Allegiant Air parent reports increases in second-quarter profits, revenue
LAS VEGAS REVIEW-JOURNAL
Las Vegas-based Allegiant Travel Co., parent company of Allegiant Air, continued its financial roll, reporting double-digit percentage increases for revenue and earnings in the company’s second quarter.
The company on Wednesday reported earnings of $33.5 million, or $1.86 per share, up 29.8 percent from $25.8 million, or $1.34 per share, a year earlier.
Revenue rose 13.6 percent to $290.5 million from $255.8 million.
The results beat the average es- timate of 14 analysts by 7 cents a share.
Allegiant’s financial performance improved despite lower third-party ancillary revenue for the quarter and a load factor that was flat at 89.5 percent.
The company said the decline in third-party ancillary revenue was primarily because of the improving Las Vegas hotel market.
The company had a prepurchase agreement with an undisclosed casino company for discounted rooms in Las Vegas that ended in 2013’s third quarter. Allegiant’s new agreement with the company is not as at- tractive to customers because of the improving local market. As a result, the number of hotel room nights sold by Allegiant declined 19.8 percent from last year to 136,500.
The third-party ancillary revenue decline was partially offset by a 2.6 percent increase in the number of rental car days, driven primarily by a net increase in growth in Allegiant’s Florida destinations.
The company benefited from the addition of service on 12 new routes. Also, the company increased
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