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Allegiant Reports $9.7 Million Net Income In Q1  
User currently offlineFATFlyer From United States of America, joined May 2001, 5844 posts, RR: 28
Posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 3988 times:

I haven't had a chance to digest this yet but thought I'd share.

http://www.prnewswire.com/cgi-bin/st...story/04-28-2008/0004801845&EDATE=


"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
37 replies: All unread, showing first 25:
 
User currently offlineAloha717200 From United States of America, joined Aug 2003, 4524 posts, RR: 15
Reply 1, posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 3984 times:

That's certainly good news when even the best run airlines are posting losses. Isn't WN the only other US major that posted a profit?

User currently offlineFATFlyer From United States of America, joined May 2001, 5844 posts, RR: 28
Reply 2, posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 3964 times:

OK here are a few key things

Net Income was $9.672 million in Q1 2008 vs. $9.747 in Q1 2007 so a less than 1% decline

Fuel costs rose 103.7% over the same qtr last year.
They have NO fuel hedges in place and do not project to purchase any.

Avg fares increased 6.8%

Average ancilliary revenues rose 35.7% per passenger.



"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
User currently offlineAloha717200 From United States of America, joined Aug 2003, 4524 posts, RR: 15
Reply 3, posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 3942 times:

What that shows me is that management has been pretty smart about saving costs internally over the last year. They've managed to offset increased costs. I wish we could say the same for the rest of the industry.

User currently offlineLexy From United States of America, joined Jun 2006, 2515 posts, RR: 8
Reply 4, posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 3905 times:



Quoting Aloha717200 (Reply 3):
What that shows me is that management has been pretty smart about saving costs internally over the last year. They've managed to offset increased costs. I wish we could say the same for the rest of the industry.

Well I agree. Many airlines could learn some lessons, it would seem, from Allegiant. Well done to the Allegiant Team!



Nashville, Tennessee KBNA
User currently offlineFATFlyer From United States of America, joined May 2001, 5844 posts, RR: 28
Reply 5, posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 3832 times:

Reading the comments from Sr. Management they say
"Should record fuel prices persist, our performance in the second
quarter of this year will not match our performance in the second
quarter of last year. Despite the challenges of managing our business
in the face of record fuel prices, we believe we can remain profitable."


So they are not immune from the current pressures but seem willing to do what it takes to remain profitable.

Also in terms of their financial position they had at the end of Q1
"$188.2 million in cash and short-term investments,
up from $171.4 million at year end. Total debt at quarter end stood at
$71.0 million, all secured by aircraft."



"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
User currently offlineLGAtoIND From United States of America, joined Jan 2005, 490 posts, RR: 1
Reply 6, posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 3817 times:

Well done Allegiant!

User currently offlineYNGguins From United States of America, joined Jun 2007, 513 posts, RR: 1
Reply 7, posted (6 years 7 months 3 weeks 5 days 4 hours ago) and read 3784 times:

Too bad the national media doesn't pick up on this gem in the airline industry.


I am PROUD to live in the greatest country on earth: The United States of America!
User currently offlineMKE22 From United States of America, joined Nov 2007, 1148 posts, RR: 2
Reply 8, posted (6 years 7 months 3 weeks 5 days 3 hours ago) and read 3681 times:

Good job G4! Even w/ the MD-80s you can remain profitable. I have a question for those of you in the loop on G4, is it true G4 may be looking at a focus city at RSW? Just something I have been hearing, and maybe still being profitable, they could be one of the few airlines that can afford to expand right now.


If Your not pissed, your not trying
User currently offlineFreequentFlier From United States of America, joined Feb 2007, 902 posts, RR: 12
Reply 9, posted (6 years 7 months 3 weeks 5 days 2 hours ago) and read 3653 times:

G4 actually purchased 6 more MD-80s if I'm not mistaken. The fact that they have a healthy enough balance sheet to acquire 6 new planes is extremely impressive for such a small company. Congrats to G4 and its employees!

User currently offlineFATFlyer From United States of America, joined May 2001, 5844 posts, RR: 28
Reply 10, posted (6 years 7 months 3 weeks 4 days 15 hours ago) and read 3403 times:

I had to laugh at the way the Dallas Morning News covered Allegiant:

Allegiant flies gas guzzlers, makes money

Allegiant Travel Co., parent of Allegiant Air and Allegiant Vacations, made money in the first quarter. Really.

Allegiant flies nothing but McDonnell Douglas MD-80s, one of the least fuel-efficient jets now flying. Its fuel expense doubled, from $31.2 million in first quarter 2007 to $63.5 million in first quarter 2008.
http://aviationblog.dallasnews.com/a...llegiant-flies-gas-guzzlers-m.html


Allegiant's webcast of the conference call starts at 10AM Pacific time, unfortunately I wont be able to hear it the first go round.

If someone listens I hope they post some highlights.



"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
User currently offlineRbgso From United States of America, joined Jun 2006, 599 posts, RR: 0
Reply 11, posted (6 years 7 months 3 weeks 4 days 14 hours ago) and read 3382 times:

No question this is impressive performance.

Allegiant does what other carriers dream about - bounce in and out of mostly secondary markets based solely on short term profitability. And it works just fine for them, but it is not a model the larger carriers can adapt. One flight a day, less than daily service, leisure travel customer base, and no connecting network to speak of will not work for the majors.

But for G4, it's what they do, and they do it well.


User currently offlineYamahaR1 From United States of America, joined Mar 2008, 10 posts, RR: 0
Reply 12, posted (6 years 7 months 3 weeks 4 days 13 hours ago) and read 3268 times:

and delay,after delay,sure youll make a profit taking paying pax money and delay for a day or longer.Yah youll make money that way keeping planes on the ground and taking money,and with lousey service on top of that and youve got yourself a winner there.

User currently offlineFlighty From United States of America, joined Apr 2007, 8765 posts, RR: 3
Reply 13, posted (6 years 7 months 3 weeks 4 days 13 hours ago) and read 3235 times:

Allegiant is one of the most clever airlines in the USA.

I have always been a fan of their strategy. I feel they use the perfect aircraft in the perfect way.

A lot of people in the USA live in cities of 100,000-300,000 that get little or no airline service. These cities have a big middle class that wants to go to Vegas, Florida and California.

WN's model is the opposite. Big volume stations ONLY. Allegiant is sticking to smaller volume, very low _frequency_ but large _number of stations_. This CAN work. America has SO many airports. And quite large pockets of population without good airline service.

Allegiant noticed this. The direct result is the Allegiant route map and schedule you see today. And it (?!?!) makes money. They even have pricing power. You have to hand it to Allegiant for innovating and serving the US market in essentially a brand new way.


User currently offlineFRA2DTW From Germany, joined Feb 2004, 322 posts, RR: 0
Reply 14, posted (6 years 7 months 3 weeks 4 days 13 hours ago) and read 3219 times:

They are also quick to pull out of markets which do not perform for them, as they did at Lansing.

User currently offlineFrontierflyer From United States of America, joined Aug 2007, 216 posts, RR: 1
Reply 15, posted (6 years 7 months 3 weeks 4 days 13 hours ago) and read 3192 times:

Pound for pound this blows away WN. Congrats indeed! Who would imagine you could make money flying gas guzzling mad dogs at 100+ oil. Its like gorilla war, quick strikes here and there and get out. Majors are charging into no mans land and getting slaughtered!

User currently offlineIowaman From United States of America, joined May 2004, 4433 posts, RR: 6
Reply 16, posted (6 years 7 months 3 weeks 4 days 12 hours ago) and read 3171 times:
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Quoting FreequentFlier (Reply 9):
acquire 6 new planes is extremely impressive for such a small company

MD-80s are extremely cheap.


User currently offlinePSA53 From United States of America, joined Aug 2003, 3090 posts, RR: 4
Reply 17, posted (6 years 7 months 3 weeks 4 days 12 hours ago) and read 3156 times:



Quoting LGAtoIND (Reply 6):
Well done Allegiant!



Quoting YNGguins (Reply 7):
Too bad the national media doesn't pick up on this gem in the airline industry.

I guess so.Investors have.ALGT stock is $27.65.Up +6.85@10:50 PST.

Nice to see.



Tuesday's Off! Do not disturb.
User currently offlineJetBlueGuy2006 From United States of America, joined Jan 2006, 1665 posts, RR: 1
Reply 18, posted (6 years 7 months 3 weeks 4 days 11 hours ago) and read 3080 times:



Quoting FRA2DTW (Reply 14):
They are also quick to pull out of markets which do not perform for them, as they did at Lansing

What are you talking about? G4 is still in Lansing, and the only service they have dropped was LAS, and that was based on Fuel costs and probably low auxiliary revenue. And they dropped it after like 4 years? I wouldn't call it a quick pull out and SFB and PIE are going strong still.



Home Airport: Capital Region International Airport (KLAN)
User currently offlineLoneStarMike From United States of America, joined Jul 2000, 3867 posts, RR: 34
Reply 19, posted (6 years 7 months 3 weeks 4 days 10 hours ago) and read 2990 times:

Allegiant was briefly mentioned in a recent article in the Austin American-Statesman about VivaAerobus

But the future of ultra-no-frills airlines may be more tenuous in the United States.

Earlier this month, Skybus, a Columbus, Ohio-based airline that also made headlines for its $10 tickets, folded after just 10 months in operation. The airline blamed rising fuel costs and a slowing economy for its demise.

A more hopeful sign for Viva Aerobus is Las Vegas-based Allegiant Airlines, whose investors include the family behind Ryanair. That discounter reported a first-quarter passenger surge of 57 percent.


LoneStarMike


User currently offlineBA319-131 From United Kingdom, joined Jan 2001, 8588 posts, RR: 54
Reply 20, posted (6 years 7 months 3 weeks 4 days 10 hours ago) and read 2969 times:
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This is actually pretty impressive, I had figured them for a basket case, but the figures show a different story - I am impressed, well done!

M



111,732,3,4,5,7,8,BBJ,741,742,743,744,752,762,763,764,772,77L,773,77W,L15,D10,30,40,AB3,AB6,A312.313,319,320,321,332,333
User currently offlineN908AW From United States of America, joined Aug 2005, 943 posts, RR: 1
Reply 21, posted (6 years 7 months 3 weeks 4 days 9 hours ago) and read 2923 times:



Quoting BA319-131 (Reply 20):
This is actually pretty impressive, I had figured them for a basket case, but the figures show a different story - I am impressed, well done!

Wasn't too long ago everybody thought Allegiant was nuts for stuff like charging for baggage, assigned seating, drinks, etc. Now such practice is [albeit, slowly] becoming the way of the industry.

Stand tall, G4! Stand tall! Almost insane that an airline could make money in these conditions.



'Cause you're on ATA again, and on ATA, you're on vacation!
User currently offlineCOERJ From United States of America, joined Dec 2005, 238 posts, RR: 0
Reply 22, posted (6 years 7 months 3 weeks 4 days 9 hours ago) and read 2917 times:



Quoting MKE22 (Reply 8):
I have a question for those of you in the loop on G4, is it true G4 may be looking at a focus city at RSW?

I find it highly unlikely that G4 would open a focus city in RSW, although I may be wrong. One of the reasons why G4 is so profitable is because their hubs are secondary airports with very low landing fees and costs. For example PIE is a secondary airport to TPA, as well as SFB to MCO, and FLL to MIA. These airports have much lower costs than their larger siblings, making it more profitable for the airline. RSW, on the other hand, has high landing/ terminal fees, especially due to recent construction. It is not a secondary airport either, which doesn't follow G4's business plan. Therefore, flying out of RSW would not be as profitable as the other three.


User currently offline727LOVER From United States of America, joined Oct 2001, 6613 posts, RR: 20
Reply 23, posted (6 years 7 months 3 weeks 4 days 6 hours ago) and read 2806 times:



Quoting Flighty (Reply 13):
WN's model is the opposite.

Speaking of WN, does G4 serve more airports than WN?



Listen Betty, don't start up with your 'White Zone' s*** again.
User currently offlineLoneStarMike From United States of America, joined Jul 2000, 3867 posts, RR: 34
Reply 24, posted (6 years 7 months 3 weeks 4 days 6 hours ago) and read 2776 times:



Quoting 727LOVER (Reply 23):
Speaking of WN, does G4 serve more airports than WN?

No. (It's close, though) - Allegiant serves 58 cities - WN serves 64 cities.

LoneStarMike


25 G4resagent : Actually, we serve 61 with the addition of SFO and SAN.
26 LoneStarMike : Ah - ok. I was just going by the info in the article posted by the thread starter. It shows Allegiant serving 5 world class cities and 53 smaller cit
27 YNGguins : LAS and FLL are certainly not secondary airports.. RSW and Allegiant were in talks when the new terminal was being put up. I know this because I talk
28 MKE22 : Yeah, because USA3000 which is somewhat of a 2ndary airport to bigger airport ( ex. PIE ) airline, at least to some point anyway, and they do RSW w/
29 RSWA330 : USA3000 is very successful in RSW. They offer very reasonable fares too. I believe RSW is their biggest station in number of scheduled destinations o
30 National757 : Interesting to see Allegiant no longer has a fuel hedging program in place. I also see they have revised downward the number of aircraft expected to e
31 YNGguins : Anyone check the stock today.. Unreal. Began the day at $20.80. Ended the day at $27.81. Up $7.01 to 27.81. People that saw they were releasing their
32 Iowaman : They are also raising their fees later this Spring.. seat assignments up to $13 for $11 (optional at purchase), convenient fees $11.50 (up from $9.50)
33 G4resagent : It is actually $10 per way, $20 roundtrip.
34 FATFlyer : Anything else of not in the call? I won't get a chance to listen for a few days. I'm in a very busy work cycle, worked until 10:30 last night.
35 Post contains links FATFlyer : I'm catching up on my news feeds before I start working this morning. Just read this article from the Las Vegas Review-Journal. http://www.lvrj.com/bu
36 STLGph : a convenience fee for booking online. how lovely.
37 Post contains links LoneStarMike : If you don't want to actually listen to the call you can read the transcript of it here It's just over 9 pages and includes the Q&A's from the report
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