Allegiant Travel pledges to serve the vacation needs of residents of more than 100 small US cities in 41 states. Through Allegiant Air, the company provides nonstop service to tourist destinations such as Las Vegas, Los Angeles, and Orlando, Florida, from places such as Cedar Rapids, Iowa; Fargo, North Dakota; and Toledo, Ohio. It maintains a fleet of about 50 MD-80 series aircraft. Besides scheduled service, Allegiant Air offers charter flights for casino operators Caesars Entertainment (formerly Harrah's Entertainment) and MGM MIRAGE, in addition to other customers. Sister company Allegiant Vacations works with partners to allow customers to book hotel rooms and rental cars along with their airline tickets.
The company has a route network providing service on 294 routes between 87 cities and 17 leisure destinations. It serves 41 US states.
Allegiant Travel's operating fleet consists of 51 MD-80 aircraft, 26 A320 series aircraft, and five Boeing 757-200 aircraft providing service on 294 routes to 104 cities. The company is also expecting that the services would expand to 322 routes and 111 cities by late 2016.
Allegiant Travel has achieved extraordinary growth over the last five years, with revenues surging 11% from $1.14 billion in 2014 to peak at $1.26 billion in 2015, a company milestone. Profits also more than doubled from $87 million in 2014 to reach a record-setting $220 million in 2015 mostly due to the lower price of fuel. Cash flow has also followed the same upward trend, climbing by 35% in 2015.
The historic growth for 2015 was attributed to a spike in ancillary air-related revenue fueled by an increase in scheduled service passengers as well as continued revenue optimization efforts. In addition, increased customer convenience fees and the effective yield management of other existing products drove an increase in its average ancillary air-related fare per passenger.
Allegiant Travel's business strategy includes expanding its ancillary products and services and adding new destinations to its flight network. During 2015, the company added service to four leisure destinations, commenced service on 69 new routes, and discontinued service on under-performing routes. Based on its currently published schedule through August 2016, the company plans to increase total routes to 322, increase the number of leisure destinations served to 19, and increase the number of cities served to 92.
In 2016 the company entered into forward purchase agreements for 11 Airbus A320 series aircraft. It expects delivery of seven aircraft in 2016 and the remaining four in the first half of 2017.