Category Archives: Allegiant Air

Allegiant announces a tentative Flight Attendant contract agreement with the TWU

Allegiant Air Airbus A320-214 WL N250NV (msn 7743) BWI (Tony Storck). Image: 939055.

Allegiant Air has announced that the company and the Transport Workers Union (TWU), representing Allegiant flight attendants, have reached a tentative agreement on the first collective bargaining agreement between the parties. The tentative agreement is subject to ratification by the Allegiant flight attendants, and results of the vote are expected before the end of December. Allegiant currently employs 1,150 flight attendants.

The process of negotiating a first collective bargaining agreement for Allegiant flight attendants began in 2011. The Transport Workers Union was most recently certified as the group’s exclusive representative on February 26, 2016. An initial tentative agreement reached between the parties failed to ratify in September 2016, and negotiations continued under the supervision of the National Mediation Board to reach the current tentative agreement.

Copyright Photo: Allegiant Air Airbus A320-214 WL N250NV (msn 7743) BWI (Tony Storck). Image: 939055.

Advertisements

Allegiant ends Hawaii operations, retires the last two Boeing 757-200s

Allegiant Air Boeing 757-204 WL N905NV (msn 27235) LAS (Bruce Drum). Image: 103816.

Allegiant Air quietly ended all service to Hawaii with a flight from Honolulu to Las Vegas on October 28, 2017. Flight G4 571 landed at LAS at 10:16 pm (2216).

Aircraft N906NV (below) operated a Cincinnati – Las Vegas flight (G4 533) on October 29, 2017.

Aircraft N905NV (above) operated a military charter on October 31, 2017 from Killeen, TX to March Air Force Base.

Both aircraft ferried to Victorville on October 31, 2017 for storage and disposal ending all Boeing 757-200 operations according to Flightaware.

Above Copyright Photo: Allegiant Air Boeing 757-204 WL N905NV (msn 27235) LAS (Bruce Drum). Image: 103816.

Below Copyright photo: Allegiant Air Boeing 757-204 WL N906NV (msn 27236) LAS (Ton Jochems). Image: 910509.

Allegiant Air Boeing 757-204 WL N906NV (msn 27236) LAS (Ton Jochems). Image: 910509.

Allegiant reports its 3Q results, will now retire its last McDonnell Douglas MD-80 by the end of 2018

Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N884GA (msn 49401) BWI (Tony Storck). Image: 939690.

Allegiant Travel Company (Allegiant Air) has reported the following financial results for the third quarter 2017, as well as comparisons to the prior year:

Three Months Ended
September 30,
Nine Months Ended
September 30,
Unaudited 2017 2016 Change 2017 2016 Change
Total operating revenue (millions) $ 348.8 $ 333.5 4.6 % $ 1,125.2 $ 1,026.9 9.6 %
Operating income (millions) $ 42.9 $ 76.8 (44.1 )% $ 201.0 $ 302.4 (33.5 )%
Net income (millions) $ 22.3 $ 45.5 (51.0 )% $ 112.4 $ 178.3 (37.0 )%
Diluted earnings per share $ 1.39 $ 2.75 (49.5 )% $ 6.85 $ 10.73 (36.2 )%
Return on capital employed* 14.7 % 24.8 %

* – see appendix for calculation, represents twelve months ended September 30

 

“Lastly, our board of directors approved a more aggressive retirement plan for our MD-80s. We now plan to retire our last MD by the end of 2018. This is one year earlier than was previously expected. A hearty ‘thank you’ goes out to the members of our fleet team, who through hard work were able to source enough used A320 aircraft to make this happen. This is the end of an era for our company. The ‘80’ has been critical to our success and growth for the past 15 years – it will be missed.”

Notable highlights

  • Operational improvements – 61 percent reduction in controllable cancellations in the quarter
  • Airbus growth – Added five A320s and one A319 into revenue service during the quarter
  • MD-80 retirements – Retired five MD-80s during the quarter – remainder expected to be retired by the end of 2018
    ◦ MD-80s and related assets have a net book value of $42 million and are being reviewed for impairment
  • Sunseeker Resorts – In August, announced plans to develop a hotel/condo resort in Charlotte County, Florida
  • Network growth – As of September 30, 2017 the company is operating 373 routes versus 337 last year
  • New aircraft base – Announced Indianapolis, Indiana as an aircraft base to support the growth in that area
  • Shareholder returns – $11 million was returned through its recurring dividend paid in September 2017. The company:
    ◦ Will pay dividend of $0.70/share on December 5, 2017 to shareholders of record as of November 22, 2017
    ◦ Has share repurchase authorization of up to $100 million

Third quarter 2017 revenue

  • TRASM results – Third quarter TRASM increased 0.7 percent in spite of:
    Increased MD-80 spares during the quarter, which resulted in a three percent decline in peak period capacity
    Hurricane Irma:
    ▪ Approximately two percent of scheduled ASMs for the quarter were canceled
    ▪ TRASM – Expected benefit from reduced ASMs – offset by refunds and decreased demand to Florida

Fourth quarter 2017 revenue trends

  • TRASM guidance – Expect a decline between three and 0.5 percent which is influenced by:
    ◦ Hurricane Irma and the Las Vegas mass shooting
           ▪ Approximately 80 percent of fourth quarter ASMs touch Las Vegas or Florida
    ▪ So far a decrease in demand during fourth quarter
    ▪ Impact on fourth quarter TRASM expected to be approximately between 3 and 3.5 percentage points
    ◦ Peak period flying – Fourth quarter peak capacity expected to increase nine percentage points

Third quarter cost

  • Third quarter CASM ex fuel increased 16.7 percent versus the same period last year, primarily driven by:
    ◦ Transition costs added four percentage points to increase, including:
    Reduced ASMs from fleet transition through lower utilization of MD-80s
    ▪ Other operational inefficiencies driven by the transition to an all Airbus fleet
      ◦ New pilot agreement – Added one percentage point
    Incremental depreciation from additional Airbus aircraft – added three percentage points
    Elimination of the credit card surcharge product
    ▪ January 2017 discontinued credit card surcharge which had offset sales and marketing expense
    ▪  Added four percentage points in quarter
    Hurricane Irma – Added almost two percentage points due to flight cancellations

Fourth quarter 2017 cost trends

  • Fourth quarter 2017 CASM ex fuel is expected to increase between seven and nine percent, primarily driven by:
    ◦ Transition costs – Expected to add three percentage points to increase, including:
    Reduced ASMs from fleet transition through lower utilization of MD-80s
    ▪ Other operational inefficiencies driven by the transition to an all Airbus fleet
      ◦ New pilot agreement – Expected to add one percentage point due to increased benefit costs
    Incremental depreciation on additional Airbus aircraft – Expected to add two percentage points
    Elimination of credit card surcharge – Expected to add three percentage points

Full year 2017 cost trends

  • Full year 2017 CASM ex fuel
      ◦ Expected to increase between eleven and twelve percent
    ◦ Previously guided range of plus ten to twelve percent
  • Maintenance and repairs expense
    ◦ Expected between $105 and $110 thousand per in-service aircraft per month for 2017
    ◦ Previously guided range – between $100 and $110 thousand
  • Total ownership expense per aircraft per month
      ◦ 2017 ownership expense per in-service aircraft – between $125 and $130 thousand per month
    ◦ Previously guided range between $125 and $135 thousand

Balance sheet activity and full year 2017 trends

  • Full year CAPEX guidance is expected to be $604 million, versus prior guidance of $525 million
    ◦ Higher amount driven by expected commitment for five additional Airbus A320 aircraft in the fourth quarter
    ◦ Excludes Airbus heavy maintenance and Sunseeker resort
  • Raised $158 million in debt proceeds during the third quarter
    ◦ Includes monies drawn from existing $56 million revolving credit facility
    ◦ Seven Airbus aircraft remain unencumbered at end of third quarter
    ▪ Includes one new A320 which was collateralized in October

Copyright Photo: Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N884GA (msn 49401) BWI (Tony Storck). Image: 939690.

Allegiant announces 28 new routes and service from 3 new cities

Allegiant's 2015 "Visit Florida" postcards special livery

Allegiant Air has announced 28 new routes and service from three new U.S. cities: Gulfport/Biloxi, Mississippi; Norfolk, Virginia; and Milwaukee, Wisconsin.

The airline continued;

New routes announced include:

Year-round nonstop service to Orlando Sanford International Airport (SFB) from:

  1. Gulfport, Mississippi – begins August 30, 2017 with fares as low as $29*
  2. Milwaukee – begins November 16, 2017 with fares as low as $35*
  3. Newburgh, New York – begins November 16, 2017 with fares as low as $59*
  4. Norfolk, Virginia – begins November 17, 2017 with fares as low as $39*

Year-round nonstop service to Phoenix-Mesa Gateway Airport (AZA) from:

  1. Louisville, Kentucky – begins October 4, 2017 with fares as low as $54*
  2. Kansas City, Missouri – begins October 4, 2017 with fares as low as $45*
  3. Boise, Idaho – begins October 6, 2017 with fares as low as $59*
  4. Milwaukee – begins November 17, 2017 with fares as low as $59*
  5. St. Louis – begins November 17, 2017 with fares as low as $54*

Seasonal nonstop service to Phoenix-Mesa Gateway Airport (AZA) from:

  1. Omaha, Nebraska – begins October 4, 2017 with fares as low as $49*
  2. Tampa / St. Pete, Florida – begins November 15, 2017 with fares as low as $69*
  3. Indianapolis – begins November 17, 2017 with fares as low as $49*

Year-round nonstop service to St. Pete-Clearwater International Airport (PIE) from:

  1. Norfolk, Virginia – begins October 4, 2017 with fares as low as $39*
  2. Milwaukee – begins October 13, 2017 with fares as low as $49*
  3. Ogdensburg, New York – begins November 16, 2017 with fares as low as $59*

Seasonal nonstop service to St. Pete-Clearwater International Airport (PIE) from:

  1. Phoenix / Mesa – begins November 15, 2017 with fares as low as $69*

Year-round nonstop service to Los Angeles International Airport (LAX) from:

  1. Ogden, Utah – begins October 5, 2017 with fares as low as $35*
  2. Cincinnati – begins November 16, 2017 with fares as low as $69*

Year-round nonstop service to Punta Gorda Airport (PGD) from:

  1. Flint, Michigan begins October 6, 2017 with fares as low as $49*
  2. Milwaukee begins October 13, 2017 with fares as low as $49*
  3. Rochester, New York begins November 17, 2017 with fares as low as $69*
  4. Newburgh, New York begins November 17 2017 with fares as low as $65*

Seasonal nonstop service to Punta Gorda Airport (PGD) from:

  1. St. Cloud, Minnesota begins November 15, 2017 with fares as low as $69*

Year-round nonstop service to Cincinnati/Northern Kentucky International Airport (CVG) from:

  1. Raleigh / Durham, North Carolina begins November 16, 2017 with fares as low as $39*
  2. Los Angeles – begins November 16, 2017 with fares as low as $69*

Year-round nonstop service to Las Vegas via McCarran International Airport (LAS) from:

  1. Ogden, Utah begins November 17, 2017 with fares as low as $45*
  2. Omaha, Nebraska begins November 17, 2017 with fares as low as $49*

Year-round nonstop service to Fort Lauderdale-Hollywood International Airport (FLL) from:

  1. Milwaukee – begins November 17, 2017 with fares as low as $50*
  2. Norfolk, Virginia – begins November 17, 2017 with fares as low as $39*

Seasonal nonstop service to San Juan, Puerto Rico via Luis Muñoz Marín International Airport (SJU) from:

  1. Raleigh / Durham, North Carolina – begins December 15, 2017 with fares as low as $64*

Copyright Photo: Allegiant Air Airbus A320-214 N228NV (msn 716) (Visit Florida) FLL (Tony Storck). Image: 936495.

Allegiant announces 17 new routes, a new base and a new destination

Allegiant Air Airbus A320-214 N221NV (msn 1288) FLL (Jay Selman). Image: 403422.

Allegiant Air (Las Vegas) has announced it is starting 17 new routes with a new base of operations and service from a new U.S. city: Louisville, Kentucky.

The company announced its largest expansion into a Florida destination with a new base in Destin/Fort Walton Beach in the Panhandle.

New routes announced include:

Seasonal nonstop service to Destin-Fort Walton Beach Airport (VPS) from:

Kansas City, Missouri — begins May 3, 2017
Austin, Texas — begins May 4, 2017
Cleveland — begins May 12, 2017
Peoria, Illinois — begins May 24, 2017
Louisville, Kentucky — begins May 24, 2017
Columbus, Ohio — begins May 25, 2017
Springfield, Missouri — begins May 25, 2017
Indianapolis — begins May 26, 2017
Washington, D.C. / Baltimore — begins May 31, 2017
Pittsburgh — begins May 31, 2017
New York City / Newark, New Jersey — begins June 2, 2017

Seasonal nonstop service to Savannah/Hilton Head International Airport (SAV) from:

Louisville, Kentucky — begins May 26, 2017

Year-round nonstop service to Austin-Bergstrom International Airport (AUS) from:

Indianapolis — begins May 19, 2017

Year-round nonstop service to Fort Lauderdale-Hollywood International Airport (FLL) from:

Louisville, Kentucky — begins May 19, 2017

Year-round nonstop service to Punta Gorda Airport (PGD) from:

Louisville, Kentucky — begins May 25, 2017

Year-round nonstop service to Orlando-Sanford International Airport (SFB) from:

Louisville, Kentucky — begins May 24, 201

Year-round nonstop service to St. Pete-Clearwater International Airport (PIE) from:

Louisville, Kentucky — begins May 24, 2017

All routes will operate twice weekly.

Copyright Photo: Allegiant Air Airbus A320-214 N221NV (msn 1288) FLL (Jay Selman). Image: 403422.

ag-airline-aircraft-slide-show

ag-wan-no-fake-news

Allegiant announces 12 new routes including Newark and Denver

Allegiant announces 12 new routes including Newark and Denver

Allegiant Air has announced 12 new routes and three new cities, namely Newark, Ogdensburg, NY and Denver.

Nonstop service to Newark Liberty International Airport (EWR) from:

Cincinnati – begins Nov. 16, 2016

Savannah, Georgia – begins Nov. 16, 2016

Asheville, North Carolina – begins Nov. 17, 2016

Knoxville, Tennessee – begins Nov. 17, 2016

Nonstop service to Orlando Sanford International Airport (SFB) from:

Ogdensburg, New York – begins Oct. 5, 2016

Nonstop service to Fort Lauderdale-Hollywood International Airport (FLL) from:

Ogdensburg, New York – begins Oct. 6, 2016

Nonstop service to Punta Gorda Airport (PGD) from:

Concord, North Carolina – begins Oct. 5, 2016

Nonstop service to Los Angeles International Airport (LAX) from:

Albuquerque, New Mexico – begins Oct. 6, 2016

Nonstop service to Oakland International Airport (OAK) from:

El Paso, Texas – begins Oct. 6, 2016

Nonstop service to San Diego International Airport (SAN) from:

Provo, Utah – begins Sept. 28, 2016

Nonstop service to McCarran International Airport (LAS) from:

Destin, Florida – begins Oct. 7, 2016

Nonstop seasonal service to Montrose Regional Airport (MTJ) from:

Denver – begins Dec. 14, 2016

Allegiant is also increasing its seasonal service on three existing routes. Missoula International Airport (MSO) to Los Angeles International Airport (LAX) has been operating as a seasonal route and will now operate twice weekly as a year-round route. Cincinnati / Northern Kentucky International Airport (CVG) to Destin-Fort Walton Beach Airport (VPS) and MidAmerica St. Louis Airport (BLV) to Destin-Fort Walton Beach Airport (VPS) both began service as seasonal summer routes, but will now lengthen their seasonality to operate through the beginning of January, 2017.

Copyright Photo: Allegiant Air Airbus A320-214 N222NV (msn 1530) FLL (Brian McDonough). Image: 931963.

AG Strict Screeners