Tag Archives: Allegiant Air

Allegiant now offers “giant seats” on its Boeing 757s

Allegiant Air (Las Vegas) has announced the addition of several larger, more comfortable seats, known as “Giant Seats,” to each of its Boeing 757 aircraft. Giving Allegiant travelers a new option when customizing their vacation experience, the company will offer these Giant Seats on flights between Hawaii and several western U.S. cities.

Allegiant 757-200 Giant Seat (Allegiant)(LR)

Copyright Photo: Allegiant Air.

Passengers who purchase a Giant Seat when making their reservations will take advantage of a more spacious, wider seat, comfortable headrests and more leg room.

“By adding these new Giant Seats, Allegiant passengers will enjoy the feeling and comfort of a premium seat, while flying to their destination at an affordable cost,” said Jude Bricker, Allegiant Travel Company, Senior Vice President of Planning. “We think the Giant Seats will be a welcome option for travelers, especially on our long-haul flights to Hawaii.”

Located in the first row and the mid-cabin emergency exit row of the aircraft, each of the six Giant Seats will be made available for a seat assignment fee on all flights to and from Hawaii and select flights to Las Vegas.

Allegiant installed the first of these new seats as part of compliance with changes to FAA crew rest rules, which require minimum seat requirements for augmented crews resting in the passenger cabin. A pair of the new seats was installed to comply with these rules, but the company also saw an opportunity to offer these more comfortable seats to passengers in other parts of the cabin and on flights that do not require augmented crew rest.

The new Giant Seats are part of an overall reconfiguration of the Allegiant 757 cabins, which includes creating a new seating option called “Legroom +.” Increasing the amount of leg room by up to six inches, Legroom + seats provide passengers with up to 34 inches between seat rows.

The installation of the new Giant Seats has been completed on all six of the carrier’s 757 aircraft. The new seat configuration will decrease the total number of seats in Allegiant’s Boeing 757s from 223 to 215.

Top Copyright Photo: Eddie Maloney/AirlinersGallery.com. Boeing 757-204 N904NV (msn 26967) touches down in Las Vegas.

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Due to demand, Allegiant changes the new Cincinnati-St. Petersburg/Clearwater route to year-round service

Allegiant Air (Las Vegas) has expanded scheduled service between Cincinnati and St. Petersburg/Clearwater from seasonal summer service to year-round.

Nonstop flights from Cincinnati/Northern Kentucky International Airport (CVG) to St. Petersburg-Clearwater International Airport (PIE) will begin on May 15, 2014.

Allegiant first took flight from Cincinnati/Northern Kentucky International Airport on February 12, 2014, with service to Sanford (near Orlando), and shortly thereafter, celebrated the start of service to Punta Gorda on February 14, 2014.

Copyright Photo: Jay Selman/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N868GA (msn 49554) departs from Las Vegas.

Allegiant Air: AG Slide Show

 

Allegiant Air announces 12 new routes and a new city: West Palm Beach

Allegiant Air (Las Vegas) today announced new, nonstop jet service on 12 routes, including a new destination in the Allegiant network – Palm Beach, Florida.

New routes announced include:

Seasonal Nonstop Service to Los Angeles International Airport (LAX) from:

  1. Cedar Rapids, Iowa - begins June 6, 2014 with fares as low as $92*
  2. Great Falls, Montana - begins June 6, 2014 with fares as low as $88*
  3. Kalispell, Montana - begins June 5, 2014 with fares as low as $89*
  4. McAllen, Texas - begins June 5, 2014 with fares as low as $99*

Seasonal Nonstop Service to Myrtle Beach International Airport (MYR) from:

  1. Cincinnati, Ohio - begins May 30, 2014 with fares as low as $59*
  2. Columbus, Ohio - begins May 29, 2014 with fares as low as $54*
  3. Lexington, Kentucky - begins May 29, 2014 with fares as low as $54*
  4. Syracuse, New York - begins May 29, 2014 with fares as low as $64*

Seasonal Nonstop Service to St. Petersburg-Clearwater International Airport (PIE) from:

  1. Cincinnati, Ohio - begins May 15, 2014 with fares as low as $59*

Year-Round Nonstop Service to Palm Beach International Airport (PBI) from:

  1. Asheville, North Carolina - begins May 5, 2014 with fares as low as $64*

Year-Round Nonstop Service to Phoenix-Mesa International Airport (AZA) from:

  1. Colorado Springs, Colorado - begins May 15, 2014 with fares as low as $49*
  2. Stockton, California - begins May 15, 2014 with fares as low as $58*

Copyright Photo: Jay Selman/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) prepares to land in Las Vegas.

Allegiant Air: AG Slide Show

 

Allegiant celebrates 15 years of scheduled passenger flying

Allegiant Air (Las Vegas) yesterday (February 28) commemorated the 15th anniversary of the carrier’s first scheduled service from Fresno, California to Las Vegas, Nevada on February 28, 1999.

Starting with just one plane, Allegiant has grown to a fleet of 68 planes, flying over 7 million passengers last year. Allegiant now serves 99 cities, more than any other domestic low cost carrier.

Over the years, Allegiant has carried over 40 million passengers, and the Company continues to grow, offering more nonstop service in more communities. In 2013, Allegiant announced service in 15 new cities and added 39 new routes to its network, at a time when many airlines are consolidating and cutting service. The company recently announced its 44th consecutive quarter of profitable operation while keeping its average one-way fare under $100.

Allegiant differs in many ways from other U.S. airlines. The Company is focused on low-cost, nonstop leisure travel, providing customers with low base fares while giving passengers the option to pay for the amenities they want, like luggage, seat assignments and priority boarding, without including the cost of things they don’t need in the price of the ticket.

Allegiant operates under the ultra low-fare model and charges extra for additional services.

Copyright Photo: Norbert G. Raith/AirlinersGallery.com. The pictured former SAS Douglas DC-9-21 N127NK (msn 47361) in the original 1998 colors was leased by Allegiant in June 1998 when it received its FAA Part 121 and DOT certification.

Allegiant Air: AG Slide Show

Teamsters to launch probe into the alleged “maintenance failures of Allegiant Air”

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The Teamsters Aviation Mechanics Coalition (TAMC) today issued this statement:

The Teamsters Aviation Mechanics Coalition (TAMC) announced today that it will launch an investigation into reports of a disproportionate number of engine failures, air returns and declared emergencies at Allegiant Air. TAMC immediately recognized that a comprehensive investigation into the continuing maintenance failures at Allegiant is imperative after interviewing pilots at the airline.

TAMC is determined to find the root cause of these maintenance failures regardless of where the investigation may lead. The immediate concern is to identify the underlying cause of these incidents and to offer suggestions to mitigate this unacceptable situation before one of these incidents claims the lives of passengers.

TAMC was established by the Teamsters Airline Division in 2007 to advance and protect the interests of all aviation mechanics and related workers throughout the industry.  TAMC is committed to the continued improvement of aviation safety and places great emphasis on maintenance safety issues that affect the mechanics and related craft, the industry and the public.

Allegiant Air to resume two routes from Los Angeles on June 6

Allegiant Air (Las Vegas) on June 6 will resume two routes from Los Angeles. The ultra low fare carrier will resume twice weekly service to both Billings, Montana and Pasco (Tri-Cities), Washington per Airline Route. Both routes were dropped in August 2012.

Allegiant today also began new nonstop jet service between Burlington, Vermont and Sanford International Airport (near Orlando) in Florida.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-83 N422NV (msn 49381) prepares to land at Los Angeles International Airport (LAX).

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Allegiant to drop Charlottesville, Virginia and Manhattan, Kansas on February 23

Allegiant Air‘s (Las Vegas) business plan is to enter a small market and initially fly twice-weekly to a vacation destination. If it fills up the airplanes, it adds additional days of the week. If the new speculative route does not pan out, the airline quickly drops the airport and the route.

This is the case for both Charlottesville, Virginia and Manhattan, Kansas, both university towns. Allegiant began flying to Charlottesville in November to Sanford, Florida (near Orlando). This route did not work and the ultra low-fare airline is dropping the route on February 23, 2014 according the USA Today and pnj.com.

Manhattan received Allegiant service on November 7, 2013 to Mesa, Arizona (near Phoenix). It too will be dropped on February 23.

Read the full report: CLICK HERE

In other news, Allegiant Air today announced a month-long campaign to spotlight local travelers, commemorating the 15th anniversary of the carrier’s first scheduled service. According to the carrier, “The campaign will celebrate Allegiant’s success and commitment to making leisure travel possible with real stories from loyal customers who have changed the way they travel because of the carrier’s unique brand of low-cost, nonstop service.”

Copyright Photo: Jay Selman/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N424NV (msn 49421) approaches the runway at the Las Vegas base.

Allegiant Air: AG Slide Show

Allegiant Air reports its fourth quarter (44th consecutive profitable quarter) and 2013 financial results

Allegiant Travel Company (Allegiant Air) (Las Vegas) meanwhile has reported the following financial results for both the fourth quarter and full year 2013, as well as comparisons to prior year equivalents:

Allegiant 1.2014 Financial Chart

“We are very proud to report our 44th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “This is the second consecutive year that we have grown both full year EBITDA and operating margin.  As we continue to add more efficient Airbus aircraft to our operating fleet, we have the opportunity to continue margin improvement going forward.  Thank you for the tireless efforts of our Team Members whose contributions were critical to our successful 2013.”

Notable fourth quarter and full year 2013 company highlights

  • Added the Airbus A320 and A319 onto the Allegiant operating certificate
  • Ended 2013 with three A319 and five A320 aircraft in service.  Added two more A320 aircraft in January 2014
  • Retired five MD-80 aircraft
  • Completed the conversion of 51 MD-80 aircraft to 166 seats.  Will add two more MD-80 aircraft configured with 166 seats to the fleet in March 2014.  We expect our MD-80 fleet to remain at 53 aircraft for the foreseeable future
  • Returned $83 million to shareholders through the repurchase of 913,806 shares in 2013
  • Paid a special dividend of $2.25 per share in early January 2014
  • Added 44 new routes in 2013.  Announced five new routes and two new cities starting service first quarter 2014
  • Delivered Allegiant2Go Mobile Boarding Pass functionality in the fourth quarter
  • Broadened third-party purchase options via one-way package and hotel-only booking path
  • Executed a new agreement with a large Las Vegas gaming company for the pre-purchase of rooms at discounted rates
  • Entered into a new three year agreement with Enterprise Holdings Inc. for the sale of rental cars
  • Included on the 100 America’s Best Small Companies list by Forbes magazine

Fourth quarter and full year 2013 revenue performance

  • Full year ancillary air-related charges per passenger has increased every year for eight consecutive years
  • 16th consecutive quarter of year over year increases in total fare, four percent higher than a year ago
  • Fourth quarter Florida TRASM grew by two percent despite a 35 percent growth in ASMs
  • Same store routes, those operated in both the fourth quarter 2013 and 2012, generated a three percent increase in TRASM

Fourth quarter and full year 2013 cost performance

  • Full year 2013 fuel expense per ASM declined six percent primarily due to a two percent decrease in gallons per passenger.  This fuel savings more than offset the one percent increase in average fuel cost per gallon.  Full year system ASMs per gallon increased seven percent versus 2012
  • Full year 2013 CASM ex fuel rose five percent versus last year in part because aircraft utilization declined four percent.  CASM ex fuel was also negatively impacted by expenses due to an operational disruption in September, and the FAA shutdown and the subsequent delay in placing A320s into service in December.  The A320 delay drove higher expense in aircraft lease rentals as we contracted with other carriers for sub-service to fly scheduled flights, reduced crew productivity and increased expenses to temporarily assign flight crews to bases to support unplanned MD-80 flying in place of planned A320 flying
  • Fourth quarter salary and benefits expense increased 17 percent due to a 13 percent increase in full time equivalent employees to support fleet growth and more inflight staff to crew larger gauge MD-80 aircraft, increased bonus accrual which is tied to higher levels of profitability and higher stock compensation expense
  • Fourth quarter sales and marketing expense increased 46 percent due to advertising to support the launch of new routes
  • Fourth quarter aircraft lease rental expense was $5.5 million due to having two leased aircraft (none a year ago) and $4.2 million of sub-service expense due to the delays in planned A320 flying
  • Fourth quarter other expense increased 16 percent due to increases in flight crew training, contractor IT development resources, and losses on consignment and disposal of assets
  • Certain fourth quarter non-cash expenses totaled $5.4 million for the quarter and $19.3 million for the year.  Please see the non-cash expense table in the Non-GAAP presentation for further detail
Full year and first quarter 2014 cost trends
  • Full year CASM ex fuel is expected to increase between four and seven percent due to a more normalized maintenance and repair expense of between $100 thousand and $110 thousand per aircraft per month, start-up expenses in non-airline subsidiaries (which do not generate airline capacity or ASMs) and continued investment in operations and IT management
  • First quarter 2014 CASM ex fuel is expected to increase between 13 and 15 percent due to expenses associated with the delay in training A320 crews resulting from the FAA shutdown and its continued effects and the subsequent delay in placing the A320 on the certificate, lower than planned capacity growth due to the same issue, higher maintenance expense due to substantially more heavy maintenance events scheduled in the quarter, and start-up expenses in two new non airline initiatives which do not generate airline capacity or ASMs.  The effects of the A320 delays and non-airline activities are expected to account for 53 percent of the increase in CASM ex fuel for the quarter

Third party products performance

  • Full year transportation net revenue (revenue derived from car rentals) increased 11 percent
  • Las Vegas represented 82 percent of hotel net revenue in 2013, down from 87 percent in 2012 and 90 percent in 2011
  • Full year hotel net revenue excluding the effect of an air discount increased 25 percent versus last year.  In the fourth quarter of 2012, the company phased out offering an air discount tied to hotel sales in order to increase overall company profitability

Balance Sheet highlights:

  • Returned $42 million to shareholders through a special dividend of $2.25 per share
  • Repurchased 913,806 shares of common stock for $83 million in 2013.  The company has $40 million in repurchase authority remaining
  • Cumulative return of capital in the form of re-purchases of shares and special dividends totals $277 million as of January 2014
  • $178 million in capital expenditures during 2013,  83 percent for the purchase of eight Airbus series aircraft and a new headquarters building
  • Issued $106 million in debt in 2013,  $96 million secured by eight A320 series aircraft and $10 million by the new headquarters building
  • Paid down $23 million in debt including $10.5 million previously secured by four 757 aircraft.  $9 million in debt remains secured by the remaining two 757 aircraft in our fleet as well as a term loan due in 2017 of $122 million secured by MD-80 aircraft and parts
  • 2014 CAPEX is expected to be between $60 and $80 million primarily driven by two A320 purchases occurring at the end of 2014 and IT projects
Unaudited (millions) 12/31/2013 12/31/2012 Change
Unrestricted cash* $387.1 $352.7 9.8 %
Total debt $234.3 $150.9 55.3 %
Total Allegiant Travel Company stockholders’ equity $375.7 $400.5 (6.2 )%
For the Year
ended December 31,
Unaudited (millions) 2013 2012 Change
Capital expenditures $177.6 $105.1 69.0%

* - Unrestricted cash includes investments in marketable securities.

At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.

Guidance, subject to revision
Revenue guidance January 2014 1Q14
Estimated PRASM year-over-year change 6.5 to 8.5% (2) to 0%
Estimated TRASM year-over-year change 2 to 4% (4) to (2)%
Fixed fee and other revenue guidance 1Q14
Fixed fee and other revenue (millions) $1 to $3
Capacity guidance
System 1Q14 2Q14 FY14
Departure year-over-year growth 8 to 12% 10 to 14%
ASM year-over-year growth 10 to 14% 8 to 12% 9 to 13%
Scheduled
Departure year-over-year growth 8 to 12% 10 to 14%
ASM year-over-year growth 10 to 14% 8 to 12% 9 to 13%
Cost guidance 1Q14 FY14
CASM ex fuel – year-over-year change 13 to 15% 4 to 7%
CASM – year-over-year change 4 to 6% 1 to 4%
Assumed fuel cost per gallon $3.32 $3.22
CAPEX guidance FY14
Capital expenditures (millions) $60 to $80

 CASM ex fuel – cost per available seat mile excluding fuel expense
CASM – total operating expenses / system ASMs
Fuel assumptions are modeled as of January 20, 2014

Aircraft fleet plan by end of period
Aircraft YE13 1Q14 YE14 YE15
MD-80 (150) 1 - - -
MD-80 (166*) 51 53 53 53
757 6 6 6 6
A319 3 3 4 10
A320 5 7 7 9
Total 66 69 70 78

Aircraft listed in table above include only in service aircraft
* – MD-80s converted to 166 seats from 150 seats

Copyright Photo: James Helbock/AirlinersGallery.com. Allegiant is now operating three Airbus A319s and seven A320s.  Airbus A319-112 N310NV (msn 2224) approaches the runway at Los Angeles International Airport.

Allegiant Air:AG Slide Show

Allegiant Air’s pilots to meet with investors and analysts about safety concerns

Allegiant Air‘s (Las Vegas) pilots have issued this statement:

Allegiant Air’s pilots, represented by the Allegiant Air Pilots Executive Council, an employee group of Allegiant Travel Company (Las Vegas) and pilots represented by Teamsters Local Union 1224 in Wilmington, Ohio, announced plans to begin formal dialogues with Allegiant stakeholders and other influential voices in the financial community, including institutional shareholders, equity analysts, corporate lenders and insurers, in order to address operating and safety concerns that exist at the airline.

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“Allegiant management has turned a deaf ear to serious operational concerns raised by the pilots,” said Capt. David Bourne, Director of Airline Division at the International Brotherhood of Teamsters. “We believe Allegiant’s financial backers have a right to know what is going on and be given a chance to weigh in on vital changes needed for Allegiant’s long-term success before it’s too late.”

“Allegiant’s low-cost model works if it can actually support the growth of the business,” Bourne said, “However, management’s lack of operational know-how and flat-out resistance to put badly needed investments into infrastructure is taking a significant toll on flight operations, which could ultimately jeopardize flight safety. It’s obvious to us that the major service disruptions over the last several months, ranging from multiple fleet shutdowns, chronic staffing and equipment shortages, significant ramp-up in 3rd party contracting for scheduled flights and sub-servicing and the shutdown of the company’s training department, all flow from the short-sighted decisions being made at the top.”

“It is very unusual for a company’s training department to be shut down,” said Dan Wells, President of Teamsters Local 1224. “Allegiant has yet to even acknowledge the training shutdown, much less show its pilots a plan for corrective action or indicate if those changes will adequately satisfy Federal Aviation Administration concerns. Many Allegiant pilots have been delayed in training for months, which we believe is driving a major increase in outsourcing due to the shortage of company pilots to fly scheduled flights and re-route equipment back to hubs and maintenance centers.”

“Management has ignored repeated requests for clarity on the training program by both the union and Allegiant’s own pilots,” Bourne said. “We’ve filed a Freedom of Information Act submission with the FAA on the matter, but the agency’s only reply was that there is an ongoing investigation at the company. In the meantime, Allegiant pilots continue to bend over backwards to work with the company to address the very significant issues that are interfering with the ability of Allegiant flight crews to do their jobs properly and service customers effectively. We are hopeful that conversations with investors and other Allegiant stakeholders will lead to a breakthrough on some of the key obstacles affecting the future of the airline.”

Copyright Photo: Jay Selman/AirlinersGallery.com. Allegiant Air’s Boeing 757-204 WL N904NV (msn 26967) arrives at the Las Vegas base.

Allegiant Air: AG Slide Show

Allegiant Air introduces an Airbus A320 Make-A-Wish logo jet

Allegiant A320-200 N218NV (13-Make-A-Wish)(Grd)(Allegiant Air)(LR)
Allegiant Air (Las Vgeas) today kicked off a unique and impactful social media campaign celebrating the painting of Allegiant’s newly acquired Airbus A320 with a special Make-A-Wish® branded livery. A time-lapse video of the plane painting can be viewed athttp://gofly.us/rBXwF. For every share of the video from the company’s Facebook page, Allegiant has committed to donate $1 to Make-A-Wish, up to $10,000.
The painting of the plane commemorates the company’s ongoing collaboration with Make-A-Wish to provide flights for families traveling to their wish destinations. Since teaming up with Make-A-Wish in May of 2012, Allegiant has donated wish travel for more than 70 families traveling to their wish destinations and more than $110,000 in cash sponsorships for Make-A-Wish events across the country. With service from more than 100 communities to popular family vacation destinations such as Orlando, Southern California and Hawaii, Allegiant is looking forward to continuing to help grant travel wishes.
Copyright Photo: Allegiant Air. Airbus A320-214 N218NV (msn 1229) was added by the company on October 18, 2013.
Allegiant Air: AG Slide Show
Video:

Allegiant to operate twice-weekly seasonal flights between Portsmouth and Punta Gorda

Allegiant Air (Las Vegas) will add new seasonal, nonstop jet service between Portsmouth and Punta Gorda Airport beginning on February 12, 2014. The new flights will operate twice weekly between Portsmouth International Airport at Pease (PSM) and Punta Gorda Airport (PGD).

Copyright Photo: Ton Jochems/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N422NV (msn 49381) lands in Las Vegas.

Allegiant Air: AG Slide Show

Allegiant Travel Company reports net income of $17.1 million in the 3Q, up 1%

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported the following financial results for the third quarter 2013, as well as comparisons to prior year equivalents:

Unaudited 3 months endedSept 30,
2013 2012 Change
Total operating revenue (m) $ 228.9 $ 216.9 5.5 %
Operating income (millions) $ 29.2 $ 28.7 1.7 %
Operating margin   12.8 % 13.3 % (0.5)pp    
EBITDA (millions) $ 46.7 $ 44.6 4.7 %
EBITDA margin   20.4 % 20.6 % (0.2)pp      
Net income (millions) $ 17.1 $ 16.9 1.0 %
Diluted earnings per share $ 0.91 $ 0.87 4.6 %

“We are very proud to report our 43rd consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “We are pleased to produce another profitable quarter and be able to return cash to shareholders through our share repurchase program.  In addition, I am proud to announce that Andrew Levy has been added to our Board of Directors and will also assume the role of Chief Operating Officer.  His proven leadership abilities and extensive operational and financial expertise, as well as a deep understanding of the airline business, will be invaluable in his new role as COO.”

“Finally, we were significantly challenged operationally at the end of September many of our MD-80s were taken out of service due to an evacuation slide issue.  Through the tireless efforts of our Team Members, we were able to minimize the disruption to our customers.  I am very thankful to all of those individuals who worked extremely hard to put the operation back together in such a short amount of time.”

Notable Company Highlights

  • Completed the acquisition of five Airbus A320 aircraft.  The company now owns seven A320s
  • Repurchased 491,000 shares for $47 million during the third quarter, average purchase price of $95.85 per share
  • Announced service from nine existing cities to Punta Gorda (Southwest Florida) to begin in the fourth quarter
  • Announced service to 12 new cities with service beginning in the fourth quarter and first quarter
  • Announced 29 new routes which will begin operation in the fourth quarter
  • Average aircraft in service was flat versus last quarter as we retired three MD-80 aircraft and temporarily grounded two MD-80 aircraft early in the quarter
  • Increasing MD-80 operating fleet from 52 at the end of the year to 53 in the first quarter of 2014

Third Quarter 2013 Revenue Performance

  • 15th consecutive quarter of year over year increases in total average fare, 4.8 percent higher than a year ago
  • Florida TRASM grew by 9.6 percent despite 12.7 percent growth in ASMs
  • Same store markets, those which were operated in both the third quarter 2013 and 2012, generated a 5.0 percent increase in TRASM
  • Grew scheduled load factor to 90.8 percent despite a 4.2 percent increase in seats per departure
  • The September slide interruption resulted in approximately $1 million in refunds given to customers
3Q13 3Q12 Change
Scheduled Service:
Average fare – scheduled service $86.94 $82.30 5.6 %
Average fare – ancillary air-related charges $38.99 $37.05 5.2 %
Average fare – ancillary third party products $5.06 $5.59 (9.5 )%
Average fare – total $130.99 $124.94 4.8 %
Scheduled service passenger revenue per ASM (PRASM) (cents) 8.14 7.89 3.2 %
Total scheduled service revenue per ASM (TRASM) (cents) 12.26 11.98 2.3 %
Load factor 90.8 %   90.1 %   0.7pp
Passengers (millions) 1.7 1.6 6.3 %
Average passengers per departure 150 143 4.9 %
Average scheduled service stage length (miles) 932 910 2.4 %

ASMs = available seat miles
 PRASM = scheduled passenger revenue per scheduled available seat mile
TRASM = (scheduled passenger revenue + ancillary air revenue + ancillary third party revenue) per scheduled available seat mile

Third Quarter 2013 Cost Performance

  • Fuel expense per ASM declined 3.9 percent primarily due to a 5.8 percent increase in ASMs per gallon versus last year, which more than offset a 1.9 percent increase in average cost per gallon
  • Operating expense excluding fuel was negatively impacted by lower aircraft utilization and approximately $2 million in expense attributable to the evacuation slide interruption.  The expense associated with the slide event is isolated to September and resulted in higher aircraft lease rentals expense as we contracted with other carriers for sub-service of aircraft to move some of our customers, higher station operations expense due to customer interrupted trip costs, and increased salary and benefits expense due to additional overtime
  • Salary and benefits expense per passenger increased 15 percent versus last year primarily due to an increase in the number of full time equivalents to support our growth, higher stock-based compensation expense and the continuation of the higher pay band for pilots which began in November 2012.  The current pay band will continue through April 2014 when it will be subject to adjustment based on a trailing 12 month profitability test.  Based on our forecasted profitability, we currently expect the pilot pay band to remain unchanged
  • Depreciation and amortization expense per passenger increased 8 percent primarily due to a change in estimated MD-80 engine residual values and useful life, and operating a larger contingent of 166 seat MD-80 aircraft
  • Other expense per passenger increased 31 percent due to a higher write-down of engine values in our consignment program compared to the prior year, non capitalizable information technology development costs, crew training for our growing Airbus fleet and costs to support a seasonal operating base in Los Angeles
3Q13 3Q12 Change
Total System*:
Operating expense per passenger $114.54 $108.92 5.2 %
Operating expense per passenger, excluding fuel $63.37 $56.85 11.5 %
Operating expense per ASM (CASM) (cents) 10.58 10.29 2.8 %
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents) 5.85 5.37 8.9 %
Average block hours per aircraft per day 5.1 5.2 (1.9 )%

*Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Fourth Quarter 2013 Cost Trends

  • Salary and benefits expense is expected to increase due to additional staff required to support our growth
  • Maintenance and repair expense is expected to be slightly higher than fourth quarter 2012.  For the full year, maintenance expense per aircraft per month is expected to be $100 thousand to $105 thousand as previously guided
  • Aircraft utilization is expected to decline 1.5%, which will pressure ex fuel unit costs when compared to fourth quarter 2012
  • Depreciation and amortization expense is expected to increase as seven A320 aircraft are scheduled to enter service in the fourth quarter.   For the full year, depreciation per aircraft per month is expected to be between $92 thousand and $95 thousand, as previously guided

Third Party Products Performance

  • Rental car days increased 6.5 percent primarily due to a 18 percent increase in Florida passengers
  • Hotel net revenue excluding the effect of an air discount was higher by 39 percent versus last year.  The company has phased out offering an air discount which has historically subsidized hotel sales
Supplemental Ancillary Revenue Information
Unaudited (millions)
3Q13 3Q12 Change
Gross ancillary revenue – third party products $28.7 $28.3 1.4 %
Cost of goods sold ($19.6 ) ($18.5 ) 5.9 %
Transaction costs* ($0.5 ) ($0.8 ) (37.5 )%
Ancillary revenue – third party products $8.6 $9.0 (4.4 )%
As percent of gross   30.1 %   31.9 %   (1.8)pp
   As percent of income before taxes   31.3 %   33.6 %   (2.3)pp
Ancillary revenue – third party products/scheduled passenger $5.06 $5.59 (9.5 )%
Hotel room nights (thousands) 144.4 163.4 (11.6 )%
Rental car days (thousands) 195.3 183.3 6.5 %

*Includes payment expenses and travel agency commissions.

Balance Sheet Highlights

  • Repurchased 491,000 shares for $47 million and have over $43 million in repurchase authority remaining.  Year to date, the company has repurchased 880,991 shares at an average price of $85.64 per share
  • Issued $48.0 million in debt secured by four Airbus aircraft
  • Pre-paid $10.5 million in debt secured by four 757 aircraft
  • Spent $84.5 million in capital expenditures in the third quarter, the majority of which was driven by the purchase of five Airbus A320 aircraft
  • Closed a $10 million debt financing in October, secured by our new headquarters building acquired earlier this year
Unaudited (millions) 9/30/2013 12/31/2012 Change
Unrestricted cash* $303.6 $352.7 (13.9 )%
Total debt $179.7 $150.9 19.1 %
Total Allegiant Travel Company stockholders’ equity $402.4 $400.5 0.5 %
Nine months ended September 30,
Unaudited (millions) 2013 2012
Capital expenditures $161.6 $88.8 82.0 %

*Unrestricted cash includes investments in marketable securities.

At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.

Guidance, subject to revision
Revenue guidance October 2013 4Q13
Estimated PRASM year-over-year change 5 to 7% 3 to 5%
Estimated TRASM year-over-year change 1 to 3% 0.5 to 2.5%
Fixed fee and other revenue guidance 4Q13
Fixed fee and other revenue (millions) $3 to $5
Capacity guidance
System 4Q13 1Q14 FY13
Departure year-over-year growth (4) to 0% 8 to 12%
ASM year-over-year growth 4 to 8% 10 to 14% 8 to 10%
Scheduled
Departure year-over-year growth 2 to 6% 8 to 12%
ASM year-over-year growth 8 to 12% 10 to 14% 13 to 15%
Cost guidance 4Q13 FY13
CASM ex fuel – year-over-year change 4.5 to 6.5% 4 to 5%
CAPEX guidance FY13
Capital expenditures (millions) $170 to $180

 CASM ex fuel – cost per available seat mile excluding fuel expense

Aircraft fleet plan by end of period
Aircraft 4Q13 4Q14
MD-80 (166*) 51 53
MD-80 (non 166*) 1 -
757 6 6
A319 3 4
A320 7 9
Total 68 72

*166 refers to MD-80s that have been converted to 166 seat aircraft, non 166 refers to those aircraft that will not be converted
 Aircraft listed in table above include only in service aircraft

In other news, the company announced new, nonstop jet service from Cincinnati-Northern Kentucky International Airport to Orlando-Sanford International Airport starting on February 12, 2014 and Punta Gorda Airport beginning on February 14, 2014.

This announcement marks the 100th U.S. city served by Allegiant’s low-cost, nonstop service to popular vacation destinations, more than any other low-cost carrier in the U.S.

Copyright Photo: Tony Storck/AirlinersGallery.com. Allegiant Air’s McDonnell Douglas DC-9-82 (MD-82) N408NV (msn 53246) in the Blue Man Group special livery lands at the Las Vegas hub and base. Allegiant moved to Concourse A at LAS on October 15.

Allegiant Air: AG Slide Show

Allegiant to move to Concourse A at Las Vegas’ McCarran International Airport

Allegiant Air (Las Vegas) will move its Las Vegas operation today from Concourse D to Concourse A. This area was previously vacated by US Airways.

Read the full story from Las Vegas Review-Journal: CLICK HERE

Copyright Photo: Tony Storck/AirlinersGallery.com. Allegiant Air’s Boeing 757-204 N902NV (msn 26964) climbs over the Strip at Las Vegas.

Allegiant: AG Slide Show

FAA Airport Map for LAS:

LAS Airport Map (FAA)

Allegiant Air grounds half of its MD-80 fleet for emergency slide inspections

Allegiant Air (Las Vegas) yesterday (September 20) grounded upwards of 30 McDonnell Douglas MD-80s (DC-9-80s). The cancellation of flights was due to an inspection of the emergency chutes of its 52 MD-80s.

Allegiant issued this statement:

Allegiant announces it has discovered a compliance issue which will require immediate re-inspection of many slides in its MD-80 fleet. The Company has already begun the re-inspections and expects to complete the process by the end of September. MD-80 aircraft will be placed back in service as soon as possible after the slides pass re-inspection.  In the meantime, Allegiant will take as many as 30 MD-80s out of service and delay, reschedule or cancel a number of flights over the next several days.

“We apologize for the disruption to our passengers and ask that they please remain patient as we work to correct the issue, reschedule affected flights and accommodate any passengers impacted,” said Andrew Levy, Allegiant Travel Company President. “Allegiant is committed, above all else, to the safety of our passengers and crew, and we are dedicated to working around-the-clock to ensure that all of our fleet meets the highest standards.”

At this time, it is unknown how long the disruption in flight schedule will last.

The company has secured sub-service on seven aircraft from other carriers to assist in operating its Sunday and Monday flight schedule and expects to have 22 MD-80 aircraft in service by Saturday. Allegiant expects delays and reschedules to continue, but is working around-the-clock to re-accommodate and update passengers.

During a thorough incident review earlier this week, Allegiant maintenance became aware of a discrepancy in its slide maintenance schedule. In 2007, the original manufacturer recommendation for slide maintenance schedule changed from once every three years to once a year for slides older than 15 years. Allegiant discovered that many of the slides had not been inspected within the last year and did not comply with this recommendation. This prompted Allegiant to proactively remove aircraft from service until all slides could be brought into compliance. To inspect and overhaul the slides, the slides must be removed and sent to a regulated inspection and maintenance facility.

Allegiant teams are working to accommodate all affected passengers and will offer the following compensation:

  • Flights delayed less than four hours: $100 voucher for future travel
  • Flights delayed 4-6 hours: $150 off voucher for future travel
  • Flights delayed 6 or more hours: $200 voucher for future travel
  • Reschedule flights: Full refund and $200 voucher for future travel

For passengers delayed overnight, hotel accommodations and meals will be provided. For travel and compensation questions, please call Allegiant Customer Care at 702-505-8888

Read the full report from Reuters: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Officially designed as a McDonnell Douglas DC-9-83 (MD-83), N417NV (msn 53347) prepares to depart from Long Beach.

Allegiant Air: AG Slide Show

Allegiant to add Concord, North Carolina, its 99th U.S. city

Allegiant AIr (Las Vegas) has announced new, nonstop jet service between Concord, North Carolina (near Charlotte) and Sanford, Florida via Orlando-Sanford International Airport, beginning on December 20, 2013. Concord will be the 99th U.S. city served by Allegiant.

The new flights will operate twice weekly between Concord Regional Airport (JQF) and Orlando-Sanford International Airport (SFB) year-round.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) prepares to land at Los Angeles International Airport.

Allegiant Air: AG Slide Show

Allegiant announces 18 routes, now serves more destinations than any other low-fare airline

Allegiant Air (Las Vegas) today announced new, nonstop jet service on 18 routes, including 10 cities new to the Allegiant network. Today’s announcement will mark the 99th U.S. city served by Allegiant’s low-cost, nonstop service to popular vacation destinations, more than any other low-cost carrier in the U.S.

Allegiant will now offer service to travelers in the New York City area, providing a low-cost travel alternative to the beaches of Southwest Florida via Long Island MacArthur Airport and Stewart International Airport.

New routes just announced include:

Nonstop Service to Phoenix-Mesa Gateway Airport (AZA) in Mesa, AZ from:

  1. Fort Wayne, Indiana - begins Oct. 30, 2013 with fares as low as $99* roundtrip
  2. Manhattan, Kansas - begins Nov. 7, 2013 with fares as low as $99* roundtrip

Nonstop Service to Orlando-Sanford International Airport (SFB) in Sanford, FL from:

  1. Bismarck, North Dakota - begins Nov. 23, 2013 with fares as low as $99* roundtrip
  2. Charlottesville, Virginia - begins Nov. 21, 2013 with fares as low as $99* roundtrip
  3. Clarksburg, West Virginia - begins Nov. 14, 2013 with fares as low as $99* roundtrip
  4. Concord, North Carolina - begins Dec. 20, 2013 with fares as low as $99* roundtrip
  5. Oklahoma City, Oklahoma - begins Nov. 14, 2013 with fares as low as $99* roundtrip
  6. Portsmouth, New Hampshire - begins Oct. 25, 2013 with fares as low as $99* roundtrip
  7. Springfield, Illinois - begins Nov. 22, 2013 with fares as low as $99* roundtrip
  8. St. Cloud, Minnesota - begins Dec. 18, 2013 with fares as low as $99* roundtrip
  9. Tulsa, Oklahoma - begins Oct. 25, 2013 with fares as low as $99* roundtrip

Nonstop Service to St. Pete-Clearwater International Airport (PIE), FL from:

  1. Columbus, Ohio - begins Nov. 23, 2013 with fares as low as $99* roundtrip
  2. Elmira, New York - begins Nov. 1, 2013 with fares as low as $99* roundtrip
  3. Fargo, North Dakota - begins Nov. 23, 2013 with fares as low as $99* roundtrip
  4. Sioux Falls, South Dakota - begins Nov. 1, 2013 with fares as low as $99* roundtrip
  5. Stewart, New York - begins Oct. 31, 2013 with fares as low as $99* roundtrip
  6. Syracuse, New York - begins Nov. 7, 2013 with fares as low as $99* roundtrip

Nonstop Service to Punta Gorda Airport (PGD) in Punta Gorda, FL from:

  1. Islip, New York  - begins Dec. 20, 2013 with fares as low as $99* roundtrip

Copyright Photo: Brian McDonough/AirlinersGallery.com. McDonnell Douglas DC-9-82 (MD-82) N406NV (msn 49900) completes its final approach into Baltimore/Washington.

Allegiant Air: AG Slide Show

Allegiant Air ends service at Gary, Indiana, Gary now without airline service

Gary Chicago International Airport

Allegiant Air (Las Vegas) operated its last flight from Gary, Indiana (near Chicago) yesterday (August 10). The last flight was operated from Gary to Sanford, Florida (near Orlando). Gary Chicago International Airport is now without any airline service once again. The airport had tried to market itself as the Chicago area’s third airport.

Read the full report from Chicago Sun-Times: CLICK HERE

Allegiant Air: AG Slide Show

Allegiant to add eight new routes to Punta Gorda, Florida this winter

Allegiant Air (Las Vegas) has announced today new, nonstop jet service to Southwest Florida via Punta Gorda Airport (PGD) from eight destinations, beginning on October 30.

  1. Allentown/Bethlehem/Easton, PA - begins October 31, 2013 with fares as low as $99.99 each way
  2. Asheville, NC - begins November 2, 2013 with fares as low as $69.99 each way
  3. Bangor, Maine - begins October 30, 2013 with fares as low as $124.99 each way
  4. Cedar Rapids, Iowa - begins December 18, 2013 with fares as low as $99.99 each way
  5. Des Moines, Iowa - begins December 19, 2013 with fares as low as $119.99 each way
  6. Moline/Quad Cities, Illinois - begins November 1, 2013 with fares as low as $99.99 each way
  7. Springfield/Branson, Moissouri  - begins October 31, 2013 with fares as low as $89.99 each way
  8. Youngstown, Ohio - begins October 30, 2013 with fares as low as $89.99 each way

The expansion of routes into Punta Gorda will result in two additional McDonnell Douglas DC-9-80 (MD-80) series aircraft based at Punta Gorda Airport.

Additionally the low-fare airline announced new, nonstop, seasonal jet service from Montrose to Los Angeles, California and reintroduction of service to Mesa, Arizona (near Phoenix) beginning December 21, 2013.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-82 (MD-82) N423NV (msn 53008) departs from Los Angeles International Airport.

Allegiant Air: AG Slide Show

 

Allegiant Air flight 863 makes an emergency landing at Albany, Georgia, passengers bussed to St. Petersburg, Florida

Allegiant logo-1 (large)

Allegiant Air‘s (Las Vegas) flight 863 from Cedar Rapids, Iowa to St. Petersburg/Clearwater, Florida last night (July 28), was forced to make an emergency landing at the nearest airport and landed at Albany, Georgia after the flight crew was alerted by a sensor of a possible fire in the baggage compartment. The flight landed safely at ABY and there was no evidence of a fire. All passengers safely exited the aircraft via the emergency chutes. Airport operations at the airport had already left for the day. Fire and Police units assisted the passengers exiting the aircraft.

This morning the passengers continued their journey to Florida, this time on four busses, arriving this morning at PIE.

Read the full report from News Channel 5 (with new video): CLICK HERE

Allegiant Air: AG Slide Show

Allegiant’s 2Q net profit increases to $25.8 million

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported a net income of $25.8 million in the second quarter, up 2.3 percent from the same quarter a year ago. This represents the 42nd consecutive profitable quarter.

Read the full report: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N879GA (msn 53486) approaches the Las Vegas base for landing dressed in the old 2003 livery.

Allegiant Air: AG Slide Show

Allegiant Air to start new Las Vegas-Austin flights on October 31

Allegiant Air (Las Vegas) has announced new nonstop jet service between Austin and Las Vegas beginning on October 31. 

The new flights will operate four times each week between Austin-Bergstrom International Airport (AUS) and McCarran International Airport (LAS).

In addition, the company will also start twice-weekly service between Reno and Oakland on August 30.

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N876GA (msn 53469) prepares to land at the Las Vegas base.

Allegiant Air: AG Slide Show

Allegiant Air to fly between Los Angeles and Honolulu, starting at $99 OW

Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Los Angeles and Honolulu beginning on October 30, 2013.

In March 2010, the company announced it signed a forward purchase agreement to acquire six Boeing 757-200 aircraft that enabled Allegiant to expand its leisure travel strategy into Hawaii with flights beginning in summer 2012.

Allegiant currently operates a fleet of 57 McDonnell Douglas DC-9-80 (MD-80) aircraft, six Boeing 757-200 aircraft, and one Airbus A319 aircraft. The Company has agreements to acquire eight additional Airbus A319 aircraft and nine Airbus A320 aircraft, which will be introduced throughout 2013 and the beginning of 2014.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 757-204 N906NV (msn 27236) lands at the Las Vegas home base.

Allegiant Air: AG Slide Show

Allegiant Air to fly Provo-Los Angeles flights

Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Provo Municipal Airport (PVU) and Los Angeles International Airport (LAX) beginning on September 26, 2013.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas DC-9-82 (MD-82) N423NV (msn 53008) departs from Los Angeles International Airport.

Allegiant Air: AG Slide Show

Allegiant Air seeks to fly to Mexico

Allegiant Air (Las Vegas) has filed an application with the U.S. Department of Transportation (DOT) to operate twice-weekly flights from Las Vegas to Hermosillo and San Jose del Cabo in Mexico. Flights, if approved, would start around June 1, 2014 according to this report by Bloomberg Businessweek.

Read the full report: CLICK HERE

USA Today has joined the growing list of media publications now praising the small city strategy of Allegiant Air which they have been flying for years.

Read their take on the carrier: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) prepares to land at the Las Vegas home.

Allegiant Air: AG Slide Show

Allegiant Air takes delivery of its first Airbus A320

Allegiant Air (Las Vegas) yesterday (June 18) took delivery of its first Airbus A320 (N219NV).

In other news, Allegiant introduce twice weekly nonstop service on June 7 between Provo International Airport (PVU) and Oakland International Airport (OAK).

Copyright Photo: Greenwing/AirlinersGallery.com. Sister-ship and former Iberia A320-214 EC-HUL (msn 1347) is awaiting delivery at Dublin as N217NV.

Allegiant Air: AG Slide Show

WSJ: Allegiant Air: The Tardy, Gas-Guzzling, Most Profitable Airline in America

Allegiant Air (Las Vegas) is under the financial analysis of the Wall Street Journal in a special detailed article by Jack Nicas that explores why this fast-growing airline is the most profitable airline in the United States. This low-fare airline, which breaks most of the industry “rules”, has been off the radar screens of most of the mainstream media for a long time, except in the smaller cities where a new Allegiant route to Las Vegas, Arizona, California, Hawaii or Florida grabs local headlines. Allegiant has the “lowest costs, fullest planes and highest margins” in the United States according to this article. The secret formula, as we have detailed, is flying mostly older planes that others no longer want from cities that are too small for the others to care about to exciting vacation destinations on a limited number of peak traffic days. Allegiant Air also makes a lot of ancillary revenue from its travel packages, taking a page out of the Ryanair playbook. Allegiant aims to be the total travel package airline for the traveller. The business plan is working well.

Now Allegiant is planning to expand in Mexico. This article details the growth and its expansion plans.

Read the full article: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Most airlines cannot get rid of these older, fuel-guzzling McDonnell Douglas MD-80s fast enough. Not Allegiant, they love the type and only fly their aircraft when they can make money. During mid-week, when most passengers are already at their holiday destinations, Allegiant parks most of its inefficient, fuel-guzzling fleet. Allegiant only flies when it can make money. Departing on a weekend, former SAS McDonnell Douglas DC-9-83 (MD-83) departs from Los Angeles International Airport.

Allegiant Air: AG Slide Show

Allegiant logo

Route Map:

Allegiant 6:2013 Route Map

Video: Allegiant Air TV commercial:

Allegiant’s 1Q net profit increases to $31.9 million

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported the following financial results for the first quarter 2013:

Unaudited 1Q13 1Q12 Change
Total operating revenue (millions) $273.0 $237.9 14.8%
Operating income (millions) $52.4 $36.3 44.2%
Operating margin 19.2% 15.3% 3.9pp
EBITDA (millions) $69.4 $48.3 43.6%
EBITDA margin 25.4% 20.3% 5.1pp
Net income (millions) $31.9 $21.7 47.1%
Diluted earnings per share $1.65 $1.12 47.3%

“We are very proud to report our 41st consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company.  “The month of March is typically our busiest month of the year, and this year was no different.  Thanks to the tireless efforts of our Team Members, we have had another profitable quarter.”

Notable company quarterly highlights

  • Began flying our first A319 on March 1, 2013, the second A319 on April 4, 2013
  • Repurchased over 284,000 shares for $22.2 million dollars, average purchase price of $78.15
  • Received board approval to increase share repurchase authority to $100 million
  • Completed the 166 seat MD-80 conversion project in February
  • Added two new small cities Provo, UT and Reno, NV
  • Added eight routes in the quarter
  • Announced five routes which will start in the second quarter, including one new city, Little Rock, AR
  • Operated 198 routes in the first quarter of 2013.  Expect to operate 203 routes in the second quarter of 2013

First quarter 2013 revenue performance

  • 13th consecutive quarter of year over year increases in total average fare
  • First quarter 2013 average fare, average ancillary air per passenger, and total fare were the highest in the company’s history
  • First quarter TRASM increased by 1.2 percent even though we increased average scheduled service stage length by 4.9 percent and scheduled service ASMs grew by 17 percent
  • Load factor returned to a normalized rate closer to 90%
  • Same store markets, those which were operated in the first quarter 2012 and 2013, had a 4.3 percent TRASM increase versus the system average of 1.2 percent
  • Fixed fee revenue’s decline is attributable to no longer operating two aircraft in track charter programs as previously disclosed
1Q13 1Q12 Change
Scheduled Service:
Average fare – scheduled service $97.54 $94.95 2.7%
Average fare – ancillary air-related charges $41.64 $32.39 28.6%
Average fare – ancillary third party products $5.81 $5.36 8.4%
Average fare – total $144.99 $132.70 9.3%
Scheduled service passenger revenue per ASM (PRASM) (cents) 8.60 9.04 (4.9)%
Total scheduled service revenue* per ASM (TRASM) (cents) 12.79 12.64 1.2%
Load factor 89.8% 91.1% (1.3)pp
Passengers (millions) 1.8 1.7 8.4%
Average passengers per departure 148 138 7.2%
Average scheduled service stage length (miles) 978 932 4.9%

* Total scheduled service revenue includes scheduled service, ancillary air-related charges, and ancillary third party products revenue.
ASMs = available seat miles
PRASM = scheduled passenger revenue per scheduled available seat mile

First quarter 2013 cost performance

  • Operating CASM, excluding fuel increased only 0.2 percent to 5.18 cents despite an almost eight percent decrease in aircraft utilization for the same time period due to a higher concentration of flying during peak periods
  • Operating expense per ASM decreased by three percent even though our average fuel expense per gallon increased by three percent.  System ASMs per gallon of fuel improved to 67.3; a 9.6 percent increase versus the first quarter 2012
  • Maintenance and repairs expense per passenger decreased by 19.2 percent due to a more normalized rate of engine overhaul expense compared to unusually high levels in the first quarter of 2012
  • Salary and benefits expense per passenger increased by 18.4 percent due mainly to increases in pilot compensation.  As we reached a trailing twelve month operating margin of 14 percent in November of 2012, our pilots moved into a higher pilot pay rate band per our compensation agreement with our pilot work group.  Additionally, higher flight attendant headcount resulting from the increased gauge of our MD-80 aircraft and operating six 757 aircraft as opposed to one during the first quarter 2012
  • Depreciation and amortization per passenger increased 35 percent primarily due to accelerated depreciation from the announced retirement of six MD-80s from first quarter 2013 through third quarter 2013, along with higher depreciation stemming from 51 converted 166 seat MD-80s at the end of the quarter versus 17 a year ago
  • Other expense per passenger increased 35 percent primarily attributable to a higher write-down of engine values in our consignment program
1Q13 1Q12 Change
Total System*:
Operating expense per passenger $117.31 $112.03 4.7%
Operating expense per passenger, excluding fuel $59.62 $55.10 8.2%
Operating expense per ASM (CASM) (cents) 10.20 10.52 (3.0)%
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents) 5.18 5.17 0.2%
Average block hours per aircraft per day 5.9 6.4 (7.8)%

* Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Second quarter 2013 cost trends

  • Salary and benefit expense is still subject to the same pressures as in the first quarter including the higher pilot pay band in effect
  • We expect the bulk of the engine and heavy airframe maintenance for the year will be incurred in the second and third quarters.  For the full year, we are still anticipating maintenance per aircraft per month to be between $100 thousand and $110 thousand which has been our normalized historical run rate
  • Second quarter depreciation expense will still feel the impact of the accelerated depreciation reflected in the first quarter and to a lesser extent the higher depreciation from the converted 166 seat MD-80s as we had converted 27 aircraft by the end of June 2012.  Four of the MD-80s driving the bulk of the accelerated depreciation are scheduled to be retired in the third quarter of 2013.  In addition, we are expecting higher depreciation in the fourth quarter as we are currently expecting to place seven A320s into service by the fourth quarter of 2013.

Copyright Photo: Keith Burton. Allegiant introduced the first Airbus A319 into operations on March 1. The second was introduced on April 4. The former easyJet (Switzerland) A319-111 HB-JZN became N302NV (msn 2387) when it was delivered on February 11, 2013. The airliner is leased from GECAS.

Allegiant: AG Slide Show

Allegiant announces Bellingham-Reno service

Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Bellingham International Airport (BLI) and Reno-Tahoe International Airport (RNO) beginning on June 6, 2013.

In other news, the company has announced it has now served over four million total travelers at St. Pete-Clearwater International Airport (PIE) since the first flight took off on November 16, 2006 en route to Allentown, PA. Since that time, the company has grown its presence at the airport, now serving 25 cities with nonstop flights into St. Pete-Clearwater International, as well as basing six aircraft at the airport and employing pilots, flight attendants and mechanics.

Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N873GA (msn 49658) touches down at Las Vegas.

Allegiant Air: AG Slide Show

Allegiant to seasonally halt Hawaii service from seven cities

Allegiant Air (Las Vegas) plans to temporarily suspend service to Hawaii from seven of the nine mainland cities after the summer season.

Allegiant will suspend flights beginning on August 14 from Boise, Idaho; Eugene, Oregon; Phoenix; Spokane, Washington; and Fresno, Stockton and Santa Maria, all in California according to this report by the Star Advertiser.

The company has recently been struggling with some well-publicized Hawaii cancellations due to mechanical issues affecting its Boeing 757-200 fleet.

Read the full report: CLICK HERE

Copyright Photo: Ton Jochems. Boeing 757-204 N901NV (msn 26963) touches down at the Las Vegas base after arriving from Hawaii.

Allegiant: AG Slide Show

Allegiant announces Little Rock-Sanford flights starting on June 6

Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Bill and Hillary Clinton National Airport in Little Rock, Arkansas (LIT) and Orlando Sanford International Airport (SFB) beginning on June 6, 2013.

Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N422NV (msn 49381) completes its final approach into Los Angeles International Airport.

Allegiant Air: AG Slide Show

Allegiant to add Greensboro-Fort Lauderdale/Hollywood flights

Allegiant Air (Las Vegas) has announced new nonstop jet service between Piedmont Triad International Airport (GSO) and Fort Lauderdale-Hollywood International Airport (FLL) beginning on June 6, 2013.

The new flights will operate twice weekly between Piedmont Triad International Airport (GSO) and Fort Lauderdale-Hollywood International Airport (FLL).

Copyright Photo: Brian McDonough. McDonnell Douglas DC-9-83 (MD-83) N876GA (msn 53469) arrives at Fort Lauderdale-Hollywood International Airport.

Allegiant: AG Slide Show

Allegiant announces two new routes

Allegiant Air (Las Vegas) has announced new nonstop jet service between Provo International Airport (PVU) and Oakland International Airport (OAK) beginning on June 7, 2013. The new flights will operate twice weekly between Provo International Airport (PVU) and Oakland International Airport (OAK).

In addition, the company also announced new nonstop jet service between Asheville Regional Airport (AVL) and St. Pete-Clearwater International Airport (PIE) beginning on June 6, 2013. The new flights will operate two times a week between Asheville Regional Airport (AVL) and St. Pete-Clearwater International Airport (PIE).

Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) arrives at the Las Vegas hub.

World Airline News block logoEditor’s “To The Point” Observation: Allegiant’s unique “small cities to holiday markets” business plan initially means adding two roundtrips per week on a new thin route to test the market. Often this new route becomes the biggest flight at this small airport. If the new route does well, Allegiant adds more frequencies until it eventually ramps up to daily service. If not, the route is dropped. This strategy to serve underserved small cities to vacation markets have worked well for the growing carrier.

 

Allegiant: AG Slide Show

Allegiant celebrates it 40th consecutive profitable quarter

Allegiant Travel Company (Allegiant Air) (Las Vegas) is celebrating its 40th consecutive profitable quarter. The company produced a net profit of $14.8 million in the fourth quarter (up from a net profit of $10.8 million in the same quarter a year ago) and a net profit of $78.6 million for 2012 (up from a net profit of $49.4 million in 2011). The travel company specializes in serving small markets with limited service to popular vacation destinations. The company issued the following financial results and details for the fourth quarter 2012 and full year results for 2012:

Allegiant Travel Company reported the following financial results for both the fourth quarter and full year 2012, as well as comparisons to prior year equivalents:

Unaudited 4Q12 4Q11 Change 2012 2011 Change
Total operating revenue (millions) $222.8 $193.9 14.9% $908.7 $779.1 16.6%
Operating income (millions) $25.4 $20.2 25.8% $132.3 $85.4 54.8%
Operating margin 11.4% 10.4% 1.0pp 14.6% 11.0% 3.6pp
EBITDA (millions) $42.2 $31.3 34.7% $190.1 $127.4 49.2%
EBITDA margin 18.9% 16.2% 2.7pp 20.9% 16.4% 4.5pp
Net income (millions) $14.8 $10.8 36.6% $78.6 $49.4 59.1%
Diluted earnings per share $0.76 $0.56 35.7% $4.06 $2.57 58.0%

“We are very proud to report our 40th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company.  “40 consecutive profitable quarters is an outstanding achievement in this industry and we could not do it without the great efforts and contributions of our Team Members.  In 2012, we recorded the highest system fuel cost per gallon we have ever paid for a full year.  In spite of that, we were able to grow full year earnings per share over 58 percent to the highest ever.”

Notable company quarterly highlights

  • Signed purchase agreements to acquire nine Airbus A320 aircraft previously operated by Iberia
  • Successfully converted 100 percent of our customer web traffic to our new booking engine in November
  • Returned over $38 million to shareholders through a special dividend of $2 per share in December
  • Repurchased approximately 55,000 shares for $4 million during the fourth quarter
  • As of January 30, 2013, we have converted 47 of an expected 51 MD-80s to 166 seat aircraft
  • Began operating 21 new routes during the quarter
  • Announced eight new routes starting in the first quarter
  • Ranked 14th on the Forbes’ 100 Best Small Companies.  We have been listed four years in a row

Revenue performance

  • Fourth quarter 2012 total average fare was up 4.4 percent versus 2011 and was the highest in the company’s history
  • 12th consecutive quarter of year over year increases in total average fare
  • Ancillary air-related revenue per passenger has grown sequentially every month since April 2012
4Q12 4Q11 Change 2012 2011 Change
Scheduled Service:
Average fare – scheduled service $88.59 $91.66 (3.3)% $88.90 $89.15 (0.3)%
Average fare – ancillary air-related charges $39.89 $31.51 26.6% $35.72 $31.17 14.6%
Average fare – ancillary third party products $5.19 $4.88 6.4% $5.48 $5.18 5.8%
Average fare – total $133.67 $128.05 4.4% $130.10 $125.51 3.7%
Scheduled service passenger revenue per ASM (PRASM) (cents) 7.99 8.91 (10.3)% 8.43 8.88 (5.1)%
Total scheduled service revenue* per ASM (TRASM) (cents) 12.06 12.45 (3.1)% 12.33 12.50 (1.4)%
Load factor 86.5% 89.6% (3.1)pp 89.4% 91.7% (2.3)pp
Passengers (millions) 1.6 1.4 13.3% 6.6 5.8 14.1%
Average passengers per departure 141 134 5.2% 140 136 2.9%
Average scheduled service stage length (miles) 930 904 2.9% 918 901 1.9%

* Total scheduled service revenue includes scheduled service, ancillary air-related, and ancillary third party revenue.

Cost performance

  • Full year 2012 cost per ASM excluding fuel decreased 6.7 percent to 5.3 cents in spite of a five percent decrease in aircraft utilization for the same time period
  • Full year 2012 ASMs per gallon increased 6.6 percent to 63.0 versus last year, and improved sequentially 3.6 percent in the fourth quarter 2012 versus the third quarter 2012
  • Full year 2012 salaries and benefits expense per passenger decreased 1.7 percent despite a 14.2 percent increase in full time equivalent employees
  • Full year 2012 maintenance and repairs expense per passenger decreased 19.6 percent due primarily to a 60 percent decline in engine overhaul expenses.  Maintenance expense per aircraft per month was $102,277 in 2012 versus $129,558 in 2011
  • Full year 2012 sales and marketing expense per passenger decreased 14.6 percent versus last year, primarily due to the implementation of a discount for customers paying with less expensive forms of payment beginning in the third quarter 2012
4Q12 4Q11 Change 2012 2011 Change
Total System*:
Operating expense per passenger $118.49 $116.08 2.1% $111.12 $112.32 (1.1)%
Operating expense per passenger, excluding fuel $63.50 $62.04 2.4% $56.99 $58.78 (3.0)%
Operating expense per ASM (CASM) (cents) 10.50 11.03 (4.8)% 10.37 10.90 (4.9)%
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents) 5.63 5.89 (4.4)% 5.32 5.70 (6.7)%
Average block hours per aircraft per day 5.3 5.6 (5.4)% 5.7 6.0 (5.0)%

* Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Third party products performance

  • For the fourth quarter 2012, ancillary revenue – third party products per passenger increased 6.4 percent versus last year.  This has been our eleventh consecutive quarter of year over year increases.
  • For the full year 2012, net revenue from hotels increased about five percent while net revenue from rental cars increased about 33 percent versus 2011
Supplemental Ancillary Revenue Information 

Unaudited (millions)

4Q12 4Q11 Change 2012 2011 Change
Gross ancillary revenue – third party products $24.9 $23.0 8.6% $119.0 $106.4 11.9%
Cost of goods sold ($16.2) ($15.2) 6.1% ($79.0) ($72.0) 9.7%
Transaction costs* ($.6) ($.9) (35.9)% ($3.9) ($4.5) (12.1)%
Ancillary revenue – third party products $8.2 $6.8 20.5% $36.1 $29.9 20.8%
As percent of gross 32.8% 29.6% 3.2pp 30.3% 28.1% 2.2pp
    As percent of income before taxes 34.9% 36.9% (2.0)pp 29.0% 37.6% (8.6)pp
Ancillary revenue – third party products/scheduled passenger $5.19 $4.88 6.4% $5.48 $5.18 5.8%
Hotel room nights (thousands) 137.5 142.6 (3.5)% 690.1 647.7 6.5%
Rental car days (thousands) 169.1 113.8 48.6% 763.4 577.7 32.1%

* Includes payment expenses and travel agency commissions.

Balance sheet highlights

  • We currently have $41 million in share repurchase authority
Unaudited (millions) 12/31/12 12/31/11 Change
Unrestricted cash* $352.7 $319.5 10.4%
Total debt $150.9 $146.1 3.3%
Total Allegiant Travel Company stockholders’ equity $400.5 $351.5 14.0%
Year ended December 31,
Unaudited (millions) 2012 2011 Change
Capital expenditures $105.1 $86.6 21.4%

* Unrestricted cash includes investments in marketable securities.

At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.

Guidance, subject to revision
Revenue guidance January 2013 1Q13
Estimated PRASM year-over-year change (13) to (11)% (8) to (6)%
Fixed fee and other revenue guidance 1Q13
Fixed fee and other revenue (millions) $4 to $6
 
Capacity guidance
System 1Q13 2Q13
   Departure year-over-year growth (8) to (4)% (7) to (3)%
   ASM year-over-year growth +12 to 16% +14 to 18%
Scheduled
   Departure year-over-year growth (2) to 2% 0 to 4%
   ASM year-over-year growth +15 to 19% +19 to 23%
Cost guidance 1Q13
CASM ex fuel – year-over-year change +1 to 3%
CAPEX guidance FY13
Capital expenditures (millions) $150 to $160
 

 

CASM ex fuel – cost per available seat mile excluding fuel expense

* Number of aircraft expected to be completed by end of the quarter

 

2013 aircraft fleet plan by end of quarter

Aircraft 1Q13 2Q13 3Q13 4Q13
MD-80 (166*) 51 51 51 51
MD-80 (non 166*) 6 5 1 1
757 6 6 6 6
A319 0 2 2 2
A320 0 0 2 7
Total 63 64 62 67

* 166 refers to MD-80s that are expected to be converted to 166 seat aircraft, non 166 refers to those aircraft that will not be converted

Aircraft listed in table above are considered in service aircraft

Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N416NV (msn 49555) is pictured arriving at the Las Vegas main hub.

Allegiant Air: AG Slide Show

Allegiant cancels its deal with Cebu Pacific Air for 10 Airbus A319s

Allegiant Travel Company (Allegiant Air) (Las Vegas) today announced its proposed transaction to acquire ten Airbus A319 aircraft from Cebu Pacific Air has been terminated as a result of the parties’ failure to satisfy certain conditions to proceeding with the transaction. The potential transaction was made public on July 30, 2012 after the signing of the letter of intent.

“We are disappointed that we were not able to finalize this agreement on which we spent a substantial amount of time and effort,” said Andrew C. Levy, Allegiant President. “Unfortunately we were unable to come to terms on some of the economic provisions of the transaction and as we have demonstrated in the past, we will not purchase aircraft just for the sake of growth. Our disciplined approach in asset purchases is a core competency that we will not compromise.”

“We continue to have fleet flexibility in 2013 even without the Cebu A319s. Seven of the nine A320 aircraft, which we announced the intention to acquire on December 19, 2012, are expected to be delivered in 2013 and we now plan to introduce these aircraft into service at a faster pace so as to offset the capacity that had been planned with the Cebu A319s,” concluded Levy.

Allegiant is now expecting 2013 total CAPEX to be between $170 and $180 million. The company has signed operating leases for nine A319 aircraft with GECAS and purchase agreements for nine A320 aircraft formerly operated by Iberia. Allegiant will remain active in the market for the purchase or lease of additional Airbus aircraft.

Copyright Photo: Keith Burton. The first Airbus A319 for Allegiant is seen at Southend before it was delivered.

Allegiant Air: AG Slide Show

Allegiant Air to acquire up to nine former Iberia Airbus A320s

Allegiant Travel Company (Allegiant Air) (Las Vegas) has announced its intention to purchase up to nine used Airbus A320 aircraft. The average age of these aircraft at delivery is expected to be 12 years with a configuration of 177 seats. The aircraft have been most recently operated by Iberia.

“The A320 aircraft type is a perfect complement to the smaller A319 and will enable us to continue cost effective growth for years to come,” said Andrew C. Levy, Allegiant President. “These transactions represent a tremendous opportunity to purchase a sizeable fleet of sister-ships with CFM powered engines, the same engine type as our A319s, at very attractive prices. Finding up to nine aircraft of this pedigree available for purchase is unusual in our experience. Historically it has been difficult to find owners willing to sell quality assets at this point in their life cycle. Our cash reserves and strong balance sheet continue to provide us a unique ability in the used aircraft space to move on these attractive opportunities.”

“We do not expect a material change to our 2013 capacity as we will vary MD-80 utilization appropriately. As with the earlier acquisition of A319s, we are committed to only acquire aircraft at values that support our existing business model of relatively low fleet utilization,” concluded Levy.

Seven aircraft are expected to be purchased in 2013 and two in 2014. With the addition of this transaction, Allegiant is now expecting 2013 total CAPEX to be between $270 and $280 million versus the previous guidance of $150 to $160 million. The company expects to finance the purchase of these aircraft with debt. Allegiant expects to place the first A320 into service late in the third quarter of 2013 and all nine aircraft are expected to be in service by the end of 2014. No additional MD-80 retirements are planned as a result of this transaction.

As long as Allegiant Air can acquire second-hand Airbus aircraft it is unlikely to add any more older McDonnell Douglas MD-80s.

Copyright Photo: Keith Burton. The A320s will complement the smaller Airbus A319s being added to the fleet. Former easyJet Switzerland Airbus A319-111 HB-JZK (msn 2319) became N301NV with Allegiant.

Allegiant Air: AG Slide Show

Allegiant Air adds new service from Punta Gorda, Las Vegas and Mesa

Allegiant Air (Las Vegas) is adding new routes from Punta Gorda, Florida with initial twice-weekly service to Plattsburgh, NY (February 23), Rockford, IL (February 14) and Toledo, OH (February 16) per Airline Route.

The company is also launching twice-weekly service from Las Vegas to Reno on February 1 followed by Mesa (near Phoenix) to Provo, UT on February 15 also per Airline Route.

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N892GA (msn 49826) climbs away from the runway at Los Angeles International Airport.

Route Map:

Allegiant 12:2012 Route Map

Allegiant Air: AG Slide Show

Allegiant Air begins operational trial of FlyDesk Cabin iPad paperless system

Allegiant FlyDesk Cabin

Allegiant Air (Las Vegas), as well as three other international airlines, have begun operational trials of Allegiant Systems’ FlyDesk Cabin solution, which digitizes manuals, automates reporting and offers secure communication tools using Apple iPad® hardware. Using more than 200 iPads at the four airlines, FlyDesk Cabin creates a “paperless” operation, cutting back on unnecessary weight, facilitates accuracy of manuals and improves efficiency, while decreasing operational costs.

The four-week trial began on December 3 and will help define the operational benefits that mobile technology brings to the airlines’ cabin crew members. Crew members at each airline are using the advanced paperless workspace function of FlyDesk Cabin to improve customer service and productivity, while streamlining operational processes and increasing revenue opportunities.

The trial, which includes airlines in Europe and Central America , includes the advanced use of digital manuals and has demonstrated the multi-lingual capacity of the system. As part of the trial service, Allegiant Systems has also included training, hardware logistics and ongoing support services to the airlines.

In addition to the reporting and paperless functionality of FlyDesk Cabin, Allegiant Air also launched a new, integrated FlyDesk Buy-on-Board application, which allows the cabin crew to use the same iPad to process onboard customer purchases.

The initial hardware deployment and training has been completed successfully and thus far, the response from in-flight crews at all four airlines has been positive. The trial continues until the end of 2012, at which time the full results of the trials will be available.

According to the airline, FlyDesk Cabin is the first of several flyServices offered within the FlyDesk mobile platform by Allegiant Systems, all of which will offer increased efficiency for airlines, with faster deployment, effortless scaling and continuous support.

Allegiant Air: AG Slide Show

Allegiant FlyDesk Cabin Ad

The first Airbus A319 for Allegiant Air is painted, net income of $16.9 million in the 3Q

 

Allegiant Air‘s (Las Vegas) first Airbus A319 has been painted at Southend awaiting delivery.

In other news, the low-fare airline has cancelled all plans to operate Monterey-Honolulu service according to Airline Route.

On the financial side, the parent company issued the following statement for the third quarter:

Allegiant Travel Company has reported the following financial results for the third quarter 2012 as well as comparisons to prior year equivalents:

Unaudited 3Q12 3Q11 Change
Total operating revenue (millions) $216.9 $191.5 13.2%
Operating income (millions) $28.7 $16.7 71.8%
Operating margin 13.3% 8.7% 4.5pp
EBITDA (millions) $44.6 $27.5 62.3%
EBITDA margin 20.6% 14.4% 6.2pp
Net income (millions) $16.9 $9.5 78.6%
Diluted earnings per share $0.87 $0.49 77.6%

“We are very proud to report our 39th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company.  “I`d like to thank our Team Members for their great efforts and contributions to another successful quarter.  The third quarter is typically our weakest quarter of the year, and yet we were able to produce the highest third quarter earnings per share in the company`s history.  This is particularly noteworthy to have done this in a quarter with the average oil price at $92 per barrel and in a demand environment that has been slightly weaker than historical norms.”

Notable company highlights

  • Entered into a lease agreement with GECAS for nine Airbus A319 aircraft on August 27
  • Announced intention to acquire ten Airbus A319 aircraft from Cebu Pacific Air on July 30
  • Announced service to Honolulu from Boise, Idaho, Phoenix and Spokane, Wash. to begin in early February 2013
  • Announced the formation of Allegiant Systems, a joint venture with AvIntel and Lixar IT to develop and market a wide variety of mobile technology services to the commercial aviation industry
  • As of October 23, we have converted 40 MD-80s to 166 seat aircraft
  • Announced fifteen routes, in addition to Hawaii, expected to begin in the fourth quarter of 2012

Revenue performance

  • Average fare – ancillary air-related revenue per passenger has grown to $37.05 in the third quarter 2012, a $4.66 increase since the first quarter 2012
  • September average fare – ancillary air-related revenue per passenger has grown to $38.08, a $5.48 increase since March 2012
  • 11th consecutive quarter of year over year increases in total average fare
3Q12 3Q11 Change
Scheduled Service:
Average fare – scheduled service $82.30 $84.94 (3.1)%
Average fare – ancillary air-related charges $37.05 $30.38 22.0%
Average fare – ancillary third party products $5.59 $5.31 5.3%
Average fare – total $124.94 $120.63 3.6%
Scheduled service passenger revenue per ASM (PRASM) (cents) 7.89 8.58 (8.0)%
Total scheduled service revenue* per ASM (TRASM) (cents) 11.98 12.19 (1.7)%
Load factor 90.1% 92.2% (2.1)pp
Passengers (millions) 1.6 1.5 9.4%
Average passengers per departure 143 136 5.1%

* Total scheduled service revenue includes scheduled service, ancillary air-related, and ancillary third party revenue.

Copyright Photo: Keith Burton. Formerly operated by easyJet (Switzerland), Airbus A319-111 HB-JZK (msn 2319) is the first A319 for Allegiant Air. It is pictured after painting at a Southend, near London. The airframe will become N301NV on delivery.

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Allegiant Air: 

Allegiant Air to start Las Vegas-Plattsburgh flights on December 19

Allegiant Air (Las Vegas) will launch twice-weekly service between the Las Vegas hub and Plattsburgh, New York starting on December 19 per Airline Route.

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N405NV (msn 49623) decorated in the Blue Man Group climbs away from the runway at Los Angeles International Airport.

Allegiant Air: 

Allegiant to start two new routes from Mesa, Arizona in December

Allegiant Air (Las Vegas) will start two new routes from Mesa, Arizona (west Phoenix) in December. Twice-weekly Mesa-Oakland service will be added on December 15 followed by twice-weekly Mesa-Casper, Wyoming service on December 20 per Airline Route.

Copyright Photo: McDonnell Douglas MD-88 N414NV (msn 49766) taxies at Los Angeles International Airport.

Allegiant Air: 

Allegiant finalizes its agreement with GECAS to lease 9 Airbus A319s from GECAS, the first is due in November

GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of GE, announced today it has signed agreements to lease nine Airbus A319 aircraft to Allegiant Air (Las Vegas) to expand the carrier’s current fleet. All nine aircraft are powered with CFM56-5B engines.

The first aircraft is scheduled for delivery to Allegiant in November 2012, with the remaining scheduled for delivery through 2015.

Previously on July 30, 2012 Allegiant announced its intention to lease nine Airbus A319 aircraft from GE Capital Aviation Services (GECAS) and to lease and eventually purchase ten Airbus A319 aircraft from Cebu Pacific Air (Manila). This new signed contract moves up the delivery date of the first A319.

Image: Allegiant Air/Globe Newswire.

Allegiant Air: 

St. Cloud, Minnesota to have airline service again via Allegiant Air

Allegiant Air (Las Vegas) has announced it will launch twice-weekly service from Mesa, Arizona (near Phoenix) to St. Cloud, MN on December 15.  Delta dropped service to St. Cloud (to MSP) in December 2009.

Read the full report from MPR News: CLICK HERE

Copyright Photo: Bruce Drum. Allegiant also operates the McDonnell Douglas DC-9-87 (MD-87), mainly for charter flights. The short-fuselage type will be retired in 2013.

Allegiant Slide Show: 

Allegiant’s pilots pick the Teamsters to represent them

Allegiant Air‘s (Las Vegas) pilots have selected the Teamsters to represent them. The company issued the following statement:

Allegiant has received notification from the National Mediation Board (NMB) that employees voting in the pilot election have chosen to be represented by the International Brotherhood of Teamsters (IBT).

“Allegiant respects the right of the pilot group to elect third-party representation, and we will work with the IBT to the best interests of both our employees and the Company,” Maurice J. Gallagher, Jr., Allegiant CEO and Chairman, said. “Contract negotiations can be a lengthy process and we do not anticipate any disruptions to our business or operations.”

Copyright Photo: Stephen Tornblom. McDonnell Douglas DC-9-83 (MD-83) N868GA (msn 49554) prepares to taxi from the gate at Long Beach.

Allegiant: 

Allegiant to start Mesa (Phoenix)-Honolulu service and two new routes to Palm Springs

Allegiant Air (Las Vegas) will begin new, nonstop air service from Mesa (near Phoenix, Arizona) to Honolulu International Airport (HNL) beginning on February 7, 2013.

The new flights will operate three times weekly between Phoenix-Mesa Gateway Airport (IWA) and Honolulu International Airport (HNL).

In addition, the company will begin new, nonstop air service from Eugene, Oregon and Oakland to Palm Springs starting on November 15.

Copyright Photo: Eddie Maloney. Boeing 757-204 N902NV arrives at Las Vegas.

Allegiant Slide Show: 

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Allegiant to start Harrisburg-Sanford flights on October 31

Allegiant Air (Las Vegas) has announced new twice-weekly service between Harrisburg, Pennsylvania and Sanford, Florida (near Orlando) starting on October 31.

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) completes its final approach at Los Angeles.

Allegiant: 

Allegiant to start Sanford-Lansing service on November 1

Allegiant Air (Las vegas) will open up the Sanford (near Orlando)-Lansing, Michigan route on November 1 per Airline Route. The new route will be operated two days a week.

Additionally the carrier will start twice-weekly Sanford-Columbus, Ohio (Rickenbacker) service on October 25.

The fast-growing company will also add a new route linking Mesa (near Phoenix) and Rochester, MN on November 1. As is their business plan, the route will initially be operated two days a week.

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) is pictured in action at Long beach.

Allegiant: 

Allegiant to drop three routes from Los Angeles due to a lack of gates

Allegiant Air (Las Vegas) is trimming three routes from Los Angeles International Airport due to a shortage of gates. The carrier will drop all service from LAX to Billings (September 1), Pasco (September 1) and Sioux Falls (August 13).

Read the full story from the ArgusLeader.com: CLICK HERE

Copyright Photo: McDonnell Douglas DC-9-83 (MD-83) N405NV in the Blue Man Group promotional livery taxies from the gate to the runway at LAX.

Allegiant: 

Route Map:

Allegiant to fly to Honolulu from both Boise and Spokane

Allegiant Air (Las Vegas) announced today it will offer new nonstop flights from Honolulu International Airport (HNL) to both Boise, Idaho (starting on February 9) and Spokane (starting on February 8).

The new Routes will be operated with Boeing 757-200s.

Copyright Photo: Eddie Maloney. Boeing 757-204 N902NV (msn 26964) is pictured at the Las Vegas hub.

Allegiant: 

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