Allegiant Fourth Quarter Down 27 Percent
Allegiant Travel, parent company of Allegiant Air, announced a fourth quarter net profit of USD$41.3 million, down 27.2 percent on the previous year.
Operating revenue for the quarter was 8 percent up at $335.9 million, while expenses rose 23.3 percent to $267.8 million.
Capacity in available seat miles (ASM) jumped 13.3 percent, and passenger traffic in revenue passenger miles (RPMs) was up 10.9 percent. The resulting load factor came in at 79.8 percent, 1.7 percentage points down on the prior year period.
For the full year to end December, 2016, Allegiant earned $219.6 million, a 0.4 percent dip from 2015.
Operating revenue rose 8 percent to $1.36 billion, but expenses were up 11.4 percent at $992.3 million.
ASM capacity for the full year was up 17.6 percent, with RPM traffic up 15 percent. Load factor was down 1.9 percent at 83.1 percent.
“2016 has been a very transformational year for Allegiant… we finalised a single fleet type plan [and] signed our first pilot contract agreement,” Allegiant Travel chief executive Maurice Gallagher said in a release.
Looking forward, Allegiant expects revenue per available seat mile (TRASM) to be down by between 1.5 and 3.5 percent in the first quarter 2017. First quarter costs per available seat mile excluding fuel are expected to rise by 10-12 percent, and in the full year 2017 by between 5 and 9 percent.