Allegiant Air Remains Solidly Profitable Despite Higher Fuel Prices and Other Challenges
Photo Credit: Allegiant is replacing its MD80s with Airbus aircraft, like the one pictured here. Airbus / P. Pigeyre
Skift Take
Other than Southwest, Allegiant Air is the most consistently profitable airline in the United States. But given higher fuel prices and some recent negative press, how long will Allegiant's streak last? We're betting it continues for awhile.
Allegiant Air continued to generate big profits in the second quarter, despite facing several challenges that include rising fuel prices, an aircraft shortage, a key executive's departure, and an investigative news report questioning the carrier's maintenance practices.
After markets closed Wednesday, Allegiant reported net income of $50 million on total revenues of 436.8 million, giving the airline its 62nd consecutive profitable quarter, even though its fuel price per gallon rose 39 percent compared to last year.
Allegiant's total revenue per available seat mile, or TRASM, which measures how much money an airline makes for each seat flown one mile
