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Saturday, September 23, 2023

Allegiant Air posts net profit for 2021

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Despite the negative impact of COVID-19 on the airline’s operations, US ultra-low-cost carrier Allegiant Air has reported a net profit for 2021.

Allegiant Air reported a net profit of $152 million in 2021, according to its financial statistics. This compares to a net loss of $184 million in 2020.

“Despite impacts from multiple variants throughout the year, we grew scheduled capacity more than eight percent when compared to 2019,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant (ALGT).

The airline’s load factors significantly improved throughout the year, peaking at 77 percent in the fourth quarter, up more than 20 points from the first quarter of 2021.

In addition, Allegiant (ALGT) increased its fourth-quarter revenue by 7.8% compared to the previous year, ending the year with total operating revenue of $1.7 billion, just 7% down from the previous year.

“As we exited 2021, the operation was challenged by impacts from the Omicron variant. We saw unprecedented crew shortages due to COVID, resulting in canceled flights during the peak holiday travel season and persisting throughout January,” Gallagher added.

This spring and summer, the airline anticipates robust leisure demand.

“Over the past several months, the booking curve has normalized to its pre-COVID state, and although early, we are beginning to see positive demand trends into early summer,” Gallagher explained.

Allegiant Air stated in late 2021 that it would expand its fleet by acquiring 50 Boeing 737 MAX aircraft, with the option to order another 50. Allegiant (ALGT) has chosen two Boeing 737 MAX 7 and Boeing 737 MAX 8200 variants.

Allegiant (ALGT) will receive the first batch of jets in 2023, with the remainder of the planes arriving in 2024 and 2025.

Allegiant (ALGT) is moving vendors and perhaps replacing its older Airbus fleet of A319 and A320 jets with this large order. However, no plans for aircraft retirement have been announced by the airline.

“The recently announced Boeing transaction will increase incremental route opportunities to 1,400, which represents more than ten years of growth,” according to Gallagher.

The airline now has a fleet of 113 aircraft, comprising 35 Airbus A319s and 78 Airbus A320s. The airline said in a statement that it plans to have 127 planes by 2022.


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