Allegiant Travel Company (NASDAQ:ALGT) Q3 2017 Earnings Conference Call Transcript
Oct 25, 2017 • 04:30 pm ET
Good day, ladies and gentlemen, and welcome to the Allegiant Travel Company Third Quarter 2017 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the conference over to Chris Allen, Investor Relations. Please begin.
Thank you. Welcome to the Allegiant Travel Company's Third Quarter 2017 Earnings Call. On the call with me today are Maury Gallagher, the company's Chairman and Chief Executive Officer; John Redmond, the company's President; Scott Sheldon, our Chief Financial Officer and interim COO; Lukas Johnson, our Senior Vice President of Commercial; and a handful of others to help answer questions. We will open up with some commentary and then move into questions.
As a reminder, we are in the final stages of our plan for 2018 and we will now be providing guidance on 2018 capacity, CapEx costs on this call. Our Investor Day will take place in Las Vegas on Thursday, November 30 and we will use that venue to provide 2018 information, as well as the status of Sunseeker Resorts.
Before we begin, I have to remind listeners that this company's comments today will contain forward-looking statements, and they are only predictions that involve risks and uncertainties.
(Forward-Looking Cautionary Statements)
With that, I'd like to turn it over to Maury.
Thank you, Chris, and good afternoon, everyone. Thank you for joining us today.
Typically I haven't been commenting on our calls, but for this call I wanted to personally update you on some critical goings on we've had going at this company here. We told you a year ago at our investor conference we were committed to retiring our MD-80 fleet by late 2019. We also told you our financial results would be impacted during this period with 2017 being the most impacted.
The financial results have been as difficult as we thought they would be this year. The operational change, however, of hitting our delivery targets for available Airbus aircraft and trained pilots to fly them has been spot on. Very excited and pleased about that. And hats off to all those involved in making the changeover happen on time.
As we've gotten further into this year, we've concluded we want to accelerate the MD-80 retirement timeline. To that end, we've moved up the retirement date by almost a year to the end of 2018. To accomplish this goal, we needed to tie down two areas. First, we had to find additional aircraft to make sure we had sufficient lift. Our aircraft acquisition group, headed by Robert Neal, rose to the task and they found us almost 20 additional aircraft, which will be delivered and in service by the end of next year.
Second, we needed to make sure we could transition our pilots from the MD-80s to the Airbus inside this accelerated schedule. During the past 24 months I'm happy to report we have substantially upgraded our training capacity and associated facilities to allow for this accelerated transition. We will miss the