Allegiant Travel Company Files 2023 Annual Report (10-K)

TL;DR

<b>Allegiant Travel Company has filed its 2023 10-K report detailing financial performance and operational data.</b>

AI Summary

Allegiant Travel CO (ALGT) filed a Annual Report (10-K) with the SEC on February 29, 2024. Allegiant Travel Company filed its 10-K report for the fiscal year ending December 31, 2023. The company is incorporated in Nevada and operates in Scheduled Air Transportation. Its principal business address is 1201 N. Town Center Drive, Las Vegas, NV 89144. The filing includes financial data for the fiscal years 2023, 2022, and 2021. Key financial statement items referenced include Debt and Capital Lease Obligations, Property, Plant and Equipment Net, and Aircraft.

Why It Matters

For investors and stakeholders tracking Allegiant Travel CO, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Allegiant Travel's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed financial information, including balance sheet items and historical data, allows stakeholders to analyze trends in debt, assets, and equity, informing investment decisions.

Risk Assessment

Risk Level: medium — Allegiant Travel CO shows moderate risk based on this filing. The filing is a standard 10-K, which inherently contains forward-looking statements and risk factors typical for a publicly traded company in the airline industry, requiring careful review by investors.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Allegiant Travel's financial position and operational challenges for 2023.

Key Numbers

• 159,051 — Debt and Capital Lease Obligations (As of December 31, 2023)
• 4,953 — Property, Plant and Equipment Net (As of December 31, 2023)
• 196,620 — Aircraft (As of December 31, 2023)

Key Players & Entities

• Allegiant Travel CO (company) — Filer
• 2023-12-31 (date) — Fiscal year end
• 2024-02-29 (date) — Filing date
• Las Vegas (location) — Business address city
• NV (location) — Business address state
• 89144 (location) — Business address zip
• 702-851-7300 (phone) — Business phone
• AIR TRANSPORTATION, SCHEDULED (industry) — Standard Industrial Classification

FAQ

Industry Context

Allegiant Travel operates within the scheduled air transportation industry, a sector characterized by high capital expenditures, regulatory oversight, and sensitivity to economic conditions.

Regulatory Implications

As an airline, Allegiant Travel is subject to extensive regulation by the Federal Aviation Administration (FAA) and other governmental bodies concerning safety, operations, and consumer protection.

What Investors Should Do

1. Review the consolidated financial statements for detailed revenue, expense, and balance sheet figures.
2. Analyze the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Examine the Risk Factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-29: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year ending December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 Par Value ALGT Nasdaq Global Select Mar
• $5.87 — e related to these ancillary items from $5.87 per passenger in 2004 to $72.90 per pas
• $72.90 — ems from $5.87 per passenger in 2004 to $72.90 per passenger in 2023. We own and manag

Filing Documents

• algt-20231231.htm (10-K) — 1886KB
• a47descriptionofregistrant.htm (EX-4.7) — 32KB
• a10100-carlylepdpfacilityr.htm (EX-10.100) — 785KB
• a10101-carlylepdpguarantee.htm (EX-10.101) — 64KB
• a10102-carlylepdppurchasea.htm (EX-10.102) — 76KB
• a212023listofsubsidiaries.htm (EX-21) — 12KB
• a231202310kconsentofkpmgllp.htm (EX-23.1) — 2KB
• a3112023rule13a-14a15dx14a.htm (EX-31.1) — 10KB
• a3122023rule13a-14a15dx14a.htm (EX-31.2) — 10KB
• a322023section135certifica.htm (EX-32) — 7KB
• algt-20231231_g1.jpg (GRAPHIC) — 82KB
• algt-20231231_g2.jpg (GRAPHIC) — 5158KB
• algt-20231231_g3.jpg (GRAPHIC) — 98KB
• 0001362468-24-000007.txt (&nbsp;) — 24403KB
• algt-20231231.xsd (EX-101.SCH) — 63KB
• algt-20231231_cal.xml (EX-101.CAL) — 100KB
• algt-20231231_def.xml (EX-101.DEF) — 200KB
• algt-20231231_lab.xml (EX-101.LAB) — 722KB
• algt-20231231_pre.xml (EX-101.PRE) — 449KB
• algt-20231231_htm.xml (XML) — 1415KB

Risk Factors

ITEM 1A. Risk Factors 19

Unresolved Staff Comments

ITEM 1B. Unresolved Staff Comments 29

Cybersecurity

ITEM 1C. Cybersecurity 29

Properties

ITEM 2. Properties 31

Legal Proceedings

ITEM 3. Legal Proceedings 33

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 33 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34

(Reserved)

ITEM 6. (Reserved) 36

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 37

Quantitative and Qualitative Disclosures about Market Risk

ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk 52

Financial Statements and Supplementary Data

ITEM 8. Financial Statements and Supplementary Data 53

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 87

Controls and Procedures

ITEM 9A. Controls and Procedures 87

Other Information

ITEM 9B. Other Information 87

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 87 PART III

Directors, Executive Officers and Corporate Governance

ITEM 10. Directors, Executive Officers and Corporate Governance 89

Executive Compensation

ITEM 11. Executive Compensation 89

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 89

Certain Relationships and Related Transactions, and Director Independence

ITEM 13. Certain Relationships and Related Transactions, and Director Independence 89

Principal Accountant Fees and Services

ITEM 14. Principal Accountant Fees and Services 89 PART IV

Exhibits and Financial Statement Schedules

ITEM 15. Exhibits and Financial Statement Schedules 90

Form 10-K Summary

ITEM 16. Form 10-K Summary 96

Signatures

Signatures 97 2 PART I DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS We have made forward-looking statements in this annual report on Form 10-K, and in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations," that are based on our management's beliefs and assumptions, and on information currently available to our management. Forward-looking statements include our statements regarding future expenses, revenues, earnings, available seat mile (ASM) growth, fuel cost and consumption, expected capital expenditures, number of contracted aircraft to be placed in service in the future, our ability to consummate announced aircraft transactions, timing of aircraft deliveries and retirements, number of possible future markets that may be served, the implementation of a joint alliance with VivaAerobus, the operation of our Sunseeker Resort, 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," "hope" 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 and registration statements filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, the impact of regulatory reviews of Boeing on its aircraft delivery schedule, an accident in

Business

Item 1. Business Overview We are a leisure travel company focused on providing travel and leisure services and products to residents of under-served cities in the United States. We were founded in 1997 and, in conjunction with our initial public offering in 2006, we incorporated in the state of Nevada. Our unique business model provides diversified revenue streams from various travel services and product offerings which distinguish us from other travel companies. We operate a low-cost, low utilization passenger airline marketed primarily to leisure travelers in under-served cities, allowing us to sell air transportation both on a stand-alone basis and bundled with the sale of air-related and third party services and products. In addition, we provide air transportation under fixed fee flight arrangements. Our developed nation-wide route network, pricing philosophy, direct distribution, award-winning loyalty programs, advertising, and product offerings built around relationships with premier leisure companies, are all intended to appeal to leisure travelers and make it attractive for them to purchase air travel and related services and products from us. In connection with our leisure travel focus, we opened Sunseeker Resort Charlotte Harbor on December 15, 2023. The resort has 785 guestrooms (including suites) and 20 curated food and beverage outlets. Below is a brief description of the travel services and products we provide to our airline customers: Scheduled service air transportation. We provide scheduled air transportation on limited-frequency, nonstop flights predominantly between under-served cities and popular leisure destinations. As of February 1, 2024, our operating fleet consisted of 126 Airbus A320 series aircraft. As of that date, we were selling travel on 555 routes to 124 cities. Of these routes, 428 of them are unique routes which do not have any current nonstop competition. In this document, references to "Airbus A320 series aircraft" are i

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View this 10-K filing on SEC EDGAR