Allegiant Travel Company (ALGT) has reported 42.16 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $41.63 million, or $2.50 a share in the quarter, compared with $71.98 million, or $4.29 a share for the same period last year. Revenue during the quarter grew 7.81 percent to $375.84 million from $348.62 million in the previous year period. Gross margin for the quarter contracted 752 basis points over the previous year period to 69.42 percent. Total expenses were 80.61 percent of quarterly revenues, up from 65.26 percent for the same period last year. That has resulted in a contraction of 1535 basis points in operating margin to 19.39 percent.
Operating income for the quarter was $72.89 million, compared with $121.13 million in the previous year period.
"We had another profitable quarter - our 57th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., chairman and chief executive officer of Allegiant Travel Company. "Our transition to an all-Airbus fleet is underway and, so far, on schedule. One-time expenses associated with this transition will be lumpy, most of which will occur from now through the summer of 2018. By the end of this year we expect to have 60 percent of the transition complete, or a fleet of 51 Airbus aircraft. We should be finished with this effort and out of the MD-80 by the end of 2019.
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