Allegiant Travel has posted a drop in its net income for the year owing to high oil prices, which also led the airline to cut flight schedules for the second quarter.
Net income for the year dropped 13.9% to $65.7 million, or $3.32 per diluted share, even though revenues rose 18.9% to $663.6 million. Its jet fuel bills rose 47%, more than double the rate of any other cost category due to a combination of rising prices, increased flying and because Allegiant operate an MD fleet.
The fourth-quarter earnings of $20.9 million, or 64 cents per share, marked a 17.5% gain from one year ago even though fuel again outpaced all other expenses. Revenue rose 20.3% to $162 million, as airline ticket sales, add-ons such as seat assignments and bookings for other travel items rose at about the same pace. At the same time the maintenance and sales and marketing budgets grew at a much lower pace than other expenses.