Allegiant Travel Company (ALGT) Keeps Flying for Shareholders

Allegiant’s recent decision to acquire Airbus aircraft will also open new market opportunities. Not only are the Airbus planes more fuel-efficient than the MD-80, they also have superior capabilities: longer range and shorter takeoff/landing distances. As a result, adding A319 and A320 aircraft will generate a number of new route opportunities that were not feasible with the MD-80.

Conclusion
Allegiant’s management team has delivered consistent profitability for shareholders over the past 10 years. Moreover, the company has clear strategies for growing the bottom line. Most notably, Allegiant is taking advantage of favorable pricing in the marketplace to buy and lease more fuel-efficient and more capable Boeing 757 and Airbus A319/320 aircraft. These acquisitions will open new route opportunities while boosting Allegiant’s profitability.

The article Allegiant Keeps Flying for Shareholders originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg owns shares of Delta Air Lines and Hawaiian Holdings (NASDAQ:HA). Adam Levine-Weinberg has the following options: Short Mar 2013 $14 Calls on Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned.

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