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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 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%;
  • 3Q2011 forecast:
    • Capacity (ASMs): -4% to stable;
      • Scheduled: -6% to -2%;
  • 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