Allegiant Air retires all its MD-80’s by 2018

By |November 13th, 2017|Air & Travel Business, Aircraft, Airline Finance, Airlines, Region, Region - North America|Comments Off on Allegiant Air retires all its MD-80’s by 2018

In Allegiant’s third-quarter results statement, CEO Maurice Gallagher confirmed the airline’s intent to remove its MD-80s from service. “We now plan to retire our last MD by the end of 2018. One year earlier than was previously expected,” Gallagher said.

Allegiant Air retired five MD-80s and added five A320s and one A319 into revenue service during the quarter. As of Sept. 30, Allegiant’s fleet comprised 40 MD-80s, two Boeing 757s, 21 A319s and 26 A320s, for a total fleet of 89 aircraft. By year-end 2018, Allegiant will operate an all-Airbus fleet of 50 A320s and 32 A319s.

Allegiant Travel Co., parent of ultra-LCC Allegiant Air, posted third-quarter 2017 net income of $22.3 million, a 51% drop from $45.5 million in net profit during the year-ago quarter, as a result of September’s Hurricane Irma and the Oct. 1 Las Vegas mass shooting. The airline canceled 444 flights when Hurricane Irma struck the Caribbean, Florida and southeast U.S. in September, or approximately 2% of Allegiant’s scheduled capacity for the quarter. Cancellations accounted for nearly 2% of the company’s 3Q expenses.

The airline’s unit revenues for the quarter was up 0.7% to 10.61 cents. Operating revenue was $348.8 million for the quarter, up 4.6% year-over-year. Expenses rose significantly, up 19.2% to $305.9 million, on rising labor, fuel, depreciation or amortization, and sales or marketing costs. The LCC’s operating income for the quarter came to $42.9 million, down 44.1% YOY, Allegiant said.