Commercial paper | Cash Equivalents | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 0 | 0 |
Commercial paper | Cash Equivalents | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 45,906 | 19,575 |
Commercial paper | Short-Term Investments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 221,827 | 237,870 |
Commercial paper | Short-Term Investments | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Commercial paper | Short-Term Investments | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 221,827 | 237,870 |
Municipal debt securities | Cash Equivalents | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 20,004 | 7,848 |
Municipal debt securities | Cash Equivalents | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 0 | 0 |
Municipal debt securities | Cash Equivalents | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 20,004 | 7,848 |
Municipal debt securities | Short-Term Investments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 14,013 | 13,914 |
Municipal debt securities | Short-Term Investments | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Municipal debt securities | Short-Term Investments | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 14,013 | 13,914 |
US Treasury Bonds | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 7,298 | 14,126 |
US Treasury Bonds | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
US Treasury Bonds | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 7,298 | 14,126 |
US Treasury Bonds | Cash Equivalents | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 24,746 | 2,000 |
US Treasury Bonds | Cash Equivalents | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 0 | 0 |
US Treasury Bonds | Cash Equivalents | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 24,746 | 2,000 |
Corporate debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 39,054 | 43,869 |
Corporate debt securities | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Corporate debt securities | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 39,054 | 43,869 |
Corporate debt securities | Short-Term Investments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 225,735 | 210,982 |
Corporate debt securities | Short-Term Investments | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Corporate debt securities | Short-Term Investments | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 225,735 | 210,982 |
Federal agency debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 12,077 | 8,201 |
Debt Securities, Available-for-Sale | 4,745 | 12,135 |
Federal agency debt securities | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 0 | 0 |
Debt Securities, Available-for-Sale | 0 | 0 |
Federal agency debt securities | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cash Equivalents | 12,077 | 8,201 |
Debt Securities, Available-for-Sale | 4,745 | 12,135 |
Federal agency debt securities | Short-Term Investments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 140,588 | 194,522 |
Federal agency debt securities | Short-Term Investments | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Federal agency debt securities | Short-Term Investments | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 140,588 | 194,522 |
Certificates of Deposit | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 7,000 | 0 |
Certificates of Deposit | Fair Value, Inputs, Level 1 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Certificates of Deposit | Fair Value, Inputs, Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale | $ 7,000 | $ 0 |
Fair Value Measurements Estimat
Fair Value Measurements Estimated Fair Value of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | $ 2,248,748 | $ 2,259,654 |
Non-Publicly Held Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | 1,820,368 | 1,826,921 |
Non-Publicly Held Debt | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 1,815,856 | $ 1,815,351 |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic: | ||
Net income (loss) | $ (919) | $ 56,149 |
Less income allocated to participating securities | (354) | (1,254) |
Net income (loss) attributable to common stock | $ (1,273) | $ 54,895 |
Net income per share, basic (in dollars per share) | $ (0.07) | $ 3.09 |
Weighted-average shares outstanding (in shares) | 17,664 | 17,766 |
Diluted: | ||
Net income (loss) | $ (919) | $ 56,149 |
Less income allocated to participating securities | (354) | (1,254) |
Net income (loss) attributable to common stock | $ (1,273) | $ 54,895 |
Earnings (loss) per share, diluted (in dollars per share) | $ (0.07) | $ 3.09 |
Weighted-average shares outstanding ( in shares) | 17,664 | 17,766 |
Dilutive effect of stock options and restricted stock (in shares) | 0 | 104 |
Adjusted weighted-average shares outstanding under treasury stock method (in shares) | 17,664 | 17,870 |
Participating securities excluded under two-class method (in shares) | 0 | (101) |
Adjusted weighted-average shares outstanding under two-class method (in shares) | 17,664 | 17,769 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Passenger | $ 579,936 | $ 609,277 | |
Third party products | 33,399 | 26,037 | |
Fixed fee contracts | 18,861 | 14,117 | |
Resort and other | 24,210 | 256 | |
Total operating revenues | 656,406 | 649,687 | |
Salaries and benefits | 213,327 | 159,623 | |
Aircraft fuel | 170,087 | 189,546 | |
Station operations | 66,468 | 61,520 | |
Depreciation and amortization | 63,844 | 54,680 | |
Selling and Marketing Expense | 30,419 | 26,928 | |
Maintenance and repairs | 30,278 | 26,442 | |
Aircraft lease rentals | 5,985 | 7,092 | |
Other | 47,451 | 30,643 | |
Special charges, net of recoveries | 13,099 | (1,612) | |
Total operating expenses | 640,958 | 554,862 | |
OPERATING INCOME | 15,448 | 94,825 | |
Interest (income) | (12,241) | (10,128) | |
Interest expense | 40,160 | 35,708 | |
Capitalized interest | (11,185) | (5,180) | |
Capital expenditures | 136,179 | 178,052 | |
Assets | 4,935,131 | $ 4,869,410 | |
Airline | |||
Segment Reporting Information [Line Items] | |||
Passenger | 579,936 | 609,277 | |
Third party products | 33,399 | 26,037 | |
Fixed fee contracts | 18,861 | 14,117 | |
Resort and other | 323 | 251 | |
Total operating revenues | 632,519 | 649,682 | |
Salaries and benefits | 199,508 | 157,521 | |
Aircraft fuel | 170,087 | 189,546 | |
Station operations | 66,468 | 61,520 | |
Depreciation and amortization | 57,868 | 54,622 | |
Selling and Marketing Expense | 28,878 | 26,640 | |
Maintenance and repairs | 30,278 | 26,442 | |
Aircraft lease rentals | 5,985 | 7,092 | |
Other | 34,315 | 28,711 | |
Special charges, net of recoveries | 14,915 | 14 | |
Total operating expenses | 608,302 | 552,108 | |
OPERATING INCOME | 24,217 | 97,574 | |
Interest (income) | (12,241) | (10,128) | |
Interest expense | 34,737 | 30,343 | |
Capitalized interest | (10,859) | (1,510) | |
Capital expenditures | 122,175 | 92,432 | |
Assets | 4,265,765 | 4,213,288 | |
Sunseeker Resort | |||
Segment Reporting Information [Line Items] | |||
Passenger | 0 | 0 | |
Third party products | 0 | 0 | |
Fixed fee contracts | 0 | 0 | |
Resort and other | 23,887 | 5 | |
Total operating revenues | 23,887 | 5 | |
Salaries and benefits | 13,819 | 2,102 | |
Aircraft fuel | 0 | 0 | |
Station operations | 0 | 0 | |
Depreciation and amortization | 5,976 | 58 | |
Selling and Marketing Expense | 1,541 | 288 | |
Maintenance and repairs | 0 | 0 | |
Aircraft lease rentals | 0 | 0 | |
Other | 13,136 | 1,932 | |
Special charges, net of recoveries | (1,816) | (1,626) | |
Total operating expenses | 32,656 | 2,754 | |
OPERATING INCOME | (8,769) | (2,749) | |
Interest (income) | 0 | 0 | |
Interest expense | 5,423 | 5,365 | |
Capitalized interest | (326) | (3,670) | |
Capital expenditures | 14,004 | $ 85,620 | |
Assets | $ 669,366 | $ 656,122 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Apr. 15, 2024 | Mar. 31, 2024 |
Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Salary And Wages, Increase Wage Percentage | 20% | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Salary And Wage, Wage Increase Agreement Term | 5 years | |
Salary And Wages, Increase Wage Percentage | 41.20% | |
Salary And Wages, Lump Sum Bonus Payment | $ 10 |