Allegiant Travel Company Fourth Quarter and Full Year 2014 Financial Results

• 48th Consecutive Profitable Quarter
• Fourth Quarter 2014 Fully Diluted Earnings per Share of $0.27
• Fourth Quarter 2014 Fully Diluted Earnings per Share Excluding Fourth Quarter 757 Write Down was $1.83
• Full Year Fully Diluted Earnings per Share of $4.86
• Full Year Fully Diluted Earnings per Share Excluding Fourth Quarter 757 Write Down was $6.37
• Declares a Recurring Quarterly Cash Dividend of $0.25 per Share

Allegiant Travel Company (Nasdaq:ALGT) today reported the following financial results for both the fourth quarter and full year 2014, as well as comparisons to prior year equivalents:

	Three Months Ended December 31,			Twelve Months Ended December 31,
Unaudited	2014	2013	Change	2014	2013	Change
Total operating revenue (millions)	$279.0	$238.5	17.0%	$1,137.0	$996.2	14.1%
Operating income (millions)	$14.8	$30.3	(51.2)%	$157.3	$154.7	1.7%
Operating margin	5.3%	12.7%	(7.4)pp	13.8%	15.5%	(1.7)pp
Adjusted operating income (millions) **	$58.1	$30.3	91.7%	$200.6	$154.7	29.7%
Adjusted operating margin **	20.8%	12.7%	8.1pp	17.6%	15.5%	2.1pp
EBITDA (millions) **	$37.9	$47.9	(20.9)%	$241.4	$224.9	7.3%
EBITDA margin **	13.6%	20.1%	(6.5)pp	21.2%	22.6%	(1.4)pp
Adjusted EBITDA (millions) **	$81.2	$47.9	69.5%	$284.6	$224.9	26.5%
Adjusted EBITDA margin **	29.1%	20.1%	9.0pp	25.0%	22.6%	2.4pp
Net income (millions)	$4.8	$17.5	(72.6)%	$86.7	$92.3	(6.1)%
Adjusted net income (millions) **	$32.0	$17.5	82.9%	$113.3	$92.3	22.8%
Diluted earnings per share	$0.27	$0.94	(71.3)%	$4.86	$4.82	0.8%
Adjusted diluted earnings per share **	$1.83	$0.94	94.7%	$6.37	$4.82	32.2%
Return on capital employed *				19.2%	16.4%	2.8pp
* - see appendix for calculation
** - see appendix for reconciliation of non-GAAP financial measures

"We are very proud to report our 48th consecutive profitable quarter," stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. "Excluding the one-time charge related to the write down of our 757 fleet, full year operating margin increased again, for the third year in a row in spite of a number of operational challenges. Looking forward, we see better execution in 2015. Earlier this week, I'm pleased to announce, our Board of Directors approved a recurring $0.25 per share dividend to supplement our ongoing stock repurchase program. Allegiant's strong financial results and positive outlook reaffirms our commitment to reinvest in the business, grow our network and our people while returning value to our shareholders. I want to acknowledge all of the hard work from our Team Members this past year as we look forward to a successful 2015."

Notable fourth quarter and full year 2014 company highlights

• Recurring dividend -On January 27, 2015 the board approved a quarterly cash dividend of $0.25 per share with the initial distribution to be made on March 17, 2015 to all shareholders of record as of March 4, 2015
• Share repurchase - We returned $139.1 million to shareholders through the repurchase of 1.3 million shares during 2014
• Special dividend - We paid a special dividend of $43.7 million or $2.50 per share in early January 2015
• New service - We announced service to six new cities including Pittsburgh, Pa, Indianapolis, Ind, Omaha, Neb, Richmond, Va, New Orleans, La, and Jacksonville, Fl
• New routes - Added 25 routes during 2014. Announced 18 new routes and six new cities starting service in the first quarter 2015
• Airbus aircraft - We ended 2014 with four A319 and seven A320 Airbus aircraft in service. A320 series aircraft account for approximately 16 percent of our total fleet. In-service A320 series aircraft accounted for over 20 percent of total ASM production in the quarter
• New COO - We named Steve Harfst Chief Operating Officer of Allegiant Air
• New PAO - We promoted Greg Anderson to Vice President, Principal Accounting Officer of Allegiant Travel Company

Fourth quarter and full year 2014 revenue performance

• East Coast TRASM - Fourth quarter East Coast TRASM increased 1.3 percent, while capacity in these markets grew 24.9 percent. Flying on the East Coast accounted for 48 percent of entire network versus 42 percent a year ago
• Airbus growth - ASM growth in the fourth quarter was primarily driven by an approximate 200 percent growth in Airbus ASMs
• Ancillary air related charges - Both fourth quarter and full year 2014 average fare - ancillary air-related were the highest in the company's history

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2014	2013	Change		2014		2013		Change
Scheduled Service:
Average fare - scheduled service	$89.74	$94.24	(4.8)%		$91.30		$91.69		(0.4)%
Average fare - ancillary air-related charges	$43.33	$40.63	6.6%		$41.37		$40.52		2.1%
Average fare - ancillary third party products	$4.29	$4.36	(1.6)%		$4.56		$5.21		(12.5)%
Average fare - total	$137.36	$139.23	(1.3)%		$137.23		$137.42		(0.1)%
Scheduled service passenger revenue per ASM (PRASM) (cents)	8.24	8.32	(1.0)%		8.42		8.25		2.1%
Total scheduled service revenue per ASM (TRASM) (cents)	12.61	12.29	2.6%		12.66		12.37		2.3%
Load factor	86.5%	85.2%	1.3pp		88.7%		88.9%		-0.2pp
Passengers (millions)	1.9	1.7	14.9%		8.0		7.1		12.9%
Average passengers per departure	143	141	1.4%		147		147		-%
Average scheduled service stage length (miles)	916	940	(2.6)%		934		952		(1.9)%
ASMs = available seat miles
PRASM = scheduled passenger revenue per scheduled available seat mile
TRASM = (scheduled passenger revenue + ancillary air revenue + ancillary third party revenue) per scheduled available seat mile

Third party products performance

• Rental car days - Fourth quarter rental car days, primarily driven by growth in our Florida destinations, increased 19.2 percent on a 28.4 percent increase in East Coast scheduled service passengers. Car rental production drove a net revenue increase of 33.8 percent versus the prior year
• Hotel room nights - Fourth quarter hotel room night production decreased only 1.4 percent despite a 5.2 percent decrease in Las Vegas departures as hotel room production, excluding Las Vegas, increased 14.3 percent versus the prior year

	Three Months Ended December 31,			Twelve Months Ended December 31,
Supplemental Ancillary Revenue Information Unaudited	2014	2013	Change	2014	2013	Change
Gross ancillary revenue - third party products (millions)	$25.9	$23.8	8.9%	$121.4	$120.7	0.6%
Cost of goods sold (millions)	($17.3)	($16.2)	6.4%	($83.1)	($81.9)	1.4%
Transaction costs* (millions)	($0.4)	($0.2)	49.8%	($1.8)	($1.8)	0.2%
Ancillary revenue - third party products (millions)	$8.2	$7.3	13.0%	$36.6	$37.0	(1.2)%
As percent of gross	31.9%	30.7%	1.2pp	30.1%	30.7%	(0.6)pp
As percent of adjusted income before taxes	16.2%	26.3%	(10.1)pp	20.3%	25.2%	(4.9)pp
Ancillary revenue - third party products/scheduled passenger	$4.29	$4.36	(1.6)%	$4.56	$5.21	(12.5)%
Hotel room nights (thousands)	123.0	124.7	(1.4)%	528.3	595.7	(11.3)%
Rental car days (thousands)	191.5	160.7	19.2%	916.6	844.9	8.5%
* -- Includes payment expenses and travel agency commissions.

Fourth quarter and full year 2014 cost performance

• CASM - For the full year, total operating expense per ASM (CASM) increased 6.0 percent year over year.
• CASM ex fuel impacted - Throughout 2014 CASM ex fuel was substantially impacted by nonrecurring expenses related to training and crew availability delays. These delays drove an additional $25 million in incremental expense in the form of labor inefficiencies, aircraft sub-service, crew training and displacement costs. Also in 2014 we incurred $7.3 million in accelerated compensation expense related to the departure of our former President and COO, Andrew Levy. And lastly during the fourth quarter we incurred a $43.3 million non-cash impairment charge related to our Boeing 757 fleet. Excluding the effect of these nonrecurring items, full year 2014 CASM ex fuel would have increased by approximately 2.9 percent vs the prior year
• Aircraft fuel - Fourth quarter fuel expense decreased 12.0 percent driven by a 19.9 percent decrease in our price per gallon which was offset by a 9.6 percent increase in gallons consumed. Fuel efficiency performance was positively impacted by a 2.6 percent reduction in average stage length and a larger portion of the system flown by Airbus aircraft. Both of these helped to contribute to a 4.7 percent reduction in gallons per passenger
• Salary and benefits - Fourth quarter salary and benefits expense increased 19.7 percent versus the prior year primarily due to a 16.8 percent increase in full time equivalent (FTE) employees. Headcount growth was mostly attributable to flight crews as pilots and flight attendants accounted for more than 60 percent of our FTE increase in an effort to build scheduled service staffing level requirements for first quarter 2015 flying. In addition, stock compensation expense contributed to the increase primarily due to a 23.7 percent increase in average share price
• Maintenance and repairs - Fourth quarter maintenance and repairs expense increased 38.3 percent due to an 11.6 percent increase in average number of aircraft in service and a higher number of heavy maintenance and engine overhaul events versus the prior year
• Aircraft lease rentals - Fourth quarter aircraft lease expense decreased 44.9 percent driven by the purchase of two operating leased aircraft in the current year and the reduced reliance on sub-service lift for scheduled service operations
• Depreciation and amortization - Fourth quarter depreciation and amortization expense increased 32.7 percent due to an 11.6 percent increase in average number of aircraft in service and depreciation related to twelve owned A319 aircraft currently on lease to a European carrier. Excluding the twelve A319s, which are non ASM producing aircraft, depreciation and expense would have increased 16.9 percent
• Other expenses - Fourth quarter other expenses increased by 360.5 percent due to a $43.3 million non-cash impairment charge of our 757 fleet and increased flight simulator events required for projected first quarter staffing requirements

	Three Months Ended December 31,			Twelve Months Ended December 31,
	2014	2013	Change	2014	2013	Change
Total System*:
Operating expense per passenger	$134.36	$121.80	10.3%	$120.15	$116.20	3.4%
Operating expense per passenger, excluding fuel	$93.72	$68.68	36.5%	$72.54	$62.95	15.2%
Operating expense per ASM (CASM) (cents)	12.18	10.61	14.8%	10.95	10.33	6.0%
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents)	8.49	5.98	42.0%	6.61	5.60	18.0%
Adjusted operating expense, excluding fuel per ASM (CASM ex fuel) (cents) **	6.50	5.98	8.7%	5.76	5.60	2.9%
Average block hours per aircraft per day	5.2	5.3	(1.9)%	5.4	5.5	(1.8)%
Average system stage length (miles)	898	922	(2.6)%	918	933	(1.6)%
* -- Total system includes scheduled service, fixed-fee contract and non-revenue flying
** - Please see reconciliation table in Appendix for calculation of adjusted CASM ex fuel

First quarter and full year 2015 cost trends

• Full year CASM ex fuel -We expect CASM ex fuel to decrease between six and ten percent. Excluding the fourth quarter 2014 non-cash impairment charge of $43.3 million, our CASM ex fuel is expected to be flat to down four percent versus last year. We expect full year maintenance and repairs expense per aircraft per month between $95 thousand and $105 thousand and total ownership expense per aircraft per month between $110 thousand and $115 thousand
• First quarter 2015 CASM ex fuel - We expect an increase of between six and eight percent. Salaries and wages are expected to increase as a result of elevated flight crew staffing levels and maintenance support staff for increased East Coast flying operations. Maintenance and repairs expense is expected to increase due to incremental engine overhaul events versus the prior year. Aircraft lease expense is expected to decrease as we have returned to normalized staffing levels to support our scheduled service operations reducing our need for sub-service. Depreciation and amortization expense is expected to increase due to the growth of our Airbus A320 fleet and depreciation related to non-ASM producing aircraft currently on lease to a European carrier

Balance sheet highlights

• Recurring dividend - Our board of directors declared a $0.25 per share dividend to be paid on March 17, 2015, to all shareholders of record as of March 4, 2015. The Company intends to pay a $0.25 dividend each quarter, however, future payment dates are to be established each quarter
• Cumulative return of capital - Share repurchases and special dividends totaled $182.8 million for full year 2014. The Company has approximately $86 million in remaining share repurchase authority as of the end of the year
• Capital expenditures in 2014 - There were $421.4 million in capital expenditures during 2014, 85 percent of which was driven by the purchase of 17 Airbus A319/A320 series aircraft
• Raised and/or assumed $527 million in total debt in 2014 - We raised $300 million in an unsecured bond offering, assumed $142 million in debt in conjunction with the purchase of 12 A319 aircraft on lease to a European carrier, raised $45 million secured by our MD80 fleet and $40 million secured by 6 Boeing 757 aircraft
• Debt reduction - We paid down $169 million in higher interest debt including $121 million term loan secured by all company assets
• 2015 CAPEX - We expect between $175 and $185 million in CAPEX this year primarily driven by purchase of six A320 series aircraft

Unaudited (millions)	12/31/2014	12/31/2013	Change
Unrestricted cash*	$416.8	$387.1	7.7%
Total debt	$593.1	$234.3	153.1%
Total Allegiant Travel Company stockholders' equity	$292.9	$375.7	(22.0)%

	Twelve Months Ended December 31,
Unaudited (millions)	2014	2013	Change
Capital expenditures	$421.4	$177.5	137.4%
* -- Unrestricted cash includes investments in marketable securities.

At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.

Guidance, subject to revision
	January 2015	1Q15
Estimated PRASM year-over-year change	(6.5) to (4.5)%	(7) to (5)%
Estimated TRASM year-over-year change	1.5 to 3.5%	(2) to 0%
Fixed fee and other revenue guidance		1Q15
Fixed fee and other revenue (millions)		$9 to $11
Capacity guidance
System	1Q15	2Q15	FY15
Departure year-over-year growth	6 to 10%	12 to 16%
ASM year-over-year growth	2 to 6%	13 to 17%	9 to 13%
Scheduled
Departure year-over-year growth	6 to 10%	12 to 16%
ASM year-over-year growth	2 to 6%	13 to 17%	9 to 13%
Cost guidance	1Q15		FY15
CASM ex fuel - year-over-year change	6 to 8%		(10) to (6)%
CASM ex fuel (excluding non-cash AC impairment charge) - year over year change			(4) to 0%
CAPEX guidance			FY15
Capital expenditures (millions)			$175 to $185
CASM ex fuel - cost per available seat mile excluding fuel expense

Aircraft fleet plan by end of period
Aircraft - (seats per AC)	YE14	1Q15	YE15	YE16
MD-80 (166 seats)	53	53	53	53
757 (215 seats)	6	6	6	6
A319 (156 seats)	4	5	9	12
A320 (177 seats)	7	9	10	10
Total	70	73	78	81
Aircraft listed in table above include only in service aircraft and future aircraft under contract

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, January 28, 2015 to discuss its fourth quarter and full year 2014 financial results. A live broadcast of the conference call will be available via the Company's Investor Relations website homepage at http://ir.allegiantair.com. The webcast will also be archived in the "Events & Presentations" section of the website.

Refer to full documentation in attachments box, located at the top left, below the headline.