*Total system includes scheduled service, fixed-fee contract and non-revenue flying 

“We are very proud to report our 33^rd consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company.  “I especially want to thank our team members for their efforts.  Their everyday efforts delivering our customers safely and reliably is critical to our continued success. 

“Our 14.1% pre-tax margin is the 10^th consecutive quarter in which we have achieved double digits.  We are especially pleased about these results in light of the rapid increase in fuel prices we experienced during the quarter, in particular during the month of March, typically our most profitable month of the year.  

“Our strong results are principally due to a 13.3% increase in scheduled service passenger RASM (PRASM) and an 11.4% increase in total scheduled service RASM (TRASM) compared with 1^st quarter 2010.  We believe our unit revenue gains are due to a stronger demand environment, changes in our pricing strategy and tactics, and our aggressive management of capacity in our network.  During the quarter, our scheduled service ASM growth was only 2.7%, our slowest pace of year over year growth since the 3^rd and 4^th quarters of 2008.  

“Our current capacity plans remain very constrained, all in an effort to manage through this period of rapid fuel price escalation.  Once we believe fuel price increases begin to moderate, we expect to return our rate of growth to our historic norms,” concluded Gallagher. 

Andrew C. Levy, President of Allegiant Travel Company, stated, “Our strategy of constraining capacity to respond to sharply rising jet fuel prices enabled us to offset most of the 14% increase in our average system jet fuel cost from the 4^th quarter 2010 to the 1^st quarter of 2011.  We expect to continue to report substantial year over year unit revenue increases for the next few months.  April PRASM is expected to increase between 22% and 24% and we expect a similar increase for the entire 2^nd quarter of 2011.   

“The total fare of $125 per passenger is the highest we have ever recorded, due mostly to a 9.3% increase in average air fare, but also due to a 33% increase in third party ancillary revenue per passenger.  The improvement in net ancillary revenue was achieved through margin improvement and increased sales of hotel and transportation products,” concluded Levy.