Allegiant Travel Company Sees Earning Increase

Allegiant Travel Company had a net income of $16.9 million during the third quarter of 2012, which equated to a 78 percent increase from the $9.5 million earned during the same period a year before.  Andrew Levy, the President of the company, believes that their success is a direct result of Allegiant Airlines beginning service to Honolulu in June of 2012.  Levy state, “Three-quarters of our flights, namely the Vegas market, is a market that has a lot of competitive capacity in there.  And the fact that we had a very short booking window, 60 days approximately before our first flight, makes us feel really, really good about Hawaii. Normally we want to have that booking window open for six to nine months for Hawaii because typically bookings are made a little bit further in advance. So, all things considered, we think Hawaii is off to a terrific start.”

Allegiant Airlines will begin offering additional flights in November to Hawaii from Bellingham, Washington, Fresno, Santa Maria, and Stockton, California and Eugene, Oregon.  The company also plans to start additional service from Phoenix, Arizona, Boise, Idaho and Spokane, Washington to Hawaii in February 2013.  Levy added, “It’s a little too soon to be able to really have a whole lot of clarity on the three routes we’re starting up in February.  We don’t want to hazard a guess there, but so far with what we have, we do feel really good about it. So we feel Hawaii is going to be extremely additive and it has been so far. We think that’ll continue as we go forward. At the same time, we’re going to learn about demand trends there and we’re going to be able to adjust both capacity and pricing decisions in the future as we get smarter with experience.

Source: Honolulu Star Advertiser, 10-25-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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