Allegiant Travel Company (ALGT) has reported a 27.15 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $41.31 million, or $2.48 a share in the quarter, compared with $56.71 million, or $3.38 a share for the same period last year.
Revenue during the quarter grew 8.04 percent to $335.88 million from $310.89 million in the previous year period. Gross margin for the quarter contracted 386 basis points over the previous year period to 69.21 percent. Total expenses were 79.72 percent of quarterly revenues, up from 69.84 percent for the same period last year. That has resulted in a contraction of 988 basis points in operating margin to 20.28 percent.
Operating income for the quarter was $68.12 million, compared with $93.76 million in the previous year period.
"2016 has been a very transformational year for Allegiant," stated Maurice J. Gallagher, Jr., chairman and chief executive officer of Allegiant Travel Company. During this year we finalized a single fleet type plan, signed our first pilot contract agreement, launched our credit card program, and announced the appointment of John Redmond as President of Allegiant. Each of these actions is critical in the evolution of our business model in the coming years. We have also had our share of challenges this past year but through the perseverance of our team members we were able to deliver our 56th consecutive profitable quarter and another successful year.
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