1362468--3/3/2009--Allegiant_Travel

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{provision, law, control}

{cost, regulation, environmental}

{competitive, industry, competition}

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{system, service, information}

{personnel, key, retain}

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The economic downturn may adversely affect travel from our small city markets to our leisure destinations. Increases in fuel prices or unavailability of fuel would harm our business and profitability. Our reputation and financial results could be harmed in the event of an accident or incident involving our aircraft or other MD80 aircraft. We rely heavily on automated systems to operate our business and any failure of these systems could harm our business. Our maintenance costs will increase as our fleet ages. We may be subject to unionization which could increase our labor costs. Our business is heavily dependent on the attractiveness of our leisure destinations and a reduction in demand for air travel to these markets could harm our business. Our business could be harmed if we lose the services of our key personnel. If our credit card processing company were to require significant holdbacks for processing credit card transactions for the purchase of air travel and other services, our cash flow would be adversely affected. Risks Associated with the Airline and Travel Industry The airline industry is highly competitive and future competition in our small city markets could harm our business. A future act of terrorism, the threat of such acts or escalation of U.S. military involvement overseas could adversely affect our industry. Changes in government regulations imposing additional requirements and restrictions on our operations could increase our operating costs and result in service delays and disruptions. Airlines are often affected by factors beyond their control, including traffic congestion at airports, weather conditions, increased security measures or the outbreak of disease, any of which could harm our operating results and financial condition. Risks Related to Our Stock Price The market price of our common stock may be volatile, which could cause the value of an investment in our stock to decline. Other companies may have difficulty acquiring us, even if doing so would benefit our stockholders, due to provisions under our corporate charter, bylaws and option plans, as well as Nevada law. Our corporate charter and bylaws include provisions limiting voting by non-U.S. citizens. The value of our common stock may be negatively affected by additional issuances of common stock or preferred stock by us and general market factors. Substantial sales of our common stock could cause our stock price to fall.

Full 10-K form ▸

1362468--3/3/2009--Allegiant_Travel_CO