Allegiant finds recipe for success, more than triples full-y

Allegiant finds recipe for success, more than triples full-year profit
Thursday January 31, 2008
Allegiant Air parent Allegiant Travel Co. appears to have found the right formula in the congested US market as efforts to develop ancillary revenue streams and expansion into high-demand leisure markets helped produce a $31.5 million full-year profit, more than triple the $8.7 million earned in 2006.

"We have previously demonstrated the ability, over time, to improve margins in the face of substantial fuel price increases and we fully expect to do so this time as well. We remain confident in our business model, its profitability potential and our ability to execute," Chairman, President and CEO Maurice Gallagher Jr. said.

Full-year operating revenue soared 48.2% to $360.6 million as Allegiant added service to Phoenix, Mesa and Fort Lauderdale and increased its MD-80 fleet to 32 aircraft from 24. Ancillary revenue per passenger rose 33.6% year-over-year to $21.53. Expenses climbed 43.4% to $316.5 million and operating profit nearly doubled to $44.1 million from $22.6 million.

http://www.atwonline.com/news/story.html?storyID=11579

Good for them, they found one heck of a niche market. Was at LAS last year and couldn't believe some of the places I saw them flying to, but I guess there's big untapped demand for direct flights to Vegas and the like from small cities that are not served or are underserved by larger airlines. They are probably selling a lot of packages as well since they must have big buying power (and therefore good prices) at hotels, tour operators, shows etc.