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Allegiant Posts Q1 Profit  
User currently offlinestlgph From United States of America, joined Oct 2004, 9371 posts, RR: 26
Posted (2 years 4 months 3 weeks 5 days 9 hours ago) and read 3615 times:

http://ir.allegiantair.com/releasedetail.cfm?ReleaseID=667391


We are very proud to report our 37th consecutive profitable quarter," stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. "I'd like to thank our Team Members for their great efforts and contributions to another successful quarter."

Notable company highlights

Ancillary third party products revenue per passenger grew 10.7%
PRASM increased 3.1% despite a 22% increase in scheduled service ASMs
CASM ex-fuel declined 3%, cost per passenger ex-fuel decreased 1.5%
Started charging for carry-on bags in April
Announced service to Honolulu from Las Vegas beginning June 29 and Fresno, CA beginning June 30
Purchased fifth and sixth 757 in March and April respectively
Expect to have four 757s in service in the third quarter and six by the first quarter 2013
First of three 757 leased to European carriers returned in April; currently being prepped for service
Currently have 19 MD-80s with 166 seats. Our bases in Bellingham, WA, Phoenix, AZ, Los Angeles, CA, and Oakland, CA are being operated by 166 seat MD-80s.
Purchased two leased MD-80s at an average purchase price of $1.3 million. All aircraft in fleet are now owned
Announced a new base in Oakland, CA, serving nine routes, beginning April 26
Announced a new base in Punta Gorda, FL (Southwest Florida), serving seven routes, beginning June 27


if assumptions could fly, airliners.net would be the world's busiest airport
31 replies: All unread, showing first 25:
 
User currently offlineYNGguins From United States of America, joined Jun 2007, 511 posts, RR: 1
Reply 1, posted (2 years 4 months 3 weeks 5 days 9 hours ago) and read 3599 times:

Great financial statement for Allegiant. Not only did revenues rise, but the all important net income rose by 26.5% as well. Once the pay for carry on fee's come on this quarter, I really expect their profits to take off, no pun intended.

Spirit and Allegiant are the only two airlines, in my eyes, worth investing into at this time. They have a great business model that although may anger some people, still is the cheaper alternative than the legacy airlines more often than not.

I've flown it and it is truly a great service for smaller communities all across this country!



I am PROUD to live in the greatest country on earth: The United States of America!
User currently offlinestlgph From United States of America, joined Oct 2004, 9371 posts, RR: 26
Reply 2, posted (2 years 4 months 3 weeks 5 days 9 hours ago) and read 3554 times:

If you want to invest, stock is at a buy right now. It's in the $60 range, some projections putting it at $75 in a year.


if assumptions could fly, airliners.net would be the world's busiest airport
User currently onlineFlighty From United States of America, joined Apr 2007, 8543 posts, RR: 2
Reply 3, posted (2 years 4 months 3 weeks 5 days 7 hours ago) and read 3434 times:

It is well worth checking out their route map. Color me impressed.

http://www.allegiantair.com/aaRouteMapStatic.php


User currently offlineslcdeltarumd11 From United States of America, joined Jan 2004, 3465 posts, RR: 0
Reply 4, posted (2 years 4 months 3 weeks 5 days 7 hours ago) and read 3406 times:

Allegiant is well run, has solid plans, and sells a product people want no shock here they keep making money. A.neters might hate this airline but its the product alot of people want and its extremely well run

User currently offlineEricR From United States of America, joined Jul 2010, 1904 posts, RR: 1
Reply 5, posted (2 years 4 months 3 weeks 5 days 6 hours ago) and read 3321 times:

Quoting slcdeltarumd11 (Reply 4):
Allegiant is well run, has solid plans, and sells a product people want no shock here they keep making money. A.neters might hate this airline but its the product alot of people want and its extremely well run

Agreed. However, in all fairness, a good portion (roughly 1/4) of G4's O.I. comes from their ancillary services (vacation packages). Maybe other airlines need to take note of such.


User currently offlineFATFlyer From United States of America, joined May 2001, 5804 posts, RR: 14
Reply 6, posted (2 years 4 months 3 weeks 5 days 6 hours ago) and read 3289 times:

A few other items from the conference call:

** More Hawaii routes will be announced in next few weeks
** ETOPS certification has one step left: an audit of the spare parts operation in HNL. Should be completed in next couple of weeks.
** Priority is to get Hawaii built up but then looking at starting international service (side note to G4: FAT is one of your few stations with a FIS. Maybe a couple of flights per week on FAT-SJD?      )

** Repeated info from press release - All aircraft in fleet are now owned by G4.

** LAS based MD aircraft will be next group to go to 166 seats.
** The increase to 166 seats on MDs seems to have driven the addition of the carry-on fee. They see the fee as a way to manage carry-on space with more pax on each flight.

** Fuel expense increased 29.3% but net income and operating margin both increased last quarter vs. 1Q11.



"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
User currently offlineHiFlyerAS From United States of America, joined Jul 2011, 958 posts, RR: 2
Reply 7, posted (2 years 4 months 3 weeks 5 days 6 hours ago) and read 3279 times:

Quoting EricR (Reply 5):
a good portion (roughly 1/4) of G4's O.I. comes from their ancillary services (vacation packages). Maybe other airlines need to take note of such.

Believe me, they do. Eveyone is nickle and diming you to death these days. If you're not a status-level FF'er you get stuck in a middle seat and pay for checking a bag. Want a window or aisle seat? $$$ Myself, I'd pay extra for a premium coach cabin but not more than $25-$50 depending on the route of course.

I think the trick is to find a balance between feeling cheated and getting value for that extra money. G4 charging for your carry-on bag to me is insulting but it's genius really....reduce the carry-on's and you reduce the turn time. Shave ten minutes off each turn and you're able to add one more flight per a/c every day.

I've never flown on G4 but heard their announcements selling various products on-board are pretty annoying.


User currently offlinestlgph From United States of America, joined Oct 2004, 9371 posts, RR: 26
Reply 8, posted (2 years 4 months 3 weeks 5 days 6 hours ago) and read 3232 times:

Quoting HiFlyerAS (Reply 7):
I think the trick is to find a balance between feeling cheated and getting value for that extra money. G4 charging for your carry-on bag to me is insulting but it's genius really....reduce the carry-on's and you reduce the turn time. Shave ten minutes off each turn and you're able to add one more flight per a/c every day.

The concept is a great idea for those who 'get it in the industry' but since Allegiant flies their planes so relatively few hours compared to other carriers, their sell here is "giving our customers options on how to best spend their money."



if assumptions could fly, airliners.net would be the world's busiest airport
User currently offlineGSPSPOT From United States of America, joined Sep 2003, 3037 posts, RR: 2
Reply 9, posted (2 years 4 months 3 weeks 5 days 6 hours ago) and read 3221 times:

Quoting YNGguins (Reply 1):
Spirit and Allegiant are the only two airlines, in my eyes, worth investing into at this time. They have a great business model that although may anger some people, still is the cheaper alternative than the legacy airlines more often than not.

I just hope that G4 begins to offer the ability to connect between their flights, with HNL coming online. Why not give people more reasons/opportunities to fly your airline?



Finally made it to an airline mecca!
User currently offlinewhatusaid From United States of America, joined Feb 2007, 664 posts, RR: 0
Reply 10, posted (2 years 4 months 3 weeks 5 days 4 hours ago) and read 3136 times:

Quoting FATFlyer (Reply 6):
** More Hawaii routes will be announced in next few weeks
** ETOPS certification has one step left: an audit of the spare parts operation in HNL. Should be completed in next couple of weeks.

About two weeks after announcing the FAT-HNL, the first flight is now better than 50% sold and there's pretty solid bookings all through the summer. Fares are way up $309 to $349 OW. I would expect that Hawaii will do well once they establish the service in other secondary cities.

Was there any mention of new markets being opened to connect to HNL - like BOI for example?


User currently offlineFATflyer From United States of America, joined May 2001, 5804 posts, RR: 14
Reply 11, posted (2 years 4 months 3 weeks 5 days 2 hours ago) and read 3011 times:

Quoting whatusaid (Reply 10):
Was there any mention of new markets being opened to connect to HNL - like BOI for example?

I didn't pick up on anything about new cities started just for Hawaii. My sense from the cc and other sources is that a few more current G4 cities will be the next round announced for service to Hawaii.



"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
User currently offlineMLI717fan From United States of America, joined Oct 2006, 248 posts, RR: 0
Reply 12, posted (2 years 4 months 3 weeks 5 days 2 hours ago) and read 2986 times:



Quoting FATFlyer (Reply 6):
Priority is to get Hawaii built up but then looking at starting international service



I'll be happy to fly on the first MLI-CUN flight!!!!!!!!!!! (Yes, I know we don't have customs yet.)

Quoting GSPSPOT (Reply 9):
I just hope that G4 begins to offer the ability to connect between their flights, with HNL coming online. Why not give people more reasons/opportunities to fly your airline?

That would be convenient, but I doubt it. However, you are more than welcome to book a flight to Vegas with them, spend the night (or a few), then take them to Hawaii, and do the same thing on the way home. I think that's the closest you'll see to a connection on G4.

Quoting FATflyer (Reply 11):
I didn't pick up on anything about new cities started just for Hawaii. My sense from the cc and other sources is that a few more current G4 cities will be the next round announced for service to Hawaii.

I know WN and G4 share very few markets, but I think WN's mess with the FL integration has opened up a larger window for G4 to step in and get an efficient Hawaii operation working before WN even starts service.

[Edited 2012-04-26 13:26:01]

[Edited 2012-04-26 13:26:46]

User currently offlineGSPSPOT From United States of America, joined Sep 2003, 3037 posts, RR: 2
Reply 13, posted (2 years 4 months 3 weeks 4 days 23 hours ago) and read 2837 times:

Quoting MLI717fan (Reply 12):
That would be convenient, but I doubt it. However, you are more than welcome to book a flight to Vegas with them, spend the night (or a few), then take them to Hawaii, and do the same thing on the way home. I think that's the closest you'll see to a connection on G4.

I get that, and understand they have reasons for not allowing connections, but I'll just look harder for a deal or package, and fly an airline that DOES allow connections so I don't have to eat up more of my time off.



Finally made it to an airline mecca!
User currently offlinespinkid From United States of America, joined Jul 2001, 1113 posts, RR: 0
Reply 14, posted (2 years 4 months 3 weeks 4 days 22 hours ago) and read 2781 times:

Perhaps connections only for the Hawaii flights might work.

User currently offlineBoeing773ER From United States of America, joined Dec 2011, 432 posts, RR: 0
Reply 15, posted (2 years 4 months 3 weeks 4 days 22 hours ago) and read 2755 times:

This is great for G4, I think they are a fantastic airline. No major problems with them before, besides on time in MYR my flight was delayed 3 hours and we had no information about it. But I appreciate the direct flight from my home town airport to MYR. Flight crew are always enjoyable, and have a good sense of humor. The airline sorta reminds me of a dinner, no glitz or anything special but you always know you're going to get; good service at a good price.


Work Hard, Fly Right.
User currently offlineFATflyer From United States of America, joined May 2001, 5804 posts, RR: 14
Reply 16, posted (2 years 4 months 3 weeks 4 days 22 hours ago) and read 2726 times:

Quoting spinkid (Reply 14):
Perhaps connections only for the Hawaii flights might work.

Keep in mind how many small G4 cities only operate 2X per week from a possible connecting point like LAS. Also remember that G4 does not have agreements with other airlines.

Picture a group of connecting G4 passengers coming back from Hawaii and missing the flight home to a small city. They'd be told they are stuck in Vegas for 3 days until the next flight home. Not a bad place to be stuck but it would play havoc with passengers' personal lives and jobs.

I just don't see Allegiant doing connections due to their current business model of infrequent weekly flights.



"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
User currently offlineMLI717fan From United States of America, joined Oct 2006, 248 posts, RR: 0
Reply 17, posted (2 years 4 months 3 weeks 4 days 8 hours ago) and read 2520 times:

Quoting GSPSPOT (Reply 13):
I get that, and understand they have reasons for not allowing connections, but I'll just look harder for a deal or package, and fly an airline that DOES allow connections so I don't have to eat up more of my time off.

Yeah, I don't blame you. My vacation time is valuable! I haven't used it for Hawaii, but for Mexico I usually book a package through CheapTickets.com.


User currently offlineYNGguins From United States of America, joined Jun 2007, 511 posts, RR: 1
Reply 18, posted (2 years 4 months 3 weeks 4 days 8 hours ago) and read 2516 times:

How many of you guys are seeing the Allegiant Google Ad's for service to Honolulu on here? The past 24 hours the top and bottom banner ad's have been all Allegiant.


I am PROUD to live in the greatest country on earth: The United States of America!
User currently offlinestlgph From United States of America, joined Oct 2004, 9371 posts, RR: 26
Reply 19, posted (2 years 4 months 3 weeks 4 days 8 hours ago) and read 2503 times:

Quoting spinkid (Reply 14):

Allegiant is doing what they do because it's what they do best.

Point made simpler - they're not going to fly to Hawaii to compete with other carriers, they're catering to their own niche market.



if assumptions could fly, airliners.net would be the world's busiest airport
User currently offlineHiFlyerAS From United States of America, joined Jul 2011, 958 posts, RR: 2
Reply 20, posted (2 years 4 months 3 weeks 4 days 7 hours ago) and read 2450 times:

Quoting FATflyer (Reply 16):
Picture a group of connecting G4 passengers coming back from Hawaii and missing the flight home to a small city. They'd be told they are stuck in Vegas for 3 days until the next flight home. Not a bad place to be stuck but it would play havoc with passengers' personal lives and jobs.


I think the reason they don't allow connections is that their on-time record is so horrible. Operating a fleet of old MD-80's that didn't cost much more than my house makes for frequent maintenance problems and they have major reliability issues. You're on a flight that operates only twice a week and it leaves a few hours late? It isn't much different than flying a charter....you have no other options besides to sit and wait.

http://www.flightstats.com/go/Airline/airlineDetails.do?airlineCode=G4

[Edited 2012-04-27 08:10:03]

User currently offlinestlgph From United States of America, joined Oct 2004, 9371 posts, RR: 26
Reply 21, posted (2 years 4 months 3 weeks 4 days 7 hours ago) and read 2429 times:

Quoting HiFlyerAS (Reply 20):

Another reason for not offering connections is that it allows Allegiant to tweak their schedule per their convenience from their cities.



if assumptions could fly, airliners.net would be the world's busiest airport
User currently onlineFlighty From United States of America, joined Apr 2007, 8543 posts, RR: 2
Reply 22, posted (2 years 4 months 3 weeks 4 days 5 hours ago) and read 2366 times:

Yet another reason is, Allegiant offers _nonstop_ services to markets where that is a unique, totally superior product. So they can set their own price. Connect markets are competitive and MD-80s may not be fuel efficient enough (or reliable enough) to get that done. It's a lot of bother to offer some inferior connection breadcrumbs.

User currently offlineHiFlyerAS From United States of America, joined Jul 2011, 958 posts, RR: 2
Reply 23, posted (2 years 4 months 3 weeks 4 days 5 hours ago) and read 2352 times:

Quoting Flighty (Reply 22):
totally superior product

It's easy to have a 'totally superior product' when you're the only carrier on the route!   


User currently offlineFATFlyer From United States of America, joined May 2001, 5804 posts, RR: 14
Reply 24, posted (2 years 4 months 3 weeks 4 days 5 hours ago) and read 2344 times:

Quoting HiFlyerAS (Reply 20):
I think the reason they don't allow connections is that their on-time record is so horrible.

Per the site you linked, G4 is 85% departure on time, 89% arrival on time.

Same site puts UA at 86% for departures but only 81% on time arrivals.
http://www.flightstats.com/go/Airlin...airlineScorecard.do?airlineCode=UA
They better get out of connections and just do P2P like Allegiant with that record if we use the same logic.    



"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
User currently offlineHiFlyerAS From United States of America, joined Jul 2011, 958 posts, RR: 2
Reply 25, posted (2 years 4 months 3 weeks 4 days 1 hour ago) and read 2315 times:

I was looking at numbers for individual stations....really awful.

http://www.flightstats.com/go/Flight...tRatingByCarrier.do?airlineCode=G4


User currently offlineBoeing773ER From United States of America, joined Dec 2011, 432 posts, RR: 0
Reply 26, posted (2 years 4 months 3 weeks 3 days 22 hours ago) and read 2241 times:

Quoting HiFlyerAS (Reply 25):

_

Honestly, they make things work. Yes I am G4 fan-boying but they I really like the airline. The average delay was 23 minuets, not good but it isn't bad.



Work Hard, Fly Right.
User currently offlineaa757first From United States of America, joined Aug 2003, 3350 posts, RR: 7
Reply 27, posted (2 years 4 months 3 weeks 3 days 21 hours ago) and read 2201 times:

Quoting HiFlyerAS (Reply 23):
It's easy to have a 'totally superior product' when you're the only carrier on the route!

But, of course, G4 fliers have other options. For example, Allentown to Sanford passengers can just take US or WN Philly to Orlando. The same is true with many of the cities Allegiant flies to.

Out of curiosity, does anybody know how many G4 fliers drive from larger metro areas to rural, secondary airports just to take G4?


User currently offlineYNGguins From United States of America, joined Jun 2007, 511 posts, RR: 1
Reply 28, posted (2 years 4 months 3 weeks 3 days 18 hours ago) and read 2128 times:

aa757first, I've seen a map of the draw into YNG for the Allegiant service. It heads eastward along I-80 into DuBois, up north towards I-90 into Erie, out west of Cleveland toward Lorain, southeast into Pittsburgh, south down into Steubenville, and southwest out towards Canton.


I am PROUD to live in the greatest country on earth: The United States of America!
User currently offlineFATflyer From United States of America, joined May 2001, 5804 posts, RR: 14
Reply 29, posted (2 years 4 months 3 weeks 3 days 18 hours ago) and read 2125 times:

Quoting aa757first (Reply 27):
Out of curiosity, does anybody know how many G4 fliers drive from larger metro areas to rural, secondary airports just to take G4?

Haven't seen actual numbers, but some stations do attract a lot of traffic from larger areas. Of course BLI is the one most people come up with.

But SCK also draws a large percentage of travellers from both Sacramento and the East Bay Area, its why SCK-LAS operates about 12X per week. This Stockton article about record passenger counts in March mentions larger numbers of Sacramento area residents driving to SCK.
http://m.recordnet.com/apps/pbcs.dll...03&template=wapart&m_section=WAP03

There is a lot of outbound reverse traffic for Allegiant from the larger cities to the small towns. This chart from June 2009 puts the percentage of reverse traffic at about 35% at LAX at that time. Other destinations ranged down from there.
http://www.sec.gov/Archives/edgar/da...0110465909055581/g271151mmi017.gif



"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
User currently offlineOB1504 From United States of America, joined Jul 2004, 3354 posts, RR: 6
Reply 30, posted (2 years 4 months 3 weeks 2 days 8 hours ago) and read 1838 times:

Quoting FATflyer (Reply 16):
Picture a group of connecting G4 passengers coming back from Hawaii and missing the flight home to a small city. They'd be told they are stuck in Vegas for 3 days until the next flight home. Not a bad place to be stuck but it would play havoc with passengers' personal lives and jobs.

Agreed. Spirit has taken a page from Allegiant's playbook and started flying three or four times a week to destinations like CRW, IAG, LBE, and PBG. As you stated, though, there's a potential for disaster when it comes to misconnects.

Once, on a Wednesday night, a BOG-FLL flight came in about two hours late due to air traffic control (i.e. beyond the airline's control, so misconnects aren't entitled to any compensation). As a result, most—if not all—passengers connecting to domestic destinations missed their flights. Among these were 45 passengers continuing to PBG. Once the first of them cleared customs and made it to my counter for reaccommodation, I pulled up the next flights to PBG. The Friday flight (two days later) was completely sold out, and Saturday (three days later) only had a handful of seats available, so Monday was looking like the soonest opportunity for most of these people to get home.

Upon being told they would, in all likelihood, have to wait five days to get out of FLL, the passengers were about to riot. Ultimately, we had to call a few police officers to the counter to maintain order. I don't blame Allegiant for not wanting to have to deal with that.

Coincidentally, when customers asked for refunds and wanted to know who else flew FLL-PBG, I directed them to Allegiant, who had a flight leaving the next morning.

[Edited 2012-04-29 07:15:34]

User currently offlineSYfan100 From United States of America, joined May 2008, 590 posts, RR: 0
Reply 31, posted (2 years 4 months 3 weeks 1 day 17 hours ago) and read 1626 times:

They are a very good Airline that seems to have done very well as I know they fly out of Duluth couple of days a week, and still does because the loads must be good enough to keep flying to that city in Minnesota.
But does anyone know the future of what will happen for a replacement with the MD-80 aircraft? Maybe what would they think with either a 737 or a Airbus 320? Or is it just the 757?
Some of those MD-80 aircraft must be getting up in age and cycle time?
Would hate to see them fail because they didn't replace un fuel friend type aircraft that should have been replaced several years ago.
They have a very good route system in place in which on the connection part, I don't think they should do that because of how things are setup.
As someone pointed out in a earlier post that once or twice a week at the most for many of the small cities is good enough because of the those flying to Orlando, Phoenix, and also LasVegas.
Honolulu will be interesting to see how they do with their various flights.


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