LAS VEGAS - Allegiant Travel Company (NASDAQ: NASDAQ:ALGT) announced its financial results for the first quarter of 2024, showcasing an adjusted earnings per share (EPS) of $0.57, surpassing the analyst consensus of $0.44.
The company's total operating revenue reached $656.4 million, a 1.0% increase from the $649.7 million reported in the same quarter last year and exceeding the consensus estimate of $646.25 million.
The first quarter results reflect a robust performance, with the airline-only adjusted EPS, excluding special charges, at $1.08. This figure represents a significant decrease from the $3.30 reported in the previous year, highlighting the challenges faced by the company.
Despite the decline, the company's performance exceeded market expectations, with Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company, attributing the success to strong demand and the second-best first-quarter total revenue per available seat mile (TRASM) in the company's history.
However, airline operating revenue saw a slight decline of 2.6% year-over-year (YoY), standing at $632.5 million compared to $649.7 million in the prior year. This decrease was partially offset by a 33.6% increase in total fixed fee contracts revenue YoY and a notable 23.7% rise in total cobrand credit card remuneration received from Bank of America.
The company's operating income, excluding special charges, was $28.5 million, yielding an adjusted operating margin of 4.3%. The airline-only operating income, excluding special charges, amounted to $39.1 million, resulting in an airline-only adjusted operating margin of 6.2%.
Gallagher expressed optimism about the future, citing the first full quarter of operations at Sunseeker Resort and the marketing efforts that are now in full swing. He emphasized the resort's potential and the company's operational integrity, which has led to near industry-leading operational results.
Looking ahead, Allegiant provided guidance for the second quarter of 2024, expecting an airline-only EPS, excluding special charges, between $1.25 and $1.75. The consolidated EPS, excluding special charges, is projected to be between $0.50 and $1.00. For the full year of 2024, the company anticipates a system available seat miles (ASMs) change between 2.0% and 4.0% YoY, with a similar range for scheduled service ASMs.
The company's financial strength is further underscored by its total available liquidity of $1.1 billion as of March 31, 2024, which includes cash and investments, and undrawn revolving credit facilities. With $167.8 million in cash from operations during the first quarter, Allegiant continues to demonstrate its ability to generate robust cash flows.
Allegiant's commitment to improving customer experience and operational efficiency is evident in its recent achievements, including the ratification of a new five-year agreement with the Transport Workers Union of America, AFL-CIO Local 577, representing the airline's flight attendants. The agreement not only provides wage increases but also introduces quality-of-life improvements.
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