43
Allegiant earnings soar 88%
By Kalea Hall
VIENNA
Allegiant Air, the only commercial airline at the Youngstown-Warren Regional Airport, said Wednesday it will give its pilots a raise because of the company’s success.
The Las Vegas-based company halted a strike by pilots earlier this month, obtaining a court-ordered temporary restraining order.
The pilots, represented by the International Brotherhood of Teamsters Local 1224, have issues with the reduction in benefits for pilots as the company enjoys growth in profits, and deterioration of a scheduling system.
The airline reported operating income Wednesday of $108.1 million in the first quarter of 2015 compared with $57.3 million in the first quarter of 2014 — an 88.7 percent increase. Net income was $64.9 million in the first quarter of this year compared with $34.2 million in the first quarter 2014 — an 89.8 percent increase.
Earnings per share were $3.74 for the first quarter compared with $1.86 in the same quarter 2014.
“I’m also pleased to announce our pilots will be receiving a pay increase as a result of our continued success,” said Maurice J. Gallagher Jr., chairman and CEO of Allegiant. “As part of our pilots’ variable pay band structure, pilot pay scales will increase between 5 and 7 percent per hour effective May 1.”
Cameron Graff, first officer at Allegiant Air and the union’s executive council chairman, said the pay raise announced for May 1 is a part of Allegiant’s existing agreement with the pilots.
“Unfortunately, it does not reflect any movement on restoring the status quo regarding scheduling or other issues that pilots have been raising,” Graff said.
The ongoing labor activities, which began with negotiations in November 2014, caused the Federal Aviation Administration to step up surveillance of the airline’s operations.
The airline offers flights to Orlando, Tampa, Fort Myers and Myrtle Beach, N.C., from Youngstown.
“We are not aware of any findings from the FAA related to this increased surveillance,” Gallagher said. “However, the FAA has indicated their heightened focus and surveillance associated with the labor activity will continue until the outcome of the litigation is known.”
Allegiant filed for a preliminary injunction before a Las Vegas federal court that would permanently prevent a strike and allow the company and pilots to focus on negotiations, a company spokesperson said. The airline expects an outcome on the injunction in the coming weeks. Federally mediated negotiation between the company and pilots is scheduled for late April.
New markets accounted for 72.9 percent of the growth in the quarter. The airline had an 8.7 percent increase in its number of passengers from 2 million in the first quarter of 2014 to 2.2 million in the first quarter of 2015.
Capital expenditures were up from $11.1 million in the first quarter of 2014 to $64.1 million in the first quarter of 2015 because three Airbus aircraft were added to in the first quarter.