Allegiant books 17th consecutive profitable year in 2019
Allegiant Air’s parent company booked its 17th-straight profitable year in 2019 as revenue growth outpaced expenses.
Las Vegas-based Allegiant Travel Co. on Wednesday said it earned $232.1 million in net income last year, up 43.4 percent from 2018.
It booked $1.84 billion in operating revenue in 2019, up 10.4 percent from the year before, and about $1.48 billion in operating expenses, up 3.7 percent.
The deep-discount carrier is known for flying from small, under-served cities to warm-weather vacation spots, usually without competition on its routes. Its fleet used to be dominated by older, hand-me-down McDonnell Douglas MD-80s, but it now flies only Airbus jets that are younger and often have more seats than the former aircraft.
Among its expenses, the airline spent $427.8 million on jet fuel last year, down 4 percent from 2018, and $91.7 million on maintenance and repairs, down 7.4 percent.
Allegiant, led by Chairman and CEO Maurice “Maury” Gallagher, expanded into some unusual side ventures for an airline in the past several years. It owns a golf-course-management software business, is developing a riverfront resort in Florida and owns two arcades — one in Utah and another in Michigan — that feature laser tag, bumper cars and escape rooms.
The carrier announced in July that the software business, Teesnap, was up for sale, and said Wednesday it is in negotiations with an unidentified potential buyer.
Meanwhile, it signed a deal, announced in August, to have the Raiders football stadium being built in Las Vegas named Allegiant Stadium. It unveiled another marketing move in pro football Wednesday, saying it is now the “official airline” of the Indianapolis Colts.
Allegiant has sponsored the team since 2015, but under the agreement, the upper terrace level of the Colts’ home field, Lucas Oil Stadium, will be named Allegiant Terrace Level and offer gameday activities and contests.
The airline said it would also will give Indiana residents “the chance to compete to be permanently featured on one of 133 banners on the terrace level, immortalizing their Colts fandom for the world to see.”
For the fourth quarter, Allegiant earned $60.5 million in profit, up 46.1 percent from the same period in 2018.
Allegiant shares closed Wednesday at $163.16, down 4.45 percent, or $7.60.
Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.