Q2 2024 Allegiant Travel Co Earnings Call Transcript
Key Points
- Allegiant Travel Co (ALGT) achieved a controllable completion rate of 99.7%, among the best in the industry.
- The company reported an adjusted operating margin of 10.3% for the second quarter, exceeding their guidance of 7% to 9%.
- Allegiant Travel Co (ALGT) has identified 1,400 incremental routes, mostly in underserved communities, providing significant growth opportunities.
- The Allways Rewards Visa card program saw a 34% increase in total co-brand credit card compensation, reaching nearly $40 million in Q2 2024.
- The company is focused on increasing peak utilization, with plans to achieve nine hours of utilization per aircraft per day during peak periods in 2025.
- The global vendor-induced software outage is expected to impact the company's margin by three points in the third quarter.
- Sunseeker Resorts is not meeting financial expectations, with a forecasted cash loss of $15 million for the year.
- The company is facing challenges related to Boeing delivery delays, absorbing $30 million of annual expenses not associated with productive assets.
- Third quarter peak utilization is still about 20% below 2019 levels, impacting financial performance.
- The company expects a consolidated loss per share of $3 for the third quarter, with significant impacts from the systems outage and Sunseeker losses.
Thank you for standing by. My name is Amy, and I will be your conference operator for today. At this time, I would like to welcome you to the Allegiant Travel Company's second quarter 2024 earnings call.
(Operator Instructions)
Thank you, and it is now my pleasure to turn the call over to Sherry Wilson, Managing Director of Investor Relations. Please go ahead.
Thank you, Amy. Good afternoon everyone, and welcome to the Allegiant Travel Company's second quarter 2024 earnings call. On the call with me today are Maury Gallagher, the company's Executive Chairman and CEO; Greg Anderson, President and Incoming CEO; Scott DeAngelo, our EVP and Chief marketing Officer; Drew Wells, our SVP and Chief Revenue Officer; Robert Neal, SVP and Chief Financial Officer; Micah Richins, President of Sunseeker Resorts, and a handful of others to help answer questions.
We will start the call with commentary and then open it up to questions. We ask that you please limit yourself to one question and
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