Allegiant Travel Co., parent company of Las Vegas-based Allegiant Air, reported its 50th straight profitable quarter on Wednesday despite lower ticket prices and load factors than the same quarter a year ago.
The expansion of the Allegiant network, particularly with growth in Cincinnati, Indianapolis and Austin, Texas, were cited by the company for expanding revenue by 10.9 percent and income by 62.1 percent for the quarter that ended June 30.
The airline reported income of $54.3 million, $3.18 a share, on revenue of $322.1 million, compared with $33.5 million, $1.86 a share, on revenue of $290.5 million for the same quarter in 2014.
“This is rare in our industry and demonstrates the flexibility of the company and the model through the extremes of the past dozen years,” said Allegiant Chairman Maurice Gallagher in a statement issued with earnings results.
“During this streak, we have seen macrodisruptions in our economy including extremely high oil prices, significant financial disruptions and a recession,” Gallagher said. “Throughout these years, our model of maintaining low costs and the flexibility to react to this constantly changing landscape has been critical to our long-term success.”
The average fare for an Allegiant flight fell 14.3 percent to $76.77, but the collection of ancillary fees increased 15 percent compared with the second quarter of 2014. That revenue, combined with sales of third-party products on Allegiant flights, resulted in an overall decline of 5.1 percent to $128.03 for the average ticket.
Allegiant flights also weren’t as full as they were a year ago. The company said the average flight carried 143 passengers, 4 percent fewer than last year.
But despite the lower loads, Allegiant recorded 2.4 million passengers for the quarter, 15 percent ahead of last year. That’s because the company has strengthened its position in Cincinnati and Indianapolis.
Last week, Allegiant announced that in January it would open its 14th crew base at Cincinnati-Northern Kentucky International Airport, stationing three aircraft and 90 employees there.
In announcing the base expansion, Allegiant also announced plans for five new weekly flights on the fall and winter schedule, bringing the total number of operations to 35 a week there. By comparison, Allegiant currently has 160 operations a week in Las Vegas.
The airline also benefited from a 24.3 percent decline in fuel costs and flying a higher proportion of more fuel-efficient Airbus A320 family jets. The company said it flew Airbus planes 8.5 hours a day compared with 5.1 hours a day for less-efficient MD-80 jets.
Allegiant shares fell $1.85, or 0.89 percent, to close at $205.61 in regular trade. In afterhours trade, shares gained $1.29 or 0.63 percent.
Contact reporter Richard N. Velotta at firstname.lastname@example.org or 702-477-3893. Find @RickVelotta on Twitter.