ALGT - Earnings call transcript Q2 2022 | Allegiant Travel Company

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Operator

Thank you for standing by. Welcome to the Second Quarter 2022 Allegiant Travel Company Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to Wilson, conference Relations. Managing like speaker to now Sherry today, Director would hand over the your I of Investor

Sherry Wilson

you the XXXX to Leeway. Company's Thank quarter second Allegiant earnings Travel call. Welcome

Executive questions. our and with SVP me answer of Wells to Chief John company's President On the a Chief others Officer; Scott Marketing help today Anderson, DeAngelo, call Greg Officer; our Planning; handful and Redmond, of Revenue are the and Chief EVP Financial Drew and Officer;

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

John Redmond

has not take call of awareness the opening afternoon earnings here industry Sherry have. that whatever and No comments. knowledge but in obviously you much one probably the depth the of still the his not industry the course, is good we'll provided today, or that This has. of first Maury Scott is, everyone. Sheldon of should participated Thank questions Maury I Allegiant, very in and advise history has you

long more we'll questions as your by. So thanking amazing, every day dedicated have are and focused, earnings as started get present our employees. passionate I call

remiss was repeated. be would Thank all. if So you that commentary not

You you X/X. it's Greg Scott are promotions the on With I of of and fully announce chapter call Every beginning, one the know Sheldon effective President best. to this the them. new fitting Anderson

no need they So introduction.

QX expect STAR better that every be controllable We we have execution. the reach matter, consistency, environment. best our be the best have management DeAngelo, we July our to are -- to taking ensure industry XX% this we our performance Greg, fast or should July, and to within industry December agreements signed employment In XXXX. one was DX the metric than started cancellations. all best we're and AXX from level Rob back for through is on steps operations, many regards Scott CTO get Scott to at team June not CMO same a our completion and to controllable ever-changing in is this we Wilson, of of and July. better or continuity an with but to than reacting where and QX

reduced will margin grow been improving that given operations, going focused We IROPs. factors margins a won't With have always change load strong and forward. and company

in he QX personally negotiations We mention was are have but with involved did negotiations. those pilots, in timing. the earnings no updates regarding financial our Maury or impact call, in

for like decision-maker him invaluable all the the business issues of knowledge and a understanding model of is with having So intimate parties. his

flight several out schools see In pilots addition, with regarding of unfold. there we and the a XXXX plenty There how to partnership predictable been dialogue stream into commentary has of ensure are people future. having conversations

We forecasts is have something to but this never ones the been or in any overpromise do. variables not many given we environment will make and trying underdeliver to predictions

that to react our this always done. as we act and to on a or has with no we history remain will year-over-year date. and line have crystal in well moving is Having circumstances multiple sight. us served like based very our approach have times of We of times model flexible that, of growth, during unpredictable This continue DNA history was and do but changing provides variables very ways ball no said built to handle to that

until are Sunseeker have targeting for we room-nights of frame, of in year. $XXX, impressive is ADR not at that are open the May May which September but time which still of As is an the early Resort booked through reservations most month in the slowest months finalize the these of historically QX. opening date, transient Charlotte to X,XXX we To XXXX, will Harbor,

Allegiant approach, we of meaning OTAs, the perform has level to addition, reservations, XX,XXX high-margin for or XX its booked transient don't increase In the a The percentage, $XX.X revenue, and number here An booked room-nights closer for same which total point booked travel. groups roughly food as to. interesting none of beverage follows direct make we to which to to we we rooms, bookings of X.X% guests; for course, will we've a requires of is, and XXXX, totaling total stopped GDS space. taking use To opportunities roughly the relationship at four already February million. X.X in room-nights. excitement, are this and contracted model of significant the with impressive was to project groups This group in emails, opening. about book approach XXXX. million email efficient are expect move only these have more and than in if space. to will database also the of million and can't marketing. opening. I the the in how unprecedented resort, Allegiant Resort. database, a and hotel, absolutely number They and fill a have don't grow emails or email show plane Building a After numbers is volumes to have fill over critical, resort can we world, and you Sunseeker asset-light hotel date, the an These by you or synergy cost-effective Sunseeker think power Sunseeker our speak in to a to? a database of all foundational market this success

Act to we month-end. COVID million, We least, stages pay are Act-related early You of during have unprecedented the not off coming see appreciate refer the but pandemic. to starting CARES CARES the of assistance Allegion Last to X.X. together, the before of pieces made decision we $XX.X the our what debt government as provided, the

all that, guidance the date. of our the the conversations well between board, before analyses our management decisions and Given this of Scott the find and DeAngelo. made number by with team sacrifices its ourselves in it maturity amiable we to employees, of over And I'll of loan, position paying untold turn and off

Scott DeAngelo

Thanks, John.

age are consider of time, airline economic a for: using Second directly notably, quarter in app, industry addressable terms during conditions. in in up Total travel operations considerations by flying Most number coming needs, the the mobile of all to flying November new weeks avoid booking increases more the traffic, XX% customer price the again a three more and passenger itself connecting searches flight convenience segments service year. customers than weeks of while income. most conduct Customers of through yet to coming increase continue XXXX allegiant.com selecting and half include only in visitors years were home the and ages XXXX. to sometime is emails major as service a on from again most surprisingly direct This our less as In tracking or huge allegiant.com, what's This And than fares Mesa, and XX% bookings and change at only visits to up also customers, from the between and that Southwest was by Sanford for several to airports two not and Allegiant These demand leisure risk than time also name a current grow, to the of August XX news the meaningful new price, one to in customer entering great to that quarter brand to general saw St. of compared nearly schedule up American to the has past basis, network group their simply visitors and highs travelers the of flights, expanded now are to above travel awareness considerations. sky-high like not many coming with and dramatic travel, customer important sentiment stands sentiment, why several coming older what for airlines vacation by between period but than be all and historic resiliency as airport What's allegiant.com on COVID months, primary more airport both years their the the towards customer air low to as fares, relief terms allegiant.com, versus visitors audience Allegiant, brand, more, to of were booked. both non-stop frequent top factors levels. first buying for the this To the while ULCCs. for The time same third given after point, past up by flights, replaced and our factor. top XX% XX% two strong in But XX%, great Allegiant airline smaller namely in other both speaks focused the web and which our factors, looking travel our our combined, for continue which well us, overloaded another versus either or to with weekly new our the nearly XXX% were last United. visitors most URL, non-stop favors development originally an and economy, when our residence by in represents bookings to important Put environment. the other or exceptionally we've year-over-three-year to booking new that not nonstop visitors to XXXX. XX% in the in continued material from the database, XX% past discretionary factors, this the airport flying Delta Less travel year. rule, shows frequently and as web website is were more are locations customer periods of continues most explain alternative crowded added flexibility than a million our visitors and but showed find prevailing last less hubs. nearly ever-increasing been turbulent through schedule all and a from inflationary attractive represents associated as during increases for customers Pete-Clearwater leisure XX% and are top but few.

high-margin card MasterCard The record-setting to sign-ups, demand World the the remains asset-light travel Allegiant. outside remains we total the focus terms have continue value new average Allegiant selling of compensation on by driver, also air and attachment third-party for of on driving spend to customer While aircraft months strong in the aggressively prominent card continuing products. to we capacity per posted, Always greater post the through

and revenue year nearly more versus year for last sign-ups versus and quarter by and Allegiant up XXXX up than versus card by the New XXXX. XXX% XX% versus to last XXX% were was XX%

especially in presentation value our attachment and process In compelling average sell conditions. spending already to its over of is non-stop and and online that distinctive for alternative but members on low anniversary XX% technology be the least, point but seeing hotels help remains leisure coming third-party Drew checkout In our airports program our on more increased continue engaged of we're can uncertain our air increased travel service Rewards loyalty merchandising revenue products on ancillary choppy par remain economic take a connecting attracting material proposition, product Always amidst in but than attachment engage is turn as with better I'll customers smaller unique rewards in use passenger otherwise per we broad with ability sales offset with and continue revenue on of believe to an earnings maximize development to closing, will up just addition, card-based focus non-members, currency discussion to And hotel of new non-credit by by inventory, years driven levels streamlining one-year leading our and the very products at more price on Rewards travel their Always high-margin more fares, rates Allegiant. agencies. and numbers. with at hotel aggressive to note, experimenting returning with efforts our flights Also future these of boost to at attractive deeper value alike upcoming customers capacity. continuing and And we with record it asset-light a for proposition to the us third-party nonetheless, grow that partial growth drive to provide times simple

Drew Wells

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

quarter we As into XXXX. load levels talked in the produced in with and in exceeded our XXXX. outset nearly that of per our web $XX astronomical we've expectations the quarter. aircraft, visitation best about since the of finished Along the the been at mentioned, an quarter to produced turned demand second revenue, with demand Scott has XX.X% increase total, hit ancillary accomplishing outstanding over revenues. fill quarter. targets million In $XXX Core a highest passenger factors

However, drove some non-core a headwind detail shortly. Greg will that elements

the Additionally out marketing given and change returning Scott flying ASMs the results, to to quarter trips. a done or encouraging up and vouchers travel I'm aid an beyond a while above peaks refunds ready the efforts per produce awareness additional XXX% encouraging the visitors and and use but a were a Allegiant his folks when passenger; is was in off-peaks. of nearly of guests service XX.X%. pleased XX.X%, has sign this our the story revenue-offsetting team work with of for summary resulting new great in previous And what great that truly are dynamic, TRASM grew through Scheduled to beyond

majority both was the time we to maintain June As worth the best the May opted the is still arguably the company in flying through rapid, noting, off-peak of flying with to story history this any per and we May frame mentioned despite highest last per Allegiant, over growth. nearly XX factors XX% meaningful load third ancillary air certainly, terms Meanwhile, because on revenue years accretive earnings the call, and to flight. had narrowly comparing in rise total so the of It recognized increase revenue the recorded ASM the monthly June missed proximity passenger expense. boarded in April $XX in fuel, of was departure. due fuel produced the to of and We rev and XXXX revenue in when passenger the per best amount

we year-over-X-year the of below came aspirations months the schedule not in growth did equal. July its operational June the at However, the levels. this for candidly, not utilization realize, rates. had and growth while the XX% fuel resulted in current have will fully beginning have created XQ demand the XXXX year, And respective all revenue quarters ASMs nor second lowest and quarter roughly of XX% the a Much are we to with the we third. And the of in flying. their peak third. are and part all prices in considerations At XX% did expense growth potential in

operational XX% per in July Furthermore, ancillary from the completion and increase in June month, with and QX. integrity over passenger we looking flying will per flight July airline. XX last do In XXXX. air cuts record featured passenger best months the of July fact take story mentioned. we materialized mirror the what same months. a the loads the solace see a John benefits saw XX%, over these as years in July And boarded less intended of in highest the phenomenal in than the unitized features forward comparing fourth XXXX some the revenue metric to We That the

growth ASMs XXX% Greg. over However, in we system service approximately turn off-peak, leisure will leisure grow XX%. are modest like to subject I'd peak XX%. still of rev. approximately quarter, to whims to unitized all, quarter, a seasonality, it in the a traditional of revenue third drive And All and to we grow expect airline, the to the total to and within Further, with expect distribution the the we that, headwind scheduled ASMs XX% and roughly between

Greg Anderson

and you, good thank Drew, afternoon everyone.

we For been of our million. the that reported bonus net income would $X.X have $XX.X quarter, million, GAAP second recognition excluding

We them in team recognize and have to Team industry excited are for Allegiant members we the incredible the best for efforts you day-in Thank everything you, and their day-out. do.

which quarter is areas. largely by three financial second Our initial expectations meet did not our results explained

million an This estimate drove credit new and us. resolved and we $XX roughly as around July. is we quarter table First, left behind processor transitioned million on has we the $X additional this and card revenue, headwind been during second a to issue the in

From gallon The rapid Second than mid-April in rise price fuel into another increase in fuel intra-quarter May, our $XX increase initially in fuel. more resulted by nearly we saw in costs step-function fuel. planned. per $X.XX million fuel

Third, $X customer IROPs. drove operations million additional compensation. Irregular in an incremental

We XQ If first revenue, are right additional compared of see the XX% an are were in in to $XX factor, our month $X a fuel, the million have XX% the line we and driven quarter highest been with continues XX.X% direction improve as And million in our in improvement of for guide. in million in resulted to of as operating year. we flying or costs peak and the $XX and the margin customer adjust compensation completion as initial reliability factor. down operations these trending the would by our July in encouraged to completion

the fuel costs, expectations. second costs unitized quarter with line our the were in and $X.XXXX excluding for to Turning quarter

XXXX. compared CASM-X XX% increase. Excluding productivity majority through to and in down productivity utilization, bonus accrual compensation, is which lower CASM-X second our XX.X% up seen to be The the our period as aircraft customer the compared our of the same can quarter drove XXXX. was recognition Decreased IROPs of our

nearly inflationary addition, the at airports increase. of In pressures points primarily two drove CASM-X

quarter total balance to sheet, hand. $X.X a In liquidity $X.X Looking the $XXX million XX% billion inclusive at total our XXXX's ended in August, warehouse MUFG the with billion, liquidity cash revolver, bringing with on of signed revenue. we we of up or

approximately due balances Sunseeker. for is draws million. debt increased largely slightly net construction This Our to to $XXX

for balance in However, we year million $XXX interest is pre-pandemic levels. payments below this expense. expected the million And debt $XX XXXX, net full well expect make is to and debt for principal still

quarter, the XXXX, we margin trimming were our Turning This per third of operational planned XX% roughly also adding ASM of the an XX towards primarily costs issued system driven $X.XX growth volatility stability. an gallon of our action year-over-three. capacity initial by points. guidance X% operating capacity on more challenges, for suggests by have of guidance today capacity These fuel. assumes fuel Throughout staffing around rising percentage reductions buffers and average

of As and four service again productivity with increase providers of at And growth point costs. result other inflationary third roughly should airports labor the increase. mentioned, assets up operational points. and completion to a is as fixed just to XXXX July out should to XX%, of the another quarter stability roughly drive based productivity third capacity on to utilization that points it two XX%; pressures expect primarily our roughly similar XX% quarter month increase factor two-percentage CASM aircraft a we pressures be of is versus year-over-three. Lower for for Lower quarter. inflationary points in CASM-X point second two our the of improvement when This and want And of nearly improved had compared for quarter to June. primarily related

uncertainty incredibly labor ecosystem macro fuel, And performance the the or uncertain. and is strong macroeconomic the is environment XXXX, we of robust, a we and there regardless track environment around towards demand significant know remains the of financial while Allegiant environment. consumer As travel fuel future challenges. has industry-leading broader record strong US remains look the

we Our landscape to improving closely said said, And with is an our the as on for margins. monitor the we will factors, plans continue refine as differentiated XXXX model margins. and John coming built is eye towards outperform. to in focus months, capacity And our

tuned. stay please So

fleet. to Turning

to a plan fortunate are flexibility. have tremendous fleet with We

also to XXX XX in decided This the hold aircraft will half and And flexibility. year As three them XXXX mentioned with currently, change last quarter, in we end in place aircraft service. unencumbered have into fleet this service of aid helps aircraft, XXXX. which means storage our first we we

XXXX other And is Turning it's respectively. million our and total in slightly deposits CapEx heavy inclusive closing, business million in reduced CapEx, and CapEx to has has truly reinvestments we maintenance differentiated a the expectation which Allegiant business in believe airline $XX and year aircraft $XXX in $XXX of model. full pre-delivery million

customers, years, distribution importantly, people. has differentiation uniquely come XX past our products, as most to vast third-party such through direct the asset and major Over selling our acquisition our network, pillars, strategy, our

of enhance our are and continuing as strategy. X.X We to refine pillars these part

order provide AXXX with more is ownership used our XX% with the aircraft. at MAX costs time that Our Boeing efficient monthly on same and are assets to expected par

Our through around proposition And and in multiple with enhances value hotels. our and will have systems program airline Always vast our a improve line direct many with incremental to while every arming for And we of non-stop strategy relationship US XXX to our their serve in to to earnings the them the X,XXX team than questions. our set platforms domestic sell asset-light Opening, the will for potential. nearly our with Sunseeker of us runway network our take we'll for increased our our we points growth currently cities includes team of channel and your stage the data our more loyalty further ability bottom than more the efficiencies. Resort our them. enhance infrastructure distribution years frame that, deepen than should has with service expand tube an outside and more our earn enhance and long-term cities identified unlocking tools initiatives air execution carrier. should with our burn ability better of to equip further drive products Each guests, these and network routes come. XXX routes and members, to meaningly many, And investments

Operator

[Operator Syth Instructions] line much. question the so James. Raymond Our Savi first comes you from of from Thank

Savi Syth

on kind Maybe curious quarter. if quarter third if here kind of revenue as a the that I maybe what maybe was the start thought the can revenue and ago. months in strong like outlook not just unit of you could what that? off case be with I seems couple side of be It the it might third was as in the driving

Drew Wells

Thanks Savi.

I quite We're generally XX.X you in statement. the demand off that a seeing a ridiculous elevated from still we guide I than bit of But think front. what think any that's highs reflected certainly fair the higher We're my absolute off a see here. highs were we've seen through really which the years.

Savi Syth

in Yeah. this something Allegiant? to of out And just curious show That side, different of similar improvement? operations has on maybe happening allowing Is the there ATC getting that's changed makes of there do like issues I kind are the resolved? expecting quarter sense. at July of was that's what the you positive what as kind -- you And or are expectation fill better. kind maybe to to July Is terms

Greg Anderson

I to not improve steady Greg. one we've we Hey take in and And as don't it's Savi, but mean, September here? a July August I it well. first would at expect seen stab July only improvements Why continue,

that on that making we've -- year we have it's and of there saw capacity We've we and that seen crews. that the support Earlier can in eye just been in sure we've some rightsizing And our unplanned drag in absences able Some ATC through that and out spike. stabilization with we keep and a that's manage operations. been our like say, your point June issues have Certainly that. and there. better an to something I'd to on. seen airports stations weather we'll

of out and had his times. better. We're out there's done and bit airports didn't improvements that have we've Wilford in Our been and a once providers. to change team summer. team respective But expectations service we've turn getting And Kenny vast know the in we those we've a we seen gone learned where meet lessons areas couple struggled and and

we our with mentioning talk quite brand is it it help that's of customers. side, disruptions That's the bit I those think operational the meant about kind sting and it worth of mitigate compensation. our helps a to but of it's things expensive One on also some and customer from performance and make again

that question anything hopefully So else? but Savi, answer helps the

Savi Syth

you. That's it. Thank Great.

Operator

your All much. next comes right. from Cowen. Becker Thank so of And ahead. Helane the you Please question from line go

Helane Becker

time. the for Thanks

on mean, you're go? ancillaries, do you they I think selling lot getting at better them. how Just a high can

think of new products. I What terms offering should in know goals? You're I about don't

Drew Wells

Sure. Helane, place particularly side. over few think in on DeAngelo be implementing Scott I little we'll putting and as the the of out a we will that talked some look the changes about airlines. years systems bit the be next third-party There on also some

DeAngelo is feasible. mid-$XXs I into as his I'm out we look look think getting I'll make is years passenger five to completely the another think I Scott $XX reasonable. at something per over too totally but sure not overselling thoughts too,

Scott DeAngelo

I our as sell Economy brought the different over that extra product time ways case kind in to kind ancillary throw in product frame there several Drew merchandise be help that next before get priority years, room, that same et would the would which There of right? up out. pointed of the Allegiant Extra cetera into has also to become overtime guess I in more and And to evolves across entree Premium could that sub-bundle, boarding number a with that leg as fleet Drew

Helane Becker

I then And you forward know John you don't Thanks. question, answer called from with reservations bookings of your because if numbers don't out helpful. this willing far for if prior That's I does to know but it's how that Sunseeker, the Okay. you're forward experience compare this or bookings date the in actual that firms trek? terms at call them advanced your of away of level

John Redmond

to in no terms They're good starts early. of selling one questions that Helane. sell, how started we And early

like didn't So sure last out. getting systems. all of because months they can MGM-type out. take we the property sell until to further much to opened we and when a of talking even and all when you starting you was start out make customers learnings Barrera sell to to elected a brand-new We product six And We start big [Ph] -- them had selling that were that. out shake lot want we

multitude transient a why looks bookings there's So having see we're the like. even you of on doing success the start Group what great reasons there. side it can't which is to product wildly are impressive because those

reputations So the in versus They a past. us of going selections offer. they're a knowing They're be touring they're all other there. someone have what's of down know concerns. property us when are the looking are envisioning of cases, selecting and have. in they based picking on may to being people going without promenade by else, lot They there exactly anything. the are what those A lot at walking us stayed properties And the

had been half ever and for world talking when million There of learnings of developing bookings. we're already So, just room-nights, booking of bookings, the about no ecstatic the emails some group X.X% course, total not we've strategy the hotel is that the an been importance in that these is is off speaks volumes XXXX about inventory over even of about that's room email opened. time. early of in four having the that XX,XXX this And we've the opened charts. strategy period amazing. early But it

to been about to for So, make we've those going successful data that stay was starting this tuned. points we're wildly fruition. talking to time we and some do These come that to were see what going are to be sure things property

Helane Becker

the for Thanks John. answers. helpful, That’s

John Redmond

you. Thank

Operator

Thank you much. so

of Please your question. Scott ahead line Group the ask go from comes and Wolfe question from next Your Research.

Scott Group

implied lower a on RASM why is are in the are Why I'm third last Fuel coming you you XQ? the versus lot And peers? is just the quarter. increases lagging your airline curious think guidance, said quarter XQ margin margins than do down Guys, running better. maybe

Greg Anderson

Greg. on the and think will Drew add Hey, don't side. I commentary Scott. Why I some It's start, revenue

Just as leisure. you're on just the think focused aware we're historically, I XX XX And last XXX% years. in of

The third September the is quarter quarter for and lowest drastic. just of us, performing so off-peak is because kind

third. meaningfully maybe a the... ASMs add are then, second of so on element to color think I And that's Drew down our can sequentially, why big And perhaps quarter

Drew Wells

impacts most which will highest if the one it ASM which be July, it RASM step today cadence. the ASM. you yes, the the be in fuel we smallest But see the taking will about And July, further, had our absolute as cadence, in growth think

one So, both a RASM and against front. pertains the on quarter it as of work they kind there, to the another full margin

XQ both about maybe both to three some XQ, we're gauge metrics, think comes out one put think points of I going against as unitized headwinds to you about that think each to there. two it carriers and And and that four impacted I unitized metrics which XXXX, in is think the beyond I quarter. versus it stage and increased

Scott Group

just some maybe like in of That's Do And that for be thoughts about Okay. mean Things next going early growth year? and down this terms CASM. then XXXX think year what that. versus capacity may to helpful. it's you

Greg Anderson

It's Greg Hey, Sure. Scott. again here.

the to As is get here would mentioned be across that XXXX. than margins be trying better John and XXXX, improving focus margins to to is we're we going and expect on XXXX

capacity refine plan get and As about lot talked to we kind a there of we as XXXX. for there's a out uncertainty of

We at coupled target that, And the we're will going Allegiant. to based flex pilots for would year typically down start seeing would that XX% well, which addition, growth of I taking XXXX -- we're it's next next today, we available that, growth kind I been will. historically, we'll cap as In delivery Boeing a year to on what help pilots up environment. and XX% for growth. taking the think have that we cap. which extra the if aircraft for what in be you with have have and again That's say, Boeing

You may come down from that see there.

In be ex, that's terms on to capacity. going dependent CASM of

mentioned, with our progress flight as We’re attendants. to in there, addition to and making a deal trying in drive we're discussions our pilots active also John

just to able associated right given going we uncertainties labor just that XXXX Scott a CASM go away cost we're drive help there's be could But mentioned will think some doing and though margin focused in to for kind drive or those business improvement in on the we're were if We IROPs drive all side. potentially expect to costs hopefully, take meaningful you operations things. on that ex. hesitant margin. deal. ultimately, the XXXX guide -- should But you give again, out as in of the to though to also, the I'm I we're So which that a I and the costs, and of would

Scott Group

Appreciate guys. it. you, Thank

Operator

from Michael Deutsche and next ask our much. Thank ahead question. from line of the question go you comes Bank. so And Linenberg Please your

Unidentified Analyst

for Mike. Sylvia calling in

trends the quarter? attrition for pilot bit do you for a will you you're So that rest the with various rate year? how about And remain talked the encouraging think the last Could quarter little And in and that looked elevated partnering about to it you attrition flight really of second recruits. the the attrition rate new bit a talk little schools was it's hear elevated.

Greg Anderson

we This the Flight our of who's this. in just is but to the Thieman kick Planning off Greg really But we're I'm table. going who's then VP at to have close Crew it Allen room actively again.

pay our Our there. better want we service pilots improving pilots systems of get on back in We're scheduling. the market, as are is paid around it candidly to up the to working also but their level and

regard. a lot more on in and that of you effort color with making he we're hiring And So then give could attrition. Allen

Allen Thieman

Sure. be here. Happy to

before that discussed we spike first time in time attrition. see monthly February July attrition spoke seen month particular. as pilot we in covering XXXX number Since Last your the drop to we actually XXXX. was during quarter of have we point seen So we with the the did of December QX that have a since in last lowest

are the fluctuate, XXXX. patterns. pilots XXXX call legacy of but around trailing attrition. put May it XXX, kind continues are to news, with certainly we probably heading. and trailing Scott closely prepared positive certainly to so for hiring numbers only of be April at our it, pilots. and be align attrition choppy XX-month That most will where to XXX during And provided XX-month some That our just Today is last then was And to the

it is in much our it expectations. up, with slightly trending is line very but So

Unidentified Analyst

helpful. And Got then it. regarding question PSP. another just the really That was

were before So the you month-end. back that going you to pay said

buybacks free transactions than from that that Does like you engaging in weren't outlined? free you previously you that does to allowed So earlier or other paying dividends do? or any

John Redmond

just No,I is the like It think thing dividends read buybacks. right we people We're terms the do. at strictly activities it's our of should into was in enviable any that at liquidity. this think quid types sitting thought board, we is to something very don't quo of and the pro those that a something it and do. position on length we right of debated And thing to

we've pay pretty first this. the continues just the us. when get assistance We longer and do I what where off. So we're leader should think pandemic it to we think And need thought to happened, it want I ones just appreciated this that a the throughout companies been no approach much behind but they

that's we decided why So that.

Greg Anderson

share for those John back and the for right pay of X when the debt. lift all dividend And irrespective you restrictions airlines just October repurchases

Unidentified Analyst

Okay. was you helpful. very Got it. mych. very Got it. Thank Thank That you.

Greg Anderson

welcome. You’re

Operator

Thank line Global. from you. And Daniel Please our last McKenzie comes of the question Seaport go ahead. of

Daniel McKenzie

in month the July, we like of that's team? kind a is flying and based about just unusual on in does much should a growth what seem XX% is correct up that's quarter? And deceleration November? be the looking extrapolate that's we one something September But the the please And September looks weaker be by It how of know that. October network why engineered intentionally be consumer into And I'm roughly it the And to those wondering if you're But revenue an later going how the could data schedules much to just part. of negative. TRASM is just on being -- trends in then the anticipating and at planning implied month? correct off-peak September that me then

Drew Wells

lot A Dan. here. Thanks,

me unpack that. to Let try

point other So I five the correct utilized months elevated per that under you aircraft out to though lowly a utilization hours day. still. be is growth are that mean there relative it will per remains very I'll September in month particular.

a at low TRASM of not, day versus We believe is more with further the moves an the And will traffic the function of it Labor do front. of So incredible Labor in XXXX. some September from TRASM of be month. this not growth bit perspective. a in on week, I a Day of month Day that or capture negative that back more given point. flying believe away I'm not the running meaningful the amount September.

there's I some believe ideally be it will not So there. negative. upside do But

Daniel McKenzie

investor that going a a And to pass along the long-only side I'm Okay. Sunseeker. on actually was asset-light to me by asked question of

when one then a what three-year of make given throw hotel are what the could that then that the acres just those revenue do XX remaining more are I'm $XXX to on current expect the I taking of And I'll And outlook, you just for booked stream percent That like? you separately, are suites. So, anticipating decision a look the squeeze I'll curious rooms of land? rate, the guess there. undeveloped room larger in just one average trends

of a kind just room that to rate. average question So mix related

John Redmond

haven't suite into about that able XX% an to mind has to suites I it, mix standard that anything recent be right great. And we in easiest. which standard I maybe rooms is rooms, But questions there. and XX% lot most we're will appreciate the three product suites, Dan. the be between for so demand been because posted a four there's keep If or fly miss now of area I like The think market. seeing

we're the amazing they're people of been So are from reservations which XX% in-state taking has aware local the most of project. now and the

bookings going start getting passengers to through would a we'll that's when little start to even imagine that the come we book that Allegiant suite up air see mix when are I pick So they bit. when

to database. Asset-light, having of the one absolute critical that an is factors email

up. company does don't whoever, picking other market a on Marriott, is opportunities Hilton, opening property when there, out a taking at them you only I to not for it's critical. other Hyatt up their for new the obviously care they us database don't well, sign whether So you but management When use property, that or serve look you let

big that board are copied we ever a start two inquiries the had to database asset-light and moving essence us on to will decisions manage we be that that. one blueprint project a product that or choose there multitude fill any until able we'd would allow And whose be recommend the to with as project demand always effectively to into the there. like anything to the of mean resort our space for So of property followed which from them do in before Phase strength would timing different Clearly, be the three developers. the differentiating we've use types a of the terms we to that course, not that's in I factor -- anyone that start results we'll there market there's made to want we able it the haven't that to saw the of is property. we hotel. we doubling then opportunities a for size the Phase there as to would same did, is And we call of that

So those of possibilities course are the road. down always

it. time, ever a of before something think would end make early or into by that, with we I what be the start decision the on to 'XX or do when this at So year to we it decide

Daniel McKenzie

for guys. Thanks time the Okay.

John Redmond

you. Thank

Operator

like turn closing more any back Thank you, would John so to now the questions. don't much. conference And have we I remarks. Redmond for to

John Redmond

stay to for... Well, to glad responsive were tuned time. we questions. able be everyone's in We're everyone's And appreciate closing, we

Operator

conference for you participating and Thank concludes today's you disconnect. call. now may This

Allegiant Travel (ALGT) 4 Aug 222022 Q2 Earnings call transcript