Allegiant Travel Company (Allegiant Air) (Las Vegas) reported a third quarter net profit of $14.2 million, down 17 percent from the same quarter a year ago. The holding company has reported the following financial results for the third quarter 2014, as well as comparisons to prior year equivalents:
“We are very proud to report our 47th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “During this quarter we saw the departure of Andrew Levy, our President and COO. Andrew will be missed. He has left the company in great shape. His legacy includes building a solid, capable management team which ensures the company will maintain its strong performance into the future. In addition, we have also welcomed back Kris Bauer as the airline’s Senior Vice President of Operations and COO while we conduct our search for a replacement. Earlier this week, our Board of Directors approved an increase to our share repurchase authority to $100 million from its current level of $7.4 million. We continue to see strength in the business model and are demonstrating that confidence by actively returning cash to shareholders. Lastly, I want to thank all of our Team Members for their continued efforts during the past quarter.”
Notable company highlights
Repurchased 456,296 shares during the quarter, which brings the total to 1,199,740 shares for the first nine months of 2014. Since the inception of the share repurchase program, the company has repurchased 4,692,385 shares for a total of $316.3 million through the third quarter 2014
Purchased two A319s in August off operating lease
Added three new destinations to Cincinnati. Cincinnati has become the fastest growing origination city in the company’s history
In-service Airbus fleet accounted for over 21 percent of total ASM production in the quarter. In the quarter the company operated ten Airbus aircraft which is 14 percent of the total fleet
Third quarter 2014 revenue performance
East Coast TRASM declined 1.4 percent, however capacity in these markets grew 27.3 percent. Flying on the East Coast accounted for 40 percent of entire network versus 36 percent a year ago
Hawaii TRASM grew 12.7 percent versus the same period a year ago
Average fare – ancillary air-related charges increased 2.1 percent, as we implemented a fee to print a boarding pass at the ticket counter in
September 2014, and also due to continued strength in existing ancillary categories such as assigned seat fees, trip flex and priority boarding
Copyright Photo: Ken Petersen/AirlinersGallery.com. The McDonnell Douglas fleet is holding steady at 53 aircraft while newer Airbus A319s and A320s are being added. McDonnell Douglas DC-9-83 (MD-83) N418NV (msn 49615) arrives at the Las Vegas home.
Allegiant Air: 