ULCC Allegiant Air battles rising unit costs CY2014 as it works to mitigate training expense

One of the lowest cost airlines in North America - Allegiant Air - could see a double digit rise in unit cost growth in CY2014 stemming from training expense and an aircraft acquisition that the company believes will ultimately generate high returns, but is creating short term pressure since the jets are not producing available seat miles.

Allegiant anticipates the challenges it has encountered in pilot training as only temporary and should be resolved by mid-2015. The easing of training expense alongside operating more unit cost friendly A320s should create a more favourable unit cost scenario in CY2015.

The company is also staying the course on its network strategy - assigning less priority to launching international service to Mexico, refining its goals for Hawaii and touting opportunities in the US domestic market ushered in by consolidation among the country's largest airlines.