Numbers look good for Gateway airline

Saturday 07/10/2017 - Source: Airline Weekly

The struggles of the real estate market have not hurt Allegiant Air, and the company's prospects include service to at least 45 new small cities in the United States and Canada.

Those conclusions are part of a management presentation made in September that was filed with the U.S. Securities and Exchange Commission. The report also says the company, scheduled to begin service at Williams Gateway Airport this month, has a unique business model, low operating costs and faces minimal competition on its routes.

"I've been impressed with both their financials and their traffic," said Doug Abbey, partner with The Velocity Group, a Washington, D.C. - based aviation market research and consulting firm. "I think they have definitely carved out a nice niche for themselves. I concur that there is significant market potential for what they do."




In the third quarter , the company carried 750,170 passengers on its regularly scheduled flights, an increase of about 57 percent from the third quarter of 2016. The company's regularly scheduled departures rose about 44 percent in the same period.

For the second quarter, Allegiant Travel Co.'s total operating revenues were $88.9 million, up 49 percent from the second quarter of 2016, according to the Las Vegas-based company's Web site. Allegiant Travel Co. is the parent of Allegiant Air and Allegiant Vacations.

Allegiant is scheduled to begin some service at Williams Gateway Airport on Oct. 25.

The airport's name changes to Phoenix-Mesa Gateway Airport on Oct. 15. The airline is expected to be serving all 13 of its planned destinations from Mesa by Nov. 21.

"Phoenix-Mesa sales have started strong and remained strong," company spokeswoman Tyri Squyres said.

The company's destinations from Williams Gateway will be: Bellingham, Wash., Santa Maria, Calif., Stockton, Calif., Missoula, Mont., Billings, Mont., Rapid City, S.D., Sioux Falls, S.D., Fargo, N.D., Cedar Rapids, Iowa, Green Bay, Wis., Rockford, Ill., Peoria, Ill., and Fort Wayne, Ind.

"Fargo, Sioux Falls and Missoula are currently in the top spot," Squyres said about sales performance. "California markets are picking up as we get closer to start."

By a wide margin, the majority of Allegiant bookings for Mesa flights are for travelers coming into the Southeast Valley, Squyres said.

Allegiant tickets cannot be purchased on travel Web sites and that control of distribution is cited in the report as a factor behind the company's low operating costs.

The report said the airline has established an important revenue source by charges for such things as booking tickets online or over the phone, checking bags, sitting in assigned seats, and buying drinks, snacks and travel pillows on board.

The company also has agreements to sell travel packages that include hotel accommodations, car rentals, theme park and show tickets.