Allegiant Update

Transcript

Lukas Johnson:We rolled out a new revenue management system a little over a year ago, and it went fully kind of implemented about 4 months ago, 5 months ago, and the results have been great so far. You've seen pretty significant increases in load factor and unit revenues. You know, our TRASM, PRASM is up every month since it's been implemented. So You know, we've been extremely happy with the way it's worked out. We don't have a hard goal, you know, but in terms of we're always looking to push it up higher. And it's, you know, I just spoke on the panel about this, but it's more about personalization as we're going through. You know, right now most products have been implemented. You know, people are charging for bags and carry-on bags and seats and priority, you know, access, things like that. Where really it's got to head is, are we able to, each person coming in, match up exactly what they're looking to do? And that's how we're going to push kind of the ancillary number higher over the next couple years. You know, it's been an interesting kind of reaction from the investment community about the Sunseeker project because, you know, on one hand we've always been known for doing kind of off-the-wall crazy things. We're first to introduce a lot of different products. We're the first to, you know, over 75% of the routes we've announced, nobody's ever historically run them. So we're always doing new and interesting things. But, you know, certain investors love it and certain investors don't love it as much because it's just a different opportunity than most airlines are looking at. Yeah, so off-peak flying continues to grow with us as we push the utilization up a little bit with the Airbus. The Airbus is a much more efficient plane than the MD-80, much better economical plane, so, you know, naturally it means that the Airbus, we're going to want to fly it a little bit more because it makes more money. So in the first quarter, off-peak flying grew about 3 times the rate that peak flying did, and you'll continue to see that throughout this year. And as we get to an all-Airbus fleet by the end of the year, that'll start leveling off and you'll start seeing us grow equally on the peak and off-peak.

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