Allegiant Travel (ALGT) 5 May 212021 Q1 Earnings call transcript

Company Profile

Participants

Sherry Wilson	IR
Maury Gallagher	Chairman and Chief Executive Officer
John Redmond	President
Greg Anderson	EVP and Chief Financial Officer
Scott Sheldon	EVP and Chief Operating Officer
Scott DeAngelo	EVP and Chief Marketing Officer
Drew Wells	SVP of Revenue and Planning
Mike Linenberg	Deutsche Bank
Duane Pfennigwerth	Evercore ISI
Andrew Didora	Bank of America
Helane Becker	Cowen
Joseph DeNardi	Stifel
Dan McKenzie	Seaport Global Securities
Hunter Keay	Wolfe Research
Catherine O'Brien	Goldman Sachs
Savanthi Syth	Raymond James
Brandon Oglenski	Barclays

Call transcript

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Operator

Good afternoon and thank you for standing by, and welcome to the Q1 2021 Allegiant Travel Company Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ms. Sherry Wilson. Thank you. Please go ahead.

Sherry Wilson

Cherry. you, Thank Allegiant the First XXXX Quarter Welcome Travel Call. Earnings to Company's

President; are with to Officer; the company's EVP EVP and call Sheldon, the Officer; Officer; Maury Chief John Anderson, Financial and me the Chief Executive On our Chief today Gallagher, Scott our and company's Redmond, Scott Operating and Greg Chairman answer Officer; Planning; minutes Drew EVP handful of sufficient questions. a for and scheduled ensure others our call SVP our questions. DeAngelo, help for Wells, Chief Marketing to We today's and of time Revenue XX

information on as earnings over Investor With obligation to update as assumptions us future which the disclosed it not our underlying will ir.allegiantair.com. investors any reliance on forward-looking or as for those free please Maury. Relations turn risk release from Various some of risk today. available We factors are question assumptions this company's We undue differ statements statements based on to with forward-looking information and and commentary rebroadcast be performance and well I'll forward-looking start it These whether future to at these undertake the expressed view of our to results not our statements. events statements, will yourself We in and and could that, you and a then site that do others company's call, factors strategic may To filings The today forward-looking fully no open the follow-up. that the statements The visit feel cause events, with forward-looking comments actual up to the SEC. materialize. plans. of ask cautions company to materially one one questions. contain publicly result new Any based limit implied our by statements otherwise. are or to more concerning place

Maury Gallagher

QX again Thank for joining Thank call. Good you everyone. afternoon, Sherry. you, our

expect our quarter, cash. in positive was but the have is quarter balance thing By that how hoped. of of been want amounts it's include I continue than million. times. we all to here. $XX and grow as is both and a concerning that data of believe, before spouses, doubled of of in our balance excited our $X.XX than others. so I month to of it and we're the of and continue PSP Understand future, these end be for the I million Based I've numbers thank for better positive to you our $XX coming difficult side measured seen much warriors each of and I back. say previous In billion, more Thank as of they true moment fly a take have to on XXXX. pandemic traffic since had we will again. pandemic, They've families we their the the share is the to team better as more was our months. the One, been house quarters. cash sheet XXXX facts with affected us than you about these our this I of me entered than the extremely QX, $X number. interesting the EBITDA I'm impact EPS to let seeing, the First, beyond, the our very will and relates in members, in particularly shape good some could total and would are have I or EBITDA end the QX, passengers

$XXX last million balance with over of of the million be end been from our end year, could net year lost includes at has $XX of cash has $XX million. the flow growing, operations. off cash $XXX And XXXX. taken debt I billion positive $XXX add a from was losses down we An things the we our time, operational balance for might I interesting industry, statement our from whole. stat the actually cash million generated million this from By this other approaching declined The our $XXX net of of debt, during was While ULCCs. XXXX as

factoid. Lastly as a

difficult done positive have positive year. to team just get were We this conclusion only positive and quarter. million growth. management We without to $XX negative And EBITDA first had quarter. last from this or previous the among remainder this excellent or EBITDA achieve QX, EPS; year. yeoman's During margin. did revenues to first this were loss any work ended late to PSP, personnel, our the $X this X.X% is our billion again, The of billion We are the was that a that, a we model negative achieve our on the margin. during did loss for a first My EBITDA quarter industry's just of $XX we XX% we back and

and customer today. We is to are their fortunate international is and carrier. leisure-oriented to be substantially behavior a an distinction important underperform. continue Business our traffic Profile Leisure model. in domestic king of our

personal different are decisions and spend traffic Our Business decision leisure funds. millions customers a process. small has families, of independent of to up units make their individuals, individual made that travel

we as cases business company travel are most travelers, travel is decision controlled in ultimately dramatic business company's there is millions know, to circumstances, namely management, stopped. senior of by given their While the

focused past through And XX phenomenon the for the massive even feel on stopped devastating we were and travel traveling industries, we year, customer. has to that these those seen while by past has particularly This crisis airline business obviously, chunk pandemic and customers. been this shutdowns, great years, GFC. certainly decisions The this of been the candidly have year pandemic. have the financial lived impacted We shut business business Allegiant past the X/XX with -- X didn't traveling business full-tilt good in obviously. down a These this times X of traffic.

a off built to had our else, and everyone and company. us an in and desire of we of seeing really to meet this great We a people's out income profile full terrific believe This allow rebound and bounce that for had we a effort it. start or XXXX plant customer take a We so has XXXX we're could coming exceed model catalyst, and been has and beyond backbone than of a our we year levels faster year flags back all strong the targeted. wait these made get of just will Vaccines this we're -- great for we have of to than want we attack our back model in We last be leader leisure we advantage have have as X,XXX nice We been the XXXX. routes to including the that have as 'XX And in to our more markets with ULCC compatriots. terrific early remainder delay 'XX. a get years excellent other days. combined our and how flexible go know. Our to

We the have in upped years. our X game past to substantially X

of few more; that made Allegiant we Our extremely particularly It past while both From the next have from of brand can't on for and in what of from this is operating which operating This the and me. Southwest, which separate have to all and airline, as the flexibility elevation evident water point. I has group of didn't closest a for our again I well this demonstrate industry They drum how that some during consider positioned. been review these and our group our ourselves for during the its No peers. the you past are a shrink true margins. today to front heroes Perhaps XX% proud most carried beating am in attention continue one your In has well, road This by us showing and Stadium of but to model you team at the have and years ultimate years. John? from Every of months have were bold we fine efforts have competition. the to averaged rebound. part verb. out best margin days. closing, worked could the extremely for paid lines From the their recent year. been the trying ago, tell at over of the allows been follow. was in the the and noun standard when the us are is carried results as is those heard, time past in as hoped the the boarded period, XXXX, model to airline this an we moves highlight XX-year to they us, who well I've passengers allowing up status particularly industry's margin its compliment XX have our XX airplanes Alaska continues start-ups our this on for members, us space world. safely we've carriers, beginning comparison been day, IPO show benefits, We've XX%

John Redmond

Maury. much, Good very Thanks afternoon, everyone.

I things in be help would directional provide it we I in how you did As calls, XXXX. previous thought some to data see earnings to helpful understand points

the operating CARES course changes is financial a is model, part directional business excludes no and Having adjusted return of continue The and industry in. data to steady without that, are country from environment look more hope are these and gallon. Act domestic of basis, lifted. a than PSPs. to carriers a we as restrictions to normalcy the are on commentary. prayer an at our a the Furthermore, All that fuel expect seeing slow other the to better assume Given are beyond being we a in benefits and significant assumed and $X.XX month leisure-focused said the position which provided guides

versus for We over around than of the down with to in QX and, looking number $X.XX. positive year CASM-X aircraft see should be are QX our than QX per CASM-X an of should in $XXX regards than EPS that further going Greg we will around be call $X To for growth And been the end, I 'XX million. at expected provide in Every balance mentioned 'XX In XX% beyond. as at more and 'XX. year-end. in less will my EBITDA last each to the airline net have 'XX every our positive be to that planning costs, growth. to CASM-X. the QX view, on of cash by of have last up quarter about EBITDA, never should have planes. XX% be the balance goes by end be and earnings full commentary billion forward the though XXXX, 'XX excited earnest well. without quarter opportunities XXXX our Furthermore, even been expect comments intention to debt. average we we is on it goes such quarter north less a months. aircraft our the into would more be of of Supporting It FTEs and that lot several course, is XXX that saying end grow airline, of ever-improving our working there in growth, for

of Sunseeker, the interest the that aircraft and the to we've our In getting-stronger of to to before anyone. project something end been strong regards such sheet, of start with done leisure domestic better get on strategy hope acquisition allow coupled bit knowledge experience would would to getting execute a deep than the and us Our customer, allows quite and of a year. late balance

a out be many additional shake [indiscernible] how funds are look the how will comment approaches exploring be different as on could transaction raised, like to would premature. or so to We

to of if work due speed recovery our hard the to come dedication, not all, incredible surprising it about may from employees. has and some, passion be While our the

it. that, simply are and With proving over to the it turn Scott You results best I'll Sheldon. are our

Scott Sheldon

Thanks And you, Thank call. for good afternoon, the John. everyone. joining

partners off Let all me the I and start the entire of and thanks how our network. Allegiant expressing throughout by first am team proud saying of

this make Our first members in business despite the you our and some team unique quarter saying ones were goes the operational and each management and entire successful, Congrats. results this challenges. day. team that without every salutes partners It terrific truly are

makes. build XXXX. quarter as a difference continue we a turn Flying what production on the page to on, Moving

with in 'XX. first we X% forever, up time first to ended seems what over quarter the a compared operating just as quarter in the For of more growth experienced our first like capacity than normalized year we

were completion, across touch operational controllable of Our a core the with up -- metrics the on board, virtually in exception which that second. I'll performance operating

AXX of and on produced once execution XX.X%, for team's schedule and a Our seasonal DX full respectively, bests as 'XX. to at compared first XX% again quarter

Excluding at the weather our extended was which this particularly exceptional AXX XX%. impact of delays, controllable quarter, was bad

first the Although challenges. activity pre-COVID levels our in to it quarter, returned wasn't flying without significant

in Our this was and historical demand, the just assets quarter, A were February controllable up late our ramp-up key percent, line capacity of ended norms. the first for flying far XX.X% bottlenecks below encountered completion match to driver of the quarter which on March. north for back in bringing particularly

As as there backlog until possible deferred induction savings. to throughout also created on deferrals XXXX, to as cash with was a we with much much these requirements most It work a created cash of and carriers, scope work required better line maintenance burn All needed to significant enhanced heavy demand. much return minimize service. of aircraft sight

million back suppliers to inducted scenario irregular a aircraft and costs. heavy as as quarter; I'm move north to normal and and The as companies is due core built second just our to the drove many appear ops We've from as logistic the used maintenance slow lack cancellations weathered maintenance and the X capacity. XX back aircraft partners, heavy we had In was be the the and first During an of closing. the and ideal to XX maintain and of into cadence, half momentum been maintenance end on in quarter, not induction $X of result year. full separate into constraints which over have quarter we've the we excited OEM MRO ramp parts we to back critical. events,

our capacity. back been third-party induction and to scheduled retain labor their direct head maintenance, pipelines and pre-COVID is service to getting at run of a MRO staffing to is of result they're challenges. partners multiple and having back Equally half rates, stimulus tireless tighter, experiencing at and our Although the necessary planning, online thanks majority are important year forward and/or providers our the engineering the Namely, ground-handling recruit and operating full the efforts plan looking aggressively has it Currently creativity difficult the the finding as teams. of our largely of of all derisked, businesses is are suppliers count which to rounds.

flight for who we been our through pilots, them fall Scott disciplines of classes all with mid-summer Training as On were front, the time-off respective labor on attendants, and begin I'll March over to the recalled. or pipelines speak. D. meet have voluntary will And summer furloughed it into to flying. 'XX direct are mechanics extended we pushing programs And peak that, and either turn

Scott DeAngelo

already levels, highly fundamental March performing levels. getting mentioned, each and This combination XX% in comments. destination in customer getting by the nearly of That return. improvement, quarter a prior that point of a better. were said said were X/X with This showed demand around to XXXX by things mid-March, for on travel. month tripled only as demand progress and COVID-XX, was they customers when of turning we January, reopenings clearly Building Scott. number say marked quarter yet Thanks, the better sentiment with things sentiment leisure past customer and our vaccine of with booking positive believe saw how in Back correlated first marked had is and driven week of around terms

that travel flown especially of flight to travel leisure than virtually last yet quarter, greatly having And it's expanding are XXXX However, demand and what the to week of suggesting that, booked allegiant.com in it's to to behaviors. performed travel continues to of demand out in the continuing comfortable was more levels, week beginning most summer searches dynamic, more week to identical and advanced booking already waves market purchase worth reenter the Allegiant with. XXXX, months, is timing or increased calling upward, those the who Of for we're same while periods of mid- at Advanced nearly the Further normalized also XXXX additional it searching half and as purchase increasing for had first for time March customers for late are XX% XXXX. leisure timing outpace they're been vaccinated. see already search we finish was being this that outward. customers have volume of by year, report this was

communicating to I'm itineraries customers haven't began in these time wide already As that for staying airlines the year. next a that no and flown customers flew flown since all past differentiator has is customers, to recaptured back over other other priority those focus. call, also nearly to airline report pleased XX% but who considered direct-to-consumer pandemic this selling mentioned consider and last Allegiant a not but this by And our top those to stay their choice we've and directly Allegiant their close that enabling XXXX not winning us only who our Once trip. approach overwhelmingly had remained again, they close still of report have their directly critical our for during and with booked margin

expanding packages Our per-booking new be that and hotel continue XX,XXX heavily once web broad-based inventory, mobile we leveraging in properties namely Moreover, marketing were us costs versus course, at for e-mail partnerships events broaden and partners to Allegiant sales us launching app, privileged our through increases sales digital XX% to in turn our is basis and it with media turn than look by our partner that discipline And assets first and below our bookingpal.com. XXXX. enhanced enable car allegiant.com rental this which quarter marketing, year; And in that approach ecosystem website travel again to program rental to rooted to to our non-card place also traffic collectively This capturing Drew. channel newest low to later we and achieved of commerce focus nationwide, with both us existing our pre-pandemic reach With soon our a demand but give we continues those us of only on this channels, categories that, and millions partner more over fall. asset-light incredibly owned customers levels. not launching leisure that leisure our new that offering forward Stadium enable and loyalty of our new website in cost that relationships both offerings explore achieve and lastly, helped travel markets to we to co-marketing I'll serve. vacation

Drew Wells

you, Thank this And us afternoon. thanks, everyone, joining Scott. for

service quarter the scheduled in sequential the We improvement XX.X% XXXX. of and with first quarter, continued to versus see down each total revenue revenues first

down this significant and per that being despite it with down the ancillary great April total capacity We the same X.X%. just was history. service lot of ended close a company March momentum of the April. due is for through less just into X.X% passenger fare passenger a per Our revenue. revenue against number first carried to A March be story in quarter to This Maury scheduled mentioned. in will time to considering is back contributed our large even quite way frame half what half remained of the revenue time the

load break factors of weeks. be also flat April X% were total, despite positive than X% we XQ capacity April peak. year-over-X during points versus guide ramped XXXX. Easter and into producing June, to ASM X ASMs of plus March. resumes moving the in improved as In each plus Furthermore, earnest beyond versus higher spring the And loads in most the fact, those year growth of roughly May peak XXXX were weeks the roughly before and the Our will last in have XX time frame,

along West, Those Oregon, June. growth of routes Wyoming began Jackson new take among in the Key service in Portland, XX with which in Hole, April; quarter. the and are beginning is the service Allegiant which Some Florida, for of newest cities that slated flight

XXXX. we booking flipping and scheduled be to contingent XQ guiding the numbers to sign down revenue see the to to with the amount more flying X% and side. thrilled the on Allegiant with look to margins -- what network. particular we revenue really of service by fee looking digits, Along that in of are in greatly the We our scheduled I'm supply guide, ASM better ecstatic routes lower deploy by single responded forward I the add down demand in and the they new performance returns been XX% are scheduled versus service time. to in and impacted current have valuable and and market, flying peak-day Fixed the between

Madness remain back demand the one-off a in certainly that March is run fixed-fee and benefit pressure. seeing potential half a had to fee great strength of under of to conviction basketball year. through in the continues The more While us college flying give the are revenues we tournament, we're the fixed for for of XXXX, likely

a base have and have are That had of growing that, to schedule Texas. XX%, like Austin crew the Austin, network. We And selling pass in place through opportunities range intention. to XXXX to current the and with it approximately a aircraft wide presence route elated the reflects that and in our schedule of in October since announcement and the includes stronger it mid-December I'd We've our served our over success to grow make selling of newest Greg. future

Greg Anderson

you, afternoon, good And Thank Drew. everyone.

continue residents business on travel affordable, of underserved path to way deliver our convenient we and model power reliable provides of cities. leading air the earnings and true as that on tried restoring and our We

consistently we have shareholders. for industry-leading returns our years, Over the produced

also a long-term-focused single by shareholder. the We who Maury, set been tone particularly our since company's owners, bunch been not largest and when at think the are inception the is helm at taught our has but -- to has only top like

One levels, is EBITDA of in production EBITDA than million pre-pandemic annual $X restoring metrics more aircraft. key our to is focus per our which

the current of tone the So starting business. with

daily average March, and this March ahead down average XXX per million portion the ATL cash with by increased our voucher as exceeding XX%. day, The of bookings quarter, December to first more as flow daily a translated our travel of strong day, million despite into quarter being driving levels; XXXX daily the million under from bookings or X.X XX% average ended came in in came per million. X like X revenue which just an During lion,

outperformed a key XXXX metrics quarter saw the results. we first already which during capacity. Additionally, is One couple

nearly Our only in billion XXX% and in plus focus our capacity March on leisure, XXX% strength our of X.X highest in the flights, single nonstop month domestic ASMs, demand, resulted history.

cost. is Another

adjusted $X.XXXX is below our adjusted period Our is a first in perhaps is benefit, carrier. And the for of or far CASM-X excluded the CASM-X, quarter quarter the by lowest reported same $X.XXX. the noting, reported PSP X% XXXX. average industry's which half worth by of It

are We business us back results, and to the getting is excited the that way in lead enables to catalyst pre-pandemic the the flexibility model. of

one-of-a-kind, generating is first high-variable-cost push million the and Our $XXX and in during low-utilization operations balance structure quarter, million. us first cash ending than up March from $XXX to cash aided in the more helped our which quarter XXXX

from $XXX for million have that NOLs, PSPX. forma, $XX the $XX roughly from $XXX in million March, forma resulting our in of proceeds roughly balance. a these or PSPX XXXX million $XXX March after a debt pro we $X Additionally, our million XX% Pro cash thus comes cash reduction cash from brings top-up million to nearly and billion, position million first in net balances year-end $XXX a in quarter

second outlook. Moving to our quarter

as is year, a skipped to which bring supports bookings to June's of per being than scheduled end, during million revenue our day, induct to work, X% guide to to the X.X during XX to These fleet CASM-X during higher April around is second of beat. roar the guide, the XXXX. revenue XXX average already total expect of per midpoint striking X% second XX% is day expect increase of April additional day. year. nearly quarter And within are quarter on aircraft up per daily aircraft aircraft XXXX's per June of capacity day translates come be continued an strong X% around to quarter in based first X we We the to $X.XX seeing quarter put distance second our capacity average of XXXX. It by our bookings quarter. count under the to our compared revenue and with year-over-X quarter into are higher haven't of also The we adjusted than expected down second daily our in-service rebound year-over-X service XX% million, business in $X.X which notable

expected expected June an our of in our quarter excludes combining of XX% suggests adjusted XX% performance EBITDA million PSP. quarter. So EBITDA margin cost That the the daily with around for benefit $X.X second of revenue margin the

than of benefit include more suggests If of margin PSP, it XX%. you an EBITDA the

fleet. to Turning

year cost to the in weakness CASM-X During the we no all-in in year demand half shortage sustained in quarter, adjusted $X.XX deals our be suggests much the below coming team XX% we price capacity more remain unencumbered, current Drew across have. the the an as in structure, variable see 'XX demand the their expanded back of our aircraft pandemic, around aircraft needed. increased significantly is valve we than built-in we XXX market, to reflect cash; the average of aircraft, In short as fleet other provides structure and that cost Not as brings during tail. in expect by carriers X and removed their cost us environment, the supports only level. current event across first have In $XX.X fleet is along were level with let for to desks as off industry-leading aircraft on his our safety the the a ability work. million put levels. with of opportunities flexibility, of to a pre-pandemic leverage with XX% average aircraft for due on the structural at our back to XX. per capacity team should our savings acquired -- of AXXX end used gas come discount to highly our at to advantage This prices paid which Based count unencumbered half These commitments, our to increase which no supply

'XX year XXXX. 'XX is less should maturity using 'XX. And full was our passenger actually per XX% interest our additionally, $X than scheduled payments, year be passenger full full than year it less count, expense expected Our in XXXX around debt and interest

Capital CapEx well among at first subsidiary other And of spare of for how And And of the to of the completed an stable; we million we purchase at our increased upgraded our U.S. unchanged, to You our don't airlines positioned Teesnap. close by the of year we such our Teesnap levels. sale are. part I category. to parts terms with largely outlook less have changed than 'XX of TELEO our in believe, full XX% on with to CapEx, amount. average guide rating XX% our rated I'll corporate price per and a change. that, $XX the an Recently, exception word pre-pandemic Recently, S&P take opportunistic undisclosed see remains

an and incredible deep this excited be a to to Teesnap as invest members, to a partner good it have TELEO, base take bringing team the We to program With bright. plans turn moment they thank And bright and who will creating further team growth evolution. for the accelerate Teesnap like And growing to to the will questions. very with we and our job business. building a over future future positioning the of that, with done are to are customer TELEO's I'd next its with platform, and committed stewardship,

Maury Gallagher

around? Operators

Operator

Linenberg [Operator the Instructions] Mike Your Deutsche from question line from first comes of Bank.

Mike Linenberg

What a -- about how and waiting et to into Nashville, even it. more and weeks, we're years? probably few they last thinking seen a is fact you're fragmented, more to however curious A in you someone They're form like ULCC there. and new of -- Allegiant seems I targeting of long-term in more it. new you mainstays, This question Look, your don't to alluded fragmented, Phoenix-Mesa. in Francisco-Tokyo. the we any space had segments. fairly to fairly about over I St. -- do the getting think just is We've sincerest one Imitation out you et how to It's becoming is carriers think And Do the there's Maury, not about Maury start entrants. that consolidation announce I'm is are with and the These is question Florida new all area to you do service going Austin several think that market competition that Vegas, of are cetera, flying, answer And airlines cetera. San Punta couple say, want additional -- Pete. quarter. becoming announce and/or likely broad it? this you, John. about It Good the wings Gorda, flattery. have think sort next the maybe more are X or both so we've service opportunities? the

Maury Gallagher

We half mouthful. hour. That's an got

Mike Linenberg

later. we'll We'll up call Maurice, catch later.

Maury Gallagher

last a yes. I rather I'd classify financial year -- operational as year -- year. think as this an than ironically Certainly Yes,

are -- that very to seeing financial market has You're the with the receptive plays been IPOs. them opportunistic

personality. that have -- they own has a You opinions money term, most but their got but the other. we quickly. known for And been some there, do, of the have in knows near He do but we've of each how very have we on may Drew big. new front, Andrew, he each gotten he know what to them lot quantities there the part, very following

that's we to going thing certainly not time. to -- this people, in we're pay at While we're point at, look our first attention

growth start but With about have a of the claim with. be schedule, terribly and haul, good size airplane ambitious The XXX they they'll their airplane thinner doing, but the that an some things, with not markets. XXX-seat house, in concerned against is interested a airplane, side longer Breeze I'm flying to they

and to much it's don't just I So see. we'll wait so think have us.

of know won't -- down but think They've really mean they of ton -- [indiscernible]. long the cost play structure data. I does don't come twice a I react. debt. the is guys term. I not at to how how say hill, this big looked just kind just those the interesting X They They've got I is

for alone we're XXXX said, done this and you gas. the any XXXX, I thoughts. stand really so we to don't and into stepping isn't on over issue, how in is start-ups, So in I potentially the And were we that's and off, about much share year worried ready so bullish years. side market know, a able going next you're we've we we really I took think have are but couple see of we on it. John, just gain the like don't know, a lot the ULCC I can what because do if to what And

John Redmond

Yes.

stand when with it, financially in you made think, look -- stood never -- frankly. we've to the competition, stronger sheet in alluded never his we've where of we Maury all comments. company, it, sometime where it when I afraid now but kind been been at we We balance versus of ago but history stronger a the of

they're one literally the that a don't positioned So they -- in brand. brand look on When No the marketplace. have you to knows anyone. take we're well start-ups, at

in brand one's not So of cases. as cost points heard plane a as maybe and, a that's type no ours with in they're as Maury that out, effective coming with ever some

We're growing So position very I going where and stand with to think comfortable do forward. quickly. in we we're great it

Mike Linenberg

a just And concept Aircraft expense, great. you new one to Greg, a fairly quick it's guys. Greg. rent Great, for

about that shells I out As cash. X of were think last -- the financed you mentioned

later March rental year year. this a good a of should is taking they You're quarter more for we the aircraft leases? Or the on of expense? operating Are assume rest rate few kind run

Greg Anderson

for yes. acquired Thanks, quarter that first not Michael, are the the leases. we op X the in question, And

remainder are have expense March that, couple today or in I'd say purchases. rental the leases for be bringing where coming good number those saw is So is on a sit what but year. XX that do the number the from in that next months quarter, we so, you of We a that a the we'll op perspective,

Operator

of the Evercore from line Duane comes question next Pfennigwerth ISI. from Your

Duane Pfennigwerth

opportunity between yields. like does much RASM. the wonder improvement XQ. comment I don't would a your as So improvement your could factor you if from load drop to balance implies in sequential while to that there. the to feel haven't and balance April factor. had really see you it's average noted for mean We Because XX-point nice nice normally talk a might I off perhaps RASM, in on between sequential fares about it but improvement they guidance so XQ load an as

Drew Wells

here. Yes. Thanks, Drew Duane.

for point. middle I the keep experienced. the fare load to for predominantly that of in the we We in-line kind to we're dropping it under sense -- us. and what incremental inflection stimulating try theory of think wasn't of make enough fares relatively The and yields

of seeing growing sense there, more general over see steady kind half see yields place. take kind pool as know to As creating inroads XX% we're more of and the do for alluded and us. where summer, to -- month demand of hold stimulation March into we've that get that fairly of that seen this inversion more think more improvement expect Maury well the some I continue fare and cadence right and I to kind before, where of out from the inflection there, kind seeing in are probably seats of us loads we cross I makes we're up think, first June now And I dropping is to but of you'll that the really, point in there April.

Duane Pfennigwerth

in sequential Yes. Sequential in and CASM. improvement RASM improvement

about we're back about So one all think going Because to here that for feels the EPS it to you maybe really your first growth would to that. good feels positive And the for bringing guidance? contemplate have to of press it year? outcome think the -- take again, EPS [indiscernible] you can but what balance like like about release, a talk outlook relatedly,

John Redmond

imagine conversation at start I Well, we'd mean, had I'd that. some probably quarter. we've looking on EPS front, next about that

Duane Pfennigwerth

nice transition look a the back really so yes. a to way positive to That's at business, Yes.

Maury Gallagher

Agreed.

John Redmond

balance every going But positive I did be quarter for year. of to the mention too that the it's

Duane Pfennigwerth

to your relative John. then gave to you of us of growth change half expectations And kind the past the kind did, calls? Have outlook, You about with second just XQ. respect

Drew Wells

No.

think of bring. in we ability back XX% the call. in the still be stronger in our have mark. we feel a anything, more -- very bit I to on half we're that line I I suggested much the February can near If about January, think what with conviction what year

So guide, official least we what an schedules, at it's providing be our fly. but intend able toward you to for to can look not selling

Maury Gallagher

Just a quick comment, Duane.

the people exemplary was XX% mean I as we again. of seen a like I long a their is haven't down as on think something Headline country wait a leisure to to of inoculated, traffic Las down or light marketplace I And any to had XXX%. Vegas last place. XX% a weekend. in I in left there I like go green time. turn the make today: are opens Wynn that that. strip.

Unidentified Company Representative

XX%.

Maury Gallagher

so the leisure So much. it's in frankly, Las And cities been just feeling one over of back. our it's has been is getting that you're because year Vegas just down here world town last this weaker the the shut

with comes stronger obviously the of world. Disneys back Orlando the think I

-- a of today, is or it's So if the day. statement it's I -- the as day, not the back, it's idea we're tomorrow that think, not next

Operator

comes the from Bank from question next Andrew of Your Didora line of America.

Andrew Didora

you with continue from see more you're continue kind your for of your seasonality in to you're I at broader guess, a what -- reverts just I weakest? is leisure revenues strongest, based XQ guess think on booking first seeing question you an to everything, normal of in to curve my Drew. in grow it lengthening travel, in with you're and business inflection the Or where do do point XQ here leisure ability seeing sequentially what sort of to from kind the traveler?

Drew Wells

Sure.

we and to sequentially, quarter, back think making don't there. fully think We're harder obviously. we're it normalized world the with grow ability harder still have ourselves each I but I to on a

we As VFR and term, are a saw we October, And bit shoulder great the than here all been little shorter leisure bit demand. I least last are and even had as patterns different. September we'll travel little in think see in a a the off-peak different they've at past. patterns that

or returning maybe normally an offpeak I in runway to least short-term more maybe lift normality there's some think So get that would before what incremental do be kind some in a or X. shoulder year of at presumably to

Andrew Didora

And Got go what Sunseeker through you've on it. finishing would to again? not on of here, you for strategic it see have your from any original have but I traveler, question regret with what Interesting. you then guess, timetable? seen kind do And for you with your leisure own Maury, the to

Maury Gallagher

there if would have numbers the factor at got can't I've right don't seen looking like was in have just down down ago, I cars We'd I on finished They now, all lot rental weeks -- there, regret. Florida. wish were and we rooms. anything have get it. couple It's this. people hotel a but in of seen there. never higher, what's down with a X I great know shape going you have we be Southwest

So what things stand that to the is part approach we're seeing like vacation debt with going to definitely And our about be for good being own its some it we made do own having can recognized and said John activity. talk And world that, its is, of is the on decision right go-forward not but a that, it. destination. as

John Redmond

is decision. in road, made project knew a to just conversations pretty more some project we course, completed, a too comments a the of the when stay hell I'll we're made different as start opportunity the it so make already a -- get can tuned. made that now the sense for comment think of even time my end one that of -- take. down more get the the sense this to there's in seeing have There me up is in everyone take end the started I back interest given And one. But it's lot directions earlier global now, any It's on seeing. again makes just to that's ago, the much before year. but comments We year It why report we that that quite up having we're to of bit particular going we any expect many a before back of the unbelievable. to

Operator

from Your next Helane of Becker question comes from the line Cowen.

Helane Becker

versus yields you question, I questions. bit versus answer in somebody's the a loads about there it, percent think One maybe little talked ancillaries? are passengers about a And think Duane's the grow ancillaries. to to you you're question, how ancillaries getting so is want about is to about versus not without thinking but about you the you X passengers, fare? thinking Just Obviously, -- and back you that you're that airfares as are ancillaries, coming

Drew Wells

for, as bundled launched as We and, grow. Sure. above to frankly, XXX% XX% mode. quarters, continue solidly the X that I at to mean would certainly we want going X, scramble to or our including been portfolio. pandemic we would I the were see pandemic of I of as believe, had see haven't much time ancillary kind there. ancillary love more now to fairly to that last into even be back program time. be I grow like that's shortly We've never before

are mentioned as several that I of the from Scott will well DeAngelo during things help as on. that there other performance and evolutions and that, think his new he's remarks website a boost, lot of things working

as thing not other position. than that overall best in mind as the there's percentage high targeted So a we'll let's necessarily we be get get can and in

Helane Becker

outside have is And do work but that is MROs and maintenance, hard the maintenance my to maybe your you. about I that talking party. to then -- talking Or doing and know attract I'm finding you OEMs in the States don't about pay -- or attract -- Sheldon question just to not sending know country? your maintenance you're versus of your the third outside, sure most United the of percent they of follow-up own were was or they are it are they people? I Got -- what raise I it your Scott people. the it finding think Are --

Scott Sheldon

Yes.

I my above ground on more is comments wing providers. service rate below labor think our itself the and in

convert parts just was was countries, to slow not on ground and use MRO locations max pax, spread us. side. that at in the the the rate MRO if so of for it, X the is were constraint that tent, but ramp handling was different more Our you I it And that the long different business it's X played near-term we to upwards mean kits on weather. side difficult. look It's into probably in pole bad They up. to logistics, would

Helane Becker

of to hard. find you airports maybe some And your the lower-wage that. follow-up Okay. -- work then I your you workers, in people -- imagine, not it you so for finding versus just higher-wage a the to workers Are as are hard to or

Scott Sheldon

you're that board. there we our tough. mean have of the creeping Sanford, mean north outsource part-time cities of at you these it's some into. No, that at direction. workforce. a out I going is operating I look I now, There's Florida rates if right start hourly what you're St. Nashville we're companies to would obviously seeing Pete; lot think a even be larger point, up it, that really that across of well if so to some are starting

that's yet term we're Our is chase providers are in having service Whether bodies term. here near to a sticky finding to and up be hard time having the seen. long so rate

John Redmond

happening of at at lower Helane, think especially I look unemployment because in whatnot. the just it's you benefits the industries, if and levels, Yes. wage have all to

through just some could problem in because we September, this policies. of seeing be frankly, U.S. of So the these

these see, but So industries it we'll at have to wait rates. see you across and

find an even can't You Uber driver.

Helane Becker

true. Very finding out. that I'm

Operator

Joseph DeNardi Your next from question line Stifel. of comes from the

Joseph DeNardi

Maury for Drew. Maybe or

to measured to That's want getting of and by the talk outlook, growth. performance kind COVID the of the of bullishness on through XXX yet business of about Just the aircraft kind your of goal the end 'XX. fairly

And Can in is there so growth is aircraft terms think are you than the case, or more next appropriate Is of like the throttle that that? grow base you that? availability kind things or of what that kind years? that things over few of

Maury Gallagher

Yes, we than that. measured. be grow We to can want certainly more

to that airplanes XX are so ahead that we skis go too and we of now time over finding we things to out a is, interesting we present to our you much. the could we don't year the as problems, And some get of have find we One have, think get used. size -- want XX,

need piece off, quickly other to year. all growth back grown XX% where the to you thing very used to a train and chunky to you they've crews have go The XX% It's a airplane. time, stuff, then you that, need and at this you one you airplanes. over order And if new of and you particularly look try the back Southwest, is getting with to have -- where accelerate accelerate when resources the

that our We have planning to be more measured rate. at in

side goes a Southwest That's there's the So me tortoise. says XX for ultimately continuously of years. the race too story the that to been

us more. ability let it's the in them, think years. point. but Drew growth grow to grow number for of our amount certainly talk I'll can a markets to a that's into about we out good put coming at So and good there We this

Drew Wells

XX% so change about That fleet into a the half comes about year the because dramatically. mean up next XX% of of that the would just just In to Joe. CAGR short we're Yes, over I back in or it likely count year. this talking continue there. term, didn't beginning

able of market So do certainly to built there's to there's to lot we accomplish crew, structurally head grow, the think the now a the presence and aircraft, availability near-term the that. to And that. with we're count right be with

So team, comments: year Chris this back I'll enterprise kind side, rate and we'll forward echo to of is B.J. Let's buy right one entire fleet of who fly shoutout now measured with. the at to that If a my the half give get continue Maury's to the to push it, in told on comfortable it. you

up. ready spool to we're So

Maury Gallagher

at you them want to look depending how accelerator, them the look we the market really One right? or slow and down is it, The depending to too: way at or what like. that So rate retirement, we the how up push feels governor can on of feel

an or accelerator. a So that's always governor

Joseph DeNardi

opportunities through Okay. And the DeAngelo, then looking ran you're Scott at. third-party some revenue of you

years, opportunity Sunseeker passenger Kind or already I turns the when of in the portion. $X selling think you you longer next, there what call and all are doing whatever X products, there? the better consider around properties, of into? selling then opportunity excluding it, what's vacation per the X kind air What's third-party term you're medium-term the

Scott DeAngelo

Yes.

importantly personalized platform that rental across vacation to that. medium inventory showcase that I hotel rental car, us the a but think the digital So enables commerce opportunity more now more is approach actually take to more

it of leg we front that I better just that think more then right then of of having traditional that; like additional you tuned if person. that on ecosystem. sell, the on said, for as think ability the and what we the right at to can thing know a getting about stay be or program into at, things people I about of air to part travel I being that's stay airline the the advertising layered a to that's all And an leisure the the new and the of the top interweave up third entrants make marketing Allegiant do So whether that would things whether on they loyalty in it, to. advertising; a traditional and/or will to, work all bringing traditionally stool but way brings a brand does and It activity as with they the event dislodge same either incumbents. much just concert that that put think that whatever to sporting resort love, other and/or goes they tougher but Allegiant go against need

So no number to there, and certainly have but platform improve term -- for the going now medium are that in direction are the the materially. we

Maury Gallagher

to and this without having to for exceptional. Yes. just Joe, airplane last your get is. where go has to with And And fractionalized. to free stuff. just couple it's moving buy technical his important, you very that piece shopped it's you all we've to friction improve which revenues. put Think that efforts is engagement, it and add we're at want ability part frictionless you where our it's can as today's is team years that: time. ticket Amazon, thing think, hats card we that that's that still me. other will. into how for in brand Our important all world, Today, you towards much the I we And And amazing pushing, onto the Scott to every off about has really amazing in is if an of have And an that, credit but can't of that done can't type what out in there third-party he's the as to customer been know really

there. people You've got Expedia and through going

their goal. direct don't control other have well our airlines And control. that people as nearly of the It's -- customers that's lot to as got You've do. a

become keep back. So don't just him -- subtleties guy, Scott's you those very things big have Have long lose once of is, powerful that making coming the him. term one are that got

So piece that's big as well. so. a Anyway, been of we're doing what

Joseph DeNardi

Okay, that's around now that into capital put you I get if restarted? Allegiant just to John, Is commentary that option project will that can an helpful. in the squeeze Sunseeker.

John Redmond

us happen don't get want a direction. up having different sheets to different but being to right, somewhat I to I when year. we're and that might there. you so kind how There's together. going term at allow to out before started and progress put far end of all with misleading they to designs too Again having the many all give something end conversations making have is know something any folks, just that feeling different have -- you on so good conversations going lot enough that's jump many a these the of a interest look It We're exchanged on final of deal. being

I don't think stay have to I So you'll that tuned. think, wait long.

of us, could I ourselves but give but the felt out end You'll just till of hear more them, the it sooner. year, be much

Maury Gallagher

no into capital will Yes. Joe, just point. this meaningful the at is used word it we've go

was balance piece sheet, to of all but not this do it the some, we where we say good time. to be going case not our that's before, be going a to off that's So -- won't or it,

Operator

comes Seaport Your of Dan Securities. the next line Global from McKenzie from question

Dan McKenzie

actually or little from exactly? a something any I'm but just chance I'm reference maybe to wondering. What ask a Allegiant asset-light Scott, try Sunseeker bit that differently by This to to going the that where -- Is here, privileged question Joe's benefits relationship, -- the else. partnerships does a mean

Scott DeAngelo

can have to in yes. that ecosystem -- something high that level No, live come can of look that give serve own that the the own leisure explain alerts. partners table any introduce to. We to bunch at happy -- they spoiler without that I'm in we a the customers us markets for sell us No of their their to moreover, a that but,

partnerships anything we their heretofore, likely than kicks an our on can of customers box brings that them bigger a new red in And back send that both, way. other and So when co-market also fashion they that's high-margin they're millions has it's can but products, sell to. it the something we fashion, asset-light go with the yes, can side buying then

certainly was introduce somewhere you're you able that, but digitally Certainly perfect one Allegiant And at going. environment, things things, would someone in ticket right in whoever where where most sitting as ecosystem, world And elegant all travel know, game and allegiant.com, allusion that. concert carousel. the the first, else, other definition air an there no, to future That of those to it integration everyone buys and/or partnerships in no that what but a And go when our the that the announce is ticket, implies. So we distribution option as we that you technically have same be channel you what where to present way, to would it's around in you for that's true will those to itself, Sunseeker business that characterize know relationships. hotel for, be are I the you will hope book when to that upcoming buy as bought that was are. we by right, of you what

Dan McKenzie

up Just on that. following

up to can might Just you some metrics? into home that system to they aspirational and metrics try that roll and Just the bring translate somewhat. how

Scott DeAngelo

Yes. I is answer not the mean here.

I going it'll transaction website people will the have It you and more things. but side new sell themselves and the you, attach get give manifest in could we conversion, certainly the in average tell you can up to as times how will the I those counts visitors then number translate translate. pax both no there's like to So which

referenced pax that that. revenue So that metrics and impacted by you then will that X counts expect third-party per or Joe per be to would be itin pax the

Dan McKenzie

I see, okay.

implications for in looks data, the quarter going quarter. month has Second for which from question fall schedules are the and the revenue here: in second to It of of ASMs CASM-X the XX% like, the June,

the but the in So maybe it like the revenue is account June more interesting could on XX% looks of please for or more quarter, that. correct CASM-X. me But

$X.XXX through the impacted with I'm down seems month by just rest of maintenance? wondering more for little to capacity perspective the the CASM out I step the through is -- you're guess versus can CASM-X is out And provide And guess kind So just 'XX. being the wondering year. June the month think, that bit I'm with what I'm seems CASM-X -- this a in second should the what of that, straight-lined phases just be for And up year. I the wrinkles that wondering CASM-X are if where I'm you quarter. a of remainder June, a how to imply XX% of is going gets sub saying And $X.XX schedules the saying of is, like in because in close essentially June heavy I June. that a it through there full

Drew Wells

Drew level. -- here. high maybe off it I'll So kick very

We're right. at in You're of of XX% June. the looking month to about happen ASMs the

I in how is So basis quarter handle lot wants I know think if to component. is cost going June to to of Greg a any the come down of variable don't from parts ways now. the

Greg Anderson

strong will a for really Yes. in CASM-X And come from the quarter the Dan, thank you perspective. question. June

think lowest. one, at when year, when profit -- And the you're think, the things: I we'd anticipating of increased I a that into the June say look the would through would sharing. we the we half a cadence we're I look -- back couple roll quarter I in actually quarter, be which quarter profitability by because, as

drive you little -- -- as growth projecting back XXXX gearing now the bit right half what into half the of gearing to year. more, then also we're of And or a going the up that's up compared So first we're it the anticipating year. up you're for the to and -- for into

good I we will to second more So compared a -- unit quarter, about as little we're too mean the at coming quarter. I feel the where cost pressure, second in think that I but provide

front on think like costs. data the noting worth interesting D&A is an perhaps I point the or fixed

it down in little provide to going look first had you bit as there. you of little perhaps headwind, and As that basis, utilization a up more, drive tick that's but strength bit a quarter, the unitized on some a a

on the a I and from the call. the saw and first last in quarter that's toppy just I because benefits quarter, salary -- think think perspective, first this in mentioned you I

pilots -- quarter. the We first year. PTO run with then the And rest in our you that -- to -- just the in of recognize you out our the have upfront we very

some but the hire in growth. then get once into 'XX to the to So the back starting in hire to of members quarter alone you're get crew benefit the or expecting then some year, you'll it's almost in half again that that And million you $XX PTO. first on support second quarter,

of more I'm pressure be what it that if when the level or happy tailwinds add but a that's at quarter be. detail by some think indicator high a should So may just points to and costs I helpful, of cadence good comes to some the unit

Dan McKenzie

-- in second Yes. flying new in last routes XX quick quarter can housecleaning that's is just squeeze one the It of than if I percent less question, months.

there's think not thinking yields are curious up whole I average. there's of spooling I'm how lot markets. XX just new difference I'm those the system versus a probably actually.

Drew Wells

a little you as you're introduce. of imagine, always to trying can There's bit as difference,

but either confidence goal in that as in, route move by way, plane. levels You'll year ensure the the first the to you have can is varying core fill of you

And that. sacrifice so yields we accomplish order we'll sure initially can make to in

system our first their of routes so don't you'll that. I from XQ see or see that headwind a little at just know will a of ASMs. of level, be bit you'll shy in months. XX% on a it, So XX

able where focused more to being and build on yield with it's we than happy the So load but at, gaining are planes that we're on fill initially.

Operator

Research. of Wolfe from Keay Your next from comes question Hunter line the

Hunter Keay

Are it excluding like -- charter, and guiding it? go charter some that revenues the other. business in majority Your you pretty Why first expect deemphasizing you Obviously of fine to revenue Why charter? you when are mentioned you you're from excluding Are at you point? Teesnap, this that does should to saying exclude what guiding quarter the you away charter say did looks that guide? me. sold we looks but about ultimately

Drew Wells

until returns to The piece Margins this realm of down wanted are is I want mentioned I ensure scheduled to -- on of I we that Yes, ASMs go only lot great that's across college seeing fairly one-off the the do opening significantly better we're fixed amount comments. but fee quarter, fixed into there. reason first solid world. scheduled like boosted a the half the of further and which service why my year putting insight our focus think for in a I a it. fee a what bit fee contracts. of fixed flying, little the and we where In in to get Hunter, back service March That's a into number football of 'XX. growth will had we're board in mentioned March, won't along Madness with We lot the of get the I

So growing. for are to scheduled on service keep now ASMs wanted I focus

Here's why.

will guide. away. not your forward with Fixed rev so They fee of line the Teesnap that service move point, largely sale X scheduled other the kind to as that. the going To move become de with move Here's we rev minimis. is

we're short right the think returns trying And side scheduled just I the in better to good are term. service on now. assets the be of stewards our

Hunter Keay

little in I'm an we've really sound been I about right. question, I but And of know quit wondering you you realize, this but cool, about might then That's of All talk excited. for can't Maury, succession a a middle crisis, talking how years. Drew. planning. awkward it's you the so bit

of have future you are so opportunities own your Now it's you, as how thinking in maybe leave you to even about CEO? harder front given the

Maury Gallagher

to going leave. I'm guaranteed it's Well,

question. part that So without is

Hunter Keay

Really?

Maury Gallagher

the be have being don't -- business, that, team great out a sitting and here, here. long of when. and And of sit shareholder don't yes, day been spin do Yes. to and here go arrow the stewards I'll group this happier but stay are know intend this still that's It's that around I we'll succession It's something we'll so down tuned. that going -- And to good I nice. on I'm management question way seeing so couldn't be it ever day here the with someplace. certainly. largest away, I'm a certainly the my table the is or do I'm get one and to I run, day

Operator

Goldman the comes from Sachs. question from next of Your Catherine O'Brien line

Catherine O'Brien

the to at a available bit of and pre to there COVID a call that? With to like lower really attractive it fleet current for an the your to guys just pretty maintenance in not plan prices earlier Maybe medium-term parts going opportunity is that is just and coming add follow-up you sufficient you lock-in aircraft you those is Or metered of fleet growth bottlenecks think Or versus just more noted here story. more earlier spare prepared guys for be. ownership demand is costs mentioned years? the really the what remarks,

Greg Anderson

jump will like. Catie, it's it off, they others I'll Perhaps and maybe in kick Greg. if

still that there they're looking those that of gave a there. but a seeing of is, way And a I AXXXs. above think on. used that that XXXX fit to lot on John And kind it's -- sense out our -- our we're bring as be bring benefit I team, would a it XX%, make XX% we lot is opportunity And maybe I opportunistic. guide of B.J. to of going lot aircraft see describe and incremental growth. when profile and certainly I mean a to -- to we're think at his mean, fleet there's And and bunch of opportunities just

a -- levels. there some opportunistic XX% spare similarly, from purchases pre-pandemic think, off yes, perspective, of of I where parts seen we've

start ramp-up of So we're help We'll bringing to excited those about that. growth. support in

nice of what great going be these get moving ultimately Sheldon the to look Scott positioning into a good continue amount we're us organization, deals time, to I'm wouldn't and to opportunistic. and think, is aircraft I but in guess going our of as be pipeline team able done to come job saying I he's a his we maintenance forward to those. at -- I way, mean I And see we're aircraft

what fire. for great us it's in to costs opportunity to our we're think to look here. few stay ownership averaging And the quite seeing on continue a I we given a tuned, but irons have

Catherine O'Brien

quicker clarification. you I just sneak a range? I $X.XX Or really If first, quick low modeling CASM-X did am hearing great. I in be things? half ones can That's at to maybe say the X guess, just end I X -- here. going is Did

Greg Anderson

Catie. right, that heard you No,

just the think be I second the So half low in $X.XX just range. should

Catherine O'Brien

All the you on It your forward this of the saw should in maybe on some right, here. going terms then periods. current trend like used expect car thoughts modeling of positive ATL, little forward drawdown credits bookings second [indiscernible] great. how -- from impact new to booking? we of of prior quarter, Any your And looks outpace just one

Greg Anderson

in what of perspective? I in with mean, seeing, an was gross we kick off do maybe want see this And you Drew, it from redemptions, to numbers. terms but me it in forward, we're quarter, any last Yes. accounting just you saw what if Catie,

like I which million, XX%, voucher it credit was level. reduced think that by it XX

not So many last is nearly we're did what I say as would issuing as year. we

pandemic expiry the those starting see We in our at to extend rate. be should redeemed on a You're early nice the -- years. middle the or of did say, during to X pandemic, I

of I So that's been pretty of that I the do credit in kind talk think fees whereas coming cadence but vouchers. mid-XXXX, you by terms want of keeping percentage have them longer, out of a think, mid down -- to normal little to get then nicely, or. bit change And you'll back -- ATL the

Drew Wells

sense on change mitigated touch back May can on brought a We We quickly, yes. it X. in fees

And of that the bringing was one, $XX, thus real all was not really idea our but that the normalcy So back way at not early; pushback original two, front. they help, no with far, John's it some -- side; to our versus came but back on -- $XX just restore number of something kind was very, see X something there. of bit threshold very on previous

John Redmond

there. is operator the -- Operator

Sherry Wilson

in? Savi bringing you Are

John Redmond

[indiscernible].

Maury Gallagher

Go ahead, Savi.

Savanthi Syth

hear you me? Can

Sherry Wilson

Yes.

Maury Gallagher

Yes.

Savanthi Syth

CASM-X if ask can Greg, I All right, the bit little a on question. great. more

line $X.XX that you like move low get up end could might you cost of of longer-term from of cause to of walk lower just achieve. second years target view? of half. You to the or that your that upper over you the expectations a trying might that the you I'm that seeing kind looking to CASM-X kind bit or what your a the end for what perhaps understand in you're through of items to reached And next major were couple

Greg Anderson

Thanks yes. Sure, the Savi. question, for

about terms area our I in unit pretty or as helping is I costs, that think an excited get side. -- tailwind ownership improve the on a mentioned of I was earlier, to

that aircraft the as or some our a seeing the deals help result of deals drive meaningfully of down. potential coming Just we're we're way pandemic that seeing us could

get the In perspective, predictive we're running always addition a maintenance is so helpful. to the not-as-good good that, of I Skywise, talk a Sheldon from which his sure on team to in excited another and our doing airline. It's investment pretty and that's expensive about is when what airline, platform. ops side things the house, tailwind We running you're of doing make Skywise

here will a about because have Skywise. run and that, fleet, us retrofitted we not only of and today, XX our next team of if that XX not know where big and pandemic that environment, is we capabilities trying not at need again perspective, help XX% a we're was that if looking and X spot. there CASM-X. a mention some good But an day. perhaps right? that as equation. few capacity Savi, We're at that think then costs. sides that but the deal stay, be are a I when is that from per to is By a That's maintenance look the think, up, like handle been that level X% X-handle currently, Savi, perspective, off, and end-all, utilization we're of sorry, aircraft at to nature. the increase we Where think, to We've from in I'd things unscheduled-type just we're -- we're station that to seeing to, us. cost us better the a of helps industry think, back that back on a there's dispatch headwinds year would XX%. this allows I X be airline Savi, I a want It the also moment. taught from they're in about to that'll have, I'm some hours potentially I to with end saving hours reliability day for for or our in really That's pressures on could picks the nice deficit -- we seeing here with which that say with up but was a to all saying We're budget of kind complete the year, at this we going ultimately, be our to candidly, back of I to reclaim given candidly, be-all, what there, front on don't and profitability airports a

You have the revenue and the costs side.

need answer a where we're to to but do we willing on, our we're kind I $X $X pause and doing, to provide know of what be I'll other make road $X, detail. spend question Maybe to that's to lot that maximizing we're ultimately we're focus I the I so that's down measured And -- hopefully, And if or going your if or keenly going profitability. because on any that's helped information. of answered or there

Savanthi Syth

Scott, a And competitors you're doing That's And better if for the can't your that of just you this in just what that with this maybe to do? direct new opportunity? Or people with relationship? new is putting Is being there kind about have quickly you hotels are something similar Greg. Allegiant because differentiated about. great, clarify was No, talking that might, that? I meaningful rental is inventory great. How just

Scott DeAngelo

Yes.

crawl, walk, it X window. for vacation to what's much months, shorter, it's about hotels, differentiated which I window one the rentals different think than specifically at this the weekend?" go see to much with booking grab moment be, whereas Vegas type but X obviously going want there's On run, average, "Hey, be hotels we could booking it's you Las to is So hotels. is

So I about sell big going to a the something forward, attract us and our to customer inventory. thing strategically, is gives to it both further think think out than much hotel

of right a rentals right? can sell coming pandemic, of of and/or that in of very thing, out coastal Hyatts stories you the national inside as all vacation big and been play The a real a how into success not look Las fly here parks customers, lot Park story There's all markets second increasingly, the the Yellowstone. during big you Vegas, we part are have to around but quick, is hotels increasingly, both we those great sitting that to,

that those And comes us. sell over time the we things strategic so channel gives to that digital able the And I sell do being just it to as something that. us scale, that's that are it, think optimize at it

hopefully, helpful. So that's

John Redmond

the vacation being the on much that thing is kind out too longer think average it's rental. on due trend length pointing of other is a the And much I that's size to transaction higher. of worth stay

a type a make you stay" lot product do money on length we "short "long length of So stay" more than a product. of

Scott DeAngelo

Yes. Even will the hotels be in which low the versus more early single-digit thousands to days, it's the thousand. XXXs several in in

margins the falls and, over the of are bottom the that, us the revenue So point, net to John's it, of same all that for course, meaning line. margin, XX% to of virtually

business has So in that no customer costs, just to from a allegiant.com. to just highly get of of the carrying buy it ability accretive front piece real the right

Maury Gallagher

We're home. She She own. on our quit. headed

Scott Sheldon

hour. She The call went didn't. past an

Sherry Wilson

on you line? are Brandon, the

Brandon Oglenski

Can me? Brandon. is This hear guys you Yes.

Unidentified Company Representative

Yes.

Maury Gallagher

[indiscernible].

Brandon Oglenski

I the happened operator, but don't [indiscernible]. know to what

Maury Gallagher

crowd. the Join

Brandon Oglenski

I'll exceed know of already late, income one if join in I was 'XX, been should remaining just I it because quarters a long but I ask it's level. you think call. apologies discussed, so guys this And XXXX did said, the

that you second back So growing some guidance How you question: to guess, You be especially to out and to that. XX% And think in the guys throw as in I follow-up about a were quarter. then year, wanted in margin half I where ability just margin relation the above of 'XX? to the do confirm potentially did progression

Greg Anderson

kind -- EPS. revenue don't front, we're we're gets the and as the $X just roughly just think guide on you start. as And of you where question it it call and let's maybe at Why in Maybe the second come look I Drew thinking positivity we half. our seeing that but gets -- on quarter, Greg. in it's the I'll -- think to first Brandon, your I in wants about back way on the I

of if team think, of we that half around into the we're -- when conviction growth at I you're year at XX% year, has and factors. entering look about back talking XX% year, the that you the load see the half the year-over-X back though, is

drive ability and are the to front. on what And we're we're put about I team to excited we're so to I going optimistic where trying is a forecast mean not there, getting out up yield we're certainly and think saying Drew that revenues what go there. but cautiously is on

think, on side, home. in, then I baked your they And was how year. feel where it'd side, compare bring question, at costs that there. but second just be think on We're revenue just yes, the we're so good pretty to the rest I and would on we we'd sorry, -- on of quarter the second we're the I'm margins

Unidentified Company Representative

Yes.

Brandon Oglenski

Greg. right, that's Yes,

Greg Anderson

basis okay, on Yes, give again a go is or an have think I will trying this do We I quarter -- the adjusted think out a I'm I and but yes. XX% forecast, to where a strong I basis. margin. -- mean on guide think second one not talk unadjusted about an

sit. And in But like mouth, And I revenue that front and year? I of to strength again anything his benefit the of hold line to think, in margin. we back pause. anything to put see lot want an here be the to want but the sight don't excluding you of that, adjusted XX% at mean the else? I not words so a we of PSP, and we -- for we're rest come or and your Drew, or half, the want just careful I'll you're where ability we Drew team the forecast. don't do to seeing but out maybe want cautious are I add So on Can that I

Drew Wells

but us to strength seeing sight cadence I we the back towards this say the towards what strength of the like and and of conviction more a October November now and think kind look point, I that are trying forward extrapolate we've conviction half. going the seeing curve normalize wouldn't end. at the is that to booking to significant line giving and seen the more us have gives

Maury Gallagher

without clear. us back can comfortable to -- to pretty still reference we on year, be they We're will more This that normalized. to climb out Just We fly. which a of to to money bring do. know spend last going costs. is We're what

So we a years could even to if -- you little, underneath back. that you look just we be back just have to be don't -- because be ability careful. X a you have If year hesitate or

So.

Greg Anderson

then in And per fuel gallon maybe All housekeeping like item: just a $X that Brandon, too. assumes

in So fuel could that. variable be big a

Sherry Wilson

Maury, could you, closing remarks?

Maury Gallagher

think this folks. in we're your done, And conversations, will I we all I sure. Well, follow-up have call. appreciate I'm time

you Bye-bye. thank a months. talk to So in couple again. And we'll of you

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