Allegiant Travel Company (NASDAQ:ALGT) Q3 2019 Earnings Conference Call - Final Transcript

Oct 24, 2019 • 05:30 pm ET

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Allegiant Travel Company (NASDAQ:ALGT) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q3 2019 Allegiant Travel Company Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Chris Allen. Sir, please go ahead.

Executive
Chris Allen

Thank you. Welcome to Allegiant Travel Company's third quarter 2019 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; Greg Anderson, our Chief Financial Officer; Scott Sheldon, our EVP and Chief Operating Officer; Scott DeAngelo, our Chief Marketing Officer; Drew Wells, our VP of Revenue and Planning; and a handful of others to help answer questions. We'll start with some commentary and then open it up for questions.

The Company's comments today will contain forward-looking statements concerning our future performance and strategic plan. Various risk factors could cause the underlying assumptions of these statements and our actual results to differ materially from those expressed or implied by our forward-looking statements. These risk factors and others are more fully disclosed in our filings with the SEC.

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. The Company cautions investors not to place undue reliance on forward-looking statements, which may be based upon assumptions and events that do not materialize.

To view this earnings release as well as a rebroadcast of this call, feel free to visit the Company's Investor Relations website at ir.allegiantair.com. Just a reminder, our Investor Day will take place in Las Vegas on Wednesday, November 13. As such, we will use that event to speak about our expectations for 2020 rather than on this call.

With that, I would like to turn it over to Maury.

Executive
Maurice J. Gallagher

Thank you, Chris, and good afternoon, everyone. Thank you for joining us again. Busy day for you all. I appreciate your time.

I'm happy to report our 67th consecutive profitable quarter -- a very profitable quarter, as you saw, on a year-over-year basis. The question of the day is what's caused this dramatic improvement, two reasons. One, the one-time expenses of the transition years of '17 and '18 are behind us, and two, the change to the all-Airbus fleet.

In less than 24 months during 2017 and '18, we added 40 new Airbus aircraft, more than doubling our total to 76 at the end of last year. Today the fleet has grown another 12, 13 airplanes to 89 aircraft. We've showed great skill during this time managing the transition. Since 2001, operating used aircraft has been one of our core competencies. Used aircraft have been and continue to be a more capital-efficient asset for our lower utilization model. Since our earliest days, we have sourced aircraft in this more complex used aircraft market, including negotiating the transaction and coordinating the inductions.

Because of this skill, our team has been recognized as one of the