Allegiant Travel Co., parent of Allegiant Air, posted a US$48.5m net profit for Q2 2017, down 20.3% from the company’s $60.8m net profit in Q2 2016. Allegiant’s Q2 revenue increased 16.2% to $400.6m, as operating expenses increased 31.2% year-over-year to $315m. Operating profit was $85.2m for the quarter, down 18.5% YOY. The airline’s aircraft fuel expenses grew 42.3% YOY during the quarter. Personnel expenses rose as well, up 34.5% YOY, continuing to reflect the labour agreement management reached with pilots last summer, which went into effect in Aug 2016. Allegiant reported a 21.3% operating margin for the quarter. CASM increased 16.4% to 8.80 cents. CASM excluding fuel increased 13.2% YOY to 6.42 cents; Allegiant attributed 6% of CASM ex-fuel costs as being related to the new pilot agreement. <br/>
unaligned
Belavia Belarusian Airlines and Emirates Airline have implemented interline, electronic interline and special prorate agreements, which became effective July 26. The agreements enable the carriers to accept and issue tickets on each other’s eligible segments. Passengers from both carriers are able to fly between Minsk and Dubai via several transfer points, including Moscow, St. Petersburg, Istanbul, Paris and Frankfurt. Emirates is the fourth Gulf carrier with which Belavia has commercial agreements. The airline also has interline, e-ticket interline, codeshare and special prorate agreements with Etihad Airways; interline and e-ticket interline with flydubai; as well as interline, e-ticket interline and prorate agreements with Qatar Airways. <br/>
Southwest Airlines reported a US$746m net profit in Q2, down 9% from net income of $820m in the 2016 June quarter, as it prepares for big fleet changes in Q3. The carrier still has 67 Boeing 737 Classics in its fleet after retiring 10 in Q2, but all 67 are scheduled to be retired by the end of Q3. It is also taking delivery of its first 737 MAX 8 next month, and will receive 10 737 MAX 8s by the end of September and 14 by the end of 2017. Southwest will place the MAX 8 into revenue service Oct 1. Company executives said the gains in aircraft fuel efficiency from retiring older 737 Classics and adding MAX 8s will help Southwest improve its cost performance, which was a negative mark in Q2 as both labour costs and fuel expenses increased year-over-year. <br/>