Allegiant Keeps the Cash Flowing

  • Iniciador del tema Boeingstore
  • Fecha de inicio
B

Boeingstore

Guest
Allegiant Keeps the Cash Flowing
By Adam Levine-Weinberg | More Articles | Save For Later
October 28, 2013 | Comments (0)

Allegiant Travel (NASDAQ: ALGT ) had a rough September, as a maintenance issue related to many of its evacuation slides led to widespread delays and flight cancellations. Allegiant had to issue about $1 million in refunds to customers while also incurring additional costs to lease planes from other airlines to get passengers to their destinations.

Yet despite all those handicaps, Allegiant managed to post a record profit last quarter. This strong result is yet another reminder that Allegiant is perhaps the most consistent airline in the industry in terms of financial performance. Shareholders have reaped big gains from that success over the last 10 years, and there is plenty of room for growth going forward.

Another good quarter
Allegiant grew EPS from $0.87 to $0.91 in Q3 despite the financial impact of its slide maintenance problem and investments the company is making to support future growth. A 5.8% year-over-year increase in fuel efficiency was the main driver of Allegiant's financial improvement.

EPS also grew faster than net income because of the company's share repurchase program, and the company bought back another 491,000 shares during the quarter. In fact, Allegiant has the most aggressive policy of returning cash to shareholders of any airline. Allegiant's strong balance sheet makes this possible -- the company has significantly more cash than debt.

Let the good times roll
While Allegiant already has a very lean cost structure that is rivaled only by Spirit Airlines (NASDAQ: SAVE ) , it continues to work to push costs down further. Allegiant introduced its first Airbus A320-series jets earlier this year, and the company expects Airbus jets to make up a quarter of its fleet by the end of 2015.

These Airbus aircraft are at least 15% more fuel-efficient than the MD-80s that are the backbone of Allegiant's current fleet. They will also be significantly more reliable and will require less maintenance work because they are younger. Lastly, the Airbus aircraft will be able to serve some routes that are not feasible with MD-80s.

Expansion continues
One of the best things about Allegiant for investors is the company's solid long-term growth profile. Allegiant is adding 12 new cities to its route map over the next two quarters, and has 29 new routes scheduled to begin in the fourth quarter alone.

International service is one long-term opportunity that Allegiant's management has been pursuing recently. Allegiant is currently making the necessary technology improvements to support international service and working through the regulatory issues. However, Allegiant President Andrew Levy is very confident that the company will start service to Mexico by the end of 2014.

This will open a host of new route opportunities for Allegiant that fit right into its business model. The company plans to fly from smaller cities in Mexico to U.S. leisure destinations like Las Vegas, while also flying from smaller U.S. cities to Mexican resort areas.

Foolish bottom line
Allegiant's strategy of constantly pushing down costs and focusing on underserved markets has made it the most consistent airline in the U.S. in terms of profitability. Its ability to earn a record profit in spite of last month's evacuation slide snafu showcased that strength. Moreover, the company's current growth initiatives give shareholders a lot to look forward to in the years to come.

What does the future hold for the market's recovery?
With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!
 

MayerFM

Well-Known Member
Para 2014 lo que ya solicitó ante el DOT es volar estas rutas:

Hermosillo-Las Vegas
Los Cabos-Las Vegas

Por el momento es todo lo que hay de Allegiant en México para el año entrante.

Saludos.
 

MayerFM

Well-Known Member
Hola. En 2013 la aerolínea estadounidense Allegiant Air obtuvo el permiso para operar vuelos en las rutas Las Vegas-Hermosillo y Las Vegas-Los Cabos, iniciando en junio de 2014; hoy envió un documento al DOT y por lo visto no la estaremos viendo en México por lo pronto, pues dice que:

Allegiant Air has decided not to initiate scheduled service between Las Vegas, Nevada, on one hand, and Hermosillo and San Jose del Cabo, Mexico, on the other hand, for the foreseeable future.

Ni hablar. Saludos.
 

MayerFM

Well-Known Member
Desde hace algunos años la aerolínea estadounidense Allegiant opera un número de vuelos chárter a México y creo que ya más de una vez ha presentado su solicitud para realizar operaciones regulares entre Estados Unidos y nuestro país (la más reciente en 2013), sin lanzar sus servicios; bueno, hoy nuevamente presentó una solicitud ante el DOT para volar a México, a ver si ahora sí...

Un comunicado de prensa al respecto:

LAS VEGAS, April 22, 2019 /PRNewswire/ -- Allegiant (NASDAQ: ALGT) today signaled its next phase of growth as the industry leader in offering affordable, non-stop flight options for leisure travelers by filing an application with the U.S. Department of Transportation to offer scheduled service between the United States and Mexico.

Known for innovation in linking travelers in small-to-medium cities to top vacation destinations, Allegiant currently serves more than 450 domestic routes. This will be the company's initial venture into scheduled international service.

"Unlike other U.S. carriers, Allegiant has always been laser-focused on leisure travel and providing access to affordable, non-stop flights for those who wouldn't otherwise be able to go on vacation," said Maury Gallagher, Allegiant chairman and chief executive officer. "Offering service to Mexico will provide a whole new array of options for travelers to discover world-class destinations that may have been previously out of reach."

"We believe that providing scheduled service to Mexico will also be of great economic benefit, by stimulating traffic and providing additional competition in the international leisure market," he continued. "It will not only bring exceptional value to travelers, but will also enhance both tourism and business impact in the communities we serve."

The DOT application is the first step in the process for Allegiant to begin scheduled service to Mexico. Projected dates and locations for commencement of service will be announced at later dates as the process moves forward.
FUENTE: Allegiant Files Application With U.S. Department Of Transportation To Offer Scheduled Service To Mexico

Saludos.
 
Arriba