Unaudited 3Q08 3Q07 Change Total operating revenue (millions) $116.9 $86.3 35.4% Operating income (millions) $8.1 $9.5 (14.9)% Operating margin 6.9% 11.1% -4.2pp Net income (millions) $4.9 $7.0 (30.3)% Diluted earnings per share $0.24 $0.34 (29.4)% Scheduled Service: Average fare - scheduled service $86.32 $83.02 4.0% Average fare - ancillary 32.28 21.31 51.5% Average fare - total $118.60 $104.33 13.7% Total revenue per ASM (cents) 12.75 9.59 33.0% Average stage length (miles) 856 920 (7.0)% Total System*: Operating expense per ASM (CASM) (cents) 11.49 8.41 36.6% CASM, excluding fuel (cents) 5.49 4.40 24.8% Average stage length (miles) 815 898 (9.2)% * Total system includes scheduled service, fixed fee contract and non-revenue flying "We are very proud of our third quarter financial performance," statedMaurice J. Gallagher, Jr., CEO and President of Allegiant Travel Company. "Theefforts of our excellent employees enabled us to achieve a great deal in thethird quarter. We almost doubled profits sequentially, despite our averagefuel price being largely unchanged from the second quarter and in what isseasonally our weakest time of the year. The steps we have taken to adapt torecord high fuel prices, namely reducing our long haul flying, trimmingcapacity in select markets and focusing on increased load factors, are clearlypaying off. Capacity reductions allowed us to increase unit revenuessubstantially -- third quarter scheduled service total RASM increased 33% to12.75 cents compared to the prior year. All our scheduled service revenuedrivers improved versus the prior year: ancillary revenue per passenger was up$11 to over $32, average airfare was up $3 to $86 (despite a 7% decline inaverage stage length) and passengers per flight increased 10% from 125 to 137,increasing load factor to an industry leading 93.8%."

Gallagher continued, "Our strong balance sheet and solid cash positionprovide a great deal of flexibility in today's financial environment. Lookingforward, we have acquired and paid for much of our 2009 growth with ourpurchase for cash of six aircraft earlier this year which will take us to 43operating aircraft by the end of 2009. Additionally, our third quarteraircraft utilization was only five block hours per day versus six hours in theprior year due to our capacity management related to higher fuel prices. Therecent drop in fuel makes the economics of higher utilization more plausible.Increasing our fleet utilization in the coming year could drive additionalgrowth with minimal investment. Regardless, the recent moderation in the priceof oil, should it continue, bodes well for the remainder of 2008 and 2009."

Andrew C. Levy, CFO & Managing Director - Planning, stated, "Ouraggressive capacity management has enabled us to remain profitable these pastseveral quarters in a very challenging fuel environment. Due to record highfuel prices this past summer, we designed a fourth quarter schedule withreductions in off-peak capacity which we believe will result in a significantincrease in scheduled total RASM. Moreover, our fuel leverage outweighs anyother profitability driver in our business and, therefore, we expect recordresults in the fourth quarter if fuel prices remain near current levels.

"Our costs increased across the board on a unit basis, mainly due to acombination of lower aircraft utilization and a shorter average stage length.Maintenance and repairs had the largest percentage increase year-over-year dueto more airframe heavy maintenance events, more engine maintenance events, andhigher repair expense.

"Our balance sheet and liquidity remain strong. We ended the quarter with$138.6 million in unrestricted cash and short-term investments, down from$153.8 million at the end of the second quarter. The decline is dueprincipally to the purchase of $8.4 million for aircraft, engines, parts andaircraft leasehold improvements."

Network Summary* September 30, 2008 September 30, 2007 Major leisure destinations 5 3 Other leisure destinations 4 2 Small cities served 54 51 Total cities served 63 56 Routes to Las Vegas 38 42 Routes to Orlando 26 24 Routes to Tampa Bay/St. Petersburg 15 14 Routes to Phoenix-Mesa 9 0 Routes to Ft. Lauderdale 6 0 Other routes 4 2 Total routes 98 82 * includes cities served seasonally During the third quarter, Allegiant Air initiated service on the followingfour Las Vegas routes: Appleton, WI (replacing Green Bay, WI), Casper, WY,Grand Forks, ND and Grand Island, NE (replacing Lincoln, NE). We have alsoannounced 18 more routes to start in the fourth quarter (two to Las Vegas, sixto Phoenix-Mesa and five each to Orlando-Sanford and St. Petersburg). Thesenew routes include service to five small cities new to the Allegiant network:Bozeman, MT, Elmira, NY, Hagerstown, MD, Kalispell, MT and Lexington, KY. Weexpect to make further new service announcements shortly.

We are pleased to announce we were recently approved by the United StatesDepartment of Defense (DoD) to carry domestic military charter traffic. Thisenables us to access another important source of ad-hoc charter business. Withno prior history with this important new customer, we are unable to reasonablypredict how much additional charter business we will obtain from this program,but we believe it will result in a meaningful boost to our fixed-fee revenue.

MD-80 Aircraft in Service* September 30, 2008 September 30, 2007 Owned (including capital leases) 35 25 Leased 2 4 Total 37 29 * Does not include six owned MD-80 aircraft leased to a third party During the third quarter, we exercised a previously-negotiatedforward-purchase agreement to purchase, for cash, two previously-leasedaircraft. Early in the fourth quarter we took delivery of the first of sixaircraft we purchased earlier this year which have been on lease to a Europeancarrier. We expect to place this aircraft into service late in the fourthquarter for a total of 38 aircraft in our operating fleet at year end.

We expect to place the remaining five aircraft into service in 2009, threein the first quarter and two in the fourth quarter, subsequent to their returnfrom the lessee.

At this time, Allegiant Travel Company provides the following guidance toinvestors, which are subject to revision:

-- We expect fourth quarter 2008 year-over-year departures to be flat and we expect a decline in ASMs of approximately 3%. -- We expect first quarter 2009 year-over-year departure growth of approximately 5% and ASM growth of approximately 7%. -- By the end of 2008, Allegiant Air expects to operate 38 MD-80 aircraft. By the end of 2009, Allegiant Air expects to operate at least 43 MD-80 aircraft. -- We expect 4Q08 capital expenditure to be approximately $6 million, including the purchase of two spare engines and improvements to aircraft expected to be introduced to the fleet in the next two quarters. -- We expect 2009 capital expenditure of approximately $15-20 million, for improvements to aircraft owned but not yet operated, purchase of additional spare engines and other miscellaneous capital expenditure. At this time we have no fuel hedges in place. Allegiant Travel Company will host a conference call with analysts at1 pm East Coast time tomorrow, October 22, 2008, to discuss its third quarterand nine-month 2008 financial results. A live broadcast of the conference callwill be available via the Company's Investor Relations website homepage athttp://ir.allegiantair.com. The webcast will also be archived in the "Events &Presentations" section of the website.

About the Company

Las Vegas-based Allegiant Travel Company (Nasdaq: ALGT), is focused onlinking travelers in small cities to world-class leisure destinations such asLas Vegas, Nev., Phoenix, Ariz., Fort Lauderdale, Fla., Orlando, Fla. andTampa/St. Petersburg, Fla. Through its subsidiary, Allegiant Air, LLC theCompany operates a low-cost, high-efficiency, all-jet passenger airlineoffering air travel both on a stand-alone basis and bundled with hotel rooms,rental cars and other travel related services. ALGT/G

Under the safe harbor provisions of the Private Securities LitigationReform Act of 1995, statements in this press release that are not historicalfacts are forward-looking statements. These forward-looking statements areonly estimates or predictions based on our management's beliefs andassumptions and on information currently available to our management.Forward-looking statements include our statements regarding ASM growth,departure growth, fleet growth and expected capital expenditures, as well asinformation concerning future results of operations, business strategies,financing plans, competitive position, industry environment, potential growthopportunities, the effects of future regulation and the effects ofcompetition. Forward-looking statements include all statements that are nothistorical facts and can be identified by the use of forward-lookingterminology such as the words "believe," "expect," "anticipate," "intend,""plan," "estimate", "project" or similar expressions.

Forward-looking statements involve risks, uncertainties and assumptions.Actual results may differ materially from those expressed in theforward-looking statements. Important risk factors that could cause ourresults to differ materially from those expressed in the forward-lookingstatements generally may be found in our periodic reports filed with theSecurities and Exchange Commission at http://www.sec.gov. These risk factorsinclude, without limitation, the effect of the economic downturn on leisuretravel, increases in fuel prices, terrorist attacks, risks inherent toairlines, demand for air services to Las Vegas, Orlando, Tampa/St. Petersburg,Phoenix-Mesa and Ft. Lauderdale from the markets served by us, our ability toimplement our growth strategy, our fixed obligations, our dependence on ourleisure destination markets, our ability to add, renew or replace gate leases,our competitive environment, problems with our aircraft, dependence on fixedfee customers, our reliance on our automated systems, economic and otherconditions in markets in which we operate, governmental regulation, increasesin maintenance costs and insurance premiums and cyclical and seasonalfluctuations in our operating results.

Any forward-looking statements are based on information available to ustoday and we undertake no obligation to update publicly any forward-lookingstatements, whether as a result of future events, new information orotherwise.

Detailed financial information follows: Allegiant Travel Company Consolidated Statements of Income Three Months Ended September 30, 2008 and 2007 (in thousands, except per share amounts) (Unaudited) Three months ended September 30, Percent 2008 2007 change OPERATING REVENUE: Scheduled service revenue $73,796 $62,274 18.5 Fixed fee contract revenue 14,234 7,359 93.4 Ancillary revenue 27,591 15,989 72.6 Other revenue 1,265 705 79.4 Total operating revenue 116,886 86,327 35.4 OPERATING EXPENSES: Aircraft fuel 56,795 36,628 55.1 Salary and benefits 17,272 13,399 28.9 Station operations 10,309 8,186 25.9 Maintenance and repairs 10,099 5,933 70.2 Sales and marketing 3,099 3,310 (6.4) Aircraft lease rentals 517 817 (36.7) Depreciation and amortization 6,219 4,238 46.7 Other 4,459 4,273 4.4 Total operating expenses 108,769 76,784 41.7 OPERATING INCOME 8,117 9,543 (14.9) As a percent of total operating revenue 6.9% 11.1% OTHER (INCOME) EXPENSE: Gain on fuel derivatives, net - (348) N/M Earnings from joint venture, net (13) (35) (62.9) Interest income (878) (2,542) (65.5) Interest expense 1,302 1,368 (4.8) Total other expense (income) 411 (1,557) N/M INCOME BEFORE INCOME TAXES 7,706 11,100 (30.6) As a percent of total operating revenue 6.6% 12.9% PROVISION FOR INCOME TAXES 2,816 4,085 (31.1) NET INCOME $4,890 $7,015 (30.3) As a percent of total operating revenue 4.2% 8.1% Earnings per share: Basic $0.24 $0.34 (29.4) Diluted $0.24 $0.34 (29.4) Weighted average shares outstanding: Basic 20,223 20,625 (1.9) Diluted 20,467 20,936 (2.2) Allegiant Travel Company Operating Statistics Three Months Ended September 30, 2008 and 2007 (Unaudited) Three months ended September 30, Percent 2008 2007 change* OPERATING STATISTICS Total system statistics Passengers 974,600 805,878 20.9 Revenue passenger miles (RPMs) (thousands) 858,100 767,930 11.7 Available seat miles (ASMs) (thousands) 946,366 912,496 3.7 Load factor 90.7% 84.2% 6.5 Operating revenue per ASM (cents) 12.35 9.46 30.5 Operating expense per ASM (CASM) (cents) 11.49 8.41 36.6 Fuel expense per ASM (cents) 6.00 4.01 49.6 CASM, excluding fuel (cents) 5.49 4.40 24.8 Operating expense per passenger $111.60 $95.28 17.1 Fuel expense per passenger $58.27 $45.45 28.2 Operating expense per passenger, excluding fuel $53.33 $49.83 7.0 Departures 7,835 6,867 14.1 Block hours 17,153 15,956 7.5 Average stage length (miles) 815 898 (9.2) Average number of operating aircraft during period 37.0 28.8 28.5 Total aircraft in service end of period 37 29 27.6 Full-time equivalent employees at end of period 1,282 1,035 23.9 Fuel gallons consumed (thousands) 16,507 15,812 4.4 Average fuel cost per gallon $3.44 $2.32 48.3 Scheduled service statistics Passengers 854,833 750,170 14.0 Revenue passenger miles (RPMs) (thousands) 745,188 703,442 5.9 Available seat miles (ASMs) (thousands) 794,730 816,408 (2.7) Load factor 93.8% 86.2% 7.6 Departures 6,223 6,000 3.7 Block hours 14,210 14,245 (0.2) Yield (cents) 9.90 8.85 11.9 Scheduled service revenue per ASM (cents) 9.28 7.63 21.6 Ancillary revenue per ASM (cents) 3.47 1.96 77.0 Total revenue per ASM (cents) 12.75 9.59 33.0 Average fare - scheduled service $86.32 $83.02 4.0 Average fare - ancillary 32.28 21.31 51.5 Average fare - total $118.60 $104.33 13.7 Average stage length (miles) 856 920 (7.0) Percent of sales through website during period 85.8% 85.8% - * except load factor and percent of sales through website, which is percentage point change Allegiant Travel Company Non-GAAP Presentations Three Months Ended September 30, 2008 and 2007 (in thousands, except per share and per ASM amounts) (Unaudited) We do not qualify for fuel hedge accounting treatment under FAS 133. Tofacilitate investor comparisons with airlines that do qualify for fuel hedgeaccounting, we provide adjusted non-GAAP measures of net income and operatingexpense as if we did qualify for fuel hedge accounting, by excluding themark-to-market non-cash gains or losses on fuel derivatives from net incomeand by treating cash gains or losses realized on fuel derivatives as part ofaircraft fuel expense. We believe use of these non-GAAP measures assistsinvestors in understanding the underlying economic performance of the Companywithout regard to different accounting treatment for fuel hedging activities.

The SEC has adopted rules (Regulation G) regulating the use of non-GAAPfinancial measures. Because of our use of non-GAAP financial measures,adjusted net income and adjusted aircraft fuel expense, to supplement ourconsolidated financial statements presented on a GAAP basis, Regulation Grequires us to include in this press release a presentation of the mostdirectly comparable GAAP measures, which are net income (which reflects themark-to-market non-cash loss or gain on fuel derivatives), and aircraft fuelexpense (which is not impacted by the cash gain or loss on fuel derivatives),and a reconciliation of the non-GAAP measures to the most comparable GAAPmeasures. Our utilization of non-GAAP measurements is not meant to beconsidered in isolation or as a substitute for net income, aircraft fuelexpense and other measures of financial performance prepared in accordancewith GAAP. Adjusted net income and adjusted aircraft fuel expense are notGAAP measurements and our use of them may not be comparable to similarlytitled measures employed by other companies in the airline industry. Thereconciliations to GAAP measures follow.

Derivation of adjusted net income (excluding non-cash mark-to-market losson fuel derivatives) from net income:

Three months ended September 30, Percent (in thousands, except per share amounts) 2008 2007 change Net income $4,890 $7,015 (30.3) Mark-to-market non-cash loss on fuel derivatives - 392 N/M Tax impact of mark-to-market non-cash loss on fuel derivatives - (144) N/M Net of mark-to-market non-cash loss on fuel derivatives: Adjusted net income $4,890 $7,263 (32.7) Adjusted earnings per share: Basic $0.24 $0.35 (31.4) Diluted $0.24 $0.35 (31.4) Derivation of adjusted aircraft fuel expense: Three months ended Percent September 30, Change (in thousands) 2008 2007 Aircraft fuel expense $56,795 $36,628 55.1 Cash gain on fuel derivatives - (740) N/M Adjusted aircraft fuel expense $56,795 $35,888 58.3 Derivation of CASM treating cash gain on fuel derivatives as a reductionin operating expense: Three months ended September 30, Percent (in cents) 2008 2007 Change CASM 11.49 8.41 36.6 Cash gain on fuel derivatives per ASM - (0.08) N/M CASM treating cash gain on fuel derivatives as a reduction in operating expense 11.49 8.33 37.9 Split of gain on fuel derivatives into cash-settled portion andmark-to-market non-cash portion:

Three months ended September 30, Percent (in thousands) 2008 2007 Change Mark-to-market non-cash loss on fuel derivatives - $392 N/M Cash gain on fuel derivatives - (740) N/M Gain on fuel derivatives, net - ($348) N/M Allegiant Travel Company Consolidated Statements of Income Nine Months Ended September 30, 2008 and 2007 (in thousands, except per share amounts) (Unaudited) Nine months ended September 30, Percent 2008 2007 change OPERATING REVENUE: Scheduled service revenue $253,175 $186,127 36.0 Fixed fee contract revenue 41,068 28,240 45.4 Ancillary revenue 83,846 44,545 88.2 Other revenue 3,495 705 395.7 Total operating revenue 381,584 259,617 47.0 OPERATING EXPENSES: Aircraft fuel 192,357 103,265 86.3 Salary and benefits 51,558 40,286 28.0 Station operations 32,821 25,019 31.2 Maintenance and repairs 31,914 18,152 75.8 Sales and marketing 11,103 9,375 18.4 Aircraft lease rentals 2,461 2,125 15.8 Depreciation and amortization 17,190 11,613 48.0 Other 15,024 11,780 27.5 Total operating expenses 354,428 221,615 59.9 OPERATING INCOME 27,156 38,002 (28.5) As a percent of total operating revenue 7.1% 14.6% OTHER (INCOME) EXPENSE: Loss (gain) on fuel derivatives, net 11 (2,252) N/M Loss (earnings) from joint venture, net 30 (297) N/M Other expense - 63 N/M Interest income (3,638) (6,835) (46.8) Interest expense 4,206 4,137 1.7 Total other expense (income) 609 (5,184) N/M INCOME BEFORE INCOME TAXES 26,547 43,186 (38.5) As a percent of total operating revenue 7.0% 16.6% PROVISION FOR INCOME TAXES 9,339 16,448 (43.2) NET INCOME $17,208 $26,738 (35.6) As a percent of total operating revenue 4.5% 10.3% Earnings per share: Basic $0.85 $1.33 (36.1) Diluted $0.84 $1.30 (35.4) Weighted average shares outstanding: Basic 20,295 20,106 0.9 Diluted 20,531 20,491 0.2 Allegiant Travel Company Operating Statistics Nine Months Ended September 30, 2008 and 2007 (Unaudited) Nine months ended September 30, Percent 2008 2007 change* OPERATING STATISTICS Total system statistics Passengers 3,282,810 2,369,672 38.5 Revenue passenger miles (RPMs) (thousands) 2,957,915 2,291,995 29.1 Available seat miles (ASMs) (thousands) 3,395,714 2,773,203 22.4 Load factor 87.1% 82.6% 4.5 Operating revenue per ASM (cents) 11.24 9.36 20.1 Operating expense per ASM (CASM) (cents) 10.44 7.99 30.7 Fuel expense per ASM (cents) 5.66 3.72 52.2 CASM, excluding fuel (cents) 4.77 4.27 11.7 Operating expense per passenger $107.97 $93.52 15.5 Fuel expense per passenger $58.60 $43.58 34.5 Operating expense per passenger, excluding fuel $49.37 $49.94 (1.1) Departures 27,361 20,596 32.8 Block hours 62,083 48,886 27.0 Average stage length (miles) 837 909 (7.9) Average number of operating aircraft during period 36.1 27.0 33.7 Total aircraft in service end of period 37 29 27.6 Full-time equivalent employees at end of period 1,282 1,035 23.9 Fuel gallons consumed (thousands) 58,995 47,523 24.1 Average fuel cost per gallon $3.26 $2.17 50.2 Scheduled service statistics Passengers 2,958,101 2,176,726 35.9 Revenue passenger miles (RPMs) (thousands) 2,656,359 2,053,537 29.4 Available seat miles (ASMs) (thousands) 2,951,035 2,427,024 21.6 Load factor 90.0% 84.6% 5.4 Departures 22,413 17,795 26.0 Block hours 53,223 42,772 24.4 Yield (cents) 9.53 9.06 5.2 Scheduled service revenue per ASM (cents) 8.58 7.66 12.0 Ancillary revenue per ASM (cents) 2.84 1.84 54.3 Total revenue per ASM (cents) 11.42 9.50 20.2 Average fare - scheduled service $85.59 $85.51 0.1 Average fare - ancillary 28.34 20.46 38.5 Average fare - total $113.93 $105.97 7.5 Average stage length (miles) 884 923 (4.2) Percent of sales through website during period 86.6% 86.7% (0.1) * except load factor and percent of sales through website, which is percentage point change Allegiant Travel Company Non-GAAP Presentations Nine Months Ended September 30, 2008 and 2007 (in thousands, except per share and per ASM amounts) (Unaudited) We do not qualify for fuel hedge accounting treatment under FAS 133. Tofacilitate investor comparisons with airlines that do qualify for fuel hedgeaccounting, we provide adjusted non-GAAP measures of net income and operatingexpense as if we did qualify for fuel hedge accounting, by excluding themark-to-market non-cash gains or losses on fuel derivatives from net incomeand by treating cash gains or losses realized on fuel derivatives as part ofaircraft fuel expense. We believe use of these non-GAAP measures assistsinvestors in understanding the underlying economic performance of the Companywithout regard to different accounting treatment for fuel hedging activities.

The SEC has adopted rules (Regulation G) regulating the use of non-GAAPfinancial measures. Because of our use of non-GAAP financial measures,adjusted net income and adjusted aircraft fuel expense, to supplement ourconsolidated financial statements presented on a GAAP basis, Regulation Grequires us to include in this press release a presentation of the mostdirectly comparable GAAP measures, which are net income (which reflects themark-to-market non-cash loss or gain on fuel derivatives), and aircraft fuelexpense (which is not impacted by the cash gain or loss on fuel derivatives),and a reconciliation of the non-GAAP measures to the most comparable GAAPmeasures. Our utilization of non-GAAP measurements is not meant to beconsidered in isolation or as a substitute for net income, aircraft fuelexpense and other measures of financial performance prepared in accordancewith GAAP. Adjusted net income and adjusted aircraft fuel expense are notGAAP measurements and our use of them may not be comparable to similarlytitled measures employed by other companies in the airline industry. Thereconciliations to GAAP measures follow.

Derivation of adjusted net income (excluding non-cash mark-to-market lossor gain on fuel derivatives) from net income:

Nine months ended September 30, Percent (in thousands, except per share amounts) 2008 2007 change Net income $17,208 $26,738 (35.6) Mark-to-market non-cash loss (gain) on fuel derivatives 81 (2,045) N/M Tax impact of mark-to-market non-cash loss/gain on fuel derivatives (30) 779 N/M Net of mark-to-market non-cash loss/gain on fuel derivatives: Adjusted net income $17,259 $25,472 (32.2) Adjusted earnings per share: Basic $0.85 $1.27 (33.1) Diluted $0.84 $1.24 (32.3) Derivation of adjusted aircraft fuel expense: Nine months ended September 30, Percent (in thousands) 2008 2007 change Aircraft fuel expense $192,357 $103,265 86.3 Cash gain on fuel derivatives (70) (207) (66.2) Adjusted aircraft fuel expense $192,287 $103,058 86.6 Derivation of CASM treating cash gain on fuel derivatives as a reductionin operating expense: Nine months ended September 30, Percent (in cents) 2008 2007 change CASM 10.44 7.99 30.7 Cash gain on fuel derivatives per ASM - (0.01) N/M CASM treating cash gain on fuel derivatives as a reduction in operating expense 10.44 7.98 30.8 Split of (gain) loss on fuel derivatives into cash-settled portion andmark-to-market non-cash portion:

Nine months ended September 30, Percent (in thousands) 2008 2007 change Mark-to-market non-cash loss (gain) on fuel derivatives $81 ($2,045) N/M Cash gain on fuel derivatives (70) (207) (66.2) Loss (gain) on fuel derivatives, net $11 ($2,252) N/M (Logo: http://www.newscom.com/cgi-bin/prnh/20060516/LATU102LOGO)SOURCE Allegiant Travel Company