Allegiant first quarter profit down by a quarter
Allegiant Travel Company has reported a net profit of USD17.2 million in 1Q2011, its 33rd consecutive quarterly profit. The result was down 24.1% year-on-year, mostly due to a 38% increase in fuel costs. Revenue rose 13.9% year-on-year, despite particularly slow capacity expansion.
- Allegiant Travel Company reports 33rd consecutive quarterly profit, with a net profit of USD17.2 million in 1Q2011.
- Revenue for Allegiant Travel Company rose 13.9% year-on-year, despite slow capacity expansion.
- Fuel costs increased by 38%, contributing to a 24.1% decrease in net profit for Allegiant Travel Company.
- Republic Airways Holdings adds six additional E-170 regional jets to its agreement with Delta Air Lines.
- LAN expects passenger traffic to increase by 16-18% in 2011, lower than the previous forecast of 20-22%.
- Global oil prices are expected to remain high, but the surge in Chile's peso against the US dollar has no real impact on LAN.
Allegiant Travel Company financial highlights for the three months ended 31-Mar-2011:
- Operating revenue: USD193.2 million, +13.9% year-on-year;
- Ancillary: USD52.3 million, +9.9%;
- Operating costs: USD165.4 million, +24.0%;
- Fuel: USD79.2 million, +38.0%;
- Labour: USD30.9 million, +19.2%;
- Operating profit: USD27.8 million, -23.2%;
- Net profit: USD17.2 million, -24.1%;
- Passenger numbers: 1.5 million, +7.2%;
- Load factor: 89.6%, +1.4 ppt;
- Scheduled: 92.9%, +1.2 ppt;
- Scheduled average fare: USD125.22, +7.5%;
- Operating revenue per ASM: USD 11.94 cents, +9.6%;
- Scheduled: USD 12.34 cents, +11.4%;
- Scheduled passenger revenue per ASM: USD 8.77 cents, +13.3%;
- Operating cost per ASM: USD 10.22 cents, +19.3%;
- Cost per ASM excl fuel: USD 5.33 cents, +9.2%;
- Average sector length: 885 miles, -1.1%;
- 2Q2011 forecast:
- Capacity (ASMs): -4% to stable;
- Scheduled: -6% to -2%;
- Cost per ASM excl fuel: +23% to +25%;
- Capacity (ASMs): -4% to stable;
- 3Q2011 forecast:
- Capacity (ASMs): -4% to stable;
- Scheduled: -6% to -2%;
- Capacity (ASMs): -4% to stable;
- FY2011 forecast:
- Cost per ASM excl fuel: +10% to +12%.
Republic Airways Holdings has amended its agreement with Delta Air Lines to supply aircraft to serve routes for, providing six additional E-170 regional jets. The additional aircraft are expected to be placed into service between Jul-2011 and Oct-2011 and will have a term of six years from the in-service date for Delta.
LAN CFO Alejandro de la Fuente stated he expects global oil prices to remain high but stated a surge in Chile's peso to a three year high against the US dollar has no real impact on the company. LAN expects passenger traffic to increase by between 16% and 18% in 2011, down from an earlier growth forecast of 20-22%.
Selected Americas airline share price movements (% change): 29-Apr-2011
