Higher fuel costs drive down Allegiant profits

Despite higher airfares and more vacation package sales, Las Vegas-based Allegiant Travel Co.’s sharply higher fuel and maintenance bills caused profits to drop in the fourth quarter.

The parent of Las Vegas carrier Allegiant Air on Wednesday said net income declined 12.7 percent to $10.8 million, or 56 cents a share. The result matched the 56 cents per share estimate of 15 analysts polled by Yahoo Finance.

A year earlier, the company reported net income of $12.4 million, or 64 cents per share.

Revenue increased 19.7 percent to $193.9 million from $162 million.

The average fare paid by passengers went up 12.3 percent to $91.66. Total revenue per passenger, including charges such as seat assignments and checked bags plus commissions on hotel and rental car bookings, rose 9.6 percent to $128.05.

Meanwhile, the fuel bill increased
31.4 percent and maintenance
45.5 percent, the latter due to an extensive engine overhaul program.

Full-year net income came in at
$49.4 million, or $2.57 per share, down from $65.7 million, or $3.32 per share, a year earlier.

Full-year revenue rose 17.4 percent to $779.1 million from $663.6 million.

Contact reporter Tim O’Reiley at toreiley@reviewjournal.com or 702-387-5290.

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