Allegiant Travel (ALGT) risk factors, FY2024 10-K

Risks Related to Allegiant

1. 01We are relying on Boeing to deliver our new 737 MAX aircraft to support airline growth and to replace aircraft we have designated for retirement or whose leases are expiring
2. 02Any subsequent FAA action or any future adverse 737 MAX events or safety concerns might disproportionately impact us as we rely on these new aircraft to augment our fleet as well as to replace aircraft to be retired
3. 03Fuel costs constituted approximately 22.8 percent of our total operating expenses in 2024. Significant increases in fuel costs have negatively affected our operating results in the past, and future fuel cost volatility could materially affect our financial condition and results of operations
4. 04Our reputation and financial results could be harmed in the event of an accident or restrictions affecting aircraft in our fleet
5. 05In-flight emergencies affecting our aircraft, and resulting media attention, could also contribute to a public perception regarding safety concerns and a loss of business
6. 06Our low-cost structure is one of our primary competitive advantages, and many factors could affect our ability to control our costs
7. 07Further, we have four employee groups (pilots, flight attendants, flight dispatchers and maintenance technicians) which have elected union representation. These groups represent approximately 61.8 percent of our employees (full-time equivalent)
8. 08Future union contracts with these, or other, work groups could put additional pressure on our labor costs
9. 09The inability to attract and retain qualified flight crew and other airline personnel could limit our growth plans and adversely affect our business and results of operations
10. 10We rely heavily on automated systems to operate our business and any failure of these systems could harm our business
11. 11Unfavorable economic conditions may adversely affect travel from our markets to our leisure destinations
12. 12The successful operation of our Sunseeker Resort and ability to enter into a suitable arrangement with a capital partner are dependent on commercial and economic factors, some of which are beyond our control
13. 13The success of our proposed alliance with VivaAerobus will depend on our ability to obtain necessary government approvals and other factors
14. 14Increases in taxes could impact demand for our services
15. 15Our indebtedness, debt service obligations and other commitments could adversely affect our business, financial condition and results of operations as well as limit our ability to react to changes in the economy or our industry and prevent us from servicing our debt and operating our business
16. 16Covenants in our senior secured notes and revolving credit facility could limit how we conduct our business, which could affect our long-term growth potential
17. 17These loan agreements contain various events of default (including failure to comply with the covenants under the loan agreements), and upon an event of default the lenders may, subject to various cure rights, require the immediate payment of all amounts outstanding under the these loans
18. 18Any inability to obtain financing for aircraft under contract could harm our fleet growth plan
19. 19Our maintenance costs may increase as our fleet ages
20. 20We rely on third parties to provide us with aircraft, facilities and services that are integral to our business
21. 21We may not be able to maintain or grow our ancillary revenues
22. 22Our business could be harmed if we lose the services of key personnel
23. 23Our reputation and brand could be harmed if various stakeholders are not satisfied with our sustainability disclosures, goals and progress
24. 24Our operating results could be affected by outbreaks of communicable diseases
25. 25The airline industry is highly competitive and future competition in our under-served markets could harm our business
26. 26A future act of terrorism, the threat of such acts, or escalation of U.S. military involvement overseas could adversely affect our industry
27. 27Changes in government laws and regulations imposing additional requirements and restrictions on our operations could increase our operating costs
28. 28complying with these and other laws, rules and regulations, including new federal legislative and DOT regulatory requirements in the consumer-protection area, cannot be predicted and could significantly increase our costs of doing business
29. 29Existing and proposed state-specific labor laws could affect our ability to schedule and operate flights efficiently, and as a result could increase our operating costs and liability exposure
30. 30Airlines are often affected by factors beyond their control, including air traffic congestion, weather conditions, increased security measures, and a reduction in demand to any particular market, any of which could harm our operating results and financial condition

Risks Related to Our Stock Price

1. 31The market price of our common stock may be volatile, which could cause the value of an investment in our stock to decline
2. 32The stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of particular companies. These types of broad market fluctuations may adversely affect the trading price of our common stock
3. 33Other companies may be deterred from attempting to acquire us or our stock, even at prices in excess of current market prices, due to the effects of Nevada statutes
4. 34Our corporate charter and bylaws include provisions limiting voting by non-U.S. citizens