Allegiant posts 34th consecutive profit quarter
Allegiant Air reported (01-Aug-2011) its 34th consecutive profitable quarter in 2Q2011, with the carrier noting that the USD19 increase in revenue per passenger more than offset the USD15 per passenger increase in fuel costs during the quarter. Allegiant Travel Company President Andrew Levy noted that the carrier produced the highest total fare in the company's history, driven by increases in the base air fare, and air-related and third-party ancillary revenues. "A 2.6% reduction in capacity was a key factor enabling this strong revenue performance. We have again proven we can thrive during periods of high fuel price volatility if we are prudent in how we allocate our capacity," he noted. In the current quarter, the carrier is again lowering capacity growth and is again expecting to post substantial increases in unit revenues. For 4Q2011, the carrier will also grow capacity modestly, mostly attributable to having a full quarter flying its first B757, as well as a small contribution from the presence of some re-configured MD-80 aircraft with 166 seats in the operating fleet.