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Allegiant parent reports 26% fall in 2Q2010 profit

22-Jul-2010 1:34 PM

Allegiant Travel Company, parent of Allegiant Air, reports (21-Jul-2010) the following financial/traffic highlights:

  • Three months ended 30-Jun-2010:
    • Total operating revenue: USD168.4 million, +13.8% year-on-year;
      • Total ancillary: USD50.7 million, +14.0%;
    • Total operating costs: USD140.3 million, +27.3%;
      • Fuel: USD62.2 million, +48.7%;
      • Labour: USD26.8 million, +13.3%;
    • Operating profit: USD28.1 million, -25.7%;
    • Net profit: USD17.6 million, -26.4%;
    • Passenger numbers: 1.5 million, +4.6%;
    • Load factor: 88.6%, +0.4 ppt;
    • Average fare: USD107.63, +10.5%;
    • Operating revenue per ASM: USD 10.51 cents, +4.4%;
    • Operating costs per ASM: USD 8.76 cents, +16.8%;
    • Costs per ASM excl fuel: USD 4.87 cents, +4.7%;
  • Six months ended 30-Jun-2010:
    • Total operating revenue: USD338.0 million, +16.5%;
      • Total ancillary: USD98.2 million, +14.7%;
    • Total operating costs: USD273.7 million, +31.7%;
      • Fuel: USD119.6 million, +59.0%;
      • Labour: USD52.7 million, +11.9%;
    • Operating profit: USD64.3 million, -21.8%;
    • Net profit: USD40.2 million, -22.8%;
    • Passenger numbers: 3.0 million, +7.6%;
    • Load factor: 88.4%, +0.5 ppt;
    • Average fare: USD111.88, +9.0%;
    • Operating revenue per ASM: USD 10.70 cents, +3.4 ppts;
    • Operating costs per ASM: USD 8.66 cents, +16.7%;
    • Costs per ASM excl fuel: USD 4.88 cents, +3.2%. [more][more - Perspective]

Allegiant: "We had another excellent quarter generating a 16.7% operating margin. This represents our 30th consecutive profitable quarter and seventh in a row with double-digit operating and pre-tax margins. A critical component of our performance this quarter was the continued improvement in our unit revenues compared to the second quarter 2009,” Maurice Gallagher Jr, Chairman and CEO. Source: Allegiant, 21-Jul-2010.

Allegiant: "We have spoken at length about the importance of growing our third party ancillary revenue segment which is truly a unique part of our business. This quarter saw the first concrete results stemming from these efforts. Our net revenues were USD7.2 million, or almost 26% of our income before taxes, up almost 33% year over year. This increase was driven by a 28% increase in our gross revenues as well as an improvement in our gross margins to 27.7% from 26.7%. Our third-party ancillary revenue per passenger increased to USD4.87, up 24.5% and the highest it has been in any quarter since 4Q08," Andrew Levy, President. Source: Allegiant, 21-Jul-2010.