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Fuel Prices Stunt Vegas Airline’s Growth

The ever-increasing  price of fuel has crimped Allegiant Travel’s growth plans.

In reporting its February traffic, the Las Vegas-based airline said its flight count will fall in a range of a 1 percent gain to 3 percent decline during the second quarter. According to the R-J, the projection showed an increase of 5 percent to 9 percent just two months ago.

According to company president Andrew Levy, the pump price it pays at McCarran for aviation fuel has risen 16 percent since the start of the year to $3.16 a gallon. Allegiant’s first weapon against rising fuel prices is to ground its least profitable flights.

During February, the number of passengers carried on scheduled flights rose 1.9 percent to 414,000, while the number of seat miles flown dropped about 3 percent.

This, after the airline announced just last week, it would lay off over 150 employees, in order to outsource their positions to a third-party operator.

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