Allegiant Travel CO - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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Exhibit 99.1

ALLEGIANT TRAVEL COMPANY FOURTH QUARTER AND FULL YEAR 2013

FINANCIAL RESULTS

44th Consecutive Profitable Quarter

Fourth Quarter Fully Diluted Earnings per Share of $0.94

Full Year Fully Diluted Earnings per Share of $4.82

LAS VEGAS. January 29, 2014 —Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for both the fourth quarter and full year 2013, as well as comparisons to prior year equivalents:



Unaudited	Three months ended December 31,								Twelve months ended December 31,
	2013			2012			Change		2013			2012			Change
Total operating revenue (millions)		$238.5			$222.8		7.0	%		$996.2			$908.7		9.6	%
Operating income (millions)		$30.3			$25.4		19.3	%		$154.7			$132.3		17.0	%
Operating margin	12.7		%	11.4		%	1.3pp		15.5		%	14.6		%	0.9pp
EBITDA (millions)		$47.9			$42.2		13.5	%		$224.9			$190.1		18.3	%
EBITDA margin	20.1		%	18.9		%	1.2pp		22.6		%	20.9		%	1.7pp
EBITDAR (millions)		$53.4			$42.2		26.5	%		$234.1			$190.1		23.2	%
EBITDAR margin	22.4		%	18.9		%	3.5pp		23.5		%	20.9		%	2.6pp
Net income (millions)		$17.5			$14.8		18.2	%		$92.3			$78.6		17.4	%
Diluted earnings per share		$0.94			$0.76		23.7	%		$4.82			$4.06		18.7	%
Return on capital employed									16.4		%	15.6		%	0.8pp

“We are very proud to report our 44th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “This is the second consecutive year that we have grown both full year EBITDA and operating margin. As we continue to add more efficient Airbus aircraft to our operating fleet, we have the opportunity to continue margin improvement going forward. Thank you for the tireless efforts of our Team Members whose contributions were critical to our successful 2013."

Notable fourth quarter and full year 2013 company highlights


•	Added the Airbus A320 and A319 onto the Allegiant operating certificate


•	Ended 2013 with three A319 and five A320 aircraft in service. Added two more A320 aircraft in January 2014


•	Retired five MD-80 aircraft


•	Completed the conversion of 51 MD-80 aircraft to 166 seats. Will add two more MD-80 aircraft configured with 166 seats to the fleet in March 2014. We expect our MD-80 fleet to remain at 53 aircraft for the foreseeable future


•	Returned $83 million to shareholders through the repurchase of 913,806 shares in 2013


•	Paid a special dividend of $2.25 per share in early January 2014

Allegiant Q4 and FY 2013 Earnings

Page 2


•	Added 44 new routes in 2013. Announced five new routes and two new cities starting service first quarter 2014


•	Delivered Allegiant2Go Mobile Boarding Pass functionality in the fourth quarter


•	Broadened third-party purchase options via one-way package and hotel-only booking path


•	Executed a new agreement with a large Las Vegas gaming company for the pre-purchase of rooms at discounted rates


•	Entered into a new three year agreement with Enterprise Holdings Inc. for the sale of rental cars


•	Included on the 100 America's Best Small Companies list by Forbes magazine

Fourth quarter and full year 2013 revenue performance


•	Full year ancillary air-related charges per passenger has increased every year for eight consecutive years


•	16th consecutive quarter of year over year increases in total fare, four percent higher than a year ago


•	Fourth quarter Florida TRASM grew by two percent despite a 35 percent growth in ASMs


•	Same store routes, those operated in both the fourth quarter 2013 and 2012, generated a three percent increase in TRASM



	4Q13			4Q12			Change		FY13			FY12			Change
Scheduled Service:
Average fare - scheduled service		$94.24			$88.59		6.4	%		$91.69			$88.90		3.1	%
Average fare - ancillary air-related charges		$40.63			$39.89		1.9	%		$40.52			$35.72		13.4	%
Average fare - ancillary third party products		$4.36			$5.19		(16.0	)%		$5.21			$5.48		(4.9	)%
Average fare - total		$139.22			$133.67		4.2	%		$137.43			$130.10		5.6	%
Scheduled service passenger revenue per ASM (PRASM) (cents)	8.32			7.99			4.1	%	8.25			8.43			(2.1	)%
Total scheduled service revenue per ASM (TRASM) (cents)	12.29			12.06			1.9	%	12.37			12.33			0.3	%
Load factor	85.2		%	86.5		%	-1.3pp		88.9		%	89.4		%	-0.5pp
Passengers (millions)	1.7			1.6			6.1	%	7.1			6.6			7.8	%
Average passengers per departure	141			141			—	%	147			140			5.0	%
Average scheduled service stage length (miles)	940			930			1.1	%	952			918			3.7	%

ASMs = available seat miles

PRASM = scheduled passenger revenue per scheduled available seat mile

TRASM = (scheduled passenger revenue + ancillary air revenue + ancillary third party revenue) per scheduled available seat mile

Fourth quarter and full year 2013 cost performance


•	Full year 2013 fuel expense per ASM declined six percent primarily due to a two percent decrease in gallons per passenger. This fuel savings more than offset the one percent increase in average fuel cost per gallon. Full year system ASMs per gallon increased seven percent versus 2012

•

Full year 2013 CASM ex fuel rose five percent versus last year in part because aircraft utilization declined four percent. CASM ex fuel was also negatively impacted by expenses due to an operational disruption in September, and the FAA shutdown and the subsequent delay in placing A320s into service in December. The A320 delay drove higher expense in aircraft lease rentals as we contracted with other carriers for sub-service to fly scheduled flights, reduced crew productivity and increased expenses to temporarily assign flight crews to bases to support unplanned MD-80 flying in place of planned A320 flying


•	Fourth quarter salary and benefits expense increased 17 percent due to a 13 percent increase in full time equivalent employees to support fleet growth and more inflight staff to crew larger gauge MD-80 aircraft, increased bonus accrual which is tied to higher levels of profitability and higher stock compensation expense


•	Fourth quarter sales and marketing expense increased 46 percent due to advertising to support the launch of new routes

Allegiant Q4 and FY 2013 Earnings

Page 3


•	Fourth quarter aircraft lease rental expense was $5.5 million due to having two leased aircraft (none a year ago) and $4.2 million of sub-service expense due to the delays in planned A320 flying


•	Fourth quarter other expense increased 16 percent due to increases in flight crew training, contractor IT development resources, and losses on consignment and disposal of assets


•	Certain fourth quarter non-cash expenses totaled $5.4 million for the quarter and $19.3 million for the year. Please see the non-cash expense table in the Non-GAAP presentation for further detail



	4Q13		4Q12		Change	FY13		FY12		Change
Total System*:
Operating expense per passenger		$121.80		$118.49	2.8%		$116.20		$111.12	4.6%
Operating expense per passenger, excluding fuel		$68.68		$63.50	8.2%		$62.95		$56.99	10.5%
Operating expense per ASM (CASM) (cents)	10.61		10.50		1.0%	10.33		10.37		(0.4)%
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents)	5.98		5.63		6.2%	5.60		5.32		5.3%
Average block hours per aircraft per day	5.3		5.3		—%	5.5		5.7		(3.5)%
Average system stage length (miles)	922		882		4.5%	933		872		7.0%

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

Full year and first quarter 2014 cost trends


•	Full year CASM ex fuel is expected to increase between four and seven percent due to a more normalized maintenance and repair expense of between $100 thousand and $110 thousand per aircraft per month, start-up expenses in non-airline subsidiaries (which do not generate airline capacity or ASMs) and continued investment in operations and IT management

•

First quarter 2014 CASM ex fuel is expected to increase between 13 and 15 percent due to expenses associated with the delay in training A320 crews resulting from the FAA shutdown and its continued effects and the subsequent delay in placing the A320 on the certificate, lower than planned capacity growth due to the same issue, higher maintenance expense due to substantially more heavy maintenance events scheduled in the quarter, and start-up expenses in two new non airline initiatives which do not generate airline capacity or ASMs. The effects of the A320 delays and non-airline activities are expected to account for 53 percent of the increase in CASM ex fuel for the quarter

Third party products performance


•	Full year transportation net revenue (revenue derived from car rentals) increased 11 percent


•	Las Vegas represented 82 percent of hotel net revenue in 2013, down from 87 percent in 2012 and 90 percent in 2011


•	Full year hotel net revenue excluding the effect of an air discount increased 25 percent versus last year. In the fourth quarter of 2012, the company phased out offering an air discount tied to hotel sales in order to increase overall company profitability



Supplemental Ancillary Revenue Information Unaudited (millions)	4Q13			4Q12			Change		FY13			FY12			Change
Gross ancillary revenue - third party products		$23.8			$24.9		(4.4	)%		$120.7			$119.0		1.4	%
Cost of goods sold		($16.2	)		($16.2	)	—	%		($81.9	)		($79.0	)	3.7	%
Transaction costs*		($0.2	)		($0.6	)	(66.7	)%		($1.8	)		($3.9	)	(53.8	)%
Ancillary revenue - third party products		$7.3			$8.2		(11.0	)%		$37.0			$36.1		2.5	%
As percent of gross	30.7		%	32.8		%	(2.1)pp		30.7		%	30.3		%	0.4pp
As percent of income before taxes	26.3		%	34.9		%	(8.6)pp		25.2		%	29.0		%	(3.8)pp
Ancillary revenue - third party products/scheduled passenger		$4.36			$5.19		(16.0	)%		$5.21			$5.48		(4.9	)%

Hotel room nights (thousands)	124.7			137.5			(9.3	)%	595.7			690.1			(13.7	)%
Rental car days (thousands)	160.7			169.1			(5.0	)%	844.9			763.4			10.7	%

* - Includes payment expenses and travel agency commissions.

Allegiant Q4 and FY 2013 Earnings

Page 4

Balance sheet highlights


•	Returned $42 million to shareholders through a special dividend of $2.25 per share


•	Repurchased 913,806 shares of common stock for $83 million in 2013. The company has $40 million in repurchase authority remaining


•	Cumulative return of capital in the form of re-purchases of shares and special dividends totals $277 million as of January 2014


•	$178 million in capital expenditures during 2013, 83 percent for the purchase of eight Airbus series aircraft and a new headquarters building


•	Issued $106 million in debt in 2013, $96 million secured by eight A320 series aircraft and $10 million by the new headquarters building


•	Paid down $23 million in debt including $10.5 million previously secured by four 757 aircraft. $9 million in debt remains secured by the remaining two 757 aircraft in our fleet as well as a term loan due in 2017 of $122 million secured by MD-80 aircraft and parts


•	2014 CAPEX is expected to be between $60 and $80 million primarily driven by two A320 purchases occurring at the end of 2014 and IT projects



Unaudited (millions)	12/31/2013		12/31/2012		Change
Unrestricted cash*		$387.1		$352.7	9.8	%
Total debt		$234.3		$150.9	55.3	%
Total Allegiant Travel Company stockholders’ equity		$375.7		$400.5	(6.2	)%

* - Unrestricted cash includes investments in marketable securities.

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

Allegiant Q4 and FY 2013 Earnings

Page 5



Guidance, subject to revision

Revenue guidance	January 2014	1Q14
Estimated PRASM year-over-year change	6.5 to 8.5%	(2) to 0%
Estimated TRASM year-over-year change	2 to 4%	(4) to (2)%

Fixed fee and other revenue guidance		1Q14
Fixed fee and other revenue (millions)		$1 to $3

Capacity guidance
System	1Q14	2Q14	FY14
Departure year-over-year growth	8 to 12%	10 to 14%
ASM year-over-year growth	10 to 14%	8 to 12%	9 to 13%
Scheduled
Departure year-over-year growth	8 to 12%	10 to 14%
ASM year-over-year growth	10 to 14%	8 to 12%	9 to 13%

Cost guidance	1Q14		FY14
CASM ex fuel – year-over-year change	13 to 15%		4 to 7%
CASM - year-over-year change	4 to 6%		1 to 4%
Assumed fuel cost per gallon	$3.32		$3.22

CAPEX guidance			FY14
Capital expenditures (millions)			$60 to $80

CASM ex fuel – cost per available seat mile excluding fuel expense

CASM - total operating expenses / system ASMs

Fuel assumptions are modeled as of January 20, 2014



Aircraft fleet plan by end of period

Aircraft	YE13	1Q14	YE14	YE15
MD-80 (150)	1	—	—	—
MD-80 (166*)	51	53	53	53
757	6	6	6	6
A319	3	3	4	10
A320	5	7	7	9
Total	66	69	70	78

Aircraft listed in table above include only in service aircraft

* - MD-80s converted to 166 seats from 150 seats

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, January 29, 2014 to discuss its fourth quarter and full year 2013 financial results. A live broadcast of the conference call will be available via the Company’s Investor Relations website homepage at http://ir.allegiant.com. The webcast will also be archived in the “Events & Presentations” section of the website.

Allegiant Q4 and FY 2013 Earnings

Page 6

Allegiant, Travel is our deal.®

Las Vegas-based Allegiant Travel Company® (NASDAQ: ALGT) is focused on linking travelers in small cities to world-class leisure destinations. Through its subsidiary, Allegiant Air, the company operates a low-cost, high-efficiency, all-jet passenger airline, and offers other travel-related products such as hotel rooms, rental cars, and attraction tickets through its website, allegiant.com. The company has been named one of America’s 100 Best Small Companies by Forbes Magazine for four consecutive years. ALGT/G

Media Inquiries: Brian Davis

mediarelations@allegiantair.com

Investor Inquiries: Chris Allen

ir@allegiantair.com

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 unit revenue, future operating expense, ASM growth, departure growth, fixed-fee and other revenues, expected capital expenditures, number of contracted aircraft to be placed in service in the future, timing of aircraft retirements, 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," “guidance,” "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 filed with the Securities and Exchange Commission at www.sec.gov . These risk factors include, without limitation, volatility of fuel costs, labor issues, the effect of the economic downturn on leisure travel, debt covenants, terrorist attacks, risks inherent to airlines, our introduction of an additional aircraft type, demand for air services to our leisure destinations from the markets served by us, our dependence on our leisure destination markets, our competitive environment, problems with our aircraft, our reliance on our automated systems, economic and other conditions in markets in which we operate, aging aircraft and other governmental regulation, increases in maintenance costs 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.

Detailed financial information follows:

Allegiant Travel Company

Consolidated Statements of Income

Three months ended December 31, 2013 and 2012

(in thousands, except per share amounts)

(Unaudited)



	Three months ended December 31,						Percent
	2013			2012			change
OPERATING REVENUE:
Scheduled service revenue		$157,619			$139,668		12.9
Ancillary revenue:
Air-related charges	67,952			62,899			8.0
Third party products	7,297			8,184			(10.8	)
Total ancillary revenue	75,249			71,083			5.9
Fixed fee contract revenue	5,194			11,375			(54.3	)
Other revenue	409			712			(42.6	)
Total operating revenue	238,471			222,838			7.0
OPERATING EXPENSES:
Aircraft fuel	90,797			91,638			(0.9	)
Salary and benefits	39,676			33,933			16.9
Station operations	19,561			20,655			(5.3	)
Maintenance and repairs	16,045			19,029			(15.7	)
Sales and marketing	5,951			4,081			45.8
Aircraft lease rentals	5,534			—			NM
Depreciation and amortization	17,374			16,667			4.2
Other	13,251			11,458			15.6
Total operating expenses	208,189			197,461			5.4
OPERATING INCOME	30,282			25,377			19.3
As a percent of total operating revenue	12.7		%	11.4		%
OTHER (INCOME) EXPENSE:
Earnings from unconsolidated affiliates, net	(9		)	(43		)	(79.1	)
Interest income	(238		)	(242		)	(1.7	)
Interest expense	2,754			2,210			24.6
Total other (income) expense	2,507			1,925			30.2
INCOME BEFORE INCOME TAXES	27,775			23,452			18.4
As a percent of total operating revenue	11.6		%	10.5		%
PROVISION FOR INCOME TAXES	10,510			8,810			19.3
NET INCOME	17,265			14,642			17.9
Net loss attributable to noncontrolling interest	(211		)	(124		)	70.2
NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY	17,476			14,766			18.4
Earnings per share to common stockholders (1):
Basic		$0.96			$0.78		23.1
Diluted		$0.94			$0.76		23.7
Weighted average shares outstanding used in computing earnings per share to common stockholders (1):
Basic	18,424			19,154			(3.8	)
Diluted	18,596			19,371			(4.0	)

(1) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of earnings per share. The two-class method adjusts both the net income and shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.

Allegiant Travel Company

Operating Statistics

Three months ended December 31, 2013 and 2012

(Unaudited)



	Three months ended December 31,						Percent
	2013			2012			change*
OPERATING STATISTICS
Total system statistics
Passengers	1,709,289			1,666,501			2.6
Revenue passenger miles (RPMs) (thousands)	1,646,717			1,578,841			4.3
Available seat miles (ASMs) (thousands)	1,961,632			1,879,791			4.4
Load factor	83.9		%	84.0		%	(0.1	)
Operating revenue per ASM (RASM) (cents)	12.16			11.85			2.6
Operating expense per ASM (CASM) (cents)	10.61			10.50			1.0
Fuel expense per ASM (cents)	4.63			4.87			(4.9	)
Operating CASM, excluding fuel (cents)	5.98			5.63			6.2
Operating expense per passenger		$121.80			$118.49		2.8
Fuel expense per passenger		$53.12			$54.99		(3.4	)
Operating expense per passenger, excluding fuel		$68.68			$63.50		8.2
ASMs per gallon of fuel	68.4			65.6			4.3
Departures	12,477			12,802			(2.5	)
Block hours	30,253			30,223			0.1
Average stage length (miles)	922			882			4.5
Average number of operating aircraft during period	61.9			62.1			(0.3	)
Average block hours per aircraft per day	5.3			5.3			—
Full-time equivalent employees at period end	2,065			1,821			13.4
Fuel gallons consumed (thousands)	28,680			28,668			—
Average fuel cost per gallon		$3.17			$3.20		(0.9	)
Scheduled service statistics
Passengers	1,672,604			1,576,641			6.1
Revenue passenger miles (RPMs) (thousands)	1,615,074			1,512,063			6.8
Available seat miles (ASMs) (thousands)	1,894,958			1,747,920			8.4
Load factor	85.2		%	86.5		%	(1.3	)
Departures	11,821			11,192			5.6
Average passengers per departure	141			141			—
Scheduled service seats per departure	168.3			165.4			1.8
Block hours	29,045			27,527			5.5
Yield (cents)	9.76			9.24			5.6
Scheduled service revenue per ASM (PRASM) (cents)	8.32			7.99			4.1
Total ancillary revenue per ASM (cents)	3.97			4.07			(2.5	)
Total scheduled service revenue per ASM (TRASM) (cents)	12.29			12.06			1.9
Average fare - scheduled service		$94.24			$88.59		6.4
Average fare - ancillary air-related charges		$40.63			$39.89		1.9
Average fare - ancillary third party products		$4.36			$5.19		(16.0	)
Average fare - total		$139.22			$133.67		4.2
Average stage length (miles)	940			930			1.1
Fuel gallons consumed (thousands)	27,653			26,368			4.9
Average fuel cost per gallon		$3.21			$3.37		(4.7	)
Percent of sales through website during period	94.2		%	91.7		%	2.5

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

Allegiant Travel Company

Consolidated Statements of Income

Twelve months ended December 31, 2013 and 2012

(in thousands, except per share amounts)

(Unaudited)



	Twelve months ended December 31,						Percent
	2013			2012			change
OPERATING REVENUE:
Scheduled service revenue		$651,318			$586,036		11.1
Ancillary revenue:
Air-related charges	287,857			235,436			22.3
Third party products	37,030			36,124			2.5
Total ancillary revenue	324,887			271,560			19.6
Fixed fee contract revenue	17,462			42,905			(59.3	)
Other revenue	2,483			8,218			(69.8	)
Total operating revenue	996,150			908,719			9.6
OPERATING EXPENSES:
Aircraft fuel	385,558			378,195			1.9
Salary and benefits	158,627			133,295			19.0
Station operations	78,231			78,357			(0.2	)
Maintenance and repairs	72,818			73,897			(1.5	)
Sales and marketing	21,678			19,222			12.8
Aircraft lease rentals	9,227			—			NM
Depreciation and amortization	69,264			57,503			20.5
Other	46,010			35,946			28.0
Total operating expenses	841,413			776,415			8.4
OPERATING INCOME	154,737			132,304			17.0
As a percent of total operating revenue	15.5		%	14.6		%
OTHER (INCOME) EXPENSE:
Earnings from unconsolidated affiliates, net	(393		)	(99		)	297.0
Interest income	(1,043		)	(983		)	6.1
Interest expense	9,493			8,739			8.6
Total other (income) expense	8,057			7,657			5.2
INCOME BEFORE INCOME TAXES	146,680			124,647			17.7
As a percent of total operating revenue	14.7		%	13.7		%
PROVISION FOR INCOME TAXES	54,900			46,233			18.7
NET INCOME	91,780			78,414			17.0
Net loss attributable to noncontrolling interest	(493		)	(183		)	169.4
NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY	92,273			78,597			17.4
Earnings per share to common stockholders (1):
Basic		$4.85			$4.10		18.3
Diluted		$4.82			$4.06		18.7
Weighted average shares outstanding used in computing earnings per share to common stockholders (1):
Basic	18,936			19,079			(0.7	)
Diluted	19,050			19,276			(1.2	)

Allegiant Travel Company

Operating Statistics

Twelve months ended December 31, 2013 and 2012

(Unaudited)



	Twelve months ended December 31,						Percent
	2013			2012			change*
OPERATING STATISTICS
Total system statistics
Passengers	7,241,063			6,987,324			3.6
Revenue passenger miles (RPMs) (thousands)	7,129,416			6,514,056			9.4
Available seat miles (ASMs) (thousands)	8,146,135			7,487,276			8.8
Load factor	87.5		%	87.0		%	0.5
Operating revenue per ASM (RASM) (cents)	12.23			12.14			0.7
Operating expense per ASM (CASM) (cents)	10.33			10.37			(0.4	)
Fuel expense per ASM (cents)	4.73			5.05			(6.3	)
Operating CASM, excluding fuel (cents)	5.60			5.32			5.3
Operating expense per passenger		$116.20			$111.12		4.6
Fuel expense per passenger		$53.25			$54.13		(1.6	)
Operating expense per passenger, excluding fuel		$62.95			$56.99		10.5
ASMs per gallon of fuel	67.6			63.0			7.3
Departures	51,083			53,615			(4.7	)
Block hours	125,449			124,610			0.7
Average stage length (miles)	933			872			7.0
Average number of operating aircraft during period	62.9			60.2			4.5
Average block hours per aircraft per day	5.5			5.7			(3.5	)
Full-time equivalent employees at period end	2,065			1,821			13.4
Fuel gallons consumed (thousands)	120,476			118,839			1.4
Average fuel cost per gallon		$3.20			$3.18		0.6
Scheduled service statistics
Passengers	7,103,375			6,591,707			7.8
Revenue passenger miles (RPMs) (thousands)	7,015,108			6,220,320			12.8
Available seat miles (ASMs) (thousands)	7,892,896			6,954,408			13.5
Load factor	88.9		%	89.4		%	(0.5	)
Departures	48,389			46,995			3.0
Average passengers per departure	147			140			5.0
Scheduled service seats per departure	168.4			159.7			5.4
Block hours	120,620			113,671			6.1
Yield (cents)	9.28			9.42			(1.5	)
Scheduled service revenue per ASM (PRASM) (cents)	8.25			8.43			(2.1	)
Total ancillary revenue per ASM (cents)	4.12			3.90			5.6
Total scheduled service revenue per ASM (TRASM) (cents)	12.37			12.33			0.3
Average fare - scheduled service		$91.69			$88.90		3.1
Average fare - ancillary air-related charges		$40.52			$35.72		13.4
Average fare - ancillary third party products		$5.21			$5.48		(4.9	)
Average fare - total		$137.43			$130.10		5.6
Average stage length (miles)	952			918			3.7
Fuel gallons consumed (thousands)	116,370			109,257			6.5
Average fuel cost per gallon		$3.25			$3.37		(3.6	)
Percent of sales through website during period	92.0		%	90.1		%	1.9

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

Allegiant Travel Company

Non-GAAP Presentations

Three and Twelve Months Ended December 31, 2013 and 2012

(Unaudited)

"EBITDA" represents earnings before interest expense, income taxes, depreciation and amortization. EBITDAR is EBITDA less aircraft rentals. Neither EBITDA nor EBITDAR is a calculation based on generally accepted accounting principles and should not be considered as an alternative to net income or operating income as indicators of our financial performance or to cash flow as a measure of liquidity. EBITDA and EBITDAR are included as supplemental disclosures because we believe they are useful indicators of our operating performance. Further, both EBITDA and EBITDAR are well-recognized performance measurements that are frequently used by securities analysts, investors and other interested parties in comparing the operating performance of companies. We believe EBITDA and EBITDAR are useful in evaluating our operating performance compared to our competitors because their calculation generally eliminates the effects of financing and income taxes and the accounting effects of capital spending and acquisitions and lease versus purchase decisions, which items may vary between periods and for different companies for reasons unrelated to overall operating performance. The following represents the reconciliation of EBITDA and EBITDAR to net income for the periods indicated below.

The SEC has adopted rules (Regulation G) regulating the use of non-GAAP financial measures. Because of our use of the non-GAAP financial measures EBITDA and EBITDAR to supplement our consolidated financial statements presented on a GAAP basis, Regulation G requires us to include in this press release a presentation of the most directly comparable GAAP measure, which is net income, and a reconciliation of the non-GAAP measures to the most comparable GAAP measure. Our utilization of non-GAAP measurements is not meant to be considered in isolation or as a substitute for net income or other measures of financial performance prepared in accordance with GAAP. Neither EBITDA nor EBITDAR is a GAAP measurement and our use of these measures may not be comparable to similarly titled measures employed by other companies in the airline and travel industry. The reconciliations to GAAP net income follow.



	Three months ended December 31,						Percent
(in thousands)	2013			2012			change
Net income attributable to Allegiant Travel Company	17,476			14,766			18.4	%
Plus (minus)
Interest income	(238		)	(242		)	(1.7	)%
Interest expense	2,754			2,210			24.6	%
Provision for income taxes	10,510			8,810			19.3	%
Depreciation and amortization	17,374			16,667			4.2	%
EBITDA		$47,876			$42,211		13.4	%
Aircraft lease rentals	5,534			—			NM
EBITDAR		$53,410			$42,211		26.5	%

Total revenue		$238,471			$222,838		7.0	%
EBITDA margin	20.1		%	18.9		%	1.2 pp
EBITDAR margin	22.4		%	18.9		%	3.5 pp



	Twelve months ended December 31,						Percent
(in thousands)	2013			2012			change
Net income attributable to Allegiant Travel Company	92,273			78,597			17.4	%
Plus (minus)
Interest income	(1,043		)	(983		)	6.1	%
Interest expense	9,493			8,739			8.6	%
Provision for income taxes	54,900			46,233			18.7	%
Depreciation and amortization	69,264			57,503			20.5	%
EBITDA		$224,887			$190,089		18.3	%
Aircraft lease rentals	9,227			—			NM
EBITDAR		$234,114			$190,089		23.2	%

Total revenue		$996,150			$908,719		9.6	%
EBITDA margin	22.6		%	20.9		%	1.7 pp
EBITDAR margin	23.5		%	20.9		%	2.6 pp



	Twelve months ended December 31,
Return on capital calculation (millions)	2013		2012
Net income	92.3		78.6
Income tax	54.9		46.2
Interest expense	9.5		8.7
Less interest income	(1.0	)	(1.0	)
	155.7		132.5

Interest income	1.0		1.0
Tax rate	37.4	%	37.1	%
Numerator	98.1		84.0

Total assets prior year end	798.2		706.7
Less current liabilities prior year end	210.5		177.5
Short term debt prior year end	11.6		7.9
Denominator	599.3		537.1
Return on capital employed	16.4	%	15.6	%

To provide more transparency into operating expenses for the quarter and the full year, the company experienced the following non-cash expense items in 2013.



Non-cash items (millions)	4Q13		2013
Stock based compensation		$1.9		$9.8
Loss - disposed assets		$3.0		$8.0
Lease maintenance accrual		$0.5		$1.5
Total non-cash items		$5.4		$19.3

###

For the Year Ended December 31,

Unaudited (millions)

Capital expenditures