Allegiant Travel Company Reports Second Quarter, Half Year 2008 Financial Results

* Reuters is not responsible for the content in this press release.

Tue Jul 22, 2008 8:28pm EDT

Allegiant Travel Company Reports Second Quarter, Half Year 2008 Financial
Results

LAS VEGAS, July 22 /PRNewswire-FirstCall/ -- Allegiant Travel Company
(Nasdaq: ALGT), parent company of Allegiant Air and Allegiant Vacations, today
reported the following second quarter and half year 2008 results, and
comparisons to prior year equivalents:

    Unaudited                  2Q08     2Q07    Change  1H08    1H07   Change
    Total operating revenue
     (millions)               $131.6   $88.9    47.9%  $264.7  $173.3   52.7%
    Operating income
     (millions)                 $4.7   $14.2   (67.0)%  $19.0   $28.5  (33.1)%
      Operating margin           3.6%   15.9%  -12.3pp    7.2%   16.4%  -9.2pp

    Net income (millions)       $2.6   $10.0   (73.5)%  $12.3   $19.7  (37.5)%
    Diluted earnings per
     share                     $0.13   $0.49   (73.5)%  $0.60   $0.97  (38.1)%
    Diluted non-GAAP earnings
     per share adjusted by
     excluding non-cash
     mark-to-market loss/gain
     on fuel derivatives
     (reconciled to GAAP on
     pgs. 7 and 11)            $0.13   $0.51   (74.5)%  $0.60   $0.90  (33.3)%

    Scheduled Service:

      Average fare --
       ancillary              $27.75  $20.94    32.5%  $26.75  $20.02   33.6%
      Total revenue per ASM
       (cents)                 11.27    9.77    15.4%   10.93    9.46   15.5%
      Average stage length
       (miles)                   881     921    (4.4)%    894     924   (3.2)%

    Total System*:
      Operating expense per
       ASM (CASM) (cents)      10.76    8.05    33.7%   10.03    7.78   28.9%
      CASM, excluding fuel
       (cents)                  4.65    4.24     9.7%    4.49    4.20    6.9%
      Average stage length
       (miles)                   838     901    (7.0)%    846     915   (7.5)%

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



    "We had very good results during our second quarter. In spite of
exceptional headwinds from fuel, we are yet again one of the few companies in
our space who were profitable," said Maurice J. Gallagher, Jr., Chairman, CEO
and President of Allegiant Travel Company. "We grew revenues approximately 48%
to $132 million on a 36.5% increase in departures. We continued our successful
focus on achieving a higher scheduled load factor with 90.5% in the second
quarter, a 5.5 percentage point increase over the second quarter of 2007. We
believe this was the highest domestic load factor in the industry. Ancillary
revenues increased almost $7 per passenger year over year to $27.75, critical
to our 15% year-over-year increase in total scheduled RASM. In June we saw a
23% year-over-year increase in total scheduled RASM and a $3 increase in
selling fare while our average stage length declined 5.3% to 867 miles
compared to last June. This favorable trend has continued into the third
quarter."
    Gallagher continued, "The silver lining during the past three quarters of
increasing fuel prices has been industry capacity cuts. There have been widely
publicized capacity reductions in our destination markets, some as high as
15%, year-over-year. But there have also been capacity reductions in our small
cities. Further, our markets remain strong as evidenced by June's 94% load
factor and 23% increase in total scheduled RASM. Most of our small city
markets appear to have missed the recent slow-down in consumer spending."
Andrew C. Levy, CFO & Managing Director -- Planning, stated, "Once again,
the main story for the quarter is the rapid and significant rise in fuel
prices and our ability to continue to produce profits. This is the third
consecutive quarter where we have seen a sharp move in the price of jet fuel
as measured from the beginning compared with the end of the quarter.  Second
quarter jet fuel prices increased at an accelerating rate relative to the
previous two quarters and were $0.78 per gallon higher at the end of the
second quarter than at the beginning, and our average price per gallon was up
$1.29 per gallon compared with the second quarter of 2007.
    "Maintenance and repair expense was up in the second quarter relative to
the prior year primarily due to more scheduled airframe maintenance and engine
overhaul events. On a unit cost basis, maintenance and repair expense was
negatively impacted by a 7% decline in average stage length, which tends to
increase all unit costs.
    "Our balance sheet and liquidity remain strong. We ended the quarter with
$153.8 million in unrestricted cash and short-term investments, down from
$188.2 million at the end of the first quarter. The decline is due principally
to the purchase of $25 million in aircraft to support 2009 growth."
    During the second quarter, Allegiant Air initiated service on the
following five routes: Bellingham, WA to both San Diego and San Francisco, Las
Vegas to both Santa Barbara, CA and Monterey, CA and Orlando to Wilmington,
NC. We have also announced service from Las Vegas to Grand Forks, ND, and
Casper, WY to start in September, and in late August we are moving our Las
Vegas to northeastern Wisconsin service from Green Bay to Appleton. We expect
to make more new service announcements shortly.


    Network Summary*                     June 30, 2008         June 30, 2007
    Major leisure destinations                       5                     3
    Other leisure destinations                       4                     2
    Small cities served                             51                    48
    Total cities served                             60                    53

    Routes to Las Vegas                             38                    39
    Routes to Orlando                               26                    25
    Routes to Tampa Bay/St. Petersburg              15                    14
    Routes to Phoenix-Mesa                           9                     0
    Routes to Ft. Lauderdale                         8                     0
    Other routes                                     4                     2
    Total routes                                   100                    80

    *   includes cities served seasonally



    During the second quarter, we placed one additional (owned) aircraft in
service, bringing our operating fleet to 37. At the end of the second quarter,
we exercised the purchase option on five aircraft subject to capital lease.
    The following table summarizes year-over-year changes in Allegiant Air's
fleet:
    MD-80 Aircraft in Service*           June 30, 2008         June 30, 2007
    Owned (including capital leases)                33                    24
    Leased                                           4                     3
    Total                                           37                    27

    *   Does not include six owned MD-80 aircraft leased to a third party



    On July 17, 2008, Allegiant Air received a notice of termination from MLT
Vacations under which the Charter Services Agreement between the parties will
be terminated effective as of October 20, 2008. Under the Agreement, Allegiant
Air devoted one aircraft to provide charter services for MLT Vacations from
the end of May 2008 through the end of 2009, subject to earlier termination.
MLT Vacations cited rising fuel prices and lack of fare improvements as
reasons for the contract termination. The aircraft released from the MLT
program will be placed into scheduled service in the fourth quarter.
    At this time, Allegiant Travel Company provides the following guidance to
investors, which are subject to revision:
    --  We expect third quarter 2008 year-over-year departure growth of at
least 10% and ASM growth of at least 2%.
    --  By the end of 2008, Allegiant Air expects to operate at least 37 MD-80
aircraft.
    --  We expect 2008 capital expenditures of $58 million, almost all of
which is for aircraft and engines. Of the $58 million, $47 million was
expended by the end of the second quarter, of which $7.2 million was financed
and $25 million was for the six aircraft we purchased for growth in 2009,
currently on lease to a third party.
    At this time we have no fuel hedges in place.
    Allegiant Travel Company will host a conference call with analysts at 1 pm
EST tomorrow, July 23, 2008, to discuss its second quarter and half-year 2008
financial results. A live broadcast of the conference call will be available
via the Company's Investor Relations website homepage at
http://ir.allegiantair.com. The webcast will also be archived in the "Events &
Presentations" section of the website.
    About the Company
Las Vegas-based Allegiant Travel Company (Nasdaq: ALGT), is focused on
linking travelers in small cities to world-class leisure destinations such as
Las Vegas, Nev., Phoenix, Ariz., Fort Lauderdale, Fla., Orlando, Fla. and
Tampa/St. Petersburg, Fla. Through its subsidiary, Allegiant Air, LLC the
Company operates a low-cost, high-efficiency, all-jet passenger airline
offering air travel both on a stand-alone basis and bundled with hotel rooms,
rental cars and other travel related services.  ALGT/G
    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 ASM growth,
departure growth, fleet growth and expected capital expenditures, as well as
information concerning future results of operations, business strategies,
financing plans, competitive position, industry environment, potential growth
opportunities, the effects of future regulation and the effects of
competition. Forward-looking statements include all statements that are not
historical facts and can be identified by the use of forward-looking
terminology such as the words "believe," "expect," "anticipate," "intend,"
"plan," "estimate", "project" 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 http://www.sec.gov. These risk factors
include, without limitation, increases in fuel prices, terrorist attacks,
risks inherent to airlines, demand for air services to Las Vegas, Orlando,
Tampa/St. Petersburg, Phoenix-Mesa and Ft. Lauderdale from the markets served
by us, our ability to implement our growth strategy, our fixed obligations,
our dependence on our leisure destination markets, our ability to add, renew
or replace gate leases, our competitive environment, problems with our
aircraft, dependence on fixed fee customers, our reliance on our automated
systems, economic and other conditions in markets in which we operate,
governmental regulation, increases in maintenance costs and insurance premiums
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 June 30, 2008 and 2007
                   (in thousands, except per share amounts)
                                 (Unaudited)

                                        Three months ended June 30,    Percent
                                             2008           2007        change
    OPERATING REVENUE:
      Scheduled service revenue           $87,643        $65,622         33.6
      Fixed fee contract revenue           12,577          7,533         67.0
      Ancillary revenue                    29,108         15,786         84.4
      Other revenue                         2,230              -          N/M
      Total operating revenue             131,558         88,941         47.9

    OPERATING EXPENSES:
      Aircraft fuel                        72,068         35,458        103.2
      Salary and benefits                  17,160         13,981         22.7
      Station operations                   10,493          8,198         28.0
      Maintenance and repairs              11,362          5,692         99.6
      Sales and marketing                   3,670          3,033         21.0
      Aircraft lease rentals                  936            657         42.5
      Depreciation and amortization         5,956          3,715         60.3
      Other                                 5,238          4,049         29.4
      Total operating expenses            126,883         74,783         69.7

    OPERATING INCOME                        4,675         14,158        (67.0)
      As a percent of total operating
       revenue                                3.6%          15.9%
    OTHER (INCOME) EXPENSE:
      Gain on fuel derivatives, net             -           (380)         N/M
      Loss (earnings) from joint
       venture, net                            53           (195)         N/M
      Interest income                      (1,028)        (2,409)       (57.3)
      Interest expense                      1,489          1,361          9.4
      Total other expense (income)            514         (1,623)         N/M

    INCOME BEFORE INCOME TAXES              4,161         15,781        (73.6)
      As a percent of total operating
       revenue                                3.2%          17.7%

    PROVISION FOR INCOME TAXES              1,515          5,805        (73.9)

    NET INCOME                             $2,646         $9,976        (73.5)
    As a percent of total operating
     revenue                                  2.0%          11.2%
    Earnings per share:
      Basic                                 $0.13          $0.50        (74.0)
      Diluted                               $0.13          $0.49        (73.5)

    Weighted average shares outstanding:
      Basic                                20,192         19,988          1.0
      Diluted                              20,413         20,433         (0.1)



                           Allegiant Travel Company
                             Operating Statistics
                  Three Months Ended June 30, 2008 and 2007
                                 (Unaudited)

                                          Three months ended June 30,  Percent
                                              2008            2007     change*
    OPERATING STATISTICS
      Total system statistics
        Passengers                          1,153,500         810,555    42.3
        Revenue passenger miles (RPMs)
         (thousands)                        1,037,351         774,828    33.9
        Available seat miles (ASMs)
         (thousands)                        1,179,101         928,177    27.0
        Load factor                              88.0%           83.5%    4.5
        Operating revenue per ASM (cents)       11.16            9.58    16.5
        Operating expense per ASM (CASM)
         (cents)                                10.76            8.05    33.7
        Fuel expense per ASM (cents)             6.11            3.82    59.9
        CASM, excluding fuel (cents)             4.65            4.24     9.7
        Operating expense per passenger       $110.00          $92.26    19.2
        Fuel expense per passenger             $62.48          $43.75    42.8
        Operating expense per passenger,
         excluding fuel                        $47.52          $48.52    (2.1)
        Departures                              9,504           6,962    36.5
        Block hours                            21,518          16,370    31.4
        Average stage length (miles)              838             901    (7.0)
        Average number of operating
         aircraft during period                  36.7            26.2    40.1
        Total aircraft in service end of
         period                                    37              27    37.0
        Full-time equivalent employees at
         end of period                          1,299             951    36.6
        Fuel gallons consumed (thousands)      20,460          15,864    29.0
        Average fuel cost per gallon            $3.52           $2.23    57.8

      Scheduled service statistics
        Passengers                          1,048,870         753,716    39.2
        Revenue passenger miles (RPMs)
         (thousands)                          937,923         708,616    32.4
        Available seat miles (ASMs)
         (thousands)                        1,036,293         833,475    24.3
        Load factor                              90.5%           85.0%    5.5
        Departures                              7,899           6,121    29.0
        Block hours                            18,667          14,680    27.2
        Yield (cents)                            9.34            9.26     0.9
        Scheduled service revenue per ASM
         (cents)                                 8.46            7.88     7.4
        Ancillary revenue per ASM (cents)        2.81            1.89    48.7
        Total revenue per ASM (cents)           11.27            9.77    15.4
        Average fare - scheduled service       $83.56          $87.06    (4.0)
        Average fare - ancillary                27.75           20.94    32.5
        Average fare - total                  $111.31         $108.01     3.1
        Average stage length (miles)              881             921    (4.4)
        Percent of sales through website
         during period                           85.6%           86.8%   (1.2)

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



                           Allegiant Travel Company
                            Non-GAAP Presentations
                  Three Months Ended June 30, 2008 and 2007
             (in thousands, except per share and per ASM amounts)
                                 (Unaudited)

    We do not qualify for fuel hedge accounting treatment under FAS 133.  To
facilitate investor comparisons with airlines that do qualify for fuel hedge
accounting, we provide adjusted non-GAAP measures of net income and operating
expense as if we did qualify for fuel hedge accounting, by excluding the
mark-to-market non-cash gains or losses on fuel derivatives from net income
and by treating cash gains or losses realized on fuel derivatives as part of
aircraft fuel expense.  We believe use of these non-GAAP measures assists
investors in understanding the underlying economic performance of the Company
without regard to different accounting treatment for fuel hedging activities.
    The SEC has adopted rules (Regulation G) regulating the use of non-GAAP
financial measures. Because of our use of non-GAAP financial measures,
adjusted net income and adjusted aircraft fuel expense, 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 measures, which are net income (which reflects the
mark-to-market non-cash loss or gain on fuel derivatives), and aircraft fuel
expense (which is not impacted by the cash gain or loss on fuel derivatives),
and a reconciliation of the non-GAAP measures to the most comparable GAAP
measures.  Our utilization of non-GAAP measurements is not meant to be
considered in isolation or as a substitute for net income, aircraft fuel
expense and other measures of financial performance prepared in accordance
with GAAP.  Adjusted net income and adjusted aircraft fuel expense are not
GAAP measurements and our use of them may not be comparable to similarly
titled measures employed by other companies in the airline industry.  The
reconciliations to GAAP measures follow.
    Derivation of adjusted net income (excluding non-cash mark-to-market loss
on fuel derivatives) from net income:
    (in thousands, except per share       Three months ended June 30,  Percent
     amounts)                                2008             2007      change

    Net income                             $2,646           $9,976      (73.5)
    Mark-to-market non-cash loss on
     fuel derivatives                           -              680        N/M
    Tax impact of mark-to-market non-cash
     loss on fuel derivatives                   -             (258)       N/M
    Net of mark-to-market non-cash
     loss on fuel derivatives:
      Adjusted net income                  $2,646          $10,398      (74.6)
      Adjusted earnings per share:
        Basic                               $0.13            $0.52      (75.0)
        Diluted                             $0.13            $0.51      (74.5)



    Derivation of adjusted aircraft fuel expense:

                                        Three months ended June 30,    Percent
    (in thousands)                          2008             2007       Change

    Aircraft fuel expense                 $72,068          $35,458      103.2
    Cash gain on fuel derivatives               -           (1,060)       N/M
    Adjusted aircraft fuel expense        $72,068          $34,398      109.5



    Derivation of CASM treating cash gain on fuel derivatives as a reduction
of operating expense:

                                        Three months ended June 30,    Percent
    (in cents)                               2008             2007      Change

    CASM                                    10.76             8.05       33.7
    Cash gain on fuel derivatives per ASM       -            (0.11)       N/M
    CASM treating cash gain on fuel
     derivatives as an operating expense    10.76             7.94       35.5



    Split of gain on fuel derivatives into cash-settled portion and
mark-to-market non-cash portion:
                                        Three months ended June 30,    Percent
    (in thousands)                           2008             2007      Change

    Mark-to-market non-cash loss on
     fuel derivatives                           -             $680        N/M
    Cash gain on fuel derivatives               -           (1,060)       N/M
    Gain on fuel derivatives, net               -            ($380)       N/M



                           Allegiant Travel Company
                      Consolidated Statements of Income
                   Six Months Ended June 30, 2008 and 2007
                   (in thousands, except per share amounts)
                                 (Unaudited)

                                       Six months ended June 30,       Percent
                                           2008           2007          change
    OPERATING REVENUE:
      Scheduled service revenue        $179,379       $123,853           44.8
      Fixed fee contract revenue         26,834         20,881           28.5
      Ancillary revenue                  56,255         28,556           97.0
      Other revenue                       2,230              -            N/M
      Total operating revenue           264,698        173,290           52.7

    OPERATING EXPENSES:
      Aircraft fuel                     135,562         66,637          103.4
      Salary and benefits                34,286         26,887           27.5
      Station operations                 22,512         16,833           33.7
      Maintenance and repairs            21,815         12,219           78.5
      Sales and marketing                 8,004          6,065           32.0
      Aircraft lease rentals              1,944          1,308           48.6
      Depreciation and amortization      10,971          7,375           48.8
      Other                              10,565          7,507           40.7
      Total operating expenses          245,659        144,831           69.6

    OPERATING INCOME                     19,039         28,459          (33.1)
      As a percent of total operating
       revenue                              7.2%          16.4%
    OTHER (INCOME) EXPENSE:
      Loss (gain) on fuel derivatives,
       net                                   11         (1,904)           N/M
      Loss (earnings) from joint
       venture, net                          43           (262)           N/M
      Other expense                           -             63            N/M
      Interest income                    (2,760)        (4,293)         (35.7)
      Interest expense                    2,904          2,769            4.9
      Total other expense (income)          198         (3,627)           N/M

    INCOME BEFORE INCOME TAXES           18,841         32,086          (41.3)
      As a percent of total operating
       revenue                              7.1%          18.5%

    PROVISION FOR INCOME TAXES:           6,523         12,363          (47.2)

    NET INCOME                          $12,318        $19,723          (37.5)
      As a percent of total operating
       revenue                              4.7%          11.4%
    Earnings per share:
      Basic                               $0.61          $0.99          (38.4)
      Diluted                             $0.60          $0.97          (38.1)

    Weighted average shares
     outstanding:
      Basic                              20,331         19,843            2.5
      Diluted                            20,554         20,323            1.1



                           Allegiant Travel Company
                             Operating Statistics
                   Six Months Ended June 30, 2008 and 2007
                                 (Unaudited)

                                          Six months ended June 30,    Percent
                                             2008            2007      change*
    OPERATING STATISTICS
      Total system statistics
        Passengers                        2,308,210       1,563,794     47.6
        Revenue passenger miles (RPMs)
         (thousands)                      2,099,815       1,524,065     37.8
        Available seat miles (ASMs)
         (thousands)                      2,449,348       1,860,706     31.6
        Load factor                            85.7%           81.9%     3.8
        Operating revenue per ASM (cents)     10.81            9.31     16.1
        Operating expense per ASM (CASM)
         (cents)                              10.03            7.78     28.9
        Fuel expense per ASM (cents)           5.53            3.58     54.5
        CASM, excluding fuel (cents)           4.49            4.20      6.9
        Operating expense per passenger     $106.43          $92.61     14.9
        Fuel expense per passenger           $58.73          $42.61     37.8
        Operating expense per passenger,
         excluding fuel                      $47.70          $50.00     (4.6)
        Departures                           19,526          13,729     42.2
        Block hours                          44,931          32,930     36.4
        Average stage length (miles)            846             915     (7.5)
        Average number of operating aircraft
         during period                         35.6            26.0     36.9
        Total aircraft in service end of
         period                                  37              27     37.0
        Full-time equivalent employees at
         end of period                        1,299             951     36.6
        Fuel gallons consumed (thousands)    42,488          31,711     34.0
        Average fuel cost per gallon          $3.19           $2.10     51.9

      Scheduled service statistics
        Passengers                        2,103,268       1,426,556     47.4
        Revenue passenger miles (RPMs)
         (thousands)                      1,911,171       1,350,095     41.6
        Available seat miles (ASMs)
         (thousands)                      2,156,305       1,610,616     33.9
        Load factor                            88.6%           83.8%     4.8
        Departures                           16,190          11,795     37.3
        Block hours                          39,013          28,527     36.8
        Yield (cents)                          9.39            9.17      2.4
        Scheduled service revenue per ASM
         (cents)                               8.32            7.69      8.2
        Ancillary revenue per ASM (cents)      2.61            1.77     47.5
        Total revenue per ASM (cents)         10.93            9.46     15.5
        Average fare - scheduled service     $85.28          $86.82     (1.8)
        Average fare - ancillary              26.75           20.02     33.6
        Average fare - total                $112.03         $106.84      4.9
        Average stage length (miles)            894             924     (3.2)
        Percent of sales through website
         during period                         86.8%           84.7%     2.1

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



                           Allegiant Travel Company
                            Non-GAAP Presentations
                   Six Months Ended June 30, 2008 and 2007
             (in thousands, except per share and per ASM amounts)
                                 (Unaudited)

    We do not qualify for fuel hedge accounting treatment under FAS 133.  To
facilitate investor comparisons with airlines that do qualify for fuel hedge
accounting, we provide adjusted non-GAAP measures of net income and operating
expense as if we did qualify for fuel hedge accounting, by excluding the
mark-to-market non-cash gains or losses on fuel derivatives from net income
and by treating cash gains or losses realized on fuel derivatives as part of
aircraft fuel expense.  We believe use of these non-GAAP measures assists
investors in understanding the underlying economic performance of the Company
without regard to different accounting treatment for fuel hedging activities.
    The SEC has adopted rules (Regulation G) regulating the use of non-GAAP
financial measures. Because of our use of non-GAAP financial measures,
adjusted net income and adjusted aircraft fuel expense, 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 measures, which are net income (which reflects the
mark-to-market non-cash loss or gain on fuel derivatives), and aircraft fuel
expense (which is not impacted by the cash gain or loss on fuel derivatives),
and a reconciliation of the non-GAAP measures to the most comparable GAAP
measures.  Our utilization of non-GAAP measurements is not meant to be
considered in isolation or as a substitute for net income, aircraft fuel
expense and other measures of financial performance prepared in accordance
with GAAP.  Adjusted net income and adjusted aircraft fuel expense are not
GAAP measurements and our use of them may not be comparable to similarly
titled measures employed by other companies in the airline industry.  The
reconciliations to GAAP measures follow.
    Derivation of adjusted net income (excluding non-cash mark-to-market loss
or gain on fuel derivatives) from net income:
    (in thousands, except per share       Six months ended June 30,    Percent
     amounts)                               2008             2007       change

    Net income                            $12,318          $19,723     (37.5)
    Mark-to-market non-cash loss
     (gain) on fuel derivatives                81           (2,437)      N/M
    Tax impact of mark-to-market
     non-cash loss/gain on fuel
     derivatives                              (30)             938       N/M
    Net of mark-to-market non-cash
     loss/gain on fuel derivatives:
      Adjusted net income                 $12,369          $18,224     (32.1)
      Adjusted earnings per share:
        Basic                               $0.61            $0.92     (33.7)
        Diluted                             $0.60            $0.90     (33.3)



    Derivation of adjusted aircraft fuel expense:

                                          Six months ended June 30,    Percent
    (in thousands)                          2008             2007       change

    Aircraft fuel expense                 $135,562          $66,637     103.4
    Cash (gain) loss on fuel derivatives       (70)             533       N/M
    Adjusted aircraft fuel expense        $135,492          $67,170     101.7



    Derivation of CASM treating cash loss on fuel derivatives as part of
operating expense:

                                           Six months ended June 30,   Percent
    (in cents)                               2008             2007      change

    CASM                                    10.03             7.78      28.9
    Cash loss on fuel derivatives per ASM       -             0.03       N/M
    CASM treating cash loss on fuel
     derivatives as an operating expense    10.03             7.81      28.4



    Split of (gain) loss on fuel derivatives into cash-settled portion and
mark-to-market non-cash portion:
                                           Six months ended June 30,   Percent
    (in thousands)                           2008             2007      change

    Mark-to-market non-cash loss (gain)
     on fuel derivatives                      $81          ($2,437)      N/M
    Cash (gain) loss on fuel derivatives      (70)             533       N/M
    Loss (gain) on fuel derivatives, net      $11          ($1,904)      N/M

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20060516/LATU102LOGO)

SOURCE  Allegiant Travel Company

media, Tyri Squyres, +1-702-851-7370, mediarelations@allegiantair.com, or
investors, Robert Ashcroft, +1-702-430-3275, ir@allegiantair.com, both of
Allegiant Travel Company
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