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COVID-19 (Notes)

6 Months Ended

Jun. 30, 2021

Unusual or Infrequent Items, or Both [Abstract]

Unusual or Infrequent Items, or Both, Disclosure [Text Block]

Impact of the COVID-19 Pandemic

The rapid spread of COVID-19 and the related government restrictions, social distancing measures, and consumer fears have impacted flight loads, resulted in unprecedented cancellations of bookings and substantially reduced demand for new bookings throughout the airline industry. Starting in March 2020, the Company experienced a severe reduction in air travel, which continued through the first quarter of 2021. Demand in the foreseeable future will continue to be affected by fluctuations in COVID-19 cases, variants, hospitalizations, deaths, treatment efficacy and the availability of vaccines. The Company is continuously reevaluating flight schedules and adjusting capacity based on demand trends.

On December 27, 2020, the Consolidated Appropriations Act, 2021 (the "Payroll Support Program Extension") was signed into law. This Payroll Support Program Extension provides an additional $15.0 billion in support to the airline industry. On January 15, 2021, the Company through its airline operating subsidiary Allegiant Air, LLC entered into a Payroll Support Program Extension Agreement (the “PSP2”) with the Treasury and received $91.8 million under the Payroll Support Program Extension. The funds were used exclusively for wages, salaries and benefits.

In April 2021, the Company received $13.8 million in additional funds related to the PSP2 which included a loan of $1.7 million. In consideration for these additional funds, the Company issued additional warrants ( the "PSP2 Warrants") to the Treasury to acquire 924 shares of common stock at a price of $179.23 per share (based on the price of the Company's common stock on the Nasdaq Global Select Market on December 24, 2020).

In April 2021, the Company through its airline operating subsidiary Allegiant Air, LLC entered into a Payroll Support Program 3 Agreement (the "PSP3") with the Treasury under section 7301 of the American Rescue Plan Act of 2021. The Company received a total of $98.4 million in second quarter 2021. The funds must be used exclusively for wages, salaries and benefits.

Based on the Company's assumptions about the future impact of COVID-19 on travel demand, which could be materially different due to the inherent uncertainties of the current operating environment, the Company expects to meet its cash obligations as well as remain in compliance with the debt covenants in its existing financing agreements for the next 12 months based on its current level of unrestricted cash and short-term investments, its anticipated access to liquidity and tax refunds, and projected cash flows from operations.

Special Charges

The table below summarizes special charges recorded during the three and six months ended June 30, 2021, and 2020.

																		Three Months Ended June 30,												Six Months Ended June 30,
(in thousands)																		2021						2020						2021						2020
Operating																		$	854					$	81,169					$	2,592					$	247,267
Non-operating																		—						19,830						—						26,632
Total special charges																		$	854					$	100,999					$	2,592					$	273,899

Additional detail for the $2.6 million of total special charges for the six months ended June 30, 2021 appears below:

•$2.1 million resulting from the accelerated retirements of four airframes and six engines

•$0.5 million impairment loss on a building in Chesterfield, Missouri associated with the Allegiant Nonstop family entertainment line of business.

Additional detail for the $273.9 million of total special charges (operating and non-operating) for the six months ended June 30, 2020 appears below:

•$168.4 million in impairment charges primarily in our non-airline subsidiaries

•$58.6 million resulting from the accelerated retirement of seven airframes and five engines, loss on sale leaseback transaction of four aircraft, and write-offs of other aircraft related assets

•$19.7 million for additional salary and benefits expense in relation to the elimination of positions as well as other non-recurring compensation expense associated with the acceleration of certain existing stock awards

•$19.8 million accrual on termination of the loan agreement with Sixth Street Partners (formerly TSSP) intended to finance the development of Sunseeker Resorts Charlotte Harbor, which was paid in the second half of 2020

•$5.0 million related to suspension of construction at Sunseeker

•$2.4 million write-down on various non-aircraft assets and other various expenses

Restructuring and Related Activities Disclosure [Text Block]

Special Charges

The table below summarizes special charges recorded during the three and six months ended June 30, 2021, and 2020.

																		Three Months Ended June 30,												Six Months Ended June 30,
(in thousands)																		2021						2020						2021						2020
Operating																		$	854					$	81,169					$	2,592					$	247,267
Non-operating																		—						19,830						—						26,632
Total special charges																		$	854					$	100,999					$	2,592					$	273,899

Additional detail for the $2.6 million of total special charges for the six months ended June 30, 2021 appears below:

•$2.1 million resulting from the accelerated retirements of four airframes and six engines

•$0.5 million impairment loss on a building in Chesterfield, Missouri associated with the Allegiant Nonstop family entertainment line of business.

Additional detail for the $273.9 million of total special charges (operating and non-operating) for the six months ended June 30, 2020 appears below:

•$168.4 million in impairment charges primarily in our non-airline subsidiaries

•$58.6 million resulting from the accelerated retirement of seven airframes and five engines, loss on sale leaseback transaction of four aircraft, and write-offs of other aircraft related assets

•$19.7 million for additional salary and benefits expense in relation to the elimination of positions as well as other non-recurring compensation expense associated with the acceleration of certain existing stock awards

•$19.8 million accrual on termination of the loan agreement with Sixth Street Partners (formerly TSSP) intended to finance the development of Sunseeker Resorts Charlotte Harbor, which was paid in the second half of 2020

•$5.0 million related to suspension of construction at Sunseeker

•$2.4 million write-down on various non-aircraft assets and other various expenses

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