Ultra-low-cost US airline Allegiant Air has released its results for the first quarter of 2022, revealing revenues of more than $500 million. This represents an increase of 10.7% compared to the same period in 2019.
Passenger numbers and load factors also increased. The airline carried a total of 3,709,104 passengers in the period from January to March this year, an increase of 8.4% compared to 2019. The average load factor increased by 0.4 points percentage to reach 86.5%.
Drew Wells, Senior Vice President of Allegiant Air, said:
“Demand began to recover in earnest in mid-February, resulting in load factors for March above levels seen in 2019. Strong demand continued into the second quarter, growth in bookings exceeding expected capacity growth for the quarter.”
2022 has started well for Allegiant Air, with an increase in passenger numbers and revenue. Photo: Airbus
Build on last year’s return to profitability
Following the impact of the pandemic, Allegiant Air returned to profitability in 2021, recording a profit of $152 million. If passenger and revenue growth continues on the upward trend shown in the first quarter, 2022 could well be even more fruitful for the ultra-low-cost carrier.
However, the airline has already started to feel the pinch of rising fuel costs. Chief Financial Officer, Gregory Anderson, commented,
“‘Our average cost of fuel per gallon was $3.07, which was further accentuated when we closed the quarter paying $3.46 during the month of March. The fuel surge resulted in $22 million higher-than-expected fuel expense in the quarter and was the primary driver of our loss per share of 0.44 cents.”
Rising fuel prices could affect the airline’s profitability this year. Photo: Allegiant Air
About Allegiant Air
Allegiant Air was founded in January 1997 as WestJet Express. Due to similarities with Canada’s WestJet, the decision was made to change the name to Allegiant Air the following year.
Today, the airline has a fleet of 121 aircraft and is the fourteenth largest commercial airline in North America in terms of passengers carried. After bidding farewell to the last of its MD-80s in 2018, its fleet now consists of Airbus A319s and A320s. It also has 50 Boeing 737 MAX aircraft on order, with deliveries expected to begin in 2023.
Allegiant Air operates flights from 22 bases across the United States, including Orlando Sanford International Airport, where it is the largest carrier, and Harry Reid International Airport in Las Vegas.
Allegiant Air is expected to receive the first of its Boeing 737 MAX in 2023. Photo: Allegiant Air
The airline’s CEO, Maurice Gallagher, has announced he will step down this summer, after leading the airline for more than 20 years. The company’s president since 2016, John Redmond, will take the reins on June 1.
While passenger and revenue figures look promising so far, Allegiant Air’s new CEO will have to rise to the challenge of rising fuel costs and try to minimize any impact this may have on the company’s financial performance. airline in the future.
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