Allegiant Reports First Quarter 2008 Financial Results

[chperplt]

Sorry for the formatting...



Allegiant Travel Company Reports First Quarter 2008 Financial Results


LAS VEGAS, April 28, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Allegiant Travel Company (Nasdaq: ALGT), parent company of Allegiant Air and Allegiant Vacations, today reported the following first quarter 2008 results, and comparisons to prior year equivalents:

....................................Unaudited 1Q08 1Q07 Change
Total operating revenue (millions) ...$133.1 $84.3 57.8%
Operating income (millions) ...........$14.4 $14.3 0.4%
Operating margin .....................10.8% 17.0% -6.2p
Net income (millions) .................$9.7 $9.7 (0.8)%
Diluted earnings per share .........$0.47 $0.48 (2.1)%
Diluted non-GAAP earnings per share
adjusted by excluding
non-cash mark-to-market loss/gain
on fuel derivatives (reconciled to GAAP on pg. 7)
.............................................$0.47 $0.38 23.7%

Scheduled Service:
Average fare - ancillary ..........$25.75 $18.98 35.7%
Total revenue per ASM (cents) ...10.61 9.14 16.1%
Average stage length (miles) .......907 926 (2.1)%
Total System*:
Operating expense per ASM (CASM)(cents)9.35 7.51 24.5%
CASM, excluding fuel (cents) ....4.35 4.17 4.3%
Average stage length (miles) ...............854 930 (8.1)%

 

[suupah]

http://biz.yahoo.com/prnews/080428/lam539.html?.v=4
glad to see someone is doing well

 

[shroomwell]

They hedged their fuel well, otherwise it would have been a small loss or breakeven. All in all pretty darn good when runny a fleet of old Mad Dogs.

 

[crxpilot]

They hedged their fuel well, otherwise it would have been a small loss or breakeven. All in all pretty darn good when runny a fleet of old Mad Dogs.

Allegiant doesnt hedge fuel.

 

[anewunion]

It's all about the beef Jerky...

 

[Daytonaflyer]

Glad we made a profit. Sad knowing that Exxon Mobil made our entire 1Q profit in less than 5 minutes...those A-Holes!

 

[NEDude]

Could it be that they pay next to nothing for their airplanes and it doesn't cost them to sit them for a day or two if the market doesn't call for a flight?

Compare that to an airline that buys/leases a relatively new fleet of high demand aircraft and has to pay huge monthly lease fees.

 

[Daytonaflyer]

I'm sure that's a big part of it.

 

[chperplt]

Could it be that they pay next to nothing for their airplanes and it doesn't cost them to sit them for a day or two if the market doesn't call for a flight?

Compare that to an airline that buys/leases a relatively new fleet of high demand aircraft and has to pay huge monthly lease fees.

That's absolutely a part of our success... We have good management and a good business plan.

 

[Caveman]

That's absolutely a part of our success... We have good management and a good business plan.

I agree, but they also have unusually low pilot labor costs. Consider the following:

Roughly 255 pilots
Current CA pay yrs 1-5: $61,$85,$90,$96,$101
Current FO pay yrs 1-5: $41,$51,$53,$56,$56
Give CA a $30 per hr raise & FO a $10 per hr raise
If you do the math it works out to $1.4M per quarter

IOW, part of Allegiant's success is because their pilots are severely underpaid compared to other MD80 pilots. I understand it's necessary to keep costs under control when an airline is just starting. However, once an airline is comfortably established they need to start paying their pilots a more industry standard wage. It's time for Allegiant management to pay up. If they can make money in this environment they can afford a decent raise for the pilots.