Allegiant Air, the ultra-low-cost carrier (ULCC) based in Las Vegas, has reported record profits for the second quarter (Q2) of 2023, driven by strong demand in the leisure sector. The airline achieved a profit of $88.5 million during this quarter, with operating profits reaching $133 million. Revenues also saw a notable increase, totaling $683.8 million, representing an 8.6% growth compared to Q2 2022. This figure marks the highest quarterly revenue in the history of Allegiant Air.
Costs, including fuel and operating expenses, decreased to $550 million from $604 million last year. The airline attributes these outstanding results to the dedication and hard work of its team members, who performed exceptionally well during the peak summer travel period. Achieving a remarkable 99.7% controllable completion for the quarter, Allegiant Air delivered industry-leading operational performance.
In line with its positive financial performance, Allegiant Air announced the addition of six new routes to its network in July. These new routes include Fort Lauderdale-Hollywood International Airport to Nashville International Airport and Eastern Iowa Airport, Punta Gorda Airport to Bangor International Airport, Melbourne Orlando International Airport to Lehigh Valley International Airport, Phoenix-Mesa Gateway Airport to Portland International Airport, and Orlando Sanford International Airport to Minot International Airport.
However, the delivery of Allegiant Air’s first pair of Boeing 737 MAXs, part of an order for 50 with options for an additional 50, has been delayed. The airline now expects to receive the first aircraft by the end of 2023, with the second to follow in 2024. Despite the delay, Allegiant Air assured that its capacity plans for 2023 will remain unaffected.
Looking ahead to its full-year results, the airline stated that its guidance would remain unchanged. CEO John Redmond expressed his satisfaction with the team’s success, emphasizing their ability to achieve exceptional operational performance in a challenging environment. This success has been the driving force behind the strong financial performance reported year-to-date.
Allegiant Air’s robust profits in Q2 2023 reflect the rising demand for leisure travel, showcasing the airline’s ability to capitalize on this trend. With its commitment to operational excellence and the expansion of its route network, Allegiant Air is poised for continued success in the air travel industry.
