Allegiant Air reports increase in travelers

Discount airline Allegiant Air continues to buck industry trends with increased occupancy last year despite greater available capacity, the airline announced Tuesday morning.

The Las Vegas-based carrier increased its traffic 28.1 percent in 2009 to 4.48 billion passenger miles, while the company’s capacity increased 27.4 percent.

Average occupancy climbed slightly to 90.4 percent from 89.9 percent in 2008. The company saw 4.92 million passengers last year.

The airline, which flies small-city travelers to Las Vegas and Orlando, Fla., said traffic increased 18.6 percent to 406.2 million passenger miles in December outpacing its capacity growth of 16.1 percent for the month.

Fourth quarter traffic increased 25.4 percent 1.05 billion passenger miles while capacity grew 24.7 percent.

Average occupancy for December and the fourth quarter was nearly 90 percent.

The data comes a day after Allegiant announced an agreement to buy 18 MD-80 airplanes from Scandinavian Airlines System. The company said 13 of the planes will by in service by the end of 2011 and five would be used for parts.

The company will take delivery of the aircraft during the first three quarters of this year.

The purchase, which is estimated at $4 million per plane including maintenance and conversion costs, is expected to satisfy the company’s growth needs through 2011, the company said in a release.

“Our ability to acquire such highly-reliable aircraft at attractive economics permits Allegiant to closely tailor our capacity to demand, a key element of our leisure-oriented business model,” Allegiant Chief Financial Officer and President Andrew Levy said in a statement. “We believe these are clearly the best MD-80 aircraft available, having an unbeatable maintenance pedigree and being sister ships to 11 aircraft already in our fleet, thereby enhancing fleet commonality.”

This is the fifth transaction between Scandinavian Airlines Systems and Allegiant, which currently operates 46 MD-80 aircraft.

Allegiant expects to operate 52 aircraft by the end of this year and 60 by the end of 2011.

Allegiant Air is a wholly owned subsidiary of Allegiant Travel Co.

Shares of Allegiant Travel Co. were up 2.77 percent, or $1.33, to $48.52 per share in early trading.

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.