Last updated: 09:02 AM ET, Thu October 22 2015

Allegiant’s Whopping Earnings Miff Pilots

Airlines & Airports | Rich Thomaselli | October 22, 2015

Allegiant’s Whopping Earnings Miff Pilots

Allegiant Air had a big third quarter as it announced its earnings Wednesday, certainly bringing a smile to the face of almost everyone associated with the company.


The carrier’s pilots, with whom Allegiant has been engaged in a long and contentious contract negotiation, have alleged for the last year that the airline has a maintenance problem that is endangering the lives of its passengers.

“Allegiant should be using its profits to invest in the airline’s maintenance and operations to avoid the emergency landings and other diversions that are inconveniencing passengers and putting them and its employees at risk,” Dan Wells, president of Local 1224, the union that represents Allegiant Air pilots, said in a statement. “The company’s nickel-and-dime approach to maintenance has resulted in a high number of delays, emergency landings, and evacuations this summer.”

Earlier this month, a Fresno, Calif.-bound Allegiant flight was evacuated on the tarmac in Las Vegas after an engine caught fire. Last month, a flight was diverted from Bismarck, N.D. to Las Vegas and forced to divert to Utah. Another flight, in July, was forced to land at a shuttered airport in Fargo, N.D. when pilots said they were running out of fuel.

“These operational issues can be prevented, but Allegiant continuously refuses to put its money into its aircraft, maintenance and staff,” Wells said. “Allegiant customers are facing hours on planes without air conditioning, cancellations and delays because spare tires have not been stocked and aircraft engines overheating because the company is cutting corners on maintenance that could easily be addressed.”

Allegiant’s third-quarter revenue of $300 million was up 13.2 percent from the same period last year; its $44.5 million in profit was up a whopping 213.4 percent from the same period last year; and its earnings per share of $2.62 was up 227.5 percent year over year.

“With new profits reported, it’s time for Allegiant to put resources into operations to ensure the long-term success of the company,” Wells said.


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