Las Vegas’ Allegiant Travel Co. posts profitable quarter as earnings slip

Las Vegas-based Allegiant Travel Co., parent company of Allegiant Air, wrapped up its 56th straight profitable quarter with a decline in fourth-quarter earnings, but a course that includes a new fleet plan and planes, routes and executive structure.

The company on Tuesday reported net income of $41.3 million, $2.48 a share, on revenue of $335.9 million for the quarter that ended Dec. 31. That compares with net income of $56.7 million, $3.38 a share, on revenue of $310.9 million in the fourth quarter of 2015.

The company beat a projected earnings estimate of 12 analysts by 8 cents a share and predicted revenue of $333.2 million by seven analysts.

For the year, revenue was up 8 percent to $1.36 billion while net income was down 0.4 percent to $219.6 million and earnings per share was up 2.1 percent to $13.21 per share.

The company also announced it would pay a first-quarter dividend of 70 cents a share on March 15 to shareholders of record on March 3.

In a conference call with investors Tuesday, Chairman and CEO Maurice Gallagher characterized 2016 as a year of transformation for Allegiant, finalizing a fleet transition to twin-engine Airbus 320-series jets and implementing the airline’s first pilot union contract.

The company also restructured its executive team, creating an executive vice president level and placing senior vice presidents Jude Bricker, Scott Allard and Scott Sheldon into those positions. The company also appointed four senior vice presidents: Greg Anderson, principal accounting officer; Lukas Johnson, planning; Trent Porter, financial planning; and Rob Wilson, systems.

At the end of 2016, Allegiant flew 360 routes compared with 296 a year earlier and in the current quarter, the airline will add Newark and Trenton, New Jersey, and San Juan, Puerto Rico to its route map.

Allegiant Travel stock closed down 90 cents, 0.5 percent, to $172 a share in light trading Tuesday. In extended trade after markets closed Tuesday, shares rose more than 1 percent.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.