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Allegiant records fall in Q3 net profit



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By: Ghim-Lay Yeo Washington DC
09:31 26 Oct 2011
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Allegiant Air has posted a 27.9% fall in net income to $9.49 million for the third quarter, due to higher costs including aircraft fuel.

The airline's operating income declined 14.1% to $16.7 million from the corresponding quarter a year ago.

Operating revenue rose 17% to $192 million, but costs increased 21.2% to $175 million on the back of a 34.6% growth in fuel costs to $84.1 million.

Allegiant's scheduled passenger traffic declined 0.6% during the quarter, while capacity was down 3.3%. The load factor rose 2.6 percentage points to 92.2%. Scheduled passenger numbers declined 0.7% to 1.48 million during the quarter.

The passenger revenue per available seat mile (PRASM) for scheduled service rose 24.5% to 8.58 cents and the total revenue per ASM increased 19.5% to 12.19 cents, said Allegiant.

In its revenue guidance for October, Allegiant expects PRASM to grow between 16% and 18%, and to grow between 11% and 13% in the fourth quarter this year.

Allegiant forecasts scheduled capacity in the fourth quarter to grow between 5% and 9%, and to stay flat or grow up to 4% for the full year of 2011.

http://www.flightglobal.com/news/articles/allegiant-records-fall-in-q3-net-profit-363928/