Allegiant turns Q3 profit despite operational 'challenges'

Discounter Allegiant Air turned a $39.3m profit in Q3, but its CE echoed peers in citing operational hiccups due to the pandemic and labour shortages. “Despite the favourable revenue environment, the operation continues to present challenges,” Allegiant CE Maurice Gallagher says on Wednesday. “The over-heated economy, continuing impacts of Covid, plus difficult labour environment created a perfect storm of challenges, including cancellations and delays over the past several months,” he adds. Allegiant remained profitable in Q3 thanks partly to $49.2m in US government payroll support grants, financial filings show. The company’s Q3 operating revenue more than doubled year-on-year to $424m, while operating expenses increased 68% year-on-year to $393m. The Las Vegas-based airline has responded to operational challenges by trimming some flights, “to mitigate the risk of cancellations”, it says. <br/>