Category Archives: Allegiant Travel Company

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:

Allegiantย 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:ย 

Allegiant to fly to Honolulu from both Boise and Spokane

Allegiant Air (Las Vegas) announced today it will offer new nonstop flightsย 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:ย 

Allegiant’s second quarter net income rises by 110% to $25.2 million

Allegiant Travel Company (Allegiant Air) (Las Vegas) is steady profit machine finding profits in its underserved small markets. It really has no competition in these markets.

The travel group reported its second quarter net profit increased over 110 percent to $25.2 million.

Here is the full company statement:

“Allegiant Travel Companyย reported the following financial results for the second quarter 2012 as well as comparisons to prior year equivalents:

Unaudited 2Q12 2Q11 Change
Total operating revenue (millions) $231.2 $200.4 15.3%
Operating income (millions) $41.9 $20.7 102.1%
Operating margin 18.1% 10.3% 7.8pp
EBITDA (millions) $54.9 $30.9 77.9%
EBITDA margin 23.8% 15.4% 8.4pp
Net income (millions) $25.2 $11.9 110.8%
Diluted earnings per share $1.30 $0.62 109.7%

“We are very proud to report our 38thย 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.”

Notable company highlights

  • CASM ex-fuel declined 13.9 percent to 5.1 cents, cost per passenger ex-fuel decreased 11.4 percent to $52.98
  • Announced acquisition of 19 A319 aircraft
  • Announced retirement of two MD-87s by the second quarter of 2013
  • Currently testing new website. Only a limited portion of web traffic is pointed to the new site. We expect to have 100 percent of traffic on it by the fourth quarter
  • Instituted new boarding process to support carry-on bag policy
  • Initiated service to Honolulu from Las Vegas and Fresno, Calif
  • Announced service to Honolulu from Bellingham, Wash, Eugene, Ore, Santa Maria, Monterey, and Stockton, Calif to begin in mid November
  • Announced service to Maui from Bellingham, Wash to begin in mid-November
  • As of Aug 1, we have 30 MD-80s with 166 seats. Expect all west coast scheduled MD-80s to have 166 seats by end of the third quarter of 2012.
  • Received ETOPS certification and Flag Carrier Status – permits international scheduled flying
  • Since July 2, operating four 757s
  • Started Oakland and Punta Gorda bases, currently serving eight markets and seven markets, respectively

Revenue performance

  • Average fare — ancillary air-related revenue per passenger grew 7.8 percent
  • Ancillary revenues per passenger were $39.67 in the second quarter, highest in the company’s history

2Q12 2Q11 Change
Scheduled Service:
Average fare – scheduled service $89.43 $91.17 (1.9)%
Average fare – ancillary air-related charges $33.90 $31.45 7.8%
Average fare – ancillary third party products $5.77 $5.68 1.6%
Average fare – total $129.10 $128.30 0.6%
Scheduled service passenger revenue per ASM (PRASM) (cents) 8.75 9.27 (5.6)%
Total scheduled service revenue* per ASM (TRASM) (cents) 12.63 13.04 (3.1)%
Load factor 90.1% 92.0% (1.9)pp
Passengers (millions) 1.7 1.5 16.0%
Average passengers per departure 140 136 2.9%
* Total scheduled service revenue includes scheduled service, ancillary air-related, and ancillary third party revenue.

Cost performance

  • Cost per ASM excluding fuel decreased 13.9 percent to 5.1 cents, total cost per ASM decreased 10.9 percent to 10.16 cents
  • Aircraft fuel expense per gallon declined 2.5 percent or $.08 per gallon
  • Fuel cost per passenger was $52.50, a $2.93 decrease or a 5.3 percent drop from the second quarter 2011
  • Salary and benefit expense per passenger declined 3.4 percent primarily due to outsourcing of station personnel in Las Vegas in the second quarter of 2011 and continued productivity gains
  • Sales and marketing expense per passenger decreased 11.7 percent primarily due to an 8 percent decline in payment processing cost per passenger resulting from increased debit card usage
  • Maintenance and repairs expense per passenger decreased 34.9 percent due primarily to a 64 percent decline in engine overhaul expenses
  • Station operations expense per passenger increased 2.8 percent primarily due to outsourcing Las Vegas station personnel

2Q12 2Q11 Change
Total System*:
Operating expense per passenger $105.48 $115.24 (8.5)%
Operating expense per passenger, excluding fuel $52.98 $59.81 (11.4)%
Operating expense per ASM (CASM) (cents) 10.16 11.40 (10.9)%
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents) 5.10 5.92 (13.9)%
* Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Third party products performance

  • Ancillary revenue — third party products per passenger increased 1.6 percent, our ninth consecutive quarter of year over year increases
  • Third party ancillary gross margin improved to 29.7 percent versus 28.1 percent last year
  • 41 percent of hotel room night growth occurred outside of Las Vegas
  • Rental car days grew 28.4 percent year over year

Supplemental Ancillary Revenue Informationย 
Unaudited (millions)		 2Q12 2Q11 Change
Gross ancillary revenue – third party products $32,909 $29,547 11.4%
Cost of goods sold ($21,909) ($20,046) 9.3%
Transaction costs* ($1,218) ($1,210) 0.7%
Ancillary revenue – third party products $9,782 $8,291 18.0%
As percent of gross 29.7% 28.1% 1.6pp
As percent of income before taxes 24.5% 43.9% (19.4)pp
Ancillary revenue – third party products/scheduled passenger $5.77 $5.68 1.6%
Hotel room nights (thousands) 204.3 186.2 9.8%
Rental car days (thousands) 201.6 157.0 28.4%
* Includes payment expenses and travel agency commissions.

Balance sheet highlights

  • Financed two 757s in the quarter for $14 million
  • $33 million of total debt secured by six 757 aircraft
  • Currently have $45 million in share repurchase authority

Unaudited (millions) 6/30/12 12/31/11 Change
Unrestricted cash* $390.1 $319.5 22.1%
Unrestricted cash net of air traffic liability $232.4 $200.8 15.8%
Total debt $156.2 $146.1 6.9%
Total stockholders’ equity $403.0 $351.5 14.6%
Six months ended June 30,
Unaudited (millions) 2012 2011 Change
Capital expenditures $61.1 $51.2 19.2%
* 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 July 2012 3Q12
Estimated PRASM year-over-year change (3) to (1)% (9) to (7)%
Fixed fee and other revenue guidance 3Q12
Fixed fee and other revenue (millions) $10 to $12
Aircraft guidance 3Q12
Number of MD-80s to be converted to 166 seats* 37 to 39
Capacity guidance
System 3Q12 4Q12
Departure year-over-year growth +2 to 6% +5 to 9%
ASM year-over-year growth +14 to 18% +19 to 23%
Scheduled
Departure year-over-year growth +3 to 7% +6 to 10%
ASM year-over-year growth +15 to 19% +22 to 26%
Cost guidance 3Q12 FY12
CASM ex fuel — year-over-year change (2) to 0% (10) to (5)%
CAPEX guidance FY12
Capital expenditures (millions) $105 to $115
Full year capacity guidance FY12 FY13
Scheduled ASM year-over-year growth +20 to 25% +20 to 25%
CASM ex fuel — cost per available seat mile excluding fuel expense
* Number of aircraft expected to be completed by end of the quarter

Copyright Photo: Stephen Tornblom.McDonnell Douglas DC-9-83 (MD-83) N865GA at Long Beacg shows off the updated 2010 livery.

Allegiant:ย 

Allegiant receives ETOPS certification and Flag Carrier status from the FAA

Allegiant Air (Las Vegas) on June 12ย obtained Extended-Rangeย Operationsย (ETOPS) certification and Flag Carrier Status from the Federal Aviation Administration (FAA).

The company announced earlier this year its entrance into Hawaii. ETOPS certification and Flag Carrier status are both necessary for flying to Hawaii.

Allegiant will offer nonstop air service to Honolulu, Hawaii from:

Las Vegasย — begins June 29

Fresno, California — begins June 30

Bellingham, Washington — begins November 15

Monterey, California —ย begins November 16

Eugene, Oregon — begins November 17

Santa Maria, California — begins November 17

Stockton, California — begins November 18

Allegiant will also offer nonstop air service to Maui, Hawaii from:

Bellingham, Washington — begins November 14

Allegiant will utilize 757-200 aircraft on its Hawaiian routes. The company operates four 757-200 aircraft and owns two additional, which are on lease to a European carrier. These aircraft are expected to be introduced into Allegiant’s fleet during the fourth quarter of 2012 and the first quarter of 2013.
Copyright Photo: Eddie Maloney.
Allegiant:ย 

Allegiant’s first quarter net profit climbs 26.5% to $21.7 million

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported its first quarter net profit rose by 26.5 percent to $21.7 million. This compares favorably with a 1Q net profit of $17.2 million a year ago.

Unaudited 1Q12 1Q11 Change
Total operating revenue (millions) $237.9 $193.2 23.1%
Operating income (millions) $36.3 $27.8 30.5%
Operating margin 15.3% 14.4% 0.9pp
EBITDA (millions) $48.3 $37.7 28.1%
EBITDA margin 20.3% 19.5% 0.8pp
Net income (millions) $21.7 $17.2 26.5%
Diluted earnings per share $1.12 $0.89 25.8%

Accomplishments in the past year and updates on the fleet:

  • Ancillary third party products revenue per passenger grew 10.7%
  • PRASM increased 3.1% despite a 22% increase in scheduled service ASMs
  • CASM ex-fuel declined 3%, cost per passenger ex-fuel decreased 1.5%
  • Started charging for carry-on bags in April
  • Announced service to Honolulu from Las Vegas beginning June 29 and Fresno, CA beginning June 30
  • Purchased fifth and sixth 757 in March and April respectively
  • Expect to have four Boeing 757-200s in service in the third quarter and six by the first quarter 2013
  • First of three 757 leased to European carriers returned in April; currently being prepped for service
  • Currently have 19 MD-80s with 166 seats. Our bases in Bellingham, WA, Mesa, AZ, Los Angeles, CA, and Oakland, CA are being operated by 166 seat MD-80s.
  • Purchased two leased MD-80s at an average purchase price of $1.3 million. All aircraft in fleet are now owned
  • Announced a new base in Oakland, CA, serving nine routes, beginning April 26
  • Announced a new base in Punta Gorda, FL (Southwest Florida), serving seven routes, beginning on June 27

Revenue performance (year over year)

  • Total scheduled service revenue grew 25.8% on a 22% increase in scheduled service ASMs
  • Total fare of $132.70 was the highest in the history of the company
1Q12 1Q11 Change
Scheduled Service:
Average fare – scheduled service $94.95 $89.00 6.7%
Average fare – ancillary air-related charges $32.39 $31.38 3.2%
Average fare – ancillary third party products $5.36 $4.84 10.7%
Average fare – total $132.70 $125.22 6.0%
Scheduled service passenger revenue per ASM (PRASM)(cents) 9.04 8.77 3.1%
Total scheduled service revenue per ASM (TRASM) (cents) 12.64 12.34 2.4%
Load factor 91.1% 92.9% (1.8)pp

Cost performance (year over year)

  • Cost per ASM excluding fuel decreased 3%, total cost per ASM increased 2.9%
  • Aircraft fuel expense increased 29.3% on a $.41 per gallon increase
  • Fuel cost per passenger was $56.93, a $5.53 increase
  • Salary and benefit expense per passenger declined 7.7% primarily due to outsourcing of station personnel in Las Vegas
  • Sales and marketing expense per passenger decreased 10.9% primarily due to an 8% decline in payment processing cost per passenger
  • Maintenance and repairs expense per passenger increased 13.4% due to the completion of the 2011 planned engine program occurring in the first quarter
  • Station operations expense per passenger increased 1.5% primarily due to outsourcing Las Vegas station personnel
1Q12 1Q11 Change
Total System*:
Operating expense per passenger $112.03 $107.36 4.3%
Operating expense per passenger, excluding fuel $55.10 $55.96 (1.5)%
Operating expense per ASM (CASM) (cents) 10.52 10.22 2.9%
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents) 5.17 5.33 (3.0)%
* Total system includes scheduled service, fixed-fee contract and non-revenue flying

Third party products performance (year over year)

  • Growth in both hotel room nights (19.7%) and rental car days (32.9%) exceeded the growth in the number of scheduled passengers (17.9%) for the first quarter
  • Third party products revenue per passenger set record highs for each month in the first quarter

The Allegiant formula as a package travel provider is working and the company continues to expand and make money despite operating older less-efficient aircraft. By serving smaller cities and flying to vacation centers they have found a winning combination.

Copyright Photo: Michael B. Ing.

Allegiant Slide Show: CLICK HERE

Allegiant has a profitable 4Q and 2011

Allegiant Air (Allegiant Travel Company) (Las Vegas) reported a $10.8 million net profit in the fourth, down 12.7 percent from the previous $12.4 net profit in the same quarter a year ago. This is their 36th consecutive profitable quarter.

For the full year, the travel company reported a $49.4 net profit in 2011, down 24.8 percent from $65.7 in 2010.

The airline announced eight new routes during the past 30 days and a new base in Oakland. Allegiant will soon be in 76 cities, including 11 leisure destinations, with 178 routes. Allegiant currently has 53 aircraft in revenue service including one Boeing 757-200. Allegiant is expecting to have at least 16 additional 166-seat MD-80 aircraft in service by the end of first quarter 2012. Allegiant is on track with the new forecast for ETOPS certification later this year, which will allow Allegiant to begin low-fare Hawaii service.

Copyright Photo: Stephen Tornblom.

Allegiant Slide Show: CLICK HERE

Allegiant Travel slips by 27.9% to $9.5 million net profit in the third quarter

Allegiant Travel Company (Las Vegas) reported its third quarter net profit slipped by 27.9 percent to $9.5 million. In the same quarter last year, the company reported a net profit of $13.2 million.

Allegiant began Boeing 757-200 operations with the first 757-200 aircraft in late July 2011 and currently operates it on two routes to and from Las Vegas.

Allegiant Slide Show: CLICK HERE

Copyright Photo: Michael B. Ing.

Allegiant has a successful fourth quarter and 2010

Allegiant Travel Company (Las Vegas) produced a $12.4 million net profit of $12.4 million in the fourth quarter (up 15.5% from $10.5 in the same quarter a year ago) and a net profit $65.7 in 2010 (down 13.9% from a net profit of $76.3 in 2009).

This quarterly profit represents 32nd consecutive profitable quarter.

Allegiant Air also executed term sheets on its three Boeing 757-200s for short term leases to European operators as the introduction of the 757 has been delayed.

Allegiant Air has an operating fleet of 51 DC-9-82/83/87 (MD-80) aircraft through the 1st half of 2011.

Copyright Photo: Michael B. Ing. Please click on the photo for additional information.

Allegiant’s focus cities and route map:

The Transport Workers Union attempts to organize Allegiant’s flight attendants

Allegiant Air (Las Vegas) is facing an attempt by the Transport Workers Union (TWU) to organize its flight attendants.

Read the full article in the Las vegas Review-Journal:

CLICK HERE

Copyright Photo: Ton Jochems. Please click on the photo for additional details.

Allegiant reports a 3Q profit of $13.2 million

Allegiant Travel Company (Las Vegas), the parent company of Allegiant Air (Las Vegas) and Allegiant Vacations, reported a net profit of $13.2 million for the third quarter 2010. This is down slightly from $13.8 million in the same quarter a year ago.

Copyright Photo: Bruce Drum. Please click on the photo for additional details.