Las Vegas-based Allegiant Travel Company, parent of Allegiant Air (G4), reported earnings of $21.7 million for the first quarter, up 26.5% compared to $17.2 million in the year-ago period.
Total operating revenue increased 23.1% to $237.9 million while expenses climbed 21.9% to $201.5 million, producing an operating profit of $36.3 million, up 30.5% from $27.8 million in the year-ago quarter.
Total ancillary revenue was up 22.9% to $64.3 million, compared to $52.3 million in the year-ago quarter.
G4 chairman and CEO Maurice Gallagher told reporters and analysts that fuel expenses have continued to be the biggest weight on the company’s profit margins. Aircraft fuel rose 29.3% in the first-quarter to $102.4 million, compared to $79.2 million in the first-quarter of 2011. To offset fuel increases, the company said it has raised fares 6%, has started charging for carry-on bags and has aggressively adjusted capacity.
Scheduled traffic during the quarter rose 19.6% to 1.63 billion RPMs, on a 22% increase in capacity to 1.79 billion ASMs, producing a load factor of 91.1%, down 1.8 points compared to the year-ago quarter. Scheduled service yield rose 5.1% to 9.93 cents. PRASM increased 3.1% to 9.04 cents. CASM ex-fuel was down 3% to 5.17 cents.
“We are focused on the business of performing well, and will adjust accordingly to maintain our profitability and our margins,” Gallagher said.
Article Source : ATW Daily News
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