Allegiant shows passenger traffic growth, but some figures indicate slowdown
Allegiant Travel Co. continued its brisk growth in passenger traffic in May, although some key revenue figures slowed.
During the month, the 549,000 passengers carried on both Allegiant Air scheduled and charter flights marked an 18 percent gain from May 2011. At the same time, the number of miles each seat flew with a passenger in it rose 20.4 percent. Average flight length also grew.
However, the occupancy rates, known in the airline industry as load factor, dropped 0.8 percentage points to 87.3, as the schedule expanded faster than the number of passengers buying tickets.
For the month, Allegiant estimates that its total revenue for every seat mile flown will drop 7.5 percent to 7.9 percent. Last year, the company raised fares aggressively in the face of a sharp spike in fuel prices . Rising fuel prices have been less of a concern this year.
During the third quarter, Allegiant projects the number of flights will rise 2 percent to 6 percent and the number of miles each seat travels will rise 14 percent to 18 percent, again reflecting a trend to longer flights.
For the first time, the third quarter results will include service to Hawaii.
Allegiant Travel shares rose $1.04, or 1.67 percent, Wednesday to close at $63.46 on the Nasdaq Global Select Market.
Contact reporter Tim O'Reiley at
toreiley@reviewjournal.com or 702-387-5290.
