Allegiant posts $53m Q4 profit thanks to ‘robust demand’
Allegiant Travel Company, parent of Allegiant Air, rode high demand for leisure travel to a profitable Q4 2022, capping a year marked by significant operational challenges. Allegiant posted a $53m profit in the final quarter of last year, compared with $11m in the three months ending on 31 December 2021. The Las Vegas-based carrier generated $612m in revenue in Q4 2022, up 23% from $497m in the same three months in 2021. “We have great momentum heading into 2023,” John Redmond, Allegiant’s CE, said during the company’s quarterly earnings call on 1 February. “Underpinning the strong financial performance is a robust demand environment that shows no signs of slowing.” For the full year 2022, Allegiant generated a company-record $2.3b in revenue, up nearly 35% from the $1.7b it reported in 2021. With operating expenses increasing 53% year-on-year, as well as the airline taking a financial hit in due to a weather disruptions in Florida, the carrier squeezed out a $2.5m profit in 2022, compared with $152m in the 12 months ending 31 December 2021. “2022 was yet another difficult year,” Redmond says. “The operation was hit with countless challenges from Covid spikes to hurricanes, and most recently winter storms.” In November, Allegiant had said that Hurricane Ian, which crossed the Florida peninsula in the last week of September, had cost the company almost $40m. In 2022, Allegiant’s capacity increased nearly 14% over 2019, the last year unaffected by the Covid-19 pandemic. Looking ahead, Allegiant is “continuing to take a more conservative approach to growth”, anticipating a 4% capacity increase in 2023 “with much of that happening in the fourth quarter”, the airline says. Allegiant is also pressing forward with its proposed alliance with Mexico’s Viva Aerobus, which would give customers access to each airlines’ respective loyalty programmes, sales systems and route networks to operate flights together. The deal has been approved by Mexico’s Federal Economic Competition Commission but still needs the go-ahead from federal regulators in the USA. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-02-02/unaligned/allegiant-posts-53m-q4-profit-thanks-to-2018robust-demand2019
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Allegiant posts $53m Q4 profit thanks to ‘robust demand’
Allegiant Travel Company, parent of Allegiant Air, rode high demand for leisure travel to a profitable Q4 2022, capping a year marked by significant operational challenges. Allegiant posted a $53m profit in the final quarter of last year, compared with $11m in the three months ending on 31 December 2021. The Las Vegas-based carrier generated $612m in revenue in Q4 2022, up 23% from $497m in the same three months in 2021. “We have great momentum heading into 2023,” John Redmond, Allegiant’s CE, said during the company’s quarterly earnings call on 1 February. “Underpinning the strong financial performance is a robust demand environment that shows no signs of slowing.” For the full year 2022, Allegiant generated a company-record $2.3b in revenue, up nearly 35% from the $1.7b it reported in 2021. With operating expenses increasing 53% year-on-year, as well as the airline taking a financial hit in due to a weather disruptions in Florida, the carrier squeezed out a $2.5m profit in 2022, compared with $152m in the 12 months ending 31 December 2021. “2022 was yet another difficult year,” Redmond says. “The operation was hit with countless challenges from Covid spikes to hurricanes, and most recently winter storms.” In November, Allegiant had said that Hurricane Ian, which crossed the Florida peninsula in the last week of September, had cost the company almost $40m. In 2022, Allegiant’s capacity increased nearly 14% over 2019, the last year unaffected by the Covid-19 pandemic. Looking ahead, Allegiant is “continuing to take a more conservative approach to growth”, anticipating a 4% capacity increase in 2023 “with much of that happening in the fourth quarter”, the airline says. Allegiant is also pressing forward with its proposed alliance with Mexico’s Viva Aerobus, which would give customers access to each airlines’ respective loyalty programmes, sales systems and route networks to operate flights together. The deal has been approved by Mexico’s Federal Economic Competition Commission but still needs the go-ahead from federal regulators in the USA. <br/>
