Allegiant posts $89m Q2 profit, reports delayed 737 Max deliveries
Allegiant Travel Company, parent of Allegiant Air, reports making a profit of $88.5m in Q2 “in the face of high demand and operational complexity”. The airline company earned $4.4m during the three months ending 30 June last year. The Las Vegas-based ultra-low-cost carrier (ULCC) reported on 2 August that it generated $684m of revenue in the second quarter, up 8.6% from $630m in 2022. “Our second quarter saw continued strong domestic leisure travel demand and capture that remain near our historic highs in 2020,” Greg Anderson, Allegiant’s CFO, says during the company’s quarterly earnings call. Meanwhile, the carrier’s costs were down 8.8% year-on-year, to $550m from $604m. Allegiant reports a second-quarter controllable completion rate of 99.7%, which had dipped to 97% in June last year amid the chaotic 2022 summer travel season. “This year’s controllable completion rates being far above last year’s level means we’re keeping and recognising a much greater portion of book revenue year to date,” Anderson says. The airline is having difficulty with its planned expansion into Mexico, however, as the US Department of Transportation (DOT) recently suspended its review of a proposed joint venture between Allegiant and Mexico’s Viva Aerobus. Influenced by capacity restrictions at Mexico City’s Benito Juarez International airport, the decision “does not affect the merits of our application”, Anderson says, adding that “we have readied the areas within our control to be able to launch” if the deal is approved. The transborder commercial collaboration between the two ULCCs has been repeatedly delayed since it was first disclosed in late 2021. Allegiant reports that deliveries of its first two Boeing 737 Max aircraft have been delayed by about a month, pushing one delivery into 2024. The carrier is still expecting to take its first Max jet at the end of 2023, and to begin operating the type early next year. “Our 2023 capacity plans are not impacted by this delay,” says chief revenue officer Drew Wells.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-08-03/unaligned/allegiant-posts-89m-q2-profit-reports-delayed-737-max-deliveries
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Allegiant posts $89m Q2 profit, reports delayed 737 Max deliveries
Allegiant Travel Company, parent of Allegiant Air, reports making a profit of $88.5m in Q2 “in the face of high demand and operational complexity”. The airline company earned $4.4m during the three months ending 30 June last year. The Las Vegas-based ultra-low-cost carrier (ULCC) reported on 2 August that it generated $684m of revenue in the second quarter, up 8.6% from $630m in 2022. “Our second quarter saw continued strong domestic leisure travel demand and capture that remain near our historic highs in 2020,” Greg Anderson, Allegiant’s CFO, says during the company’s quarterly earnings call. Meanwhile, the carrier’s costs were down 8.8% year-on-year, to $550m from $604m. Allegiant reports a second-quarter controllable completion rate of 99.7%, which had dipped to 97% in June last year amid the chaotic 2022 summer travel season. “This year’s controllable completion rates being far above last year’s level means we’re keeping and recognising a much greater portion of book revenue year to date,” Anderson says. The airline is having difficulty with its planned expansion into Mexico, however, as the US Department of Transportation (DOT) recently suspended its review of a proposed joint venture between Allegiant and Mexico’s Viva Aerobus. Influenced by capacity restrictions at Mexico City’s Benito Juarez International airport, the decision “does not affect the merits of our application”, Anderson says, adding that “we have readied the areas within our control to be able to launch” if the deal is approved. The transborder commercial collaboration between the two ULCCs has been repeatedly delayed since it was first disclosed in late 2021. Allegiant reports that deliveries of its first two Boeing 737 Max aircraft have been delayed by about a month, pushing one delivery into 2024. The carrier is still expecting to take its first Max jet at the end of 2023, and to begin operating the type early next year. “Our 2023 capacity plans are not impacted by this delay,” says chief revenue officer Drew Wells.<br/>
