Allegiant Air to Rebound on Increased Location Announcement

By Terry Green
Jan 21 2011

Allegiant Air, based in Las Vegas, announced this morning that they would be adding more cities to their travel base and bringing back some of the flights that were dumped when costs began to rise.

Allegiant Air is a low-cost, no frills airline. They offer cheap, non-stop flights from states all over to some of the hottest travel destinations in the US. However, when air travel started to take a massive hit during the economic recession, the company dropped several of their direct flights to save money.

These days things are looking up for the airlines and Allegiant Air is planning to add more destinations to their map. This will help the sagging share prices in the company that took a big hit last week when their final 2010 quarter profits were well below what was expected.

The company has said that the cost of fuel is causing the dip in profits as the price of crude oil continues to rise. This is restricting many airlines from making the best deals on travel because they are only able to run the planes with a certain amount of cash on hand.

However, income should rise as the flights to Las Vegas from several states around the US begin once again. The company said that there is no plans to bring back the $99 flight package that put them on the map for the low-cost air carriers around the US and made them a nice profit over the two years that it was viable.