Allegiant Travel Company, parent of Allegiant Airlines, has reported a 11.4% increase in revenue during the fourth quarter to $310.9million compared to the prior-year period. Operating income rose 534% to $93.8million compared to $14.8 million in Q42014. Net income rose to 56.7million from $4.8million.
For the full year 2015, Allegiant total operating revenue rose 11% to $1.262bn, with operating income up 136.2% to $371million and net income up 154.2% to $220.4 million.
“I am happy to report that we had another profitable year,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “The drop in global energy prices was a big contributor to these results, and once again the team executed on our unique model, generating operating margins just short of 30% for the year. We also faced operational challenges during the year. To that end, I have asked Scott Sheldon and Jude Bricker to take over certain of these areas. Scott will oversee our Inflight and Operations control areas. Jude will now lead the Flight operations and Maintenance teams, as well as taking on the title of COO of Allegiant Air. Over the past ten years, these gentlemen have demonstrated excellent managerial skills and have been critical to our success. I am confident these skills will benefit the operational groups they will be supervising."
During the fourth quarter scheduled service ASMs grew by 25 percent; cities by nine percent, routes by 27 percent.
Allegiant raised $28 million in debt secured by two A319 aircraft in December, and entered into a senior secured revolving credit facility in December with the ability to borrow up to $56 million.
During 2015, average fare-scheduled service decreased by 14 percent versus last year. Off peak flying was 24 percent of ASMs for the fourth quarter versus 20 percent a year ago. New markets (markets operating less than one year) were 16 percent of ASMs for the fourth quarter versus six percent a year ago. Average fare-total decreased by seven percent versus last year.
Looking ahead, Allegiant expects first quarter TRASM to decrease between 13 and 11 percent versus the first quarter last year. Off peak flying is expected to be 26 percent of ASMs for the first quarter. New markets (markets operating less than one year) are expected to be 12 percent of ASMs for the first quarter.