Allegiant Travel Company (Allegiant Air) (Las Vegas) reported net income of $33.5 million for the second quarter 2014, ending on June 30, up 29.8 percent from the previous second quarter net profit of $25.8 million in 2013.
“We are very proud to report our 46th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “We have been working very hard to mitigate the crew training issues that have impacted us in the past two quarters. Although these issues did contribute to operational inefficiencies and incremental costs during this past quarter we are trending in the right direction and hope these issues have minimal impact in the third quarter. On a much more positive note, in June we completed multiple aircraft transactions to add 14 additional aircraft to our future fleet and raised $300 million of debt in the high yield market with very competitive terms. We could not have done this without the tremendous effort of our Team Members.”
Notable company highlights:
Increased operating margin, EBITDA margin and return on capital employed versus the same time last year
Acquired 12 incremental A319 Airbus aircraft for delivery in 2018. See table below for financial impact of this transaction
Signed agreements to acquire one A320 and one A319 to be in service in 2015 and 2016, respectively
Entered into a letter of intent to purchase eight A319s, previously committed to under operating leases.
Two of these are currently under operating lease to Allegiant, one is expected to be delivered in 2014 and five are expected to be delivered in 2015
In-service Airbus fleet of 10 aircraft accounted for 21.9 percent of total ASM production during the quarter
Prepaid $121.1 million, 5.75 percent term loan facility due 2017
Raised $300 million, 5.50 percent senior unsecured notes due 2019, corporate rating of BB- by Standard & Poor’s and Ba3 by Moody’s
Raised $85.3 million collateralized by 53 MD-80 and six 757 aircraft
Initiated service on 12 new routes in the second quarter
Named Top-Performing Airline in North America by Aviation Week for third consecutive year. The Company also has the best five-year average score of any airline worldwide, 76.9, more than 5 points higher than the second-ranked carrier
Read the full report: CLICK HERE
Fleet Details:
Copyright Photo: The fleet will grow by 10 aircraft (mainly Airbus A319s and A320s) in the next two years while the Boeing 757s remain constant at six aircraft. Boeing 757-204 N903NV (msn 26966) is tugged off the gate at Los Angeles International Airport.
Allegiant: 