Allegiant Travel Company Third Quarter 2013 Financial Results

LAS VEGAS. Oct. 23, 2013 -Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the third quarter 2013, as well as comparisons to prior year equivalents:

“We are very proud to report our 43rd consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “We are pleased to produce another profitable quarter and be able to return cash to shareholders through our share repurchase program. In addition, I am proud to announce that Andrew Levy has been added to our Board of Directors and will also assume the role of Chief Operating Officer. His proven leadership abilities and extensive operational and financial expertise, as well as a deep understanding of the airline business, will be invaluable in his new role as COO.”

“Finally, we were significantly challenged operationally at the end of September many of our MD-80s were taken out of service due to an evacuation slide issue. Through the tireless efforts of our Team Members, we were able to minimize the disruption to our customers. I am very thankful to all of those individuals who worked extremely hard to put the operation back together in such a short amount of time.”

Notable Company Highlights

Completed the acquisition of five Airbus A320 aircraft. The company now owns seven A320s

Repurchased 491,000 shares for $47 million during the third quarter, average purchase price of $95.85 per share

Announced service from nine existing cities to Punta Gorda (Southwest Florida) to begin in the fourth quarter

Announced service to 12 new cities with service beginning in the fourth quarter and first quarter

Announced 29 new routes which will begin operation in the fourth quarter

Average aircraft in service was flat versus last quarter as we retired three MD-80 aircraft and temporarily grounded two MD-80 aircraft early in the quarter

Increasing MD-80 operating fleet from 52 at the end of the year to 53 in the first quarter of 2014

Third Quarter 2013 Revenue Performance

15th consecutive quarter of year over year increases in total average fare, 4.8 percent higher than a year ago

Florida TRASM grew by 9.6 percent despite 12.7 percent growth in ASMs

Same store markets, those which were operated in both the third quarter 2013 and 2012, generated a 5.0 percent increase in TRASM

Grew scheduled load factor to 90.8 percent despite a 4.2 percent increase in seats per departure

The September slide interruption resulted in approximately $1 million in refunds given to customers

Third Quarter 2013 Cost Performance

Fuel expense per ASM declined 3.9 percent primarily due to a 5.8 percent increase in ASMs per gallon versus last year, which more than offset a 1.9 percent increase in average cost per gallon

Operating expense excluding fuel was negatively impacted by lower aircraft utilization and approximately $2 million in expense attributable to the evacuation slide interruption. The expense associated with the slide event is isolated to September and resulted in higher aircraft lease rentals expense as we contracted with other carriers for sub-service of aircraft to move some of our customers, higher station operations expense due to customer interrupted trip costs, and increased salary and benefits expense due to additional overtime

Salary and benefits expense per passenger increased 15 percent versus last year primarily due to an increase in the number of full time equivalents to support our growth, higher stock-based compensation expense and the continuation of the higher pay band for pilots which began in November 2012. The current pay band will continue through April 2014 when it will be subject to adjustment based on a trailing 12 month profitability test. Based on our forecasted profitability, we currently expect the pilot pay band to remain unchanged

Depreciation and amortization expense per passenger increased 8 percent primarily due to a change in estimated MD-80 engine residual values and useful life, and operating a larger contingent of 166 seat MD-80 aircraft

Other expense per passenger increased 31 percent due to a higher write-down of engine values in our consignment program compared to the prior year, non capitalizable information technology development costs, crew training for our growing Airbus fleet and costs to support a seasonal operating base in Los Angeles

Fourth Quarter 2013 Cost Trends

Salary and benefits expense is expected to increase due to additional staff required to support our growth

Maintenance and repair expense is expected to be slightly higher than fourth quarter 2012. For the full year, maintenance expense per aircraft per month is expected to be $100 thousand to $105 thousand as previously guided

Aircraft utilization is expected to decline 1.5%, which will pressure ex fuel unit costs when compared to fourth quarter 2012

Depreciation and amortization expense is expected to increase as seven A320 aircraft are scheduled to enter service in the fourth quarter. For the full year, depreciation per aircraft per month is expected to be between $92 thousand and $95 thousand, as previously guided

Third Party Products Performance

Rental car days increased 6.5 percent primarily due to a 18 percent increase in Florida passengers

Hotel net revenue excluding the effect of an air discount was higher by 39 percent versus last year. The company has phased out offering an air discount which has historically subsidized hotel sales

Balance Sheet Highlights

Repurchased 491,000 shares for $47 million and have over $43 million in repurchase authority remaining. Year to date, the company has repurchased 880,991 shares at an average price of $85.64 per share

Issued $48.0 million in debt secured by four Airbus aircraft

Pre-paid $10.5 million in debt secured by four 757 aircraft

Spent $84.5 million in capital expenditures in the third quarter, the majority of which was driven by the purchase of five Airbus A320 aircraft

Closed a $10 million debt financing in October, secured by our new headquarters building acquired earlier this year