Tuesday, February 1, 2011

Allegiant reports 2010 4th quarter and full year results

Allegiant Travel Co., parent of the airline, reported a fourth-quarter 2010 net profit of $12.4 million, up 17.5% over $10.5 million earned in the year-ago period. Net income for the full year fell 13.9%, however, to $65.7 million, from $76.3 million in 2009.

"We have concluded another very successful year," Allegiant Travel Co. Chairman and CEO Maurice Gallagher said, noting the company now has been profitable for 32 consecutive quarters and eight straight years.

However, rising fuel prices persuaded Allegiant to temper its growth this year, with first-quarter scheduled ASMs now expected to be up 3%-6% year-over-year rather than 4%-7% as planned last fall and second-quarter capacity set to be flat to 4% up, versus prior estimates of 6%-10%. Allegiant, which operates a fleet of 51 MD-80s, does not hedge fuel.

Operating revenues for the fourth quarter rose 20.3% to $162 million with operating expenses up 21% to $141.2 million. Operating income climbed 15.5% to 20.9 million from $18.1 million the year before.

Full-year operating revenues climbed 18.9% to $663.6 million but this was eclipsed by a 28.3% hike in expenses to $559 million with the result that annual operating profit dropped 14.4% to $104.7 million from $122.3 million in 2009. Biggest contributor to the rise in expenses was a 47.7% jump in fuel expenses as average cost per gallon climbed 30.7% and consumption rose 13.4%.

The airline carried 5.6 million passengers on scheduled flights last year, up 14% over 2009. It flew 5.2 billion RPMs, up 16.4% and 5.7 billion ASMs, up 16%, resulting in a load factor of 90.8%, up 0.4 points compared to 2009. Scheduled service yield rose 6.2% to 8.21 cents. Total RASM was 10.83 cents, up 5.4%, of which 31% came from ancillary products. Cost per ASM was 8.95 cents, up 11.9%. CASM excluding fuel climbed just 1.6% to 5.05 cents.

Separately, Allegiant announced that Scott Allard will join the company as CIO, having held the same position at Spirit Airlines. Greg Baden was named VP, flight operations-Systems Operational Command; he previously served as managing director of flying at Delta Air Lines. Also, Greg Rehwaldt joined the company as VP of stations. He most recently served as VP of operations for UnitedHealth Group and has an airline industry background prior to that.

(Perry Flint - ATWOnline News)

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