Allegiant Travel, the parent of Allegiant Air, reported an adjusted net loss of $900,000, or three cents a share, on revenue of $961.6 million for the quarter ending Sept. 30, a sharp improvement from a $37.7 million loss a year earlier. Fuel costs rose 55.7 percent to $3.97 per gallon from $2.55 a year ago, driving the airline to cut pro forma capacity by nearly 6 percent year over year “as we reduced pro forma capacity by nearly 6 percent year over year to protect margins in a high‑fuel environment.”
The carrier leaned on its most fuel‑efficient planes, increasing use of the Boeing 737 MAX 8, 737‑800 and 737‑900 ER, which together make up about half of its 170‑aircraft passenger fleet. Allegiant also operates 22 cargo jets under a contract with Amazon, and continues to focus on leisure routes that link smaller airports to resort destinations.
CEO Greg Anderson said “Leisure demand is still strong,” and added that matching capacity to demand with discipline helps the airline maintain the highest margin among leisure‑focused carriers. He noted that the company’s fares are roughly 30 percent below the industry average and that it is the No. 1 or No. 2 carrier in more than 90 percent of its origination markets, underscoring its commitment to the communities it serves.
Allegiant is still integrating its $1.5 billion acquisition of Sun Country Airlines, a process that includes merging technology systems. The combined airlines serve about 22 million customers annually on more than 650 routes to 175 U.S. cities and some international destinations, and the stock rose 9.5 percent to $81.53 per share after the earnings release.
Sources: Las Vegas Review-Journal
Original reporting: Las Vegas Review-Journal →
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