Tag Archives: 2387

Allegiant reports its 3Q net profit increased 213.4% to $44.5 million

Allegiant Travel Group (Allegiant Air) (Las Vegas) reported its third quarter net income jumped by 213.4 percent from $14.2 million in 2014 to $44.5 million for this year.

Allegiant logo-3

Aircraft fleet plan by end of period:

Aircraft – (seats per AC) 3Q15 4Q15 YE16
MD-80 (166 seats)         51       51      46
757 (215 seats)                6          5        4
A319 (156 seats)              7       10      17
A320 (177 seats)           10        15      16
Total                                74        81      83

Aircraft listed in table above include only in service aircraft, planned retirements and future aircraft under contract

Read the full report: CLICK HERE

Copyright Photo: Keith Burton/AirlinersGallery.com. Allegiant continues to expand its Airbus fleet. The company increased the number of Airbus aircraft in service by seven versus last year. According to the company, Airbus aircraft flew over 77 percent of the incremental scheduled service ASMs in the third quarter. In addition, Airbus aircraft flew over 32 percent of the third quarter ASMs versus 22 percent a year ago. Airbus A319-112 HB-JZN (msn 2387) became N302NV with Allegiant.

Allegiant aircraft slide show: AG Airline Slide Show

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Allegiant launches new routes to Florida from Raleigh-Durham, Tulsa and Concord

Allegiant logo-1 (large)

Allegiant Air (Las Vegas) on May 6 launched nonstop service from Raleigh-Durham to St. Petersburg/Clearwater. Service to both Sanford (near Orlando) and Punta Gorda started yesterday (May 7). All flights will operate two days a week.

In addition, yesterday (May 7) Allegiant also launched twice-weekly seasonal service from Tulsa to St. Petersburg/Clearwater (near Tampa). The route will operate through August 16.

In addition, today (May 8) the company started twice-weekly service from Concord, North Carolina (near Charlotte) to Fort Lauderdale-Hollywood International Airport.

Finally, also today (May 8), the airline will start Cincinnati’s first low-cost service to Savannah-Hilton Head with summer seasonal service to Savannah-Hilton Head International Airport (SAV). Savannah-Hilton Head becomes the tenth destination Allegiant serves from CVG. The new flights operate twice weekly between the Cincinnati-Northern Kentucky International Airport (CVG) and Savannah-Hilton Head International Airport (SAV) through October 11, 2015.

Copyright Photo: Royal S. King/AirlinersGallery.com. Airbus A319-112 N302NV (msn 2387) taxies at Bellingham, WA.

Allegiant Air aircraft slide show: AG Airline Slide Show

Allegiant Air arrives in New Orleans from Cincinnati

Allegiant Air (Las Vegas) yesterday (February 4) celebrated the start of seasonal, low-cost service to New Orleans from Cincinnati (CVG). Local travelers can now laissez les bon temps rouler in the Big Easy just in time for Mardi Gras.

New Orleans is the first of two new cities Allegiant will be launching from CVG in February, with flights to Jacksonville, Florida beginning on February 12. Both cities were previously served nonstop from CVG by other carriers and were recently discontinued. Cincinnati is the first city to be connected with Allegiant’s newest destination and will offer travelers their first low-cost option for flights to New Orleans.

The seasonal flights will operate twice weekly from the Cincinnati-Northern Kentucky International Airport (CVG) to the Louis Armstrong New Orleans International Airport (MSY) through May 4, 2015.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-112 N302NV (msn 2387) completes its final approach to the runway at Los Angeles International Airport.

Allegiant Air aircraft slide show:

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Allegiant announces five new routes to Florida

Allegiant Air (Las Vegas) has announced new, nonstop jet service on five new Florida routes, including one route each to Punta Gorda and Sanford (near Orlando) and three to St. Petersburg/Clearwater (Tampa Bay).

New routes announced include:

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

Belleville, Illinois – begins November 19, 2014
Bloomington, Illinois – begins November 21, 2014
Concord, North Carolina (near Charlotte) – begins November 13, 2014

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

Peoria, Illinois – begins November 14, 2014

Nonstop service to Punta Gorda Airport (PGD) from:

Huntington, West Virginia – begins Nov. 20, 2014

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’s innovative business model has allowed it to grow from one airplane and one route 15 years ago, to offering access to low-cost, nonstop travel in more than 90 communities nationwide. This year, Allegiant has inaugurated service on 16 new routes to popular U.S. vacation destinations. Additionally, the company recently announced its 46th consecutive quarter of profitable operation while keeping its average one-way fare under $100.

Copyright Photo: Keith Burton/AirlinersGallery.com. The Airbus A319s and A320s are based at Sanford. Former easyJet Switzerland Airbus A319-112 HB-JZN (man 2387) became N302NV with Allegiant.

Allegiant: AG Slide Show

Routes from Sanford. Allegiant operates nonstop routes to SFB from small underserved markets from the eastern half of the United States to the vacation Orlando area destination.

Allegiant logo-1 (large)

Allegiant 8.2014 SFB Route Map

Allegiant to add 13 Airbus A319s and one A320

Allegiant Travel Company (Allegiant Air) (Las Vegas) has announced three separate aircraft transactions for 14 additional growth aircraft and a fourth transaction for the purchase of two leased aircraft and the conversion of future operating lease obligations to forward purchases.

“We continue to find purchase transactions for high quality Airbus aircraft to secure our future growth,” said Andrew C. Levy, Allegiant Travel Company President and Chief Operating Officer. “We will now have 32 Airbus series aircraft, all owned, in our fleet by the end of 2018. We expect to use debt financing along with cash reserves to purchase these aircraft. Importantly, the additional A320/A319 aircraft are all sister ships to aircraft we currently operate. We remain active in the used Airbus market and hope to add more aircraft to our fleet during 2016 and 2017.”

The company has agreed to purchase twelve Airbus A319 aircraft currently leased to a European carrier until 2018. This purchase transaction is expected to be completed by the end of June. As each aircraft lease expires, Allegiant will transition the aircraft into its operating fleet. Allegiant expects to recognize approximately $30 million in annual lease revenue beginning in June 2014 through 2018 and plans to assume $142 million of secured debt under this transaction. The remaining two growth aircraft – one A319 and one A320 – will be purchased in 2015 and 2016 upon aircraft delivery.

The company has also agreed to purchase the two currently leased A319 aircraft in its fleet. This purchase is expected to be completed in July. The remaining six aircraft under the lease agreement executed in 2012 will be purchased at the time of delivery to Allegiant, expected to be in late 2014 through 2015.

The company expects its capital expenditures (CAPEX) to be approximately $315 million in 2014 and approximately $220 million in 2015. Upon completion of the above transactions, the company’s fleet plan will be as follows:

Airbus A319-100 (156 seats) will grow to 22 aircraft by 2018

Airbus A320-200 (177 seats) will grow to 10 aircraft by the end of 2015

Boeing 757-200 (215 seats) will remain at 6 aircraft through 2018

McDonnell Douglas MD-80 (DC-9-82s, DC-9-83s and MD-88s) (166 seats) will remain at 53 aircraft through 2018 (Allegiant is not expected to add any more MD-80s)

Overall the fleet will grow from the current 70 aircraft to 91 aircraft by 2018

This plan and guidance is subject to revision.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-112 N302NV (msn 2387) prepares to touch in Los Angeles.

Allegiant Air: AG Slide Show

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