Putting the GIANT in Allegiant

Allegiant Air posted tremendous 2023 second-quarter operating revenues of $683.8-million—the highest in the company’s history. Moreover, the airline’s Q2 2023 profit soared to a princely $88.5-million—a 411-percent year-over-year increase.

Allegiant’s management ascribed the favorable figures to both ongoing demand for leisure air-travel and recent expansion of the airline’s route network.

Looking to the future, Allegiant intends to promote operational stability by negotiating binding labor contracts with its pilot and flight-attendant cadres. The airline seeks, also, to further grow its route network and capacity by adding no fewer than fifty Boeing 737-MAX family aircraft to its fleet over the next two years.

Notwithstanding high fuel prices, Allegiant’s Q2 2023 expenditures were a relatively reasonable $550.4-million—an 8.8-percent reduction from Q2 2022’s $603.7-million.

Allegiant Travel Company CEO John Redmond stated: "These outstanding results are attributable to the hard work of our team members during this peak summer travel period. I could not be happier with the success the team delivered this quarter. Achieving industry-leading operational performance of 99.7-percent in the backdrop of a challenging operational environment is admirable. This operational success has catalyzed the strong financial performance delivered year-to-date."

Allegiant’s historically contentious relationship with its pilots and flight attendants has been assuaged of late—to some extent, anyway—by the penning of new tentative agreements with such. To the subject of bettering the quality and profitability of its operations, the air-carrier recently broadened its network by six new routes. Furthermore, Allegiant has hinted late 2023 could see yet more new locales added to its list of destinations.

On Monday, 07 August 2023, the U.S. Department of Transportation (DOT) will review the application for a proposed joint venture between Allegiant Air and Mexican ultra-low-cost carrier Viva Aerobus. The conjectural 15-year alliance would see the two air-carriers share revenue and take mutual advantage of scheduling, marketing, and sales benefits.  Allegiant formerly proposed, as part of the deal, to purchase a $50-million stake in Viva.

Allegiant set forth its partnership with Viva Aerobus would allow the public greater access to affordable and convenient air-travel options, and afford customers opportunity to “enjoy the incredible leisure and entertainment experiences that await them in both countries."

The labor union by which Allegiant’s pilots are represented oppose the air-carriers proposed alliance with Viva Aerobus. Union leaders have contended vigorously and persuasively that such an agreement would incentivize Allegiant to replace U.S. pilots with lower-paid Mexican pilots.

Founded in 1997 as a wholly-owned subsidiary of Allegiant Travel Company, Allegiant Air is a Summerlin, Nevada-based, U.S. ultra-low-cost Part 121 air-carrier and North America’s 14th-largest commercial airline.

Allegiant’s fleet comprises 35 Airbus A319-100 and 91 Airbus A320-200 narrow-body aircraft. In January 2022, the airline ordered fifty Boeing 737-MAX family aircraft—thirty MAX-7 and twenty MAX-200 jets—deliveries of which are slated to commence in late 2023.

The 737-MAX-200 is a high-density iteration of the MAX-8. The model’s moniker derives of its two-hundred-passenger seating-capacity.

FMI: www.allegiantair.com