Allegiant Travel Company expecting 22-24% increase in PRASM in 2Q11

Allegiant Travel Company stated (06-May-2011) it expects the following growth in ASMs and PRASM during its 1Q2011 presentation:

It also made the following forecasts:

• Scheduled ASMs:
  • FY2011: 0 to +4% year-on-year;
  • FY12: +18-20%;
  • FY13: +17-19%;
  • FY14: +5-7%.
• 2Q2011 PRASM: +22-24%

The carrier also stated the following:

• Through to 31-Jul-2011, the carrier expects to operate on 164 routes with 51 aircraft. These routes include 63 small cities and 12 leisure destinations;
• Allegiant believes "other airlines view us as an annoyance, not a threat", with only nine of its route having direct competition from other carriers;
• Allegiant is now analysing or negotiating 50 new routes, including 30 small cities, using international cities as origins;
• It plans to launch Hawaii service in 2H2012;
• For 1Q2011, Allegiant reported ancillary air revenue per scheduled passenger of USD31.38;
• Also reported third party revenue per scheduled passenger of USD4.64;
• Allegiant attributes its performance to structural cost advantages, including low aircraft acquisition costs, simple product, cost-based schedules, labour efficiencies, closed distribution and small city operations;
• Plans to configure its MD80s with 166 seats (16 additional seats) from 2H2011;
• Is contracted to purchase six B757 aircraft. Allegiant has completed purchase on four of these aircraft, with three leased to European operators. [more]