Allegiant Air Financial Statement

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Allegiant Air has had a financial successful story for what people would expect in the low cost carrier markets of today. Allegiant is in its 45th consecutively profitable quarter which is excellent when you consider they were out of bankruptcy in 2001 which makes them continually profitable since 2003. The company has used strategies that avoid barriers imposed by larger and more established carriers by using strategies such as using regional airports instead of major airports, using terminals during off peak times, investments in fuel to curve prices, and assets that are low cost to own and operate. Revenue was just short of a billion and were up 10% from 2012 (Annual Report, 2014).
Allegiants largest expense as reported by their 2013 Annual Report is undoubtedly fuel, costing 41.6% in 2012 and 38.7% in 2013 (Figure 1). Steps to circumvent fuel costs have included buying A319s which reduced fuel burn from 950 gallons per hour on MD80s to 725 gallons per hour in addition to establishing contractual agreements with Orlando Sanford International and affiliates and investments in fuel storage and transportation facilities. The second largest cost is salaries and benefits at 14.7% of operating costs in 2012 and increased to 15.9% in 2013. The current workforce consists of 2065 full-time equivalent
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This shows that Allegiant has been successful in seeking and maintaining full flights with their company strategy. In 2013 the cost per ASM was 10.33 cent at 5.60 cent for non-fuel and 4.73 for fuel. Allegiant states that these results were acquired through their focus on cost-driven scheduling, low aircraft ownership costs, simple product, low distribution costs, and small city market
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