Allegiant Air Q1 net profit up 31% on revenue tools, MD-80 retirements

Allegiant Travel, parent of ultra-LCC Allegiant Air, reported 2018 Q1 net income of $55.2m, up 31% from $42.2 million in the 2017 Q1. Operating revenue was $425.4m, up 12% from the year-ago quarter. Allegiant’s ambitious plan to fast-track the retirement of its MD-80 fleet remains on track, and the associated efficiency gains along with expanded use of revenue management tools has executives bullish on the company’s revenue-generation potential. Allegiant ended Q1 with 32 MD-80s in its 88-aircraft fleet. It plans to park five this quarter, eight in Q3, and the last 19 in the final quarter. It will add 26 Airbus narrowbodies—20 A320s and six A319s—as part of its transition to a single fleet type. “Our second-quarter activity, which has 16 Airbus inductions from six different operators and five MD-80 retirements, is more than we would typically take on and accomplish in an entire year,” CFO Scott Sheldon said.<br/>