Tag Archives: Allegiant

Allegiant Air to start Las Vegas-Plattsburgh flights on December 19

Allegiant Air (Las Vegas) will launch twice-weekly service between the Las Vegas hub and Plattsburgh, New York starting on December 19 per Airline Route.

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N405NV (msn 49623) decorated in the Blue Man Group climbs away from the runway at Los Angeles International Airport.

Allegiant Air:

Allegiant to start two new routes from Mesa, Arizona in December

Allegiant Air (Las Vegas) will start two new routes from Mesa, Arizona (west Phoenix) in December. Twice-weekly Mesa-Oakland service will be added on December 15 followed by twice-weekly Mesa-Casper, Wyoming service on December 20 per Airline Route.

Allegiant Air:

St. Cloud, Minnesota to have airline service again via Allegiant Air

Allegiant Air (Las Vegas) has announced it will launch twice-weekly service from Mesa, Arizona (near Phoenix) to St. Cloud, MN on December 15. Delta dropped service to St. Cloud (to MSP) in December 2009.

Read the full report from MPR News: CLICK HERE

Copyright Photo: Bruce Drum. Allegiant also operates the McDonnell Douglas DC-9-87 (MD-87), mainly for charter flights. The short-fuselage type will be retired in 2013.

Allegiant Slide Show:

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:

Allegiant 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:

Allegiant to start Mesa (Phoenix)-Honolulu service and two new routes to Palm Springs

Allegiant Air (Las Vegas) will begin new, nonstop air service from Mesa (near Phoenix, Arizona) to Honolulu International Airport (HNL) beginning on February 7, 2013.

The new flights will operate three times weekly between Phoenix-Mesa Gateway Airport (IWA) and Honolulu International Airport (HNL).

In addition, the company will begin new, nonstop air service from Eugene, Oregon and Oakland to Palm Springs starting on November 15.

Allegiant Slide Show:

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Allegiant to start Harrisburg-Sanford flights on October 31

Allegiant Air (Las Vegas) has announced new twice-weekly service between Harrisburg, Pennsylvania and Sanford, Florida (near Orlando) starting on October 31.

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) completes its final approach at Los Angeles.

Allegiant:

Allegiant to start Sanford-Lansing service on November 1

Allegiant Air (Las vegas) will open up the Sanford (near Orlando)-Lansing, Michigan route on November 1 per Airline Route. The new route will be operated two days a week.

Additionally the carrier will start twice-weekly Sanford-Columbus, Ohio (Rickenbacker) service on October 25.

The fast-growing company will also add a new route linking Mesa (near Phoenix) and Rochester, MN on November 1. As is their business plan, the route will initially be operated two days a week.

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) is pictured in action at Long beach.

Allegiant:

Allegiant to drop three routes from Los Angeles due to a lack of gates

Allegiant Air (Las Vegas) is trimming three routes from Los Angeles International Airport due to a shortage of gates. The carrier will drop all service from LAX to Billings (September 1), Pasco (September 1) and Sioux Falls (August 13).

Read the full story from the ArgusLeader.com: CLICK HERE

Copyright Photo: McDonnell Douglas DC-9-83 (MD-83) N405NV in the Blue Man Group promotional livery taxies from the gate to the runway at LAX.

Allegiant:

Route Map:

Allegiant to fly to Honolulu from both Boise and Spokane

Allegiant Air (Las Vegas) announced today it will offer new nonstop flights 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.

Allegiant:

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 Company 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 38^th 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 Information 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