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.
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