Allegiant reports 31st consecutive quarterly profit in 3Q2010

Allegiant revenue up 22.9% - financial highlights for the three months ended 30-Sep-2010:

• Revenue: USD163.6 million, +22.9% year-on-year;
  • Ancillary: USD50.1 million, +24.7%;
• Operating costs: USD144.1 million, +29.7%;
  • Fuel: USD62.5 million, +42.8%;
  • Labour: USD28.4 million, +27.5%;
• Operating profit: USD19.5 million, -11.2%;
• Net profit: USD13.2 million, -4.5%;
• Average fares: USD103.65, +3.3%;
• Passenger numbers: 1.6 million, +16.5%;
• Load factor: 86.6%, -0.3 ppt;
• Revenue per ASM: USD 9.94 cents, +0.8%;
• Costs per ASM: USD 8.75 cents, +6.3%;
• Cost per ASM excl fuel: USD 4.96 cents, -0.6%;
• Average sector length: 865 miles, +5.7%;
• 4Q2010 forecast:
  • Capacity:
    • Scheduled: +13% to +15%. [more]

Allegiant Travel Company: "We had another excellent quarter, generating an 11.9% operating margin in our historically weakest quarter. This represents our 31st consecutive profitable quarter and 8th in a row with double digit operating and pre-tax margins. This is our second most profitable 3rd quarter since 2005, both in absolute terms and on a percentage basis. We accomplished these results with a scheduled service capacity increase of 24% on a 16% increase in aircraft in service year over year," Maurice Gallagher Jr, Chairman and CEO. Source: Allegiant Travel Company, 27-Oct-2010.

Allegiant Travel Company: "We have adjusted our forward capacity plans taking into account the futures curve expectations for fuel prices and assuming no improvement in the demand environment. The result is a deceleration of our growth rate starting with this current 4th quarter during which we expect scheduled service capacity growth to increase between 13 to 15%, down from the 24% growth rate we experienced in the 3rd quarter and down from the 17 to 19% we previously forecasted for 4th quarter 2010. Our current plans for 1st quarter 2011 show modest capacity growth of 4 to 7%, but the change in same store capacity is forecast to be down almost 8% year over year during that period. We still have time to adjust capacity in the 1st quarter if warranted, but we are comfortable with our current plan and do not expect any material changes," Andrew Levy, President. Source: Allegiant Travel Company, 27-Oct-2010.