10-Q 1 algt-20220630.htm 10-Q algt-20220630
--12-31FALSE0001362468June 30, 20222022Q20.0010.001Recent Accounting PronouncementsImpact of the COVID-19 Pandemic
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 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 Stock 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 and received a total of $98.4 million.

The funds received under PSP2 and PSP3 were used exclusively for wages, salaries and benefits.

Prior to January 1, 2022, all Payroll Support Program funds had been fully utilized.
The table below summarizes special charges recorded during the three and six months ended June 30, 2022, and 2021.
Three Months Ended June 30,
(in thousands)20222021
Operating$142 $1,738 
Non-operating— — 
Total special charges$142 $1,738 

Washington, D.C. 20549

(Mark One)
For the quarterly period ended June 30, 2022
For the transition period from _______ to_______

Commission File Number 001-33166
Allegiant Travel Company
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation or Organization)(IRS Employer Identification No.)
1201 North Town Center Drive
Las Vegas,Nevada89144
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (702) 851-7300

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common stock, par value $0.001ALGTNASDAQ Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of July 22, 2022, the registrant had 18,181,322 shares of common stock, $0.001 par value per share, outstanding.



Item 1. Consolidated Financial Statements
(in thousands)
June 30, 2022December 31, 2021
Cash and cash equivalents$396,091 $363,378 
Restricted cash21,960 37,323 
Short-term investments813,243 819,478 
Accounts receivable85,315 62,659 
Expendable parts, supplies and fuel, net35,566 27,500 
Prepaid expenses and other current assets50,270 28,073 
TOTAL CURRENT ASSETS1,402,445 1,338,411 
Property and equipment, net2,555,334 2,259,507 
Long-term investments 2,231 
Deferred major maintenance, net147,387 146,850 
Operating lease right-of-use assets, net121,078 130,087 
Deposits and other assets211,629 113,987 
TOTAL ASSETS:$4,437,873 $3,991,073 
Accounts payable$63,558 $43,566 
Accrued liabilities226,083 162,892 
Current operating lease liabilities19,551 19,081 
Air traffic liability451,087 307,453 
Current maturities of long-term debt and finance lease obligations, net of related costs157,957 130,053 
Long-term debt and finance lease obligations, net of current maturities and related costs1,803,533 1,612,486 
Deferred income taxes345,118 346,137 
Noncurrent operating lease liabilities105,198 115,067 
Other noncurrent liabilities33,417 30,786 
TOTAL LIABILITIES:3,205,502 2,767,521 
Common stock, par value $0.001
25 25 
Treasury shares(633,332)(638,057)
Additional paid in capital698,982 692,053 
Accumulated other comprehensive income, net2,744 2,056 
Retained earnings1,163,952 1,167,475 
TOTAL EQUITY:1,232,371 1,223,552 
The accompanying notes are an integral part of these consolidated financial statements.

(in thousands, except per share amounts)
 Three Months Ended June 30,Six Months Ended June 30,
Passenger$592,604 $443,747 $1,056,566 $700,441 
Third party products27,787 23,001 50,267 36,622 
Fixed fee contracts8,920 5,134 22,305 12,827 
Other536 551 818 1,667 
   Total operating revenues629,847 472,433 1,129,956 751,557 
Aircraft fuel257,288 109,456 421,425 192,305 
Salaries and benefits139,681 121,906 273,691 239,856 
Station operations66,909 57,210 132,652 100,303 
Depreciation and amortization49,183 44,522 95,526 87,696 
Maintenance and repairs31,123 22,597 58,943 45,968 
Sales and marketing27,297 17,632 49,647 29,241 
Aircraft lease rental5,451 5,117 11,584 9,837 
Other26,643 15,501 52,845 33,276 
Payroll Support Programs grant recognition (61,213) (152,971)
Special charges142 854 284 2,592 
   Total operating expenses603,717 333,582 1,096,597 588,103 
OPERATING INCOME26,130 138,851 33,359 163,454 
Interest expense24,497 16,720 44,288 33,508 
Capitalized interest(2,082) (3,298) 
Interest income(2,218)(500)(2,991)(963)
Loss on debt extinguishment 71  71 
Other, net101 (11)95 (404)
   Total other expenses20,298 16,280 38,094 32,212 
INCOME (LOSS) BEFORE INCOME TAXES5,832 122,571 (4,735)131,242 
INCOME TAX PROVISION (BENEFIT)1,474 27,544 (1,212)29,346 
NET INCOME (LOSS)$4,358 $95,027 $(3,523)$101,896 
Earnings (loss) per share to common shareholders:
Basic$0.24 $5.49 $(0.20)$6.04 
Diluted$0.24 $5.49 $(0.20)$6.04 
Shares used for computation:
Basic17,987 17,064 17,970 16,618 
Diluted18,006 17,073 17,970 16,632 
Cash dividends declared per share:$ $ $ $ 

The accompanying notes are an integral part of these consolidated financial statements.

(in thousands)
 Three Months Ended June 30,Six Months Ended June 30,
NET INCOME (LOSS)$4,358 $95,027 $(3,523)$101,896 
Other comprehensive income:  
Change in available for sale securities, net of tax(2,667)(126)688 (98)
Total other comprehensive income(2,667)(126)688 (98)
TOTAL COMPREHENSIVE INCOME (LOSS)$1,691 $94,901 $(2,835)$101,798 

The accompanying notes are an integral part of these consolidated financial statements.

(in thousands)
Three Months Ended June 30, 2022
Common stock outstandingPar valueAdditional paid-in capitalAccumulated other comprehensive income (loss)Retained earningsTreasury sharesTotal shareholders' equity
Balance at March 31, 202218,119 $25 $695,323 $5,411 $1,159,594 $(638,057)$1,222,296 
Share-based compensation31 — 3,659 — — — 3,659 
Stock issued under employee stock purchase plan30 — — — — 4,725 4,725 
Other comprehensive (loss)— — — (2,667)— — (2,667)
Net income— — — — 4,358 — 4,358 
Balance at June 30, 202218,180 $25 $698,982 $2,744 $1,163,952 $(633,332)$1,232,371 

Six Months Ended June 30, 2022
Common stock outstandingPar valueAdditional paid-in capitalAccumulated other comprehensive income (loss)Retained earningsTreasury sharesTotal shareholders' equity
Balance at December 31, 202118,111 $25 $692,053 $2,056 $1,167,475 $(638,057)$1,223,552 
Share-based compensation39 — 6,929 — — — 6,929 
Stock issued under employee stock purchase plan30 — — — — 4,725 4,725 
Other comprehensive income— — — 688 — — 688 
Net (loss)— — — — (3,523)— (3,523)
Balance at June 30, 202218,180 $25 $698,982 $2,744 $1,163,952 $(633,332)$1,232,371 

Three Months Ended June 30, 2021
Common stock outstandingPar valueAdditional paid-in capitalAccumulated other comprehensive income (loss)Retained earningsTreasury sharesTotal shareholders' equity
Balance at March 31, 202116,416 $23 $333,147 $1 $1,022,491 $(646,008)$709,654 
Share-based compensation1 — 3,504 — — — 3,504 
Issuance of common stock, net of forfeitures1,553 2 335,137 — — — 335,139 
Stock issued under employee stock purchase plan16 — — —  3,831 3,831 
Other comprehensive (loss)— — — (126)— — (126)
Payroll Support Programs warrant issuance— — 105 — — — 105 
Net income— — — — 95,027 — 95,027 
Balance at June 30, 202117,986 $25 $671,893 $(125)$1,117,518 $(642,177)$1,147,134 


Six Months Ended June 30, 2021
Common stock outstandingPar valueAdditional paid-in capitalAccumulated other comprehensive incomeRetained earningsTreasury sharesTotal shareholders' equity
Balance at December 31, 202016,405 $23 $329,753 $(27)$1,015,622 $(646,008)$699,363 
Share-based compensation12 — 6,898 — — — 6,898 
Issuance of common stock, net of forfeitures1,553 2 335,137 — — — 335,139 
Stock issued under employee stock purchase plan16 — — —  3,831 3,831 
Other comprehensive (loss)— — — (98)— — (98)
Payroll Support Programs warrant issuance— — 105 — — — 105 
Net income— — — — 101,896 — 101,896 
Balance at June 30, 202117,986 $25 $671,893 $(125)$1,117,518 $(642,177)$1,147,134 


(in thousands)
 Six Months Ended June 30,
Cash flows from operating activities:
Net income (loss)$(3,523)$101,896 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization95,526 87,696 
Special charges284 2,592 
Other adjustments13,657 18,184 
Changes in certain assets and liabilities:
Air traffic liability143,634 129,220 
Deferred Payroll Support Programs grant recognition 49,210 
Other - net(21,796)16,175 
Net cash provided by operating activities227,782 404,973 
Cash flows from investing activities:
Purchase of investment securities (672,318)(673,722)
Proceeds from maturities of investment securities 675,656 436,364 
Aircraft pre-delivery deposits(51,111)(3,300)
Purchase of property and equipment(205,158)(131,184)
Other investing activities645 2,443 
Net cash (used in) investing activities(252,286)(369,399)
Cash flows from financing activities:
Proceeds from the issuance of debt and finance lease obligations195,800 106,657 
Principal payments on debt and finance lease obligations(70,502)(199,627)
Debt issuance costs(669)(606)
Proceeds from issuance of common stock 335,137 
Other financing activities(82,775)3,936 
Net cash provided by financing activities41,854 245,497 
Interest paid, net of amount capitalized$36,828 $26,379 
Income tax payments (refunds)(46)4,873 
Right-of-use (ROU) assets acquired$ $23,157 
Flight equipment acquired under finance leases90,476 13,833 
Purchases of property and equipment in accrued liabilities45,887 5,088 

The accompanying notes are an integral part of these consolidated financial statements.


Note 1 — Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Allegiant Travel Company (the “Company”) and its majority-owned operating subsidiaries. The Company's investments in unconsolidated affiliates, which are 50 percent or less owned, are accounted for under the equity or cost method, and are insignificant to the consolidated financial statements. All intercompany balances and transactions have been eliminated.

These unaudited consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the financial position, results of operations, and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto included in the annual report of the Company on Form 10-K for the year ended December 31, 2021 and filed with the Securities and Exchange Commission.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.

The Company reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes.

Note 2 — Revenue Recognition

Passenger Revenue

Passenger revenue is the most significant category in the Company's reported operating revenues, as outlined below:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2022202120222021
Scheduled service$297,343 $225,613 $521,196 $357,540 
Ancillary air-related charges283,551 213,445 513,016 334,518 
Loyalty redemptions
11,710 4,689 22,354 8,383 
Total passenger revenue$592,604 $443,747 $1,056,566 $700,441 

Sales of passenger tickets not yet flown are recorded in air traffic liability. Passenger revenue is recognized when transportation is provided. As of June 30, 2022, the air traffic liability balance was $451.1 million, of which approximately $392.5 million was related to forward bookings, with the remaining $58.6 million related to credit vouchers for future travel.

The normal contract term of passenger tickets is 12 months and passenger revenue associated with future travel will principally be recognized within this time frame. Of the $307.5 million that was recorded in the air traffic liability balance as of December 31, 2021, approximately 69.3 percent was recognized into passenger revenue during the six months ended June 30, 2022.

In 2020, the Company announced that credit vouchers issued for canceled travel beginning in January 2020 would have an extended expiration date of two years from the original booking date. This policy continued for vouchers issued through June 30, 2021. Effective July 1, 2021, vouchers issued have an expiration date of one year from the original booking date. Estimates of passenger revenue to be recognized from air traffic liability for credit voucher breakage may be subject to variability and differ from historical experience due to the change in contract duration and uncertainty regarding demand for future air travel.

The Company periodically evaluates the estimated amount of credit vouchers expected to expire unused and any adjustment is removed from air traffic liability and included in passenger revenue in the period in which the evaluation is complete.

Loyalty redemptions

In relation to the travel component of the Allways® Allegiant World Mastercard® contract with Bank of America, the Company has a performance obligation to provide cardholders with points to be used for future travel award redemptions. Therefore, consideration received from Bank of America related to the travel component is deferred based on its relative selling price and is recognized into revenue when the points are redeemed and the transportation is provided. Similarly, in relation to the Allways Rewards program, points earned through the program are deferred based on the stand-alone selling price and recognized into revenue when the points are redeemed and the underlying service has been provided.

The following table presents the activity of the point liability for the periods indicated:
Six Months Ended June 30,
(in thousands)20222021
Points balance at January 1$40,490 $21,841 
Points awarded (deferral of revenue)35,821 10,696 
Points redeemed (recognition of revenue)(22,354)(8,383)
Points balance at June 30$53,957 $24,154 

As of June 30, 2022 and 2021, $29.4 million and $11.7 million, respectively, of the current points liability is reflected in accrued liabilities and represents the current estimate of revenue to be recognized in the next 12 months based on historical trends, with the remaining balance reflected in other noncurrent liabilities expected to be recognized into revenue in periods thereafter.

Note 3 — Property and Equipment

The following table summarizes the Company's property and equipment as of the dates indicated:
(in thousands)June 30, 2022December 31, 2021
Flight equipment, including pre-delivery deposits$2,749,955 $2,573,657 
Computer hardware and software180,085 160,237 
Land and buildings/leasehold improvements59,897 59,735 
Other property and equipment88,137 78,192 
Sunseeker Resort221,240 83,864 
Total property and equipment3,299,314 2,955,685 
Less accumulated depreciation and amortization(743,980)(696,178)
Property and equipment, net$2,555,334 $2,259,507 

Accrued capital expenditures as of June 30, 2022 and December 31, 2021 were $45.9 million and $17.7 million, respectively.

Note 4 — Long-Term Debt

The following table summarizes the Company's long-term debt and finance lease obligations as of the dates indicated:
(in thousands)June 30, 2022December 31, 2021
Fixed-rate debt and finance lease obligations due through 2032$1,047,543 $827,382 
Variable-rate debt due through 2029913,947 915,157 
Total debt and finance lease obligations, net of related costs1,961,490 1,742,539 
Less current maturities, net of related costs157,957 130,053 
Long-term debt and finance lease obligations, net of current maturities and related costs$1,803,533 $1,612,486 
Weighted average fixed-interest rate on debt5.7%5.8%
Weighted average variable-interest rate on debt3.9%2.5%

Maturities of long-term debt and finance lease obligations for the remainder of 2022 and for the next four years and thereafter, in the aggregate, are: remaining in 2022 - $73.4 million; 2023 - $153.1 million; 2024 - $823.6 million; 2025 - $143.6 million; 2026 - $137.2 million; and $630.6 million thereafter.

Construction Loan Agreement

In October 2021, Sunseeker Florida, Inc. (“SFI”), a wholly-owned subsidiary of the Company, entered into a Credit Agreement pursuant to which SFI may borrow up to $350.0 million funded by one or more entities directly or indirectly managed by Castlelake, L.P. (“Lender”) to fund the remaining construction of the initial phases of Sunseeker Resort at Charlotte Harbor (the "Resort"). In 2021, the Company made a $30 million deposit into a construction disbursement account and in April 2022, the lender funded $87.5 million into the construction disbursement account for the Resort. As of June 30, 2022, $262.5 million has been advanced under this Credit Agreement.

Other Secured Debt

In April 2022, the Company borrowed $62.3 million under a loan agreement secured by Airbus A320 series aircraft. The notes bear interest at a fixed rate, payable in quarterly installments maturing in April 2027.

In April 2022, the Company borrowed $46.0 million under a loan agreement secured by Airbus A320 series aircraft. The notes bear interest at a variable rate, payable in quarterly installments maturing in April 2028.


Note 5 — Income Taxes

The Company recorded an effective tax rate of 25.3 percent and 22.5 percent for the three months ended June 30, 2022 and 2021, respectively. The effective tax rate for the three months ended June 30, 2022 differed from the statutory Federal income tax rate of 21.0 percent primarily due to state income taxes and the impact of permanent tax differences. While the Company expects its effective tax rate to be fairly consistent in the near term, it will vary depending on recurring items such as the amount of income earned in each state and the state tax rate applicable to such income. Discrete items during interim periods may also affect the Company's tax rates.

The Company recorded an effective tax rate of 25.6 percent and 22.4 percent for the six months ended June 30, 2022 and 2021, respectively. The effective tax rate for the six months ended June 30, 2022 differed from the statutory Federal income tax rate of 21.0 percent primarily due to state income taxes and the impact of permanent tax differences of which none are individually significant.

Note 6 — Fair Value Measurements

The Company utilizes the market approach to measure the fair value of its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. The assets classified as Level 2 primarily utilize quoted market prices or alternative pricing sources including transactions involving identical or comparable assets and models utilizing market observable inputs for valuation of these securities. No changes in valuation techniques or inputs occurred during the six months ended June 30, 2022.

Financial instruments measured at fair value on a recurring basis:
June 30, 2022December 31, 2021
(in thousands)TotalLevel 1Level 2TotalLevel 1Level 2
Cash equivalents   
Money market funds$64,859 $64,859 $ $25,019 $25,019 $ 
Commercial Paper193,710  193,710 179,455  179,455 
Municipal debt securities43,267  43,267 63,875  63,875 
Total cash equivalents301,836 64,859 236,977 268,349 25,019 243,330 
Commercial paper462,917  462,917 419,469  419,469 
Corporate debt securities195,698  195,698 234,436  234,436 
Municipal debt securities103,272  103,272 165,573  165,573 
Federal agency debt securities51,356  51,356    
Total short-term813,243  813,243 819,478  819,478 
Municipal debt securities— — — 2,231 — 2,231 
Total long-term   2,231  2,231 
Total financial instruments$1,115,079 $64,859 $1,050,220 $1,090,058 $25,019 $1,065,039 

None of the Company's debt is publicly held and as a result, the Company has determined the estimated fair value of these notes to be Level 3. Certain inputs used to determine fair value are unobservable and, therefore, could be sensitive to changes in inputs. The Company utilizes the discounted cash flow method to estimate the fair value of Level 3 debt.

Carrying value and estimated fair value of long-term debt, excluding finance leases, including current maturities and without reduction for related costs, are as follows:
June 30, 2022December 31, 2021
(in thousands)Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueHierarchy Level
Non-publicly held debt$1,580,302 $1,275,697 $1,447,462 $1,261,170 3

Due to their short-term nature, the carrying amounts of cash, restricted cash, accounts receivable and accounts payable approximate fair value.

Note 7 — Earnings (Loss) per Share

Basic and diluted earnings (loss) per share are computed pursuant to the two-class method. Under this method, the Company attributes net income (loss) to two classes: common stock and unvested restricted stock. Unvested restricted stock awards granted to employees under the Company’s Long-Term Incentive Plan are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock.

Diluted net income per share is calculated using the more dilutive of the two methods. Under both methods, the exercise of employee stock options is assumed using the treasury stock method. The assumption of vesting of restricted stock, however, differs:

1.Assume vesting of restricted stock using the treasury stock method.

2.Assume unvested restricted stock awards are not vested, and allocate earnings to common shares and unvested restricted stock awards using the two-class method.

For the three months ended June 30, 2022, the second method was used because it was more dilutive than the first method. For the six months ended June 30, 2022, basic and diluted (loss) per share are the same because of the (loss) position.

The following table sets forth the computation of net income (loss) per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in the table are in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Net income (loss)$4,358 $95,027 $(3,523)$101,896 
Less income allocated to participating securities(39)(1,285) (1,451)
Net income (loss) attributable to common stock$4,319 $93,742 $(3,523)$100,445 
Earnings (loss) per share, basic$0.24 $5.49 $(0.20)$6.04 
Weighted-average shares outstanding17,987 17,064 17,970 16,618 
Net income (loss)$4,358 $95,027 $(3,523)$101,896 
Less income allocated to participating securities(39)(1,284) (1,449)
Net income (loss) attributable to common stock$4,319 $93,743 $(3,523)$100,447 
Earnings (loss) per share, diluted$0.24 $5.49 $(0.20)$6.04 
Weighted-average shares outstanding17,987 17,064 17,970 16,618 
Dilutive effect of stock options and restricted stock31 123  128 
Adjusted weighted-average shares outstanding under treasury stock method18,018 17,187 17,970 16,746 
Participating securities excluded under two-class method(12)(114) (114)
Adjusted weighted-average shares outstanding under two-class method18,006 17,073 17,970 16,632 

Note 8 — Contingencies

The Company is subject to certain legal and administrative actions it considers routine to its business activities. The Company believes the ultimate outcome of any potential and pending legal or administrative matters will not have a material adverse impact on its financial position, liquidity or results of operations.

Note 9 — Segments

Operating segments are components of a company for which separate financial and operating information is regularly evaluated and reported to the Chief Operating Decision Maker ("CODM"), and is used to allocate resources and analyze performance. The Company's CODM is the executive leadership team, which reviews information about the Company's two operating segments: Airline and Sunseeker Resort.

Airline Segment

The Airline segment operates as a single business unit and includes all scheduled service air transportation, ancillary air-related products and services, third party products and services, fixed fee contract air transportation and other airline-related revenue. The CODM evaluation includes, but is not limited to, route and flight profitability data, ancillary and third party product and service offering statistics, and fixed fee contract information when making resource allocation decisions with the goal of optimizing consolidated financial results.

Sunseeker Resort Segment

The Sunseeker Resort segment represents activity related to the development and construction of Sunseeker Resort in Southwest Florida, as well as the renovation of Aileron Golf Course (formerly known as Kingsway Golf Course). Plans for the resort include a 500-room hotel and two towers offering more than 180 one, two and three-bedroom suites, bar and restaurant options, and other amenities. The golf course is a short drive from the resort site and is considered, from a planning and strategic perspective, to be an additional resort amenity. The construction of Sunseeker Resort is an extension of the Company's leisure travel focus and it is expected that many customers flying to Southwest Florida on Allegiant will elect to stay at this resort and enjoy its amenities.

Selected information for the Company's segments and the reconciliation to the consolidated financial statement amounts are as follows:
(in thousands)AirlineSunseeker ResortConsolidated
Three Months Ended June 30, 2022
Operating revenue:
    Passenger$592,604 $— $592,604 
    Third party products27,787 — 27,787 
    Fixed fee contract8,920 — 8,920 
    Other536  536 
Operating income (loss)27,882 (1,752)26,130 
Interest expense, net17,402 2,795 20,197 
Depreciation and amortization49,170 13 49,183 
Capital expenditures96,023 73,595 169,618 
Three Months Ended June 30, 2021
Operating revenue:
Passenger$443,747 $— $443,747 
Third party products23,001 — 23,001 
Fixed fee contract5,134 — 5,134 
Other551  551 
Operating income (loss)141,233 (2,382)138,851 
Interest expense, net16,220  16,220 
Depreciation and amortization44,485 37 44,522 
Capital expenditures81,041  81,041 


(in thousands)AirlineSunseeker ResortConsolidated
Six Months Ended June 30, 2022
Operating revenue:
    Passenger$1,056,566 $— $1,056,566 
    Third party products50,267 — 50,267 
    Fixed fee contract22,305