Allegiant Air parent Allegiant Travel Co. posted a record full-year profit of $76.3 million, more than double the $35.4 million reported in 2008.
Operating revenue rose 10.7% to $557.9 million while expenses dropped 2.8% to $435.7 million, boosting operating income more than twofold to $122.3 million from $55.8 million in 2008. Cost cuts came largely from decreased fuel and aircraft leasing expenses.
Allegiant operated 42 MD-80s at year end compared to 36 at the close of 2008 on 136 routes to 69 destinations. Passenger numbers rose 24% to 5.3 million and system RPMs were up 23.3% to 4.76 billion. Capacity increased 22.7% to 5.45 billion ASMs, lifting load factor 0.4 point to 87.4%. Operating RASM fell 9.8% to 10.24 cents against a 20.7% cut in unit cost to 8 cents. CASM excluding fuel rose 1% to 4.97 cents. Ancillary revenue per passenger climbed 12.4% to $33.07, helping to offset a 17.2% drop in average scheduled fare to $70.38.
The fourth-quarter profit of $10.5 million was Allegiant's 28th consecutive three-month period in the black but was down 42.1% from the $18.2 million reported in the year-ago quarter. Operating income slipped 37.1% to $18.1 million on a 10% increase in revenue to $134.7 million.
The company said it sees "an improving pricing environment" ahead and that its 2010 focus will be on upgrading its IT systems to accommodate its expansion. It expects first-quarter capacity growth of around 15%. The fleet is expected to grow to 48 aircraft by the end of the quarter and 52 by year end. It will take delivery of the 18 aircraft purchased from SAS Group during the first half.
Brian Straus
Operating revenue rose 10.7% to $557.9 million while expenses dropped 2.8% to $435.7 million, boosting operating income more than twofold to $122.3 million from $55.8 million in 2008. Cost cuts came largely from decreased fuel and aircraft leasing expenses.
Allegiant operated 42 MD-80s at year end compared to 36 at the close of 2008 on 136 routes to 69 destinations. Passenger numbers rose 24% to 5.3 million and system RPMs were up 23.3% to 4.76 billion. Capacity increased 22.7% to 5.45 billion ASMs, lifting load factor 0.4 point to 87.4%. Operating RASM fell 9.8% to 10.24 cents against a 20.7% cut in unit cost to 8 cents. CASM excluding fuel rose 1% to 4.97 cents. Ancillary revenue per passenger climbed 12.4% to $33.07, helping to offset a 17.2% drop in average scheduled fare to $70.38.
The fourth-quarter profit of $10.5 million was Allegiant's 28th consecutive three-month period in the black but was down 42.1% from the $18.2 million reported in the year-ago quarter. Operating income slipped 37.1% to $18.1 million on a 10% increase in revenue to $134.7 million.
The company said it sees "an improving pricing environment" ahead and that its 2010 focus will be on upgrading its IT systems to accommodate its expansion. It expects first-quarter capacity growth of around 15%. The fleet is expected to grow to 48 aircraft by the end of the quarter and 52 by year end. It will take delivery of the 18 aircraft purchased from SAS Group during the first half.
Brian Straus
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