Las Vegas-based Allegiant Travel reported a rare earnings loss in the company’s third quarter as the parent company of Allegiant Air struggled to sustain its low-fare profile while jet fuel prices spiked as a result of the war in the Middle East.
Allegiant minimized financial damage by continuing to fly its leisure-focused variable capacity schedule on the most fuel-efficient jets it operates. Airline executives accomplished that by reducing flying on low-capacity days like Wednesdays and Saturdays, concentrating more on peak days leading up to or ending weekends.
Increases in the cost of fuel have battered all the major airlines with Allegiant reporting costs up 55.7 percent to $3.97 per gallon from $2.55 a year ago.
