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More profits for Allegiant, 21.4% operating margin, but investors not impressed


US airline reporting season started on a sour note, with Allegiant Travel Company reporting a 19.8% drop in net income to USD22.6 million in the three months ended 31-Mar-2010, despite a 19.4% rise in total operating revenues to USD169.6 million. The airline’s share price was savaged, slumping 9.5% on 20-Apr-2010, as investors were clearly hoping for more and are becoming concerned about the vulnerability of the airline’s business model to higher oil prices. [1177 words]

Unlock the following content in this report:


  • Ancillary revenues growth slowing, but yields growing on improving economy
  • Costs rise as fuel prices jump
  • Fleet and capex updates
  • 2% departure growth planned in 2Q2010
  • Outlook: Higher fuel cost and longer stage lengths to hit profits

Graphs and data:

  • Allegiant operating margin vs net margin: 1Q2008 to 1Q2010
  • Allegiant cost per ASM and revenue per ASM: 1Q2008 to 1Q2010
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