Allegiant Air announced plans to offer a lower-cost ticket that could change in price depending on fuel (MSN Money, 28-Feb-2011). Allegiant is proposing if passengers purchase a ticket with the fluctuating price the airfare could go down if the cost of fuel drops by the time the passenger departs. The price could also increase if fuel prices rise however not by more than a set maximum.
Allegiant to offer lower-cost ticket to fluctuate on fuel price
You may also be interested in the following articles...
Allegiant Air: unit revenues could still turn positive in mid-2017 as cost pressures rise
Although Allegiant Air’s niche model differs from those of the majority of US airlines, the company has not been immune from the weaker pricing environment that has engulfed the US industry during the past year. Similarly to many US airlines Allegiant is beginning to see improving trends in the US market, and believes it can attain positive total unit revenues by mid-2017 as its own capacity growth slows and certain routes within its network mature.
Allegiant is facing pressure on its 4Q2016 unit revenues driven by effects from operational disruptions that were triggered by Hurricane Matthew and the timing of the Christmas holiday. But if the company reaches the lower end of its quarterly unit revenue guidance, Allegiant’s sequential improvement in unit revenues during 2016 will continue for the final three months of the year.
A new pilot agreement and other items are creating pressure for Allegiant in its unit cost performance in 4Q2016 that could continue into 2017. One cost area where Allegiant should see relief is in its maintenance expense, as the phase-out of its older MD-80 aircraft begins in full force.
European airline seat capacity growth accelerates - perhaps too quickly: Outlook for winter 2016/17
The summer 2016 season came to an end on 29-Oct-2016. Adjusting for an extra week relative to the previous summer, it produced seat growth of 6% for capacity to/from/within Europe, matching the rate of growth in summer 2015, but higher than the 10-year average rate of 4% and higher than any other summer since 2010.
Current indications from data filed with OAG are that Europe will also experience accelerating capacity growth in the winter 2016/2017 season, which runs from 30-Oct-2016 to 25-Mar-2017. Adjusting for the season being shorter by one week relative to last winter, total seat growth in Europe is set to reach 7%, compared with 6% growth in winter 2015/2016 (and 6% growth in summer 2016). This is higher than the 10-year average rate for winter of 3% and the highest winter growth since 2007/2008.
On routes to all but one region from Europe, seat growth this winter will both be faster than last winter and higher than its 10-year average. The one exception is Europe to Middle East, the fastest-growing region, where capacity growth will remain at 10%. This report presents analysis of this winter's seat growth for Europe by region and by airline group.