Allegiant Air Expects No Long-Term Hit to Earnings After 60 Minutes Report
Photo Credit: Allegiant Air executives said Wednesday they do not expect a long-term revenue hit from a recent 60 Minutes report. Pictured is one of the airline's MD80s. Allegiant Air Facebook
Skift Take
What? You thought investment analysts would grill Allegiant Air executives on safety lapses detailed last week on U.S. television news? Clearly you don't know analysts well. Allegiant is solidly profitable, and given its unique model, it should stay that way. That's important to investors.
Allegiant Air executives dismissed suggestions that an April 15 television news report on its maintenance practices and safety culture will scare customers, admitting Wednesday they saw more cancellations and fewer bookings just after the piece aired, but adding they do not expect the issues markedly will affect second quarter results.
"The degree of these cancellations and bookings have reduced each day, to a point where we are starting to reach normalcy," said John T. Redmond, president of Allegiant Travel Co., the airline's parent. "This story is behind us and we won't be commenting any further as we move forward."
The story by 60 Minutes was major news 10 days ago, with correspondent Steve Kroft noting Allegiant aircraf
