Allegiant Air tops airline industry profits

Think of Allegiant Air as the little airline that could.  They went from a bankrupt company with a single airplane in 2001 to the most profitable carrier in America today.


Allegiant

In a release, the company announced $13.8 million in profit for their quarter ending September 30.  This gives them more profit per dollar than any other domestic carrier.

After relocating from Fresno to Las Vegas, they began a bold new strategy that seems to have worked.  They offer cheap flights to people in small cities to visit major tourist destinations, such as Las Vegas, Orlando, and Tampa Bay. 

“They don’t care about (flight) frequencies, serving big cities or having a large (route) system,” said Darryl Jenkins, airline analyst, as quoted in the Times. “Those guys only care about making money and doing things right.”

Allegiant flies to 69 cities using 44 jets.  In comparison, Southwest Air connects 67 cities with 544 jets.  Allegiant flies used MD-80s.  Southwest uses brand new 737s. 

Allegiant limits flight frequency to ensure that most flights are full.  Daily flights are a rarity.  They do not cater to tight-scheduled business customers.  This strategy ensures that they only have direct competition on five of their routes.  And, all flights are nonstop.