Allegiant Travel Company (Form: 8-K)

SECOND QUARTER NET INCOME INCREASES NINE-FOLD, OPERATING & PRE-TAX MARGINS EXCEED 25%

BOARD OF DIRECTORS INCREASES COMMON STOCK REPURCHASE AUTHORITY BY $10 MILLION TO A TOTAL OF
$35 MILLION

Las Vegas, Nev., July 21, 2009 /PRNewswire/ – Allegiant Travel Company (NASDAQ: ALGT), parent company of Allegiant Air and Allegiant Vacations, today reported the following financial results for the second quarter 2009 and comparisons to prior year equivalents:


Unaudited	2Q09			2Q08			Change
Total operating revenue (millions)	$	148.0		$	131.6			12.5	%
Operating income (millions)	$	37.8		$	4.7			708.2	%
Operating margin		25.5	%		3.6	%	21.9pp
Net income (millions)	$	23.9		$	2.6			801.4	%
Diluted earnings per share	$	1.17		$	0.13			800.0	%
Scheduled Service:
Average fare – scheduled service	$	65.16		$	83.56			(22.0	)%
Average fare – ancillary		32.36			27.75			16.6	%
Average fare – total	$	97.52		$	111.31			(12.4	)%
Total revenue per ASM (cents)		9.95			11.27			(11.7	)%
Average passengers per departure		133			133			—
Load factor		90.8	%		90.5	%	0.3pp
Average stage length (miles)		873			881			(0.9	)%
Total System*:
Operating expense per passenger	$	74.76		$	110.00			(32.0	)%
Operating expense per passenger, excluding fuel	$	46.38		$	47.52			(2.4	)%
Average departures per aircraft per day		3.10			2.84			9.2	%
Average stage length (miles)		828			838			(1.1	)%

*Total system includes scheduled service, fixed-fee contract and non-revenue flying

“We had another very good quarter, our third highly-profitable quarter in a row,” stated Maurice J. Gallagher, Jr., CEO and President of Allegiant Travel Company. “In these extremely difficult times when our industry has substantially reduced its operations and seen record declines in unit revenue, we are pleased to report these quality numbers. We increased scheduled departures and ASMs by 30% year over year and still posted a 25% operating and pre-tax margin. Once again our people have been critical to our success. Their enthusiasm and efforts continue to provide our customers with safe, reliable and inexpensive journeys.”

“During the quarter we substantially increased the size of our nationwide footprint, including the successful start of 13 new routes to our new Southern California base in Los Angeles and an additional seven new routes across the network, ending the quarter at 134 routes between 71 cities. This further diversifies our exposure to regional economies and offers more protection to us in these uncertain times. Our Southern California routes are off to a great start, with July booked load factors now running ahead of our scheduled average.

“We achieved our second quarter results despite an almost 13% reduction in our average scheduled airfare from the first quarter of this year, a decline attributable to a softer economy, the introduction of new routes, and a 15% increase in year-over-year capacity on a “same-store sales” basis in existing markets. Moreover, for the first time in a number of years, our ancillary revenue per passenger declined sequentially, albeit slightly, to $32.36. An additional challenge relative to the first quarter was a 13% sequential increase in the price per gallon of fuel.

“During the quarter we saw a steady degradation of the revenue environment, year-over-year, from April through June. However, we are hopeful June may mark the bottom of revenue softness. Fares for July, including ancillary, are, thus far, trending slightly upwards, despite the large year-over-year capacity increase we have in this month. An improvement in the revenue environment as well as the recent moderation in fuel prices will help us to extend strong year-over-year earnings growth into the third quarter, historically the seasonally weakest of the year,” concluded Gallagher.

Andrew C. Levy, CFO & Managing Director – Planning, stated, “We had terrific cost management in the second quarter. Cost per passenger excluding fuel declined to $46.38 in the second quarter from $47.52 in the prior year and $49.62 in the first quarter. Moreover, these figures include bonus accrual, which has increased substantially in 2009 since it is tied to profitability and therefore disguises underlying cost improvement. Excluding bonus accrual, our cost per passenger excluding fuel declined to $43.84 in the second quarter from $47.26 a year ago and $46.23 in the first quarter.

“Our balance sheet continues to improve. We ended the quarter with unrestricted cash and short-term investments of $228.2 million, down from $236.4 million at the end of the prior quarter. Excluding air traffic liability, cash increased from $132.9 million to $138.3 million sequentially. Either measure is substantially in excess of quarter-end total debt of $60.7 million, up slightly from $59.3 million at year end 2008. During the quarter, we issued $7.0 million in debt at attractive rates, secured by two MD-80 aircraft, and made $5.6 million in principal repayment on existing debt. Note the seasonal reduction in our air traffic liability (representing a use of cash) during the second quarter of $13.5 million was actually less than that of the prior year, when it was $14.9 million.

“During the quarter, we had $7.8 million in capital expenditures mostly for the purchase of engines and improvements made to three aircraft prior to their induction into service. We now expect full year capital expenditures to be about $35 million, due to advancing the introduction of our 46^th aircraft into the fourth quarter 2009 as well as a recently executed agreement with Japan Air Lines for the purchase of seven aircraft which will be parted-out to increase our engine and parts inventories. We purchased the first of these aircraft earlier this month and will close on the balance during the fourth quarter of 2009 and the first quarter 2010. We will continue to take advantage of favorable market conditions to opportunistically acquire aircraft, engines and parts.

“Lastly, our Board of Directors recently approved an increase of our existing $25 million authority in our Common Stock repurchase program by $10 million to a total of $35 million. Under the share repurchase program our Board of Directors approved in January 2009, we spent $10.5 million in open market transactions during the second quarter to acquire 255,350 shares of the Company’s Common Stock at an average price of $41.25 per share. Including open market transactions in the first two quarters of 2009, the Company has repurchased a total of 465,525 shares at an average price of $37.79 returning a total of $17.6 million to our shareholders. With the additional $10 million of authority to repurchase shares that we recently received from our Board of Directors, we currently have $17.4 million in unused authority remaining for open market purchases under our current Common Stock repurchase plan.”

• Does not include three aircraft acquired but not placed in service as of June 30, 2009, two of which are currently leased to a third party.

During the second quarter of 2009, we placed two leased aircraft in service. Subsequent to the end of the second quarter, we placed an owned aircraft in service which was previously on lease to a third party. In the fourth quarter, we expect to place in service our final two owned aircraft which are currently on lease to a third party. We expect to continue to add high quality MD-80 aircraft to our fleet at attractive prices without the need for external financing.

In the second quarter, Allegiant Air successfully launched service to our new Southern California base at Los Angeles, with service from 13 small cities. We also inaugurated seasonal service to Myrtle Beach, SC with service from both Allentown, PA and Huntington, WV. Other routes we initiated during the quarter include Grand Rapids, MI and Bentonville, AR to Las Vegas, from Monterey, CA to San Diego and from Eugene, OR to Oakland.

In addition, during the second quarter, Allegiant Air initiated charter service under fixed-fee flying contracts with several different parties between Miami and four Cuban cities in support of the Cuban family charter program. As with all fixed fee flying, Allegiant Air is not exposed to fuel risk under this program.


Network Summary*	June 30, 2009		June 30, 2008
Major leisure destinations		6		5
Other leisure destinations		5		4
Small cities served		60		51

Total cities served		71		60
Routes to Las Vegas		41		38
Routes to Orlando		30		26
Routes to Tampa Bay/St. Petersburg		19		15
Routes to Phoenix-Mesa		15		9
Routes to Southern California (Los Angeles)		13		0
Routes to Ft. Lauderdale		7		8
Other routes		9		4

Total routes		134		100

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

•

Allegiant Air expects third quarter 2009 year-over-year departure growth of approximately 30% and ASM growth of approximately 35%.

•

Allegiant Air expects fourth quarter 2009 year-over-year departure and ASM growth of approximately 20%.

•

Allegiant Air expects full-year 2009 departure and ASM growth of at least 20% over 2008.

Allegiant Travel Company will host a conference call with analysts at 1 pm East Coast time tomorrow, July 22, 2009, to discuss its second quarter 2009 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.

About the Company
Las Vegas-based Allegiant Travel Company (NASDAQ: ALGT) is focused on linking travelers in small cities to major leisure destinations such as Las Vegas, Orlando, Fla., Tampa/St. Petersburg, Fla., Phoenix-Mesa, Los Angeles and Fort Lauderdale, Fla. Through its subsidiary, Allegiant Air, the Company operates a low-cost, high-efficiency, all-jet passenger airline offering air travel both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services. ALGT/G

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding future earnings, ASM growth, departure growth, fleet growth and expected capital expenditures, as well as other information concerning future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate”, “project” or similar expressions.

Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, the effect of the economic downturn on leisure travel, increases in fuel prices, terrorist attacks, risks inherent to airlines, demand for air services to our leisure destinations from the markets served by us, our ability to implement our growth strategy, possible unionization efforts, our fixed obligations, our dependence on our leisure destination markets, our ability to add, renew or replace gate leases, our competitive environment, problems with our aircraft, dependence on fixed fee customers, our reliance on our automated systems, economic and other conditions in markets in which we operate, governmental regulation, increases in maintenance costs and insurance premiums and cyclical and seasonal fluctuations in our operating results.

Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.

Allegiant Travel Company
Consolidated Statements of Income
Three Months Ended June 30, 2009 and 2008
(in thousands, except per share amounts)
(Unaudited)


	Three months ended June 30,						Percent
	2009			2008			change
OPERATING REVENUE:
Scheduled service revenue	$	89,711		$	87,643			2.4
Fixed fee contract revenue		9,485			12,577			(24.6	)
Ancillary revenue		44,545			29,108			53.0
Other revenue		4,246			2,230			90.4

Total operating revenue		147,987			131,558			12.5

OPERATING EXPENSES:
Aircraft fuel		41,837			72,068			(41.9	)
Salary and benefits		23,631			17,160			37.7
Station operations		13,866			10,493			32.1
Maintenance and repairs		12,765			11,362			12.3
Sales and marketing		4,394			3,670			19.7
Aircraft lease rentals		507			936			(45.8	)
Depreciation and amortization		7,251			5,956			21.7
Other		5,952			5,238			13.6

Total operating expenses		110,203			126,883			(13.1	)

OPERATING INCOME		37,784			4,675			708.2

As a percent of total operating revenue		25.5	%		3.6	%
OTHER EXPENSE:
(Earnings) loss from unconsolidated affiliates, net		(91	)		53			N/M
Interest income		(680	)		(1,028	)		(33.9	)
Interest expense		1,017			1,489			(31.7	)

Total other expense		246			514			(52.1	)

INCOME BEFORE INCOME TAXES		37,538			4,161			802.1

As a percent of total operating revenue		25.4	%		3.2	%
PROVISION FOR INCOME TAXES		13,686			1,515			803.4

NET INCOME	$	23,852		$	2,646			801.4

As a percent of total operating revenue		16.1	%		2.0	%
Earnings per share:
Basic	$	1.19		$	0.13			815.4
Diluted	$	1.17		$	0.13			800.0
Weighted average shares outstanding:
Basic		20,057			20,192			(0.7	)
Diluted		20,344			20,413			(0.3	)

Allegiant Travel Company
Operating Statistics
Three Months Ended June 30, 2009 and 2008
(Unaudited)


				Three months ended June 30,						Percent
				2009			2008			change*
OPERATING STATISTICS
Total system statistics
Passengers					1,474,146			1,153,500			27.8
Revenue passenger miles (RPMs) (thousands)					1,296,956			1,037,351			25.0
Available seat miles (ASMs) (thousands)					1,469,788			1,179,101			24.7
Load factor					88.2	%		88.0	%		0.2
Operating revenue per ASM (cents)					10.07			11.16			(9.8	)
Operating expense per ASM (CASM) (cents)					7.50			10.76			(30.3	)
Fuel expense per ASM (cents)					2.85			6.11			(53.4	)
CASM, excluding fuel (cents)					4.65			4.65			-
Operating expense per passenger				$	74.76		$	110.00			(32.0	)
Fuel expense per passenger				$	28.38		$	62.48			(54.6	)
Operating expense per passenger, excluding fuel				$	46.38		$	47.52			(2.4	)
Departures					11,925			9,504			25.5
Block hours					26,544			21,518			23.4
Average stage length (miles)					828			838			(1.1	)
Average number of operating aircraft during period					42.3			36.7			15.3
Total aircraft in service end of period					43			37			16.2
Average departures per aircraft per day					3.10			2.84			9.2
Full-time equivalent employees at end of period					1,485			1,299			14.3
Fuel gallons consumed (thousands)					25,194			20,460			23.1
Average fuel cost per gallon				$	1.66		$	3.52			(52.8	)
Scheduled service statistics
Passengers	1,376,746 1,048,870 31.3
Revenue passenger miles (RPMs) (thousands) 1,226,282 937,923 30.7
Available seat miles (ASMs) (thousands) 1,349,958 1,036,293 30.3
Load factor		90.8	%		90.5% 0.3
Departures	10,323 7,899 30.7
Average passengers per departure 133					133 -
Block hours	23,941 18,667 28.3
Yield (cents)		7.32			9.34 (21.6	)
Scheduled service revenue per ASM (cents) 6.65					8.46 (21.4	)
Ancillary revenue per ASM (cents) 3.30					2.81 17.4

Total revenue per ASM (cents) 9.95 11.27 (11.7)
Average fare — scheduled service $65.16 $83.56 (22.0)
Average fare — ancillary 32.36 27.75 16.6

Average fare — total	$97.52 $111.31 (12.4)
Average stage length (miles) 873					881 (0.9	)
Percent of sales through website during period 85.2%					85.6% (0.4	)

* except load factor and percent of sales through website, which is percentage point change

Allegiant Travel Company
Consolidated Statements of Income
Six Months Ended June 30, 2009 and 2008
(in thousands, except per share amounts)
(Unaudited)


	Six months ended June 30,						Percent
	2009			2008			change
OPERATING REVENUE:
Scheduled service revenue	$	179,907		$	179,379			0.3
Fixed fee contract revenue		19,612			26,834			(26.9	)
Ancillary revenue		85,865			56,255			52.6
Other revenue		4,722			2,230			111.7

Total operating revenue		290,106			264,698			9.6

OPERATING EXPENSES:
Aircraft fuel		75,235			135,562			(44.5	)
Salary and benefits		47,040			34,286			37.2
Station operations		26,999			22,512			19.9
Maintenance and repairs		23,897			21,815			9.5
Sales and marketing		8,861			8,004			10.7
Aircraft lease rentals		912			1,944			(53.1	)
Depreciation and amortization		14,133			10,971			28.8
Other		10,767			10,565			1.9

Total operating expenses		207,844			245,659			(15.4	)

OPERATING INCOME		82,262			19,039			332.1

As a percent of total operating revenue		28.4	%		7.2	%
OTHER EXPENSE:
Loss on fuel derivatives, net		—			11			N/M
(Earnings) loss from unconsolidated affiliates, net		(84	)		43			N/M
Interest income		(1,381	)		(2,760	)		(50.0	)
Interest expense		2,118			2,904			(27.1	)

Total other expense		653			198			229.8

INCOME BEFORE INCOME TAXES		81,609			18,841			333.1

As a percent of total operating revenue		28.1	%		7.1	%
PROVISION FOR INCOME TAXES		29,595			6,523			353.7

NET INCOME	$	52,014		$	12,318			322.3

As a percent of total operating revenue		17.9	%		4.7	%
Earnings per share:
Basic	$	2.58		$	0.61			323.0
Diluted	$	2.54		$	0.60			323.3
Weighted average shares outstanding:
Basic		20,137			20,331			(1.0	)
Diluted		20,452			20,554			(0.5	)

Allegiant Travel Company
Operating Statistics
Six Months Ended June 30, 2009 and 2008
(Unaudited)


	Six months ended June 30,						Percent
	2009			2008			change*
OPERATING STATISTICS
Total system statistics
Passengers		2,768,754			2,308,210			20.0
Revenue passenger miles (RPMs) (thousands)		2,463,937			2,099,815			17.3
Available seat miles (ASMs) (thousands)		2,801,745			2,449,348			14.4
Load factor		87.9	%		85.7	%		2.2
Operating revenue per ASM (cents)		10.35			10.81			(4.3	)
Operating expense per ASM (CASM) (cents)		7.42			10.03			(26.0	)
Fuel expense per ASM (cents)		2.69			5.53			(51.4	)
CASM, excluding fuel (cents)		4.73			4.49			5.3
Operating expense per passenger	$	75.07		$	106.43			(29.5	)
Fuel expense per passenger	$	27.17		$	58.73			(53.7	)
Operating expense per passenger, excluding fuel	$	47.89		$	47.70			0.4
Departures		22,549			19,526			15.5
Block hours		50,952			44,931			13.4
Average stage length (miles)		835			846			(1.3	)
Average number of operating aircraft during period		40.9			35.6			14.9
Total aircraft in service end of period		43			37			16.2
Average departures per aircraft per day		3.05			3.01			1.3
Full-time equivalent employees at end of period		1,485			1,299			14.3
Fuel gallons consumed (thousands)		47,977			42,488			12.9
Average fuel cost per gallon	$	1.57		$	3.19			(50.8	)
Scheduled service statistics
Passengers		2,587,071			2,103,268			23.0
Revenue passenger miles (RPMs) (thousands)		2,328,751			1,911,171			21.8
Available seat miles (ASMs) (thousands)		2,564,789			2,156,305			18.9
Load factor		90.8	%		88.6	%		2.2
Departures		19,464			16,190			20.2
Average passengers per departure		133			130			2.3
Block hours		45,808			39,013			17.4
Yield (cents)		7.73			9.39			(17.7	)
Scheduled service revenue per ASM (cents)		7.01			8.32			(15.7	)
Ancillary revenue per ASM (cents)		3.35			2.61			28.4

Total revenue per ASM (cents)		10.36			10.93			(5.2	)
Average fare — scheduled service	$	69.54		$	85.28			(18.5	)
Average fare — ancillary		33.19			26.75			24.1

Average fare — total	$	102.73		$	112.03			(8.3	)
Average stage length (miles)		880			894			(1.7	)
Percent of sales through website during period		86.5	%		86.8	%		(0.3	)

* except load factor and percent of sales through website, which is percentage point change


Nevada	001-33166	20-4745737
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

8360 S. Durango Drive, Las Vegas, Nevada		89113
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	Allegiant Travel Company

July 22, 2009	By:	Andrew C. Levy

		Name: Andrew C. Levy
		Title: Chief Financial Officer


Exhibit No.		Description

99.1		Press Release issued by Allegiant Travel Company on July 21, 2009


Date of Report (Date of Earliest Event Reported):		July 21, 2009


Registrant’s telephone number, including area code:		702-851-7300


Unaudited ($millions)	June 30, 2009		March 31, 2009		Change ($mm)
Unrestricted cash (including short-term investments)		228.2		236.4		(8.2	)
Unrestricted cash net of air traffic liability		138.3		132.9		5.4
Total debt, including capital leases		60.7		59.3		1.4


MD-80 Aircraft in Service*	June 30, 2009		June 30, 2008
Owned (including capital leases)		39		33
Leased		4		4

Total		43		37