Allegiant navigates pilot unrest as it records healthy profits and works to achieve growth targets

Uncertainty over Allegiant Air's 2015 growth has become clearer now that the US FAA has ended a heightened surveillance period of the airline's operations due to labour unrest among the company's pilots. With the lifting of the heightened surveillance, Allegiant can start planned new service and add aircraft to its operating certificate.

FAA ended the extended surveillance period after Allegiant won an injunction against its pilots that prohibits flight crews from striking. Pilot discord has been simmering for a variety of reasons as it appears that little progress has been made in reaching a new collective bargaining agreement.

Obviously the injunction does little to alleviate pilot discontent. But it does give Allegiant an ability to press forward with its growth, which on an ASM basis is projected at 15% to 18% for 2015. But the threat of a strike is having a small, lingering effect on the airline's 2Q2015 unit revenues.