Allegiant finds routes to profit despite downturn

10/19/2009 | USA Today

Allegiant Air has become "one of the most profitable airlines in the U.S." by ignoring business travelers and flying to forgotten airports, USA TODAY reports. The company also earns nearly as much on car rentals, hotel rooms and other vacation charges as it does on selling airline seats. "That's why we call ourselves Allegiant Travel Co., because we don't see ourselves as limited to flying people from Point A to Point B," says CFO Andrew Levy. Though Allegiant has reported 27 profitable quarters in a row, analysts warn that rising fuel or maintenance costs could undermine the company's business plan.

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