Allegiant continues to reap the benefits of US consolidation despite its costs inching upwards

Allegiant Air Group believes it can reap some of the benefits created by US consolidation by entering larger markets that would normally fall outside the carrier's spectrum, evidenced by its recent expansion from Cincinnati, a Delta hub with waning influence in the major carriers' networks.

New service from Cincinnati is part of a raft of new markets Allegiant is launching during 2Q2014 as it attempts to shake off the effects of 1Q2014 when a host of unusual items created cost pressure for the carrier. These appear likely to extend their effects throughout 2014 as Allegiant predicts an uptick in its unit cost for the full year.

As Allegiant makes a push from Cincinnati, Los Angeles and Myrtle Beach during 2014, the carrier is shelving plans to start transborder service to Mexico, instead apparently considering expansion to Canada - which is interesting given the country's typically higher operating costs.