Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 24, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-33166 | |
Entity Registrant Name | Allegiant Travel Co | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 20-4745737 | |
Entity Address, Address Line One | 1201 North Town Center Drive | |
Entity Address, City or Town | Las Vegas, | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89144 | |
City Area Code | 702 | |
Local Phone Number | 851-7300 | |
Title of 12(b) Security | Common stock, par value $0.001 | |
Trading Symbol | ALGT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,398,569 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001362468 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS_(un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 240,528 | $ 363,378 |
Restricted cash | 30,671 | 37,323 |
Short-term investments | 761,362 | 819,478 |
Accounts receivable | 79,150 | 62,659 |
Expendable parts, supplies and fuel, net | 39,070 | 27,500 |
Prepaid expenses and other current assets | 46,772 | 28,073 |
TOTAL CURRENT ASSETS | 1,197,553 | 1,338,411 |
Property and equipment, net | 2,738,516 | 2,259,507 |
Long-term investments | 0 | 2,231 |
Deferred major maintenance, net | 148,719 | 146,850 |
Operating lease right-of-use assets, net | 116,471 | 130,087 |
Deposits and other assets | 209,705 | 113,987 |
TOTAL ASSETS: | 4,410,964 | 3,991,073 |
CURRENT LIABILITIES | ||
Accounts payable | 51,394 | 43,566 |
Accrued liabilities | 256,429 | 162,892 |
Current operating lease liabilities | 19,792 | 19,081 |
Air traffic liability | 429,924 | 307,453 |
Current maturities of long-term debt and finance lease obligations, net of related costs | 152,550 | 130,053 |
TOTAL CURRENT LIABILITIES | 910,089 | 663,045 |
Long-term debt and finance lease obligations, net of current maturities and related costs | 1,840,000 | 1,612,486 |
Deferred income taxes | 332,506 | 346,137 |
Noncurrent operating lease liabilities | 100,111 | 115,067 |
Other noncurrent liabilities | 39,285 | 30,786 |
TOTAL LIABILITIES: | 3,221,991 | 2,767,521 |
SHAREHOLDERS' EQUITY | ||
Common stock, par value $0.001 | 25 | 25 |
Treasury shares | (633,332) | (638,057) |
Additional paid in capital | 703,633 | 692,053 |
Accumulated other comprehensive income, net | 1,154 | 2,056 |
Retained earnings | 1,117,493 | 1,167,475 |
TOTAL EQUITY: | 1,188,973 | 1,223,552 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY: | $ 4,410,964 | $ 3,991,073 |
CONSOLIDATED BALANCE SHEETS_(_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING REVENUES: | ||||
Passenger | $ 516,476 | $ 423,796 | $ 1,573,041 | $ 1,124,237 |
Third party products | 27,132 | 24,541 | 77,399 | 61,164 |
Fixed fee contracts | 15,881 | 11,117 | 38,186 | 23,943 |
Other | 836 | 15 | 1,654 | 1,682 |
Total operating revenues | 560,325 | 459,469 | 1,690,280 | 1,211,026 |
OPERATING EXPENSES: | ||||
Aircraft fuel | 208,175 | 118,370 | 629,600 | 310,674 |
Salaries and benefits | 137,336 | 125,799 | 411,027 | 365,655 |
Station operations | 66,302 | 70,943 | 198,954 | 171,246 |
Depreciation and amortization | 50,092 | 46,399 | 145,618 | 134,095 |
Maintenance and repairs | 32,177 | 30,451 | 91,120 | 76,419 |
Sales and marketing | 25,815 | 22,047 | 75,462 | 51,288 |
Aircraft lease rental | 5,905 | 5,670 | 17,489 | 15,507 |
Other | 30,292 | 22,379 | 83,137 | 55,655 |
Payroll Support Programs grant recognition | 0 | (49,210) | 0 | (202,181) |
Special charges | 35,142 | 332 | 35,426 | 2,924 |
Total operating expenses | 591,236 | 393,180 | 1,687,833 | 981,282 |
OPERATING INCOME (LOSS) | (30,911) | 66,289 | 2,447 | 229,744 |
OTHER (INCOME) EXPENSES: | ||||
Interest expense | 34,242 | 16,595 | 78,530 | 50,174 |
Capitalized interest | (4,296) | (401) | (7,594) | (401) |
Interest income | (4,918) | (375) | (7,909) | (1,338) |
Other, net | 223 | 239 | 318 | (164) |
Total other expenses | 25,251 | 16,058 | 63,345 | 48,271 |
INCOME (LOSS) BEFORE INCOME TAXES | (56,162) | 50,231 | (60,898) | 181,473 |
INCOME TAX PROVISION (BENEFIT) | (9,703) | 10,977 | (10,916) | 40,323 |
NET INCOME (LOSS) | $ (46,459) | $ 39,254 | $ (49,982) | $ 141,150 |
Earnings (loss) per share to common shareholders: | ||||
Basic (in dollars per share) | $ (2.58) | $ 2.18 | $ (2.78) | $ 8.18 |
Diluted (in dollars per share) | $ (2.58) | $ 2.18 | $ (2.78) | $ 8.18 |
Shares used for computation: | ||||
Basic (in shares) | 18,014 | 17,766 | 17,985 | 17,005 |
Diluted (in shares) | 18,014 | 17,767 | 17,985 | 17,015 |
Cash dividends declared per share: | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ (46,459) | $ 39,254 | $ (49,982) | $ 141,150 |
Other comprehensive income: | ||||
Change in available for sale securities, net of tax | (1,590) | 774 | (902) | 676 |
Total other comprehensive income (loss) | (1,590) | 774 | (902) | 676 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (48,049) | $ 40,028 | $ (50,884) | $ 141,826 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Common Stock Stock Offering | Additional Paid-in Capital | AOCI Attributable to Parent | Retained Earnings | Treasury Stock | Parent |
Common Stock, Shares, Outstanding | 16,405 | |||||||
Stockholders' Equity Attributable to Parent | $ 699,363 | $ 329,753 | $ (27) | $ 1,015,622 | $ (646,008) | |||
Common stock, par value $0.001 | $ 23 | |||||||
StockIssuedDuringPeriodSharesStockOptionsSARsExercised | 71 | |||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 10,800 | $ 10,800 | ||||||
Proceeds from issuance of common stock | 2 | 1,553 | 335,137 | 335,139 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 3,831 | $ 3,831 | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 16 | |||||||
Payments of Dividends | 0 | |||||||
Other Comprehensive Income (Loss), Net of Tax | 676 | 676 | 676 | |||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 105 | 105 | ||||||
Net income (loss) | 141,150 | 141,150 | ||||||
Common Stock, Shares, Outstanding | 17,986 | |||||||
Stockholders' Equity Attributable to Parent | 1,147,134 | 671,893 | (125) | 1,117,518 | (642,177) | |||
Common stock, par value $0.001 | $ 25 | |||||||
StockIssuedDuringPeriodSharesStockOptionsSARsExercised | 59 | |||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 3,902 | 3,902 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 774 | 774 | 774 | |||||
Net income (loss) | 39,254 | 39,254 | ||||||
Common Stock, Shares, Outstanding | 18,045 | |||||||
Stockholders' Equity Attributable to Parent | 1,191,064 | 675,795 | 649 | 1,156,772 | (642,177) | |||
Common stock, par value $0.001 | $ 25 | |||||||
Common Stock, Shares, Outstanding | 18,111 | |||||||
Stockholders' Equity Attributable to Parent | 1,223,552 | 692,053 | 2,056 | 1,167,475 | (638,057) | |||
Common stock, par value $0.001 | 25 | $ 25 | ||||||
StockIssuedDuringPeriodSharesStockOptionsSARsExercised | 161 | |||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 11,580 | 11,580 | ||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 4,725 | 4,725 | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 30 | |||||||
Other Comprehensive Income (Loss), Net of Tax | (902) | (902) | (902) | |||||
Net income (loss) | (49,982) | (49,982) | ||||||
Common Stock, Shares, Outstanding | 18,180 | |||||||
Stockholders' Equity Attributable to Parent | 1,232,371 | 698,982 | 2,744 | 1,163,952 | (633,332) | |||
Common stock, par value $0.001 | $ 25 | |||||||
StockIssuedDuringPeriodSharesStockOptionsSARsExercised | 122 | |||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 4,651 | 4,651 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (1,590) | (1,590) | (1,590) | |||||
Net income (loss) | (46,459) | $ (46,459) | ||||||
Common Stock, Shares, Outstanding | 18,302 | |||||||
Stockholders' Equity Attributable to Parent | 1,188,973 | $ 703,633 | $ 1,154 | $ 1,117,493 | $ (633,332) | |||
Common stock, par value $0.001 | $ 25 | $ 25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
NET INCOME (LOSS) | $ (49,982) | $ 141,150 |
Depreciation and amortization | 145,618 | 134,095 |
Special charges | 35,426 | 2,924 |
Other adjustments | 9,206 | 26,778 |
Air traffic liability | 122,471 | 44,014 |
Other - net | (40,917) | 24,634 |
Net cash provided by operating activities | 221,822 | 373,595 |
Cash flows from investing activities: | ||
Purchase of investment securities | (968,064) | (1,028,481) |
Proceeds from maturities of investment securities | 1,024,861 | 679,588 |
Aircraft pre-delivery deposits | (88,500) | (3,300) |
Purchase of property and equipment | (304,956) | (163,202) |
Other investing activities | 1,037 | 2,062 |
Net cash (used in) investing activities | (335,622) | (513,333) |
Cash flows from financing activities: | ||
Proceeds from the issuance of debt and finance lease obligations | 745,800 | 106,657 |
Principal payments on debt and finance lease obligations | (666,046) | (239,644) |
Debt issuance costs | (12,681) | (705) |
Proceeds from issuance of common stock | 0 | 335,139 |
Other financing activities | (82,775) | 3,936 |
Net cash provided by (used in) by financing activities | (15,702) | 205,383 |
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (129,502) | 65,645 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 400,701 | 170,319 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | 271,199 | 235,964 |
CASH PAYMENTS (RECEIPTS) FOR: | ||
Interest paid, net of amount capitalized | 60,452 | 30,739 |
Income tax payments (refunds) | 36 | (12,762) |
Supplemental Cash Flow Information [Abstract] | ||
Right-of-use (ROU) assets acquired | 0 | 23,157 |
Flight equipment acquired under finance leases | 172,507 | 40,826 |
Purchases of property and equipment in accrued liabilities | $ 82,359 | $ 12,727 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Allegiant Travel Company (the “Company”) and its majority-owned operating subsidiaries. The Company's investments in unconsolidated affiliates, which are 50 percent or less owned, are accounted for under the equity or cost method, and are insignificant to the consolidated financial statements. All intercompany balances and transactions have been eliminated. These unaudited consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the financial position, results of operations, and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto included in the annual report of the Company on Form 10-K for the year ended December 31, 2021 and filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The Company reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. |
Hurricane Ian
Hurricane Ian | 9 Months Ended |
Sep. 30, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Hurricane Ian | Hurricane Ian As a result of Hurricane Ian's direct hit on the southwest coast of Florida on September 28, 2022, the construction site of Sunseeker Resort at Charlotte Harbor (the "Resort" or "Sunseeker Resort") was damaged. Within days after the hurricane, the Company began to assess the damage to the Resort. Insurance claim adjustors representing the Company and the insurance carriers are assessing the extent of the damages and the costs to restore the Resort to its condition prior to the hurricane and determining the extent of construction interruption. The Company has significant levels of insurance in place to cover the losses resulting from Hurricane Ian including for physical damage due to a named windstorm or flood (storm surge), business interruption and an OCIP (owner-controlled insurance program). The Company recognized a special charge of $35.0 million during the quarter associated with the estimated loss incurred from Hurricane Ian, which charge also reduced the carrying amount of the Resort. The estimate is preliminary and subject to change as the damage assessment continues. The amount of the loss will be offset in future periods by amounts to be recovered from the Company’s insurance policies. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition Passenger Revenue Passenger revenue is the most significant category in the Company's reported operating revenues, as outlined below: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Scheduled service $ 254,545 $ 195,225 $ 775,740 $ 552,765 Ancillary air-related charges 252,080 224,170 765,096 558,687 Loyalty redemptions 9,851 4,401 32,205 12,785 Total passenger revenue $ 516,476 $ 423,796 $ 1,573,041 $ 1,124,237 Sales of passenger tickets not yet flown are recorded in air traffic liability. Passenger revenue is recognized when transportation is provided. As of September 30, 2022, the air traffic liability balance was $429.9 million, of which approximately $367.8 million was related to forward bookings, with the remaining $62.1 million related to credit vouchers for future travel. The normal contract term of passenger tickets is 12 months and passenger revenue associated with future travel will principally be recognized within this time frame. Of the $307.5 million that was recorded in the air traffic liability balance as of December 31, 2021, approximately 75.1 percent was recognized into passenger revenue during the nine months ended September 30, 2022. In 2020, the Company announced that credit vouchers issued for canceled travel beginning in January 2020 would have an extended expiration date of two years from the original booking date. This policy continued for vouchers issued through June 30, 2021. Effective July 1, 2021, vouchers issued have an expiration date of one year from the original booking date. The Company periodically evaluates the estimated amount of credit vouchers expected to expire unused and any adjustment is removed from air traffic liability and included in passenger revenue in the period in which the evaluation is complete. Estimates of passenger revenue to be recognized from air traffic liability for credit voucher breakage may be subject to variability and differ from historical experience due to the change in contract duration and uncertainty regarding demand for future air travel. Loyalty redemptions In relation to the travel component of the Allways® Allegiant World Mastercard® contract with Bank of America, the Company has a performance obligation to provide cardholders with points to be used for future travel award redemptions. Therefore, consideration received from Bank of America related to the travel component is deferred based on its relative selling price and is recognized into passenger revenue when the points are redeemed and the transportation is provided. Similarly, in relation to the Allways Rewards program, points earned through the program are deferred based on the stand-alone selling price and recognized into passenger revenue when the points are redeemed and the underlying service has been provided. The following table presents the activity of the point liability for the periods indicated: Nine Months Ended September 30, (in thousands) 2022 2021 Points balance at January 1 $ 40,490 $ 21,841 Points awarded (deferral of revenue) 54,678 23,319 Points redeemed (recognition of revenue) (32,205) (12,785) Points balance at September 30 $ 62,963 $ 32,375 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Property and Equipment The following table summarizes the Company's property and equipment as of the dates indicated: (in thousands) September 30, 2022 December 31, 2021 Flight equipment, including pre-delivery deposits $ 2,892,277 $ 2,573,657 Computer hardware and software 194,983 160,237 Land and buildings/leasehold improvements 60,036 59,735 Other property and equipment 91,199 78,192 Sunseeker Resort 277,315 83,864 Total property and equipment 3,515,810 2,955,685 Less accumulated depreciation and amortization (777,294) (696,178) Property and equipment, net $ 2,738,516 $ 2,259,507 Accrued capital expenditures as of September 30, 2022 and December 31, 2021 were $82.4 million and $17.7 million, respectively. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table summarizes the Company's long-term debt and finance lease obligations as of the dates indicated: (in thousands) September 30, 2022 December 31, 2021 Fixed-rate debt and finance lease obligations due through 2032 $ 1,624,432 $ 827,382 Variable-rate debt due through 2029 368,118 915,157 Total debt and finance lease obligations, net of related costs 1,992,550 1,742,539 Less current maturities, net of related costs 152,550 130,053 Long-term debt and finance lease obligations, net of current maturities and related costs $ 1,840,000 $ 1,612,486 Weighted average fixed-interest rate on debt 6.5% 5.8% Weighted average variable-interest rate on debt 4.5% 2.5% Maturities of long-term debt and finance lease obligations for the remainder of 2022 and for the next four years and thereafter, in the aggregate, are: remaining in 2022 - $34.2 million; 2023 - $152.5 million; 2024 - $299.8 million; 2025 - $145.2 million; 2026 - $138.8 million; and $1,222.0 million thereafter. Senior Secured Notes In August, 2022, the Company issued $550.0 million in aggregate principal amount of its 7.250% Senior Secured Notes due 2027 (the “Notes”) pursuant to an Indenture, dated as of August 17, 2022. The Notes are secured by first priority security interests in, subject to permitted liens, substantially all of the property and assets of the Company and its subsidiaries (other than Sunseeker Resort and its subsidiaries) (excluding aircraft, aircraft engines, real property and certain other assets). The collateral also secures the Company’s existing $150.0 million 8.500% Senior Secured Notes due 2024 and the Company’s new revolving credit facility through Barclays Bank, PLC (described below), on a pari passu basis. The Notes bear interest at a fixed rate of 7.25 percent per annum, payable in cash on February 15 and August 15 of each year, beginning February 15, 2023. The Notes will mature on August 15, 2027. The Notes contain certain covenants that limit the ability of the Company to, among other things: (i) make restricted payments; (ii) incur indebtedness or issue preferred stock; (iii) create or incur certain liens; (iv) dispose of loyalty program or brand intellectual property collateral; (v) merge, consolidate or sell all or substantially all assets and (vi) enter into certain transactions with affiliates. The Notes also require the Company to comply with certain affirmative covenants, including to maintain a minimum aggregate amount of liquidity of $300.0 million. If the Company fails to satisfy the minimum liquidity requirement, then the Company will be required to pay additional interest on all outstanding Notes in an amount equal to 2.0% per annum of the principal amount of such Notes until the Company demonstrates compliance with the liquidity requirement. The Company used the net proceeds from the sale of the Notes to repay the Company’s Term Loan B, which had an outstanding principal amount of $533.0 million, and to pay costs and expenses of the transaction. Senior Secured Revolving Credit Facilities In August, 2022, the Company entered into a credit agreement with MUFG Bank, Ltd under which the Company is entitled to borrow up to $100.0 million. The revolving credit facility has a term of 24 months and the borrowing ability is based on the value of aircraft and engines placed into the collateral pool. The notes under the facility bear interest at a floating rate based on SOFR. As of September 30, 2022, the facility remains undrawn. In August, 2022, the Company entered into a credit agreement with certain lenders and Barclays Bank PLC as administrative agent and lead arranger that provides a senior secured revolving loan facility of $75.0 million. The facility is secured by the same collateral that secures the Notes, has a term of 57 months and notes under the facility bear interest at a floating rate based on SOFR. As of September 30, 2022, the facility remains undrawn. In September, 2022, the Company entered into a credit agreement with Norddeutsche Landesbank Girozentrale (acting through its New York branch) and Landesbank Hessen-Thüringen Girozentrale (the "Lenders") under which the Company is entitled to borrow up to $300.0 million. The revolving credit facility has a term of 24 months and the borrowing ability is based on the amount of pre-delivery deposits paid with respect to up to twenty (20) 737-MAX aircraft, the purchase rights for which the Company may choose to place in the collateral pool. The Facility is secured by the purchase rights for the applicable aircraft. The commitment amount at the time of signing is $200.0 million and the facility may be increased to $300.0 million subject to agreement between the Company and the Lenders. Any notes under the Facility will bear interest at a floating rate based on SOFR and all borrowings will be due no later than December 31, 2024 or upon delivery of the applicable aircraft. As of September 30, 2022, the facility remains undrawn. |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company recorded a $9.7 million income tax benefit at an effective tax rate of 17.3 percent and an $11.0 million income tax expense at a 21.9 percent effective tax rate for the three months ended September 30, 2022 and 2021, respectively. The effective tax rate for the three months ended September 30, 2022 differed from the statutory Federal income tax rate of 21.0 percent primarily due to state income taxes and the impact of permanent tax differences. While the Company expects its effective tax rate to be fairly consistent in the near term, it will vary depending on recurring items such as the amount of income earned in each state and the state tax rate applicable to such income. Discrete items during interim periods may also affect the Company's tax rates.The Company recorded a $10.9 million income tax benefit at an effective tax rate of 17.9 percent and a $40.3 million income tax expense at a 22.2 percent effective tax rate for the nine months ended September 30, 2022 and 2021, respectively. The effective tax rate for the nine months ended September 30, 2022 differed from the statutory Federal income tax rate of 21.0 percent primarily due to state income taxes and the impact of permanent tax differences, none of which are individually significant. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company utilizes the market approach to measure the fair value of its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. The assets classified as Level 2 primarily utilize quoted market prices or alternative pricing sources including transactions involving identical or comparable assets and models utilizing market observable inputs for valuation of these securities. No changes in valuation techniques or inputs occurred during the nine months ended September 30, 2022. Financial instruments measured at fair value on a recurring basis: September 30, 2022 December 31, 2021 (in thousands) Total Level 1 Level 2 Total Level 1 Level 2 Cash equivalents Money market funds $ 49,106 $ 49,106 $ — $ 25,019 $ 25,019 $ — Commercial Paper 70,450 — 70,450 179,455 — 179,455 Municipal debt securities 16,398 — 16,398 63,875 — 63,875 Total cash equivalents 135,954 49,106 86,848 268,349 25,019 243,330 Short-term Commercial paper 450,529 — 450,529 419,469 — 419,469 Corporate debt securities 196,962 — 196,962 234,436 — 234,436 Municipal debt securities 20,965 — 20,965 165,573 — 165,573 Federal agency debt securities 92,906 — 92,906 — — — Total short-term 761,362 — 761,362 819,478 — 819,478 Long-term Municipal debt securities — — — 2,231 — 2,231 Total long-term — — — 2,231 — 2,231 Total financial instruments $ 897,316 $ 49,106 $ 848,210 $ 1,090,058 $ 25,019 $ 1,065,039 None of the Company's debt is publicly held and as a result, the Company has determined the estimated fair value of these notes to be Level 3. Certain inputs used to determine fair value are unobservable and, therefore, could be sensitive to changes in inputs. The Company utilizes the discounted cash flow method to estimate the fair value of Level 3 debt. Carrying value and estimated fair value of long-term debt, excluding finance leases, including current maturities and without reduction for related costs, are as follows: September 30, 2022 December 31, 2021 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Hierarchy Level Non-publicly held debt $ 1,538,638 $ 1,457,343 $ 1,447,462 $ 1,261,170 3 Due to their short-term nature, the carrying amounts of cash, restricted cash, accounts receivable and accounts payable approximate fair value. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic and diluted earnings (loss) per share are computed pursuant to the two-class method. Under this method, the Company attributes net income (loss) to two classes: common stock and unvested restricted stock. Unvested restricted stock awards granted to employees under the Company’s Long-Term Incentive Plan are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. Diluted net income per share is calculated using the more dilutive of the two methods. Under both methods, the exercise of employee stock options is assumed using the treasury stock method. The assumption of vesting of restricted stock, however, differs: 1. Assume vesting of restricted stock using the treasury stock method. 2. Assume unvested restricted stock awards are not vested, and allocate earnings to common shares and unvested restricted stock awards using the two-class method. For the three months and nine months ended September 30, 2022, basic and diluted income (loss) per share are the same because of the (loss) position. The following table sets forth the computation of net income (loss) per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in the table are in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic: Net income (loss) $ (46,459) $ 39,254 $ (49,982) $ 141,150 Less income allocated to participating securities — (573) — (2,028) Net income (loss) attributable to common stock $ (46,459) $ 38,681 $ (49,982) $ 139,122 Earnings (loss) per share, basic $ (2.58) $ 2.18 $ (2.78) $ 8.18 Weighted-average shares outstanding 18,014 17,766 17,985 17,005 Diluted: Net income (loss) $ (46,459) $ 39,254 $ (49,982) $ 141,150 Less income allocated to participating securities — (573) — (2,027) Net income (loss) attributable to common stock $ (46,459) $ 38,681 $ (49,982) $ 139,123 Earnings (loss) per share, diluted $ (2.58) $ 2.18 $ (2.78) $ 8.18 Weighted-average shares outstanding 18,014 17,766 17,985 17,005 Dilutive effect of stock options and restricted stock — 103 — 121 Adjusted weighted-average shares outstanding under treasury stock method 18,014 17,869 17,985 17,126 Participating securities excluded under two-class method — (102) — (111) Adjusted weighted-average shares outstanding under two-class method 18,014 17,767 17,985 17,015 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | ContingenciesThe Company is subject to certain legal and administrative actions it considers routine to its business activities. The Company believes the ultimate outcome of any potential and pending legal or administrative matters will not have a material adverse impact on its financial position, liquidity or results of operations. |
Segments (Notes)
Segments (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segments | Segments Operating segments are components of a company for which separate financial and operating information is regularly evaluated and reported to the Chief Operating Decision Maker ("CODM"), and is used to allocate resources and analyze performance. The Company's CODM is the executive leadership team, which reviews information about the Company's two operating segments: Airline and Sunseeker Resort. Airline Segment The Airline segment operates as a single business unit and includes all scheduled service air transportation, ancillary air-related products and services, third party products and services, fixed fee contract air transportation and other airline-related revenue. The CODM evaluation includes, but is not limited to, route and flight profitability data, ancillary and third party product and service offering statistics, and fixed fee contract information when making resource allocation decisions with the goal of optimizing consolidated financial results. Sunseeker Resort Segment The Sunseeker Resort segment represents activity related to the development and construction of Sunseeker Resort in Southwest Florida, as well as the renovation of Aileron Golf Course (formerly known as Kingsway Golf Course). Plans for the resort include a 500-room hotel and two towers offering more than 180 one, two and three-bedroom suites, bar and restaurant options, and other amenities. The golf course is a short drive from the resort site and is considered, from a planning and strategic perspective, to be an additional resort amenity. The construction of Sunseeker Resort is an extension of the Company's leisure travel focus and it is expected that many customers flying to Southwest Florida on Allegiant will elect to stay at this resort and enjoy its amenities. Selected information for the Company's segments and the reconciliation to the consolidated financial statement amounts are as follows: (in thousands) Airline Sunseeker Resort (1) Consolidated Three Months Ended September 30, 2022 Operating revenue: Passenger $ 516,476 $ — $ 516,476 Third party products 27,132 — 27,132 Fixed fee contract 15,881 — 15,881 Other 836 — 836 Operating income (loss) 6,844 (37,755) (30,911) Interest expense, net 18,882 1,134 20,016 Depreciation and amortization 50,064 28 50,092 Capital expenditures 165,814 91,076 256,890 Three Months Ended September 30, 2021 Operating revenue: Passenger $ 423,796 $ — $ 423,796 Third party products 24,541 — 24,541 Fixed fee contract 11,117 — 11,117 Other 15 — 15 Operating income (loss) 68,641 (2,352) 66,289 Interest expense, net 16,220 (401) 15,819 Depreciation and amortization 46,363 36 46,399 Capital expenditures 54,032 12,622 66,654 (1) Includes $35.0 million special charge in the third quarter 2022 relating to Hurricane Ian damage to Sunseeker Resort.The amount of the loss will be offset in future periods by amounts to be recovered under the Company’s insurance policies. (in thousands) Airline Sunseeker Resort (1) Consolidated Nine Months Ended September 30, 2022 Operating revenue: Passenger $ 1,573,041 $ — $ 1,573,041 Third party products 77,399 — 77,399 Fixed fee contract 38,186 — 38,186 Other 1,654 — 1,654 Operating income (loss) 44,902 (42,455) 2,447 Interest expense, net 52,111 5,904 58,015 Depreciation and amortization 145,573 45 145,618 Capital expenditures 404,015 228,452 632,467 Nine Months Ended September 30, 2021 Operating revenue: Passenger $ 1,124,237 $ — $ 1,124,237 Third party products 61,164 — 61,164 Fixed fee contract 23,943 — 23,943 Other 1,682 — 1,682 Operating income (loss) 235,340 (5,596) 229,744 Interest expense, net 48,765 (401) 48,364 Depreciation and amortization 133,984 111 134,095 Capital expenditures 192,747 12,622 205,369 (1) Includes $35.0 million special charge in the third quarter 2022 relating to Hurricane Ian damage to Sunseeker Resort.The amount of the loss will be offset in future periods by amounts to be recovered under the Company’s insurance policies. Total assets were as follows as of the dates indicated: (in thousands) As of September 30, 2022 As of December 31, 2021 Airline $ 4,012,922 $ 3,872,041 Sunseeker Resort 398,042 119,032 Consolidated $ 4,410,964 $ 3,991,073 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In October 2022, the lender funded an additional $87.5 million into the construction disbursement account for the Sunseeker project and the Company received a disbursement of $87.5 million from the account. After these transactions, the construction disbursement account has a balance of approximately $117.5 million, which is recorded as a deposit on the Company's balance sheet. The Company has a $50.0 million loan to Viva Aerobus in deposits and other assets on the balance sheet which is to convert to equity upon approval of the joint alliance from the Mexican Federal Economic Competition Commission. This approval was obtained on October 6, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Allegiant Travel Company (the “Company”) and its majority-owned operating subsidiaries. The Company's investments in unconsolidated affiliates, which are 50 percent or less owned, are accounted for under the equity or cost method, and are insignificant to the consolidated financial statements. All intercompany balances and transactions have been eliminated. These unaudited consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the financial position, results of operations, and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto included in the annual report of the Company on Form 10-K for the year ended December 31, 2021 and filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The Company reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. |
New Accounting Pronouncements | Recent Accounting Pronouncements |
Hurricane Ian (Tables)
Hurricane Ian (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Summary of Special Charges | The table below summarizes special charges recorded during the three and nine months ended September 30, 2022, and 2021. Three Months Ended September 30, (in thousands) 2022 2021 Operating $ 142 $ 1,738 Non-operating — — Total special charges $ 142 $ 1,738 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Scheduled service $ 254,545 $ 195,225 $ 775,740 $ 552,765 Ancillary air-related charges 252,080 224,170 765,096 558,687 Loyalty redemptions 9,851 4,401 32,205 12,785 Total passenger revenue $ 516,476 $ 423,796 $ 1,573,041 $ 1,124,237 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table presents the activity of the point liability for the periods indicated: Nine Months Ended September 30, (in thousands) 2022 2021 Points balance at January 1 $ 40,490 $ 21,841 Points awarded (deferral of revenue) 54,678 23,319 Points redeemed (recognition of revenue) (32,205) (12,785) Points balance at September 30 $ 62,963 $ 32,375 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment | The following table summarizes the Company's property and equipment as of the dates indicated: (in thousands) September 30, 2022 December 31, 2021 Flight equipment, including pre-delivery deposits $ 2,892,277 $ 2,573,657 Computer hardware and software 194,983 160,237 Land and buildings/leasehold improvements 60,036 59,735 Other property and equipment 91,199 78,192 Sunseeker Resort 277,315 83,864 Total property and equipment 3,515,810 2,955,685 Less accumulated depreciation and amortization (777,294) (696,178) Property and equipment, net $ 2,738,516 $ 2,259,507 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The following table summarizes the Company's long-term debt and finance lease obligations as of the dates indicated: (in thousands) September 30, 2022 December 31, 2021 Fixed-rate debt and finance lease obligations due through 2032 $ 1,624,432 $ 827,382 Variable-rate debt due through 2029 368,118 915,157 Total debt and finance lease obligations, net of related costs 1,992,550 1,742,539 Less current maturities, net of related costs 152,550 130,053 Long-term debt and finance lease obligations, net of current maturities and related costs $ 1,840,000 $ 1,612,486 Weighted average fixed-interest rate on debt 6.5% 5.8% Weighted average variable-interest rate on debt 4.5% 2.5% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value On a Recurring Basis | Financial instruments measured at fair value on a recurring basis: September 30, 2022 December 31, 2021 (in thousands) Total Level 1 Level 2 Total Level 1 Level 2 Cash equivalents Money market funds $ 49,106 $ 49,106 $ — $ 25,019 $ 25,019 $ — Commercial Paper 70,450 — 70,450 179,455 — 179,455 Municipal debt securities 16,398 — 16,398 63,875 — 63,875 Total cash equivalents 135,954 49,106 86,848 268,349 25,019 243,330 Short-term Commercial paper 450,529 — 450,529 419,469 — 419,469 Corporate debt securities 196,962 — 196,962 234,436 — 234,436 Municipal debt securities 20,965 — 20,965 165,573 — 165,573 Federal agency debt securities 92,906 — 92,906 — — — Total short-term 761,362 — 761,362 819,478 — 819,478 Long-term Municipal debt securities — — — 2,231 — 2,231 Total long-term — — — 2,231 — 2,231 Total financial instruments $ 897,316 $ 49,106 $ 848,210 $ 1,090,058 $ 25,019 $ 1,065,039 |
Fair Value, Liabilities Measured on Recurring Basis | Carrying value and estimated fair value of long-term debt, excluding finance leases, including current maturities and without reduction for related costs, are as follows: September 30, 2022 December 31, 2021 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Hierarchy Level Non-publicly held debt $ 1,538,638 $ 1,457,343 $ 1,447,462 $ 1,261,170 3 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Net Income Per Share, Basic and Diluted | The following table sets forth the computation of net income (loss) per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in the table are in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic: Net income (loss) $ (46,459) $ 39,254 $ (49,982) $ 141,150 Less income allocated to participating securities — (573) — (2,028) Net income (loss) attributable to common stock $ (46,459) $ 38,681 $ (49,982) $ 139,122 Earnings (loss) per share, basic $ (2.58) $ 2.18 $ (2.78) $ 8.18 Weighted-average shares outstanding 18,014 17,766 17,985 17,005 Diluted: Net income (loss) $ (46,459) $ 39,254 $ (49,982) $ 141,150 Less income allocated to participating securities — (573) — (2,027) Net income (loss) attributable to common stock $ (46,459) $ 38,681 $ (49,982) $ 139,123 Earnings (loss) per share, diluted $ (2.58) $ 2.18 $ (2.78) $ 8.18 Weighted-average shares outstanding 18,014 17,766 17,985 17,005 Dilutive effect of stock options and restricted stock — 103 — 121 Adjusted weighted-average shares outstanding under treasury stock method 18,014 17,869 17,985 17,126 Participating securities excluded under two-class method — (102) — (111) Adjusted weighted-average shares outstanding under two-class method 18,014 17,767 17,985 17,015 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Selected information for the Company's segments and the reconciliation to the consolidated financial statement amounts are as follows: (in thousands) Airline Sunseeker Resort (1) Consolidated Three Months Ended September 30, 2022 Operating revenue: Passenger $ 516,476 $ — $ 516,476 Third party products 27,132 — 27,132 Fixed fee contract 15,881 — 15,881 Other 836 — 836 Operating income (loss) 6,844 (37,755) (30,911) Interest expense, net 18,882 1,134 20,016 Depreciation and amortization 50,064 28 50,092 Capital expenditures 165,814 91,076 256,890 Three Months Ended September 30, 2021 Operating revenue: Passenger $ 423,796 $ — $ 423,796 Third party products 24,541 — 24,541 Fixed fee contract 11,117 — 11,117 Other 15 — 15 Operating income (loss) 68,641 (2,352) 66,289 Interest expense, net 16,220 (401) 15,819 Depreciation and amortization 46,363 36 46,399 Capital expenditures 54,032 12,622 66,654 (1) Includes $35.0 million special charge in the third quarter 2022 relating to Hurricane Ian damage to Sunseeker Resort.The amount of the loss will be offset in future periods by amounts to be recovered under the Company’s insurance policies. |
Hurricane Ian - Narrative (Deta
Hurricane Ian - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) Aircraft engine | Sep. 30, 2022 USD ($) Aircraft | |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total special charges | $ 142 | $ 1,738 | $ 1,700 | $ 100 |
Other Aircraft Related Costs | $ 1,200 | $ 100 | ||
Number of Aircraft Retired | Aircraft | 1 | |||
Number of Engines Retired | engine | 3 | |||
Other Expenses | $ 500 | |||
Airbus A320 Aircraft Series | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Number of Aircraft Retired | Aircraft | 2 | |||
Hurricane Ian | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Non-Operating Special Charge | $ 35,000 | $ 35,000 |
Hurricane Ian - Summary of Spec
Hurricane Ian - Summary of Special Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | ||||
Operating | $ 142 | $ 1,738 | ||
Non-operating | 0 | 0 | ||
Total special charges | $ 142 | $ 1,738 | $ 1,700 | $ 100 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 516,476 | $ 423,796 | $ 1,573,041 | $ 1,124,237 | |
Credit Voucher Term Expiration | 2 years | ||||
Scheduled service | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 254,545 | 195,225 | 775,740 | 552,765 | |
Ancillary air-related charges | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 252,080 | 224,170 | 765,096 | 558,687 | |
Loyalty redemptions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 9,851 | $ 4,401 | $ 32,205 | $ 12,785 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 9 Months Ended | |
Apr. 30, 2020 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue Recognition [Abstract] | ||||
Contract with Customer, Liability, Forward Bookings | 36,780,000,000% | |||
Contract with Customer, Liability, Credit Voucher Bookings | 6,210,000,000% | |||
Revenue, Performance Obligation, Description of Timing | 12 months | |||
Air Traffic Liability, Recognized | $ 307.5 | |||
Contract with Customer, Liability, Passenger Revenue | 75.10% | |||
Credit Voucher Term Expiration | 2 years | |||
Points Liability | $ 34 | $ 15.9 |
Revenue Recognition - Contract
Revenue Recognition - Contract with Customer, Contract Asset, Contract Liability, and Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Points Liability [Abstract] | ||
Points balance at January 1 | $ 40,490 | $ 21,841 |
Points awarded (deferral of revenue) | 54,678 | 23,319 |
Points redeemed (recognition of revenue) | (32,205) | (12,785) |
Points balance at September 30 | $ 62,963 | $ 32,375 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Flight equipment, including pre-delivery deposits | $ 2,892,277 | $ 2,573,657 | |
Computer hardware and software | 194,983 | 160,237 | |
Land and buildings/leasehold improvements | 60,036 | 59,735 | |
Other property and equipment | 91,199 | 78,192 | |
Sunseeker Resort | 277,315 | 83,864 | |
Total property and equipment | 3,515,810 | 2,955,685 | |
Less accumulated depreciation and amortization | 777,294 | 696,178 | |
Property and equipment, net | $ 2,738,516 | $ 2,259,507 | |
Capital Expenditures Incurred but Not yet Paid | $ 17,700 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Secured Long-term Debt, Noncurrent | $ 1,992,550 | $ 1,742,539 |
Less current maturities | 152,550 | 130,053 |
Long-term debt and capital leases, net of current maturities and related costs | 1,840,000 | 1,612,486 |
Weighted average fixed-interest rate on debt | ||
Debt Instrument [Line Items] | ||
Notes Payable | $ 1,624,432 | $ 827,382 |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 6.50% | 5.80% |
Weighted average variable-interest rate on debt | ||
Debt Instrument [Line Items] | ||
Notes Payable | $ 368,118 | $ 915,157 |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 4.50% | 2.50% |
Long-Term Debt - Summary of Mat
Long-Term Debt - Summary of Maturities of Long-Term Debt (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Schedule of Maturities of Long-Term Debt [Abstract] | |
Long-Term Debt, Maturity, Remainder of Fiscal Year | $ 34.2 |
Long-Term Debt, Maturity, Year One | 152.5 |
Long-Term Debt, Maturity, Year Two | 299.8 |
Long-Term Debt, Maturity, Year Three | 145.2 |
Long-Term Debt, Maturity, Year Four | 138.8 |
Long-Term Debt, Maturity, after Year Four | $ 1,222 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | |
Sep. 30, 2022 | Aug. 31, 2022 | |
Revolving Credit Facility | MUFG Bank, Ltd | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 100 | |
Line of credit facility, expiration period | 24 months | |
Revolving Credit Facility | Landesbank Hessen-Thüringen Girozentrale | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 300 | |
Line of credit facility, expiration period | 24 months | |
Line of credit facility, commitment fee amount | $ 200 | |
Senior Secured Revolving Loan Facility | Barclays Bank PLC | ||
Debt Instrument [Line Items] | ||
Line of credit facility, expiration period | 57 months | |
Long-term line of credit | $ 75 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, convertible, liquidation preference, value | $ 300 | |
Debt instrument, liquidation requirement, interest percentage | 0.020 | |
Long-term debt, gross | $ 533 | |
Senior Secured Notes Due 2027 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 550 | |
Debt instrument, interest rate, stated percentage | 7.25% | |
Senior Secured Notes Due 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 150 | |
Debt instrument, interest rate, stated percentage | 8.50% | |
Long-term debt, percentage bearing fixed interest, percentage rate | 7.25% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense (Benefit) | $ 9,703 | $ (10,977) | $ 10,916 | $ (40,323) |
Effective Income Tax Rate Reconciliation, Percent | 17.30% | 21.90% | 17.90% | 22.20% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale | $ 897,316 | $ 1,090,058 |
Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-sale | 49,106 | 25,019 |
Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-sale | 848,210 | 1,065,039 |
Cash Equivalents | ||
Cash Equivalents | 135,954 | 268,349 |
Cash Equivalents | Fair Value, Inputs, Level 1 | ||
Cash Equivalents | 49,106 | 25,019 |
Cash Equivalents | Fair Value, Inputs, Level 2 | ||
Cash Equivalents | 86,848 | 243,330 |
Cash Equivalents | Money Market Funds | ||
Cash Equivalents | 49,106 | 25,019 |
Cash Equivalents | Money Market Funds | Fair Value, Inputs, Level 1 | ||
Cash Equivalents | 49,106 | 25,019 |
Cash Equivalents | Money Market Funds | Fair Value, Inputs, Level 2 | ||
Cash Equivalents | 0 | 0 |
Cash Equivalents | Commercial paper | ||
Cash Equivalents | 70,450 | 179,455 |
Cash Equivalents | Commercial paper | Fair Value, Inputs, Level 1 | ||
Cash Equivalents | 0 | 0 |
Cash Equivalents | Commercial paper | Fair Value, Inputs, Level 2 | ||
Cash Equivalents | 70,450 | 179,455 |
Cash Equivalents | Municipal debt securities | ||
Cash Equivalents | 16,398 | 63,875 |
Cash Equivalents | Municipal debt securities | Fair Value, Inputs, Level 1 | ||
Cash Equivalents | 0 | 0 |
Cash Equivalents | Municipal debt securities | Fair Value, Inputs, Level 2 | ||
Cash Equivalents | 16,398 | 63,875 |
Short-term Investments | ||
Debt Securities, Available-for-sale | 761,362 | 819,478 |
Short-term Investments | Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-sale | 0 | 0 |
Short-term Investments | Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-sale | 761,362 | 819,478 |
Short-term Investments | Commercial paper | ||
Debt Securities, Available-for-sale | 450,529 | 419,469 |
Short-term Investments | Commercial paper | Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-sale | 0 | 0 |
Short-term Investments | Commercial paper | Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-sale | 450,529 | 419,469 |
Short-term Investments | Municipal debt securities | ||
Debt Securities, Available-for-sale | 20,965 | 165,573 |
Short-term Investments | Municipal debt securities | Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-sale | 0 | 0 |
Short-term Investments | Municipal debt securities | Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-sale | 20,965 | 165,573 |
Short-term Investments | Federal agency debt securities | ||
Debt Securities, Available-for-sale | 92,906 | 0 |
Short-term Investments | Federal agency debt securities | Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-sale | 0 | 0 |
Short-term Investments | Federal agency debt securities | Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-sale | 92,906 | 0 |
Short-term Investments | Corporate debt securities | ||
Debt Securities, Available-for-sale | 196,962 | 234,436 |
Short-term Investments | Corporate debt securities | Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-sale | 0 | 0 |
Short-term Investments | Corporate debt securities | Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-sale | 196,962 | 234,436 |
Long Term Investments | ||
Debt Securities, Available-for-sale | 0 | 2,231 |
Long Term Investments | Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-sale | 0 | 0 |
Long Term Investments | Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-sale | 0 | 2,231 |
Long Term Investments | US Treasury Bond Securities | ||
Debt Securities, Available-for-sale | 0 | 2,231 |
Long Term Investments | US Treasury Bond Securities | Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-sale | 0 | 0 |
Long Term Investments | US Treasury Bond Securities | Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-sale | $ 0 | $ 2,231 |
Fair Value Measurements Estimat
Fair Value Measurements Estimated Fair Value of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | $ 1,992,550 | $ 1,742,539 |
Non-Publicly Held Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | 1,538,638 | 1,447,462 |
Non-Publicly Held Debt | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 1,457,343 | $ 1,261,170 |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Basic: | ||||
Net income (loss) | $ (46,459) | $ 39,254 | $ (49,982) | $ 141,150 |
Less income allocated to participating securities | 0 | (573) | 0 | (2,028) |
Net income (loss) attributable to common stock | $ (46,459) | $ 38,681 | $ (49,982) | $ 139,122 |
Net income per share, basic (in dollars per share) | $ (2.58) | $ 2.18 | $ (2.78) | $ 8.18 |
Weighted-average shares outstanding (in shares) | 18,014 | 17,766 | 17,985 | 17,005 |
Diluted: | ||||
Net income (loss) | $ (46,459) | $ 39,254 | $ (49,982) | $ 141,150 |
Less income allocated to participating securities | 0 | (573) | 0 | (2,027) |
Net income (loss) attributable to common stock | $ (46,459) | $ 38,681 | $ (49,982) | $ 139,123 |
Earnings (loss) per share, diluted (in dollars per share) | $ (2.58) | $ 2.18 | $ (2.78) | $ 8.18 |
Weighted-average shares outstanding ( in shares) | 18,014 | 17,766 | 17,985 | 17,005 |
Dilutive effect of stock options and restricted stock (in shares) | 0 | 103 | 0 | 121 |
Adjusted weighted-average shares outstanding under treasury stock method (in shares) | 18,014 | 17,869 | 17,985 | 17,126 |
Participating securities excluded under two-class method (in shares) | 0 | (102) | 0 | (111) |
Adjusted weighted-average shares outstanding under two-class method (in shares) | 18,014 | 17,767 | 17,985 | 17,015 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 1 Months Ended | 9 Months Ended |
Apr. 30, 2021 | Sep. 30, 2022 suite hotel_tower segment Aircraft | |
Segment Reporting [Abstract] | ||
Number of Operating Segments | 2 | |
Segment Reporting Information [Line Items] | ||
Number of Operating Segments | 2 | |
Anticipated Number Of One, Two, and Three-Bedroom Suites | suite | 180 | |
Teesnap | ||
Segment Reporting Information [Line Items] | ||
Investment Sold, Percent | 85% | |
Sunseeker Resort (1) | ||
Segment Reporting Information [Line Items] | ||
Anticipated Number Of Hotel Rooms | Aircraft | 500 | |
Anticipated Number Of Hotel Towers | hotel_tower | 2 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||||
Passenger | $ 516,476 | $ 423,796 | $ 1,573,041 | $ 1,124,237 | ||
Third party products | 27,132 | 24,541 | 77,399 | 61,164 | ||
Fixed fee contracts | 15,881 | 11,117 | 38,186 | 23,943 | ||
Other | 836 | 15 | 1,654 | 1,682 | ||
Operating income (loss) | (30,911) | 66,289 | 2,447 | 229,744 | ||
Interest expense, net | 20,016 | 15,819 | 58,015 | 48,364 | ||
Depreciation and amortization | 50,092 | 46,399 | 145,618 | 134,095 | ||
Capital expenditures | 256,890 | 66,654 | 632,467 | 205,369 | ||
Assets | 4,410,964 | 4,410,964 | $ 4,410,964 | $ 3,991,073 | ||
Hurricane Ian | ||||||
Segment Reporting Information [Line Items] | ||||||
Non-Operating Special Charge | 35,000 | 35,000 | ||||
Airline | ||||||
Segment Reporting Information [Line Items] | ||||||
Passenger | 516,476 | 423,796 | 1,573,041 | 1,124,237 | ||
Third party products | 27,132 | 24,541 | 77,399 | 61,164 | ||
Fixed fee contracts | 15,881 | 11,117 | 38,186 | 23,943 | ||
Other | 836 | 15 | 1,654 | 1,682 | ||
Operating income (loss) | 6,844 | 68,641 | 44,902 | 235,340 | ||
Interest expense, net | 18,882 | 16,220 | 52,111 | 48,765 | ||
Depreciation and amortization | 50,064 | 46,363 | 145,573 | 133,984 | ||
Capital expenditures | 165,814 | 54,032 | 404,015 | 192,747 | ||
Assets | 4,012,922 | 3,872,041 | ||||
Sunseeker Resort (1) | ||||||
Segment Reporting Information [Line Items] | ||||||
Passenger | 0 | 0 | ||||
Third party products | 0 | 0 | ||||
Fixed fee contracts | 0 | 0 | ||||
Other | 0 | 0 | 0 | 0 | ||
Operating income (loss) | (37,755) | (2,352) | (42,455) | (5,596) | ||
Interest expense, net | 1,134 | (401) | 5,904 | (401) | ||
Depreciation and amortization | 28 | 36 | 45 | 111 | ||
Capital expenditures | $ 91,076 | $ 12,622 | $ 228,452 | $ 12,622 | ||
Assets | $ 398,042 | $ 119,032 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | 1 Months Ended | |
Oct. 31, 2022 | Oct. 06, 2022 | |
Subsequent Event [Line Items] | ||
Line of Credit Facility, Increase (Decrease), Net | $ 87.5 | |
Line Of Credit Facility, Disbursement Amount | 87.5 | |
Viva Aerobus | ||
Subsequent Event [Line Items] | ||
Long-Term Debt | $ 50 | |
Other Noncurrent Assets | ||
Subsequent Event [Line Items] | ||
Construction Disbursement Amount | $ 117.5 |