The parent company of Las Vegas-based Allegiant Air, a discount carrier that connects small cities to resort destinations, reported earnings today for the third quarter ending Sept. 30.
Company: Allegiant Travel Co. (NASDAQ:ALGT)
Revenue: $265 million (up 16 percent from the same period last year).
Earnings: $14.2 million in profit (down 17 percent from the same period last year).
Earnings per share: 80 cents (down 12 percent from the same period last year).
Allegiant, with small base fares and lots of add-on fees, said its average total fare last quarter was $129.95, down 0.8 percent from a year earlier.
Within that, however, the average fare for ancillary air-related charges grew 2 percent to $39.79, in part because of a $5 fee to print a boarding pass at the airport ticket counter. The fee took effect Sept. 1.
Operating costs grew at a faster pace than revenue, rising 18 percent to $236.2 million. The company spent almost $95 million on aircraft fuel — its largest expense — up 6.4 percent from a year earlier. Sales and marketing expenses also rose sharply, climbing 73 percent to $7.8 million.
Overall, Allegiant flew 1.9 million passengers last quarter, up 13.6 percent year-over-year.
It was its 47th consecutive profitable quarter.