Allegiant Travel Company, based in Las Vegas, NV, was founded in 1997. The company, through its subsidiary Allegiant Air LLC, operates a low-cost passenger airline. It focuses on linking leisure travelers in small and medium sized cities to world-class leisure destinations.

At 2022-end, the company which competes with the likes of Southwest Airlines, JetBlue Airlines and Spirit Airlines in the low-cost space, provided services on 571 routes across 93 origination cities and 32 leisure destinations, simultaneously covering 42 states.

Apart from air travel, the company offers vacation deals including car rentals and hotel bookings. Allegiant is making constant efforts to modernize its fleet. As of Dec 31, 2022, the company’s operating fleet consisted of 86 A320 jets (both A319 and A320 aircraft).

The company focusses on unbundling its air-related products and services like baggage fees, advance seat assignment among others. Allegiant, which also offers air transportation through fixed fee flight arrangements, focuses on generating significant additional ancillary revenues thanks to its unique business model.

By focusing on leisure travelers only, this unique business model enables the company to avoid heavy costs of serving a variety of customers. In order to reduce costs, Allegiant usually purchases used aircraft with useful remaining years. Additionally, this non-traditional approach also brings down distribution- related expenses.

The company also attracts customers by offering third party travel products like hotel rooms and ground transportation. The company also generates revenues by temporarily functioning as a lessor to acquire aircraft and/or engines. Unlike many other carriers, Allegiant does not offer connecting flights. It also does not have frequent flier agreements.

The company reported a 34.6% year over year increase in operating revenues to $12,301.8 million in 2022. The increase was due to 35.4% rise in passenger revenues. Passenger revenues accounted for 92.9% of the top line in 2022.

Revenues from third-party products increased 16.7% year over year and contributed 4.4% to the top line in 2022. Fixed fee contract revenues, increased 48% and contributed 2.6%. Other sources of revenues accounted for the balance. Notably, the company’s fiscal year coincides with the calendar year.