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<\/figure>\nAllegiant\u2019s Revenue and Profit Was Up<\/h3>\n
Allegiant finally announced its Q2 earnings<\/a>, and the carrier posted $158 million in EBITDA in its first earnings since the close of its merger with Sun Country on May 13.<\/p>\n The two carriers combined for $943.5 million in operating revenue, including $776 million for Allegiant alone, a record for G4 and 16% higher than last year despite capacity being down nearly 7%. The carrier says air-related ancillary revenue stayed flat, and its increase in revenue (and profit) came from higher fares, increased bundle sales, and upsells to Allegiant Extra. It also saw credit card and other third-party-product revenue increase 32% to $44.5 million. Its average fare was $76.90, 47% higher than last year\u2019s $52.20.<\/p>\n Costs rose for the Nearly 10 years after it was first delayed for safety reviews, the Federal Aviation Authority finally signed off<\/a> on the airworthiness of the Boeing 737-7 MAX. Despite being smallest of the 737 MAX family, some say it\u2019s the mightiest of the bunch. (And by some<\/em>, we mean one airline\u2026.)<\/p>\n Southwest has been, and will be the launch customer for the type and is certainly eager to get its hands on the first deliveries. Before they can be delivered to WN, they\u2019ll be retrofitted with the airline\u2019s new extra legroom seats and a sprinkling of LUV. The airline is expecting to put the MAX 7 fleet into service next year. Boeing has built 30 MAX 7s and nine MAX 10s to this point, with the MAX 10s accounting for about 30% of its outstanding orders.<\/p>\n As part of the certification process, Boeing was required to redesign the engine\u2019s anti-ice system, the flight control and crew alerting systems, and for WN specifically: the tap to pay in the restroom which charges customers $0.25 for the first two minutes, $0.10 for every 30 seconds thereafter, and $0.49 per toilet paper square used.<\/p>\n American Airlines AAnounced Thursday that it would no longer permit<\/a> complimentary upgrades from Main Cabin to First\/Business on domestic flights sold with three cabins. Passengers with elite status seated in the back will be permitted to upgrade one class to Premium Economy but can say goodbye to the fancy seats in the front.<\/p>\n This means on nine AA routes, the ability to skip Premium Economy on a complimentary upgrade is no more \u2014 but those who purchase Premium to begin with will be able to upgrade to Business. Other than the obvious Boston to Rochester (NY) route, the nine domestic routes AA currently flies with three cabins are:<\/p>\n So we\u2019re talking about three of the most premium coast-to-coast routes and a bunch to Hawai\u2019i. <\/p>\n It doesn\u2019t matter how you get to Premium Economy \u2014 purchasing it outright, using miles to upgrade, or a systemwide upgrade certificate \u2014 you are still eligible for the bump to Business. This new policy is expected to go live on August 25 or as soon as AA\u2019s IT team can figure out how to implement it without shutting down the entire airline on accident. <\/p>\n Allegiant\u2019s 1,300 pilots ratified<\/a> a new two-year collective bargaining agreement to maintain labor peace in the cockpit at the recently-merged carrier. The agreement comes after typically feisty negotiations that included picketing by pilots at nearly two dozen airports late last year.<\/p>\n Highlights of the deal include a 40% raise off the bat, 54% in increased wages by January, and other gains in retirement benefits and workplace policies. Ninety nine percent of eligible pilots voted, with it passing at an 80-20 clip. So all is well with Allegiant pilots, but unfortunately we can\u2019t say the same about the other half of the Allegiant \u2013 Sun Country merger as that airline is concerned it\u2019s losing its skygods to its MSP rival Delta.<\/p>\n CEO Greg Anderson said this week that elevated attrition amongst the pilot ranks of Sun Country is mostly from the MSP area. Anderson says those pilots are moving to the \u201clargest full-service carrier in MSP\u201d and we can assure you he\u2019s not talking about Mesaba<\/a>. Sun Country removed nearly 350 September departures from its schedule to account for the loss of so many pilots, while the Las Vegas-based carrier hopes to use the savings from cutting flights and paying less pilots to grow its deicing capacity up from its current level of \u201cit doesn\u2019t get cold in Vegas.\u201d<\/p>\n American Airlines partnership with Landline in Chicago will end later this year<\/a> as the carrier elects to eliminate one route entirely, and switch the other to (gasp) being operated by an airplane.<\/p>\n AA will completely exit the market in Rockford (IL) at the \u201cChicago\u201d Rockford International Airport. AA\u2019s departure from the airport located about three hours west of Chicago\/ORD will leave Allegiant as its lone carrier. The other Landline route for AA in Chicago was to wake up the echoes in South Bend. Despite the ending of the bus route, American will continue serving ORD-SBN, flying 3x daily beginning October 5. Both Landline routes began last October and will not survive to see a second birthday.<\/p>\n These reductions do not apply to AA and Landline\u2019s relationship in Philadelphia, where it\u2019ll continue to offer connecting \u201cflights\u201d to five destinations. ORD exiting the Landline family will leave it with four current hub airports for \u201cconnecting service\u201d including: Minneapolis\/St Paul, Montr\u00e9al, Philadelphia, and Toronto. It operates its own shuttle services to-and-from the airports in Boston and Denver.<\/p>\n A man walks into a bar carrying a large piece of asphalt.<\/p>\n He says to the bartender, Allegiant\u2019s Revenue and Profit Was Up Allegiant finally announced its Q2 earnings, and the carrier posted $158 million in EBITDA in its first earnings since the close of its merger with Sun Country on May 13. The two carriers combined for $943.5 million in operating revenue, including $776 million for Allegiant alone, a record for […]<\/p>\n","protected":false},"author":1,"featured_media":361987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12028],"tags":[43454,17845,17604,7385,17846,1750,243,4840,457],"dealstore":[],"offerexpiration":[],"class_list":["post-7035511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airline","tag-allegiant","tag-cranky","tag-faa","tag-finally","tag-flier","tag-max","tag-quarter","tag-signs","tag-strong"],"yoast_head":"\nairline<\/del> travel company<\/del> airline as they did for everyone else. CASM jumped 28% to nearly $0.14, thanks in-part to a 71% increase in fuel costs. It ended the year\u2019s first half with $1.3B in liquidity, most it which it plans to spend at next month\u2019s company picnic in Lodi, Colorado which is located halfway between Minneapolis\/St Paul and Las Vegas. We assume this gateway to 29,000-person Morgan County will become the airline\u2019s newest base.<\/p>\n![\"\"](\"https:\/\/s6331.pcdn.co\/wp-content\/uploads\/cwr2-1.jpg\")
<\/figure>\n737-7 MAX Finally Receives FAA Certification<\/h3>\n
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<\/figure>\nAmerican Makes Complimentary Upgrades Tougher<\/h3>\n
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<\/figure>\nGood News\/Bad News for Pilots at Allegiant<\/h3>\n
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<\/figure>\nEnd of the Road at Chicago\/ORD<\/h3>\n
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\u201cA beer for me\u2026 and one for the road.\u201d<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"