By DAN HEATH
Staff Writer
May 02, 2008 04:27 am
—
PLATTSBURGH -- Allegiant Air had a successful first quarter of 2008, partly due to its Plattsburgh flights.
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Allegiant Travel Co., the parent company of Allegiant Air, reported total operating revenue was up 58 percent to $133.1 million, compared to $84.3 million in the first quarter of 2007.
"Our first quarter was exceptional, particularly on the revenue side," Allegiant Travel Chairman, CEO and President Maurice Gallagher Jr. said in a press release.
He said that was at least partly due to the company's successful focus on achieving higher passenger loads per flight.
"Our scheduled system had the highest domestic load factor in the industry at 86.9 percent, a 4.4-percentage-point increase from first quarter 2007," Gallagher said.
PLATTSBURGH STRONG
Allegiant Air spokeswoman Tyri Squyres said Plattsburgh continues to exceed the company's expectations.
"Air service there is an important part of our equation. We've had very good loads coming out of Plattsburgh."
Allegiant launched its Plattsburgh-Fort Lauderdale, Fla., service on Nov. 16, with two flights a week each way.
It added two flights a week each way on Feb. 2 and two flights a week each way between Plattsburgh and Orlando, Fla., on Feb. 1.
The company reported 1,154,710 total passengers in the first quarter of 2008, compared with 753,239 in the first quarter of 2007, a 53-percent increase. Separate figures for Plattsburgh were not available.
HIGHER FUEL COSTS
Gallagher said Allegiant's operating margin declined 6.2 percent, from 17 percent to 10.8 percent. That was due to a 103.6-percent increase in fuel costs from the first quarter of 2007 to 2008, from $31.1 million to $63.4 million, due to higher fuel costs and the addition of flights.
"Once fuel prices stabilize, I am confident we will stabilize this trend," he said.
Allegiant served 49 airports at the end of March 2007. That increased to 58 airports as of April 29.
Allegiant introduced four additional MD-80 aircraft in service between January and March, for a total of 36. It has since added one more, a figure expected to remain the same through the second quarter of 2008.
Scheduled departures increased by 46 percent, from 5,674 from the first quarter of 2007 to 8,291 this year. Allegiant expects that figure to increase another 33 percent in the second quarter of 2008 compared to that time frame in 2007.
Squyres said Allegiant stock closed at $20.80 per share on Monday night. It had risen to $28.74 per share by mid-afternoon Thursday.
GOOD SIGN
Plattsburgh-North Country Chamber of Commerce President Garry Douglas said Allegiant's success at Plattsburgh International has been phenomenal.
"They are giving us proof that air service can succeed here and can draw strongly from north of the border. Indeed, they are drawing not only from Montreal but from Quebec City and Albany, demonstrating a catchment area that extends over a three-hour drive time.
"Their extremely strong start here has attracted notice from other carriers and has positioned us to draw additional service here in the year ahead, in spite of the volatility in the air-service market."
dheath@pressrepublican.com
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