Allegiant, hit hard by Hurricane Ian, reports third-quarter loss of $46.5m

Allegiant Travel Comany, parent of Allegiant Air, reported a loss of $46.5mi in Q3 as revenue – and costs – surged significantly. The Las Vegas-based ultra-low-cost carrier’s operations generated just over $560m of revenue in three months ending 30 September, a 22% increase from $460m during the same period in 2021. Operating expenses increased more than 50% year-on-year, to $591m in Q3 2022 from $393m a year earlier. The quarterly loss includes $35m in property damage to Allegiant’s Sunseeker Resort in Charlotte Harbor, Florida caused by Hurricane Ian. The airline estimates that operational disruptions caused by the storm in September resulted in a further $3.5m loss of revenue. Demand remained strong throughout the quarter, said John Redmond, Allegiant’s CE, during the company’s Q3 earnings call 2 November. He notes that the airline’s bottom line benefited from the rise of so-called “hybrid travel”. “A new trend we are beginning to observe post-Covid is the increase in passengers combining business and leisure trips,” Redmond says. “A recent survey showed that nearly 15% of respondents were travelling for both business and leisure.”<br/>