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Allegiant Air achieves rare profit in second quarter


Allegiant Air was one of the few US carriers to report a net profit in the second quarter. It reported a 47.9% year-on-year revenue increase to USD131.6 million in 2Q08, on the back of year-on-year improvements in load factors and ancillary revenues. However, as is the case across the industry, the LCC felt the negative effect of high fuel prices, with its fleet of older aircraft. [1388 words]

Unlock the following content in this report:


  • Net and operating profits slip; drastic reduction in operating margin in 2Q08
  • Fuel representing 57% of total costs in 2Q08
  • By far the fastest growing airline in North America
  • Ancillary revenues key to ability to maintain good margins
  • Revenue up in 1H08 but profitability slips
  • Diversifying operations to improve risk profile
  • Small city market "appear to have missed the recent slow-down in consumer spending"
  • Fleet growth to continue
  • Balance sheet and liquidity remain strong
  • Continues expansion path in 3Q08

Graphs and data:

  • Allegiant financial highlights for three months ended 30-Jun08
  • Allegiant operating margin: 1Q06 to 2Q08
  • US carrier's fuel cost per gallon (USD) and year-on-year change: 2Q08
  • Allegiant fuel cost as a portion of total operating expense: 1Q06 to 2Q08
  • North American airlines domestic capacity growth: First six months of 2008 (Bubble size reflects overall capacity)
  • Allegiant ancillary revenue as a portion of total revenue
  • Allegiant financial highlights for six months ended 30-Jun08
  • Allegiant Network summary
  • Allegiant fleet plan: Sep-06 to FY10F
  • Allegiant Capacity and Departure Growth: 3Q08
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