Allegiant reports $56m Q1 profit on strong demand, ancillary revenue
Ultra low-cost carrier Allegiant Air’s leisure-oriented business is humming along smoothly and shows no sign of slowing. “Demand remained strong throughout the quarter,” John Redmond, CE of Allegiant Travel Company, said during the airline’s quarterly earnings call on 3 May. “We are closely monitoring macro-economic trends, but we have not observed a change in booking behaviour or peak leisure demand.” Allegiant reported a Q1 profit of $56.1mi, compared with a $7.9m loss in 2022. The Las Vegas-based company said during its 3 May earnings call that it generated $649m of revenue during the quarter, a 30% increase over the $500m it reported last year. Average ancillary revenue per passenger – or how much spent on checked luggage, in-flight snacks and other add-ons – was $75.19, “the highest quarterly result in our history”, Allegiant says. The ULCC’s load factor was 85.8%, compared with 78.9% during Q1 2022. Allegiant’s long-in-development Sunseeker Resort in Charlotte Harbor, Florida – which suffered $35m of property damage from Hurricane Ian – is in the final stages of construction and repair and is set to open 16 October 2023. “Although we are still sorting through insurance claims related to Hurricane Ian, we have a better line of sight on completion and final budget,” Redmond says. “Given inflationary pressures and supply chain issues, we expect the final capital expenditure budget to be $695m.” The carrier is also anticipating a 2.5% reduction in capacity for the full year versus its 2022 performance, citing some of the same snags holding back many of Allegiant’s competitors. “The industry continues to experience challenges from supply chain delays to [air traffic control] constraints that present the most stress during peak, high-demand periods,” Allegiant says. Despite the tweaks to capacity, booking data continues to reflect a strong demand environment, particularly during peak summer travel periods.” The carrier introduced three Airbus A320ceos to its fleet during Q1 and will acquire three more mid-life A320s this year. Allegiant is set to end the year with 127 narrowbody Airbus aircraft. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-05-04/unaligned/allegiant-reports-56m-q1-profit-on-strong-demand-ancillary-revenue
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Allegiant reports $56m Q1 profit on strong demand, ancillary revenue
Ultra low-cost carrier Allegiant Air’s leisure-oriented business is humming along smoothly and shows no sign of slowing. “Demand remained strong throughout the quarter,” John Redmond, CE of Allegiant Travel Company, said during the airline’s quarterly earnings call on 3 May. “We are closely monitoring macro-economic trends, but we have not observed a change in booking behaviour or peak leisure demand.” Allegiant reported a Q1 profit of $56.1mi, compared with a $7.9m loss in 2022. The Las Vegas-based company said during its 3 May earnings call that it generated $649m of revenue during the quarter, a 30% increase over the $500m it reported last year. Average ancillary revenue per passenger – or how much spent on checked luggage, in-flight snacks and other add-ons – was $75.19, “the highest quarterly result in our history”, Allegiant says. The ULCC’s load factor was 85.8%, compared with 78.9% during Q1 2022. Allegiant’s long-in-development Sunseeker Resort in Charlotte Harbor, Florida – which suffered $35m of property damage from Hurricane Ian – is in the final stages of construction and repair and is set to open 16 October 2023. “Although we are still sorting through insurance claims related to Hurricane Ian, we have a better line of sight on completion and final budget,” Redmond says. “Given inflationary pressures and supply chain issues, we expect the final capital expenditure budget to be $695m.” The carrier is also anticipating a 2.5% reduction in capacity for the full year versus its 2022 performance, citing some of the same snags holding back many of Allegiant’s competitors. “The industry continues to experience challenges from supply chain delays to [air traffic control] constraints that present the most stress during peak, high-demand periods,” Allegiant says. Despite the tweaks to capacity, booking data continues to reflect a strong demand environment, particularly during peak summer travel periods.” The carrier introduced three Airbus A320ceos to its fleet during Q1 and will acquire three more mid-life A320s this year. Allegiant is set to end the year with 127 narrowbody Airbus aircraft. <br/>
