Allegiant Air posts $25.2 million net income in 2Q

Allegiant Air MD-83 (49557/1436) N861GA rotates from from Rwy 1R at Las Vegas McCarren International Airport (LAS/KLAS) on November 9, 2009.

(Photo by Michael Carter) 

Las Vegas-based Allegiant Travel Co., parent of Allegiant Air (G4), reported earnings of $25.2 million, more than doubling its year-ago net income of $11.9 million.

Total operating revenue increased 15.3% to $231.2 million while expenses rose 5.3% to $189.3 million, producing an operating profit of $41.9 million, more than twice the $20.7 million operating profit in the year-ago quarter.

G4 chairman and CEO Maurice Gallagher told reporters and analysts that nonfuel unit costs were down 14%. “Maintenance in this instance was the big driver in this reduction,” he said, adding that maintenance and repairs expense per passenger decreased 34.9% due primarily to a 64% decline in engine overhaul expenses.

Gallagher said the company “saw all unit costs decline in every category, save depreciation and amortization. An 18% growth in ASMs year-over-year and modest increases in absolute cost will generate these reduced amounts,” he said.

The company said aircraft fuel expense per gallon declined 2.5% or $.08 per gallon. Ancillary revenues per passenger were $39.67 in the second quarter, the highest in the company’s history.

Scheduled traffic during the quarter rose 18% to 1.56 billion RPMs, on a 20.4% increase in capacity to 1.73 billion ASMs, producing a load factor of 90.1%, down 1.9 points compared to the year-ago quarter. Scheduled service yield was down 3.7% to 9.71 cents. PRASM decreased 5.6% to 8.75 cents. CASM ex-fuel declined 13.9% to 5.1 cents.

As of Aug. 1, the company has 30 166-seat MD-80s and expects all West Coast-scheduled MD-80s to have 166 seats by the end of the third quarter. It has been operating four Boeing 757s since July 2.
Earlier this week the company announced it will lease nine Airbus A319s from GE Capital Aviation Services (GECAS) and will lease—and eventually purchase—10 A319s from Cebu Pacific Air.

(Linda Blachly - ATWOnline News)