Las Vegas-based Allegiant Travel Co., parent of LCC Allegiant Air, posted third-quarter 2017 net income of $22.3 million, a 51% drop from $45.5 million in net profit during the year-ago quarter, as a result of September’s Hurricane Irma and the Las Vegas shooting Oct. 1.

The airline canceled 444 flights when Hurricane Irma struck the Caribbean, Florida and southeast US in September, or approximately 2% of Allegiant’s scheduled capacity for the quarter. Cancellations accounted for nearly 2% of the company’s 3Q expenses. Nonetheless, the airline’s TRASM for the quarter was up 0.7% to 10.61 cents.

Operating revenue was $348.8 million for the quarter, up 4.6% year-over year. Expenses rose significantly, up 19.2% to $305.9 million, on rising labor, fuel, depreciation/amortization, and sales/marketing costs. The LCC’s operating income for the quarter came to $42.9 million, down 44.1% year-over-year (YOY).

In the company’s third-quarter results statement, Allegiant chairman and CEO Maurice Gallagher confirmed the airline’s intent to remove its MD-80s from service. “We now plan to retire our last MD by the end of 2018 … one year earlier than was previously expected,” Gallagher said. “[Thanks] goes out to the members of our fleet team, who … were able to source enough [Airbus] A320 aircraft to make this happen.”

Allegiant retired five MD-80s and added five A320s and one A319 into revenue service during the quarter. As of Sept. 30, Allegiant’s fleet comprised 40 MD-80s, two Boeing 757s, 21 A319s and 26 A320s, for a total fleet of 89 aircraft. By year-end 2018, Allegiant will operate an all-Airbus fleet of 50 A320s and 32 A319s.

The company is expecting residual fourth-quarter effects from Irma and the mass shooting incident in Las Vegas, and projects its 4Q 2017 TRASM to decline to between negative 3% to negative 0.5%. The LCC said it is seeing, so far, a decrease in demand for the fourth quarter and noted that approximately 80% of its 4Q capacity traditionally touches Las Vegas or Florida.

The airline revised its full-year 2017 capital expenditure guidance to $604 million, versus its prior guidance of $525 million, based on the company’s expected commitment for five additional A320s in the fourth quarter. Additionally, the company revised its full-year 2017 CASM ex-fuel guidance to show an increase between 11% and 12%, as well as its maintenance and repair expenses for the full year, which Allegiant now expects to be between $105,000 and $110,000 per in-service aircraft per month.

Allegiant’s total system traffic rose 1% YOY during the quarter to 2.7 billion RPMs on 3.2$ capacity growth to 3.2 billion ASMs, producing an 83% passenger load factor for the quarter, down 1.7 points YOY.

Mark Nensel mark.nensel@penton.com